Slamming and Unauthorized PIC (Preferred

Interexchange Carrier) Changes

Introduction

Lackawaxen Telecommunications Services has prepared the following information, in the form of questions and answers, to help you understand the new "Slamming Liability and Investigation" rules, issued by the Federal Communications Commission (FCC). After a brief summary, you’ll find what we hope is appropriate and timely customer information. If you still have questions, our Customer Service Reps and other LTS employees will be glad to help you resolve your slamming issues or explain your rights if your preferred interexchange carrier (PIC) has been changed without your consent.

Summary

Last November, the FCC’s new, tougher slamming liability and investigation rules went into effect. The FCC adopted new rules modifying its earlier slamming order, shifting responsibility for investigation and resolution of customers’ complaints from the long-distance companies to either state commissions or, if the state commission declines to assume responsibility, the FCC. All carriers, local and long-distance, must comply with the new preferred carrier change rules, which apply to changes of both local (where there is local competition) and long-distance carriers.

The FCC’s new rules give states the option of electing to administer the preferred carrier change rules themselves. The state agency can be either the public utility commission or another state agency charged with resolving unauthorized changes. As of January 1, 2001, the state of PA had not notified the FCC that it intends to administer the rules. Because either a state agency or the FCC may be responsible for administration, the rules refer to the agency responsible for administration as the "relevant governmental agency" (RGA).

The new FCC rules govern interstate preferred carrier changes. However, states can choose to apply the FCC rules to intrastate PIC changes as well. States can also apply their own rules to intrastate preferred carrier changes. For most states, companies will need to review both the intrastate and interstate slamming rules and make determinations of how to comply with respect to any areas with different rules.

Q & A
Slamming and Unauthorized PIC (Preferred Interexchange Carrier) Changes

Q. I have been billed for long-distance charges from a company that I did not choose as my preferred carrier. How do I get these charges removed from my bill?

A. Customers who believe they have been slammed; i.e., that there has been an unauthorized change in their PIC selection, should immediately inform LTS, their local company. Once we receive notification of an unauthorized PIC change, we will do the following:

Inform the customer that there is a 30-day absolution period and that he or she should not pay their bill.

Refer the customer to the FCC Consumer Information Bureau (until such time that the state of PA opts to administer the slamming rules itself).

Immediately notify the customer’s authorized carrier; i.e., the previous preferred carrier prior to the alleged slamming, and identify the unauthorized carrier.

Immediately notify the unauthorized carrier; i.e., the current PIC as a result of the switch, and identify the authorized carrier.

NOTE: LTS should make available to CSRs the telephone number of the PA PUC or RGA (if different), or the FCC’s Consumer Information Bureau (if applicable).

Q. What will the FCC (or the state RGA) do when an unauthorized PIC change is reported?

A The FCC’s new rules require that:

Any carrier informed by a customer of an unauthorized preferred carrier change must direct the customer to the relevant governmental agency (RGA).

(NOTE: For LTS, the FCC is currently the RGA for PA customers.)

Upon receiving a complaint, the RGA will notify the alleged unauthorized carrier and order that the carrier remove from the customer’s bill all unpaid charges for the first 30 days after the slam, pending determination of whether an unauthorized change has occurred.

Within 30 days of notification from the RGA, the alleged unauthorized carrier must provide to the RGA a copy of any valid proof of verification of the customer’s preferred carrier change.

The proof of verification must comply with the FCC’s authorization and verification rules.

Failure by the carrier to respond or provide proof of verification will be presumed to be clear and convincing evidence of an unauthorized change.

If the RGA determines that an unauthorized change has occurred, it will issue an order to the unauthorized carrier directing compliance with the 30-day absolution rule and/or the reimbursement rules.

Q. What is the 30-day absolution period?

A. The 30-day absolution period refers to the first 30 days after an unauthorized PIC change has been made. The customer is not responsible for any charges during that period, as long as the customer has not remitted payment for such charges. If the customer has already paid the charges, the reimbursement rules apply (see next question). Any local telephone company, unauthorized long-distance carrier, or authorized long-distance carrier receiving a report from a customer of an unauthorized change must inform the customer of the 30-day absolution period.

The alleged unauthorized carrier can challenge the validity of an unauthorized change, provided it has directed the customer to file a complaint with the RGA responsible for such investigation. The alleged unauthorized carrier must remove unpaid charges from customers’ bills, whether or not they are challenging the allegation. Should the RGA investigation indicate that the preferred carrier change was authorized, the charges will be reinstated.

Q. What if I paid the unauthorized carrier in error, can I get reimbursed for charges incurred during the first 30 days?

A. If the relevant governmental agency (RGA) determines that an unauthorized change has occurred and the customer has already remitted payment to an unauthorized carrier, including charges applicable to the first 30 days, the customer will be entitled to a refund equal to 50% of the charges paid to the unauthorized carrier. The authorized carrier will be responsible for remitting the 50% refund to the customer within ten days of receiving payment from the unauthorized carrier. The customer has the option of asking the authorized carrier to re-rate the unauthorized carrier’s charges at the authorized carrier’s rate, after which the authorized carrier will seek an additional refund from the unauthorized carrier if the re-rated amount produces a total credit to the customer in excess of 50% of all charges paid to the unauthorized carrier. The authorized carrier does not have to make any refunds to the customer if it fails to receive the funds from the unauthorized carrier.

Q. What about unpaid charges incurred after the 30-day absolution period?

A. If the customer has long-distance charges from an unauthorized carrier for calls after the 30-day absolution period and for which the customer has not remitted payment to the unauthorized carrier, the allegedly unauthorized carrier will remove such charges from the customer’s bill and forward the billing detail to the authorized carrier. The authorized carrier has the right to bill the customer for unpaid calls carried by the unauthorized carrier after the 30-day absolution period. The authorized carrier may either bill such calls at the authorized carrier’s rates or at a proxy rate equal to 50% of the unauthorized carrier’s rate. However, if the authorized carrier bills the calls at a proxy rate, the customer has the right to reject that method and require rating at the authorized carrier’s rates.

Q. What must the alleged unauthorized carrier do after it receives notification of a customer’s slamming complaint?

A. Under the new rules, the alleged unauthorized carrier must do the following:

Inform the customer of the 30-day absolution period.

Refer the customer to the FCC Consumer Information Bureau (or to the state RGA, if the state has opted to administer the slamming rules itself).

Remove unpaid charges from the customer’s bill.

Refer the complaint for resolution by the RGA.

If available, provide proof of verification to the RGA within 30 days after notification of the complaint, or sooner if required by state rule.

Depending on the resolution of the complaint by the RGA, comply with all relevant liability rules, absolution procedures, and reimbursement procedures.

PIC (Preferred Interexchange Carrier) Freezes

Lackawaxen Telecommunications Services offers customers protection from slamming and unauthorized changes in their preferred interexchange carrier (PIC), and that is by using a PIC Freeze. By notifying us that you would like to "freeze" your long-distance company or companies (if you have selected one company as your interLATA [out-of-region] PIC and another for your intraLATA [in-region] PIC), you can avoid being slammed or suffering unauthorized or illegal switches to your account.

If you have requested Lackawaxen to place a PIC freeze on your long-distance service, your preferred carrier will not be changed without your direct authorization, either written or verbal. There is no charge for this service, and all you need do is sign a PIC Freeze form. If you’d like to take advantage of this protection, just call the Lackawaxen business office, and a Customer Representative will help you.

Q & A
Ordering a PIC Freeze
Q. How are freeze orders accepted?

A. The FCC has required that customers be able to impose or lift PIC freezes by contacting their local telephone company. Local companies, such as Lackawaxen may not accept freeze orders from carriers on behalf of customers. The rules allow customers to make a (PIC) change and a PIC freeze at the same time. But, in such a case, Lackawaxen must verify both the customer’s carrier change and freeze requests.

Q. Are separate authorizations required for multiple services?

A. Yes. The FCC requires separate authorization of each service for which a customer requests a PIC freeze. Customers have the option of using one of the authorization and verification methods specified in the FCC’s rules; e.g., a written Letter of Authorization, third-party verification, in addition to the Internet LOA.