AT&T's Phone Bill Scam
This is the story of how AT&T tried to rip off an individual
consumer who made a few international telephone calls.
The Wall
Q: Why is Yellowstone steaming all over?
A: Because it got slammed by AT&T.
Phil:
What? $2.92 per minute?
AT&T:
Yes Mr. Liao, because you signed up with
AT&T long distance, you had agreed to
pay our "basic rate" for international
calls. If you had signed up for a calling
plan, you would've gotten better rates.
Phil:
When I signed up with AT&T, I didn't sign or
see any document that said anything about
international calls, basic rate or $3 per minute
rates. I did not agree to pay at this rate and
I will not pay at this rate. You must adjust my
bill.
AT&T:
Because you signed up with AT&T long distance,
you had agreed to pay our "basic rate" for
international calls.
Phil:
No I did not agree to it. Nobody in his or her
right mind would ever agree to pay $3 a minute
when he or she can get a phone card that costs
16 cents a minute.
AT&T:
Because you signed up with AT&T long distance,
you had agreed to pay our "basic rate." Hold
on, let me see exactly what rates you signed up
for: [dividing $29.20 and $17.70 by 10 minutes
with a calculator while pretending to be looking
at a rate chart] Yes, you had agreed to pay at our
"standard rate" of $2.92 per minute and "economy
rate" of $1.77 per minute. If you'd like,
I can sign you up for one of our plans so that
you will pay lower rates in the future.
Phil:
No I did not agree to that. I made the phone calls.
You provided the service. But we had never agreed
on the price, not verbally, not on paper, never. I
will not pay whatever you tell me to pay. [Can you
say "dynamic pricing?"]
Phil:
I don't want to sign up for a plan. I will not
use AT&T again. I will get a phone card.
AT&T:
I understand your frustration. But we cannot
adjust your bill. Nobody can. We charge everybody
the same rate, not just you.
Phil:
Can you tell me how much of my bill is domestic and
how much is international? I will pay the domestic
bill and continue to dispute the international bill.
AT&T:
I am sorry. I cannot do that. I have no way of
doing that. [Meaning, I don't want to do that].
Phil:
Who is your supervisor? I want to speak with your
supervisor.
AT&T:
[Reluctantly] There is a 30 minute wait for a
service supervisor. I can request to have a
service supervisor call you back in 24 to 48
hours. [Refuses to tell Phil name(s) of supervisor(s)].
After calling three of these customer service
monkeys, I finally
received a message from a supervisor. He did not leave his phone
number and extension. I called again. After a bit of struggle, I
was finally transferred to a (different) supervisor. Realizing that
she too was a thoughtless slave-monkey programmed by AT&T through our
favorite software, I quickly waved good bye over the phone,
politely, with my middle finger.
The Hype
Q: What's wrong with today's call centers?
A: They are automated.
In the old days (like last year), when you call up
AT&T, you can press "0" to speak to a real person
at any time during your call. After waiting on
a queue for a few minutes, often tens of minutes,
you finally get to speak to somebody.
With the promise of Customer Relationship Management
(CRM) software, many companies have automated their call
centers. While CRM software is designed to help the
companies attract and retain customers, in the case of
AT&T, it is used to aggravate customers by reducing
service.
When you call AT&T at 1-800-222-0300, you go through
a myriad of menus, none of which tells you how to get
to a real person. So you try pressing "0." It tells
you "sorry." You try pressing some other keys. It
tells you "sorry."
AT&T designs its phone menus under the assumption
that customers have the intelligence of a cockroach.
Navigating through the menus, you discover two types
of information: the items already listed on your bill
and adverstisement.
Miraculously, if you hit a few invalid keys in succession,
the system finally throws you to a queue of callers on
hold. When you finally get to complain to a real person,
you are steaming angry because
- The menu tried really hard to prevent you from speaking
to a representative.
- The hold time is not any shorter than it was last year and
the menu wasted more of your time. And
- The new generation of representatives is unwilling to help.
We know this CRM strategy irritates customers. But does it
really save AT&T cost? For sure, the call center staff is
now smaller in size, requires less training, and most
importantly, cheaper per minute. But the phone calls are
getting longer and less helpful. Maybe the customers will
stop calling and AT&T can downsize the entire call center?
The Flame
In early July, I filed a complaint
with the FCC. I then sent the same letter to KGO Channel 7's
"7 On Your Side" and an similar email to KRON Channel 4's
"Contact 4," both consumer assistance programs.
It is no surprise to me that the FCC has not responded. But
who knows what goes on inside the FCC anyways? I am surprised
that the TV stations' consumer assistance programs do not
deal with phone companies on behalf of individuals. They do
not even have canned solutions.
Contact 4 replied in email with a
one-liner refusing to help. Michael Finney of "7 on Your Side"
sent a lengthier paper letter of
essentially the same content. These TV stations were equipped
to fight your local roofing contractor. But they were too
chicken to fight a real snake.
The Escape
Feeling rather generous, I asked Pacific Bell to bill me for
AT&T International Long Distance at 50 cents per minute.
I paid that bill.
It is now October 1, 2000. AT&T has not sent me a new
bill for the extra $2.50-per-minute that I refused to pay.
It is probably celebrating a successful rip-off of at least
36 cents per minute!
I think Essential.com has finally switched me over to Qwest.
Why this dot-com takes three months to switch long-distance
carriers for its users, I do not know. But it gives me another
story to tell.
Follow Up
Q: I have to go to the library to find out your rates!?
A: We are just following the FCC regulations.
On October 11, 2000, I received a call from a Carol Garza who resolves
FCC complaints for AT&T Executive Appeals Office (1-877-385-9945).
She explained to me that her company had not violated any regulations
because these outrageous rates could be found in some publications.
Ms. Garza told me that AT&T was required by the FCC to make these
publications available to the general public; but AT&T was not
required to make announcements about them. In the end, Ms. Garza told
me to go to the library if I wanted to know what the "standard rates"
were.
On January 23, 2001, I received this letter
from AT&T, signed by District Manager Margaret R. Berry,
summarizing the conversation I had with Ms. Garza. (Notice how
my name was misspelled). I also received two $40 checks from
AT&T asking me to switch back. They were dated 10/30/00 and
1/10/01. But I have not yet received a bill.
Incidentally, last year AT&T acquired Cellular One, my mobile
phone carrier. Over each of the first two months, it overbilled
me $7.99 and $8.24 respectively. After some phone calls, it
finally put me on the calling plan I had originally signed up for.
This month's bill looked correct.
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