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

  1. The menu tried really hard to prevent you from speaking to a representative.
  2. The hold time is not any shorter than it was last year and the menu wasted more of your time. And
  3. 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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