BigBend2023

Consumer Rights

Unpaid Charges After the 30-Day Absolution Period If the subscriber has calls carried by an unau thorized carrier after the 30-day absolution period for which the subscriber has not remit ted payment to the unauthorized carrier, the alleged unauthorized carrier will also remove such charges from the subscriber’s bill and forward the billing detail to the authorized carrier. The authorized carrier has the right to bill the subscriber for unpaid calls carried by the unauthorized carrier beyond 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 rates. However, if the authorized carrier bills the calls at a proxy rate, the subscriber has the right to reject that method and require rating at the authorized carrier’s rates. Reimbursement to Subscribers of Charges Already Paid to the Unauthorized Carrier Section 64.1170 governs reimbursement. If the relevant governmental agency determines that an unauthorized change has occurred and the subscriber has remitted payment to an unauthorized carrier, including charges applicable to the first 30 days, the subscriber 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 subscriber within ten days of receiving payment from the unauthorized carrier. The subscriber has the option of asking the authorized carrier to re-rate the unauthorized carrier’s charges at the authorized carrier’s rates after which the authorized carrier will seek an additional refund from the unau thorized carrier to the

extent that the re-rated amount produces a total credit to the subscriber in excess of 50% of all charges paid by the subscriber to the unauthorized carrier. The authorized carrier does not have to make any refunds to the subscriber if it fails to receive the funds from the unauthorized carrier. Under Section 1140 of the rules, any carrier submitting an unauthorized change is liable to the authorized carrier for an amount equal to 150% received by the unauthorized carrier from the subscriber. The unauthorized carrier may be liable for additional amounts to the authorized carrier to cover refunds to sub scribers calculated under Section 64.1170 where the required refund exceeds 50% of the charges billed by the unauthorized car rier. Moreover, if an authorized carrier incurs billing and collection expenses in collect ing charges from the unauthorized carrier, the unauthorized carrier shall reimburse the authorized carrier for such expenses. The FCC rules also allow for additional liability under state law for unauthorized changes. It is not clear how the FCC’s slamming lia bility and investigation rules affect LECs with respect to any role they may serve as the billing and collection (B&C) agent of an IXC who is either an authorized or unauthorized carrier in a slamming claim. Essentially, the LEC is acting on behalf of the carrier for whom it is performing billing and collection. In such capacity, the B&C contract may govern how the LEC performs the reimbursement functions. LEC’s should be careful not to act in a manner inconsistent with the FCC’s rules. Unauthorized Carrier Liability for Slamming LEC Billing and Collection Agent Duties

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