Telephone Services

Many consumers are now able to choose both local and long-distance phone service providers. These companies offer many optional services such as voicemail, call waiting, caller ID, paging, and wireless services.

Think first about how you use the telephone. Once you have answers to these questions, you can compare services and prices. Your best buy may be a package deal from one company or services from different companies.

• Whom do you call most often?
• What time of day or day of the week do you call?
• Do you want to get messages and if so, do you need voicemail or will an answering machine do?
• Do you need call waiting and/or caller ID?
• How important is it for you to have your telephone with you when you are away from home?

Find out how each company prices its services. Are there minimum use, time-of-day or distance requirements; flat monthly fees; or special plans? For example, wireless service may be cheaper than regular local service if you don't make many calls.

Make sure you're comparing prices on similar plans and features. The nonprofit Telecommunications Research and Action Center (http://www.trac.org) offers information about long distance rates and wireless service.

The Federal Communications Commission offers consumer information on regulatory changes, how to choose a long-distance carrier, how to understand new fees and taxes on phone services, and more at http://www.fcc.gov/cib. The National Consumers League also maintains a web page (http://www.nclnet.org/phonebill/index.html) to help you understand all of the charges on your phone bills and help you recognize fraud.

Compare plans and rates at http://SaveOnPhone.com, http://www.LowerMyBills.com, http://www.ABTolls.com and http://www.PhoneBillCentral.org. Another website, http://www.10-10Phonerates.com, focuses on rates from 10-10 dial-around long-distance services.

Slamming and Cramming

"Slamming" is the switching of your long distance or local telephone service without your permission-it is illegal. You may not know you have been "slammed" until you find a different company name on your bill, or your phone charges are higher than normal. If you've been slammed:

• Ask your local phone company to switch you back to your original company at no charge;
• Tell the original company you're switching back, and ask to be enrolled in your previous calling plan; and
• Contact the company that slammed you-its name and number will be on your bill-and tell them you are exercising your right to refuse to pay charges.

If you're unable to resolve your complaint, contact the Federal Communications Commission.

"Cramming" is when companies add charges to your telephone bill for optional services you never agreed to, such as voicemail or "club memberships." You may not notice these monthly charges because they are relatively small-$5 to $30 dollars-and look like your regular phone charges.

To avoid being a victim of slamming and cramming:

• Consider putting a "block" on changes to your phone service. Ask your telephone service provider if they offer a blocking service, which usually requires the company to notify you before making any changes to your service.
• Read the fine print on contest entry forms and coupons. You could be agreeing to switch your phone service or buy optional services.
• Watch out for impostors. Companies may falsely claim to be your regular phone company and offer some type of discount plan or change in billing. They may also say they are taking a survey or pretend to be a government agency.
• Beware of "negative option notices." You can be switched or signed up for optional services unless you say no.
• Examine your telephone bill carefully every month-especially the pages that show the details.

Your phone service cannot be shut off for refusal to pay for unauthorized services. For help, contact your local or state consumer protection agency, state public utilities commission, or the FCC.

Cell Phones

Cell phones that go wherever you go can be very convenient. Before you sign a contract for wireless phone service, there are a number of questions you will want to ask.

Where can you make and receive calls? Most providers now promote their plans as local, regional or national. A local plan offers a low-cost option if most of your calls are near home. Regional plans generally offer a much larger geographic area-sometimes several states. Beware that if you call outside the area covered by these plans you will be subject to long-distance and roaming charges in addition to the airtime used. National plans are the most expensive but they let you use your phone anywhere in the country and talk to any other location in the country for a single per-minute price. Roaming and long-distance charges are replaced by a single, predictable flat rate.

How frequently will you use the phone? If you just want a phone for emergencies, an economy plan with a few minutes a month may be all that you need. On the other hand, if you are going to be a heavy user, a plan with several free hours and the lowest air time is a wiser choice.

Is a family plan option available? Instead of individual cell phone plans for each member of the family, you can share one cellular service plan among several phones. Everyone shares the same pool of monthly minutes. The cost of the additional numbers per month is usually less than if you purchased individual accounts.

Is the technology digital or analog? Digital service is more clear and more secure than analog but coverage can be spotty. Analog networks have greater coverage, especially in rural areas. If you want digital service, make sure your cellular company has a ''roaming'' agreement that lets your phone work on an analog system when you are outside digital range. But beware roaming can be expensive, and it requires a ''dual mode'' phone.

Is there a trial period during which you can test the service? Many people experience dead spots where a cell phone doesn't work. A trial period lets you test your service in places where you will be using it-for example, in your office, in all the rooms of your house, in your car, and in other places where you travel.

Are there any fees or limits on changing your plan? Some providers charge a fee if you want to downsize or upgrade your plan. Others limit how often you can make changes.

What happens if you want to cancel your service? Most providers have a penalty. This is a concern if you have to move out of the area covered by your plan.

If you want cell phone service only for emergencies or aren't sure how much you will actually use a cell phone once you get it, you may want to consider a prepaid cell phone before you commit to a long-term wireless contract. With a prepaid cell phone, there is no contract to sign and no monthly bill to worry about. You will know exactly how much you spend. The down side of prepaid plans is that you pay more per minute and if you don't use the phone for an extended period of time, you may lose the money in your account.

Pre-Paid Calling Cards

Many stores sell pre-paid calling cards. They are sold online, too. Before buying one, know the:

• per-minute rate;
• connection fee;
• maintenance fee; and
• expiration date.

For help finding the best deals on pre-paid phone cards, try www.PhoneShark.com as well as the websites listed previously.

900 Numbers

You can get all sorts of information and entertainment services by calling 900 numbers. These pay-per-call numbers are also used for surveys, contests and charitable fundraising. The "information provider" you're calling sets a price for the service, and bills you through your local telephone company.

Unfortunately, con artists have added 900 numbers to their toolbox. Some use promises of gifts and prizes to try to get you to call. Others make phony offers to help you find a job or get out of debt. Some even claim to be about a family emergency. Be wary of contests, sweepstakes, offers and messages that require you to call a 900 number. Also keep an eye on your monthly phone bill for any unfamiliar new charges.

Both the Federal Communications Commission and the Federal Trade Commission have rules concerning pay-per-call numbers. These rules say that advertisements for pay-per-call services must tell you the cost of the call. This may be a flat rate, a per-minute charge, or calculated on some other basis. Ads must also tell you what is the most you can be charged-if it can be determined. Any minimum or additional charges that you might have to pay must also be identified.

If a call involves sweepstakes, prizes, or awards, the ad must give you the odds of winning AND how you can enter without calling the 900 number. Pay-per-call services cannot advertise directly to children under age 12 unless they are legitimate educational services.

When you call a 900 number that costs more than $2, you must be told after you dial:

• the name of the company or organization sponsoring the number;
• what the call is about;
• the cost of the call;
• that you can hang up without any charge within a certain time; and
• that children under the age of 18 need their parents' consent to stay on the line.

Federal rules also give you the right to dispute a pay-per-call charge if:

• you didn't make the call;
• you called a toll-free number and were switched to a 900 number without your consent;
• a credit you're owed doesn't show up on your bill;
• the amount you're billed is wrong; or
• the service was misrepresented.

Your local and long distance telephone service providers cannot disconnect you if you refuse to pay the disputed charges. But act promptly-you generally have 60 days to dispute the charges.

• Call the local or toll-free phone number listed on your phone bill;
• Note whom you spoke to and what was said.
• Follow up with a letter. Keep a copy that explains the problem and confirms your conversation.

You can deduct the charges you are disputing from your phone bill. Pay the rest by the due date. You should hear back from the company within 40 days and the problem should be resolved within 90 days. If the charges appear on your credit card statement, see Resolving Credit Problems.

You may have other rights according to state law. Check with your state or local consumer protection agency or state utility commission.

To prevent 900 number calls from being made from your phone number, request "blocking" from your local phone company. Some but not all companies charge for this service.