FCC Plans $2.4 Million Fine Against Michigan Company for Misleading Consumers

The Federal Communications Commission plans a $2.4 million fine against Long Distance Consolidated Billing Company. This telephone company, based in Waterford (MI), allegedly switched consumers’ regional toll service providers without their authorization (“slamming”), misrepresented the company’s identity during telemarketing calls, and placed unauthorized charges on consumers’ telephone bills (“cramming”).

The Enforcement Bureau reviewed over 70 complaints against Long Distance Consolidated Billing Company (LDCB) that consumers filed with the FCC, the Better Business Bureau, state regulatory agencies, and directly with LDCB. Consumers repeatedly complained that LDCB switched their regional toll service providers without their authorization. In some cases, consumers stated that LDCB’s telemarketer pretended to be employed by the consumer’s own telephone carrier. The investigation also showed that LDCB placed charges for its service on consumers’ local telephone bills without their authorization. The FCC has charged LDCB with willfully and repeatedly switching consumers’ preferred regional toll carrier without verified authorization, misrepresenting its identity to consumers, and cramming unauthorized charges onto consumers’ telephone bills. FCC rules prohibit a carrier from switching a customer’s preferred long distance carrier without obtaining authorization from the customer to make such a change.