Tuesday, July 26, 2011

Unauthorized Phone Charges Costing Americans More Than $2 Billion a Year

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In a hearing on July 13th, 2011, Xigo CEO Dave Spofford joined Illinois Attorney General Lisa Madigan, Vermont Assistant Attorney General Elliot Burg and Walter McCormick of the U.S. Telecom Association to testify in front of the United States Senate Committee on Commerce, Science & Transportation about the $2 billion worth of unauthorized charges appearing on phone bills each year.

Chairman John D. (Jay) Rockefeller IV is leading an investigation into cramming – a deceptive practice that adds unauthorized third-party charges to millions of companies’ and consumers’ telephone bills each month. Each year, telephone companies place approximately 300 million third-party charges on their customers’ wire-line and wireless phone bills, amounting to more than $2 billion worth of unauthorized fees. The Committee issued its findings at the conclusion of the hearing.