Since the breakup of ATT in the mid 1980s, con artists and scammers have found the United States telephone billing and collection system to be a fertile area to defraud consumers and business alike. Oftentimes the most likely culprit in these scams is the 900 number, or “pay per call” method.

900 Numbers (Pay Per Call)

A “pay-per-call” service is any service a consumer pays for over a special phone line at a charge greater than the basic cost of the call. Most commonly, consumers call 900-numbers to listen to information or entertainment programs or to participate in group conversations. In addition, some 800-numbers, which have traditionally been toll-free, now charge consumers for calls.

Consumers and businesses often find that these charges are “crammed” onto phone bills without their knowledge or consent. Crams are charges for services that were never ordered, authorized, received or even used.  This type of telecom fraud is easier than most think. It is often not the one-time charge that is the problem, but the recurring fees that go unnoticed by the consumer once the cram is placed on the bill.

Cramming of recurring charges generally falls into two general categories: club memberships, such as psychic clubs, personal clubs, or travel clubs; and telecommunications products or service programs, such as voice mail, paging, internet services, calling cards, etc.

Laws Protecting Consumers from 900 Toll Fraud

When dialing pay-per-call services, consumers in the past did not always know how much the call would cost and what they would get for their money. To help them get this information more readily, Congress passed the Telephone Disclosure and Dispute Resolution Act in 1992. This Act required the Federal Trade Commission (FTC) to adopt rules governing the pay-per-call services industry. The FTC’s 900-Number Rule, which became effective November 1, 1993, covers the advertising and operation of pay-per-call services, as well as billing and collection procedures for those services.

Individual consumers and business have the right to dispute unauthorized charges that appear on a telephone bill. Be especially alert to charges for calls to 900 numbers, which may or may not be legitimate. These calls are NOT toll-free; on the contrary, sometimes the charges can be quite high.

Removing Unauthorized Charges from a Phone Bill

If you or your business has been the victim of unauthorized charges to your bills, the first step in rectifying the situation is by contacting your local carrier immediately.  Provide as much information as you possibly can regarding the charges and ask that your line(s) have a 900 number “block” placed on them for future protection. The FCC requires local phone companies to make blocking available — where technically feasible — for a “reasonable” fee. However, any subscriber with a new number can request free blocking within 60 days after service begins.

Don’t expect your local phone company to go to bat on your behalf if there are multiple past charges due however. If there is a problem in removing the charges, you may have to go directly to the company or companies that have issued the original charges to get a refund.

Tips for Staying Out of 900 Number Trouble

1) Deal only with reputable companies. Some companies or organizations sponsor 900 number services for opinion surveys, information, entertainment or other services. Before you call a 900 number, be sure you understand the cost of the call and the nature of the information or service you’ll receive.

2) Think twice before calling a 900 number for a “free” gift. Television ads, postcards and telemarketers may urge you to call a 900 number to get a “free” prize. But you pay for the so-called free gift by making the 900 number call. The provider of the service usually makes money on a per-minute basis, so there’s an incentive to keep you on the line.

3) Don’t confuse 900 numbers with 800 or 888 numbers. You pay for a 900 number call. The company pays for most 800, 888, or other toll-free number calls.

4) For the workplace, implement a written policy that outlines exactly the kinds of calls employees can and cannot make.  In most cases, 900 number calling should be blocked for work related lines.  Review bills regularly to spot unauthorized charges.  Conduct a thorough telecom audit of all bills to uncover crams that have been placed on bills.  This action alone could save your company thousands in unnecessary phone charges.

5) Talk with your children. Make sure they understand they shouldn’t call 900 numbers without your permission. Be sure to explain to them the difference between a toll free call like 800, 888, or 866 and a “pay per call” 900 number.