Federal Communications Commission and cell carriers make pact to finish bill shock

Several people have opened a bill from their mobile phone company to learn it’s considerably higher; this is often called “bill shock”. Federal regulators and cellular companies have reached a deal to let individuals know in advance if they are due to get a large bill. Article source: Cell phone carriers and FCC reach agreement over bill shock

Feds considering bills

Consumers had no idea they were getting charged so much for mobile phone bills when they experienced "bill shock," which was investigated began last year by the Federal Communications Com-mission. Cell phone providers should be warning consumers before they get the bill, according to the Federal Communications Commission.

According to Daily Finance, an FCC study discovered one in six cellular phone users experienced some bill shock. Of those that experienced it, some reported a bill of $100 or higher.

Of individuals who filed bill shock grievances with the FCC, 67 percent were concerning a bill for $100 or more and 20 percent were complaints of cell phone bills for $1,000 or more, ac-cording to ArsTechnica.

One person ended up with a bill costing $68,505. Another female in Massachusetts got an $18,000 bill.

Companies have a say

The LA Times reports that a deal was made with the Federal Communications Commission and the CTIA. They decided that cus-tomers will be notified if they are going to get a large bill before it occurs.

If a customer is getting close to exceeding any monthly coverage, they will get a voice or text messaging alert in the next year. Customers can opt out of the service that will be offered for free, Daily Finance reports.

Steve Largent used to play for the Seattle Seahawks and is the CTIA president. He said the agreement was an excellent example of how legisla-tion doesn’t have to be put into place for the government and companies to come to agreements. The FCC was in the process of enact-ing a rule concerning bill shock.

Organization changed

All CTIA members have to notify consumers when they're getting close to going over their coverage now that CTIA has amended its code of ethics on its sit so the Wireless Consumer Usage notification Guide-lines were posted.

Companies such as AT&T, T-Mobile, Verizon and Sprint are in the CTIA. This consists of 90 percent of all cellular phone users in the country. The guidelines will be followed by other small providers. This consists of US Cellular and Clearwire.

The CTIA does not think very many people experience “bill shock.” This is not what every person thinks. CNN reports that 88 percent of “bill shocked” consumers didn’t get statements from wireless carri-ers before going over. Another 84 percent did not get any notice they will get the bill. Sixty percent of Consumers Union poll respondents liked the “bill shock” regulation, according to the LA Times.

Articles cited

Daily Finance

Ars Technica

Los Angeles Times

CNN