Qwest faces $2 million FCC fine for allegedly forging long distance contracts
It is the kind of behavior that gives even telemarketers a bad name. In a fever pitch to get customers to sign up for Qwest’s long-distance service, the FCC charges, telemarketers forged customer names on contracts that authorized a switch to the service. But some telemarketers apparently didn’t check whether the forgery victims were alive—or human, for that matter …
Alda J. Hodgson first realized she had been “slammed” when she got a call from an AT&T telemarketer asking if she would return to her AT&T agreement. That same day, a letter arrived from Qwest addressed to her husband, James, welcoming him to Qwest’s long-distance service. So she called Qwest to find out why her service had been changed without her authorization, and the CSR explained that her husband had authorized the switch. There was only one hitch: James Hodgson had been dead for 8 years. The CSR hung up on Mrs. Hodgson when she pressed for an explanation, the FCC charges.
Carolyn and Stephen Booth own a summer camp, which is served by a single phone line. The Booths one day discovered Qwest long-distance charges on their Bell Atlantic bill. They called Qwest and asked why their long-distance provider had been changed from AT&T without their authorization. The Qwest CSR said the switch had been authorized by Boris Booth. But “Boris” had been the couple’s dog, dead and buried for 12 years. It’s not that Qwest will accept a paw print for authorization of long-distance; the Booths had listed their phone number under Boris’ name to ensure privacy, so only their close friends would know where to look up their number. A telemarketer, seeing the name in the phonebook, apparently forged the dog’s name on the contract.
Ms. Siu-Ki Tso also learned that she had been slammed when she saw Qwest charges on her phone bill. She called Qwest numerous times, but was unable to reach anyone at the number provided on the bill. Only after the FCC intervened did Qwest send Ms. Tso a copy of the agreement they said she signed. But she knew the signature was a forgery, because her name had been misspelled.
After receiving at least 30 complaints of slamming with similar modus operandi, the FCC will fine Qwest $2.08 million; the carrier was given 30 days to pay or to offer an explanation of why the fine should not be reduced. A Qwest spokesman did not return phone calls about the allegations.
The FCC says forged names were used on at least 22 contracts; in three other cases, the signature on the contract had no connection to the subscriber.
In previous responses to the FCC, Qwest did not deny that contracts had been forged, and said it had refunded switching and usage charges for complaining subscribers. But the complaints, which date from early 1999, raise a larger question: Why hasn’t Qwest exercised better control over its telemarketing subcontractors, one of which, ironically, is called “Everlasting Telecomm”? Several other telemarketing companies are listed in the complaints: L.I. Deer International, Amnet Services, American Communications Networks and the Dino Group.
“Anytime a customer calls us to say they have been switched to Qwest without their permission, we take immediate action to satisfy the concern,” said John Taylor, Qwest’s senior vice president of consumer markets, in prepared comments. “We will take appropriate action against any person responsible.”
The person who allegedly forged the deceased Mr. Hodgson’s name to the Qwest contract has been fired, says Kristin Gardziola, communications specialist with American Communications of Farmington Hills, Mich. “We have a zero-tolerance policy for slamming. We do have policies and procedures in place, and we’re making them better and stronger.”
Meanwhile, Qwest will have to relinquish some long distance services in 14 states until its merger with U S West is complete, which it is required to do under federal merger rules.
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