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Frequently Asked Questions

Slamming and Unauthorized PIC (Preferred Interexchange Carrier) Changes

Introduction

Chesnee Telephone Company has prepared the following information, in the form of questions and answers, to help you understand the "Slamming Liability and Investigation" rules, issued by the Federal Communications Commission (FCC). After a brief summary, you’ll find what we hope is appropriate and timely customer information. If you still have questions, our Customer Service Reps and other Chesnee staff will be glad to help you resolve your slamming issues or explain your rights if your preferred interexchange carrier (PIC) has been changed without your consent.

Summary

To combat increased incidents of "slamming," the FCC adopted tough liability and investigation rules. To crack down on abuse, the FCC modified its earlier slamming order, shifting responsibility for investigation and resolution of customer complaints from the long-distance companies to either the state regulatory agency or, if the state declines to assume responsibility, the FCC itself. All carriers, local and long-distance, must comply with the preferred carrier change rules, which apply to changes of both local (where there is local competition) and long-distance carriers.

The FCC’s rules give states the option of electing to administer the preferred carrier change rules themselves. The state agency can be either the public utility commission or another state agency charged with resolving unauthorized changes. In South Carolina, the state public service commission administer the rules. The FCC rules refer to the agency responsible for administration as the "relevant governmental agency" (RGA). Thus, the South Carolina RGA is:

South Carolina Public Service Commission
P.O. Drawer 11649
Columbia, SC 29211
Phone: 800-922-1531/803-896-5230
Fax: 803-896-4750
e-mail: consumer@psc.state.sc.us

The FCC rules govern interstate (state-to-state) preferred carrier changes. However, states can choose to apply the FCC rules to intrastate (in-state) PIC changes as well. States can also apply their own rules to intrastate preferred carrier changes.

Q & A

Slamming and Unauthorized PIC (Preferred Interexchange Carrier) Changes

Q. I have been billed for long-distance charges from a company that I did not choose as my preferred carrier. How do I get these charges removed from my bill?

A. Customers who believe they have been slammed; i.e., that there has been an unauthorized change in their PIC selection, should immediately inform Chesnee telephone, their local company. Once we receive notification of an unauthorized PIC change, we will do the following:

  • Inform the customer that there is a 30-day absolution period and that he or she should not pay their bill.
  • Refer the customer to the SC RGA (Public Service Commission) that administers the slamming rules.
  • Immediately notify the customer’s authorized carrier; i.e., the previous preferred carrier prior to the alleged slamming, and identify the unauthorized carrier.
  • Immediately notify the unauthorized carrier; i.e., the current PIC as a result of the switch, and identify the authorized carrier.

Q. What will the state RGA do when an unauthorized PIC change is reported?

A. The FCC’s rules require that:

  • Any carrier informed by a customer of an unauthorized preferred carrier change must direct the customer to the state RGA.
  • Upon receiving a complaint, the RGA will notify the alleged unauthorized carrier and order that the carrier remove from the customer’s bill all unpaid charges for the first 30 days after the slam, pending determination of whether an unauthorized change has occurred.
  • Within 30 days of notification from the RGA, the alleged unauthorized carrier must provide the RGA with a copy of any valid proof of verification of the customer’s preferred carrier change.
  • The proof of verification must comply with the FCC’s authorization and verification rules.
  • Failure by the carrier to respond or provide proof of verification will be presumed to be clear and convincing evidence of an unauthorized change.
  • If the RGA determines that an unauthorized change has occurred, it will issue an order to the unauthorized carrier directing compliance with the 30-day absolution rule and/or the reimbursement rules.

Q. What is the 30-day absolution period?

A. The 30-day absolution period refers to the first 30 days after an unauthorized PIC change has been made. The customer is not responsible for any charges during that period, as long as the customer has not remitted payment for such charges. If the customer has already paid the charges, the reimbursement rules apply (see next question). Any local telephone company, unauthorized long-distance carrier, or authorized long-distance carrier receiving a report from a customer of an unauthorized change must inform the customer of the 30-day absolution period.

The alleged unauthorized carrier can challenge the validity of an unauthorized change, provided it has directed the customer to file a complaint with the RGA responsible for such investigation. The alleged unauthorized carrier must remove unpaid charges from customers’ bills, whether or not they are challenging the allegation. Should the RGA investigation indicate that the preferred carrier change was authorized, the charges will be reinstated.

Q. What if I paid the unauthorized carrier in error, can I get reimbursed for charges incurred during the first 30 days?

A. If the state RGA determines that an unauthorized change has occurred and the customer has already remitted payment to an unauthorized carrier, including charges applicable to the first 30 days, the customer will be entitled to a refund equal to 50% of the charges paid to the unauthorized carrier. The authorized carrier will be responsible for remitting the 50% refund to the customer within ten days of receiving payment from the unauthorized carrier. The customer has the option of asking the authorized carrier to re-rate the unauthorized carrier’s charges at the authorized carrier’s rate, after which the authorized carrier will seek an additional refund from the unauthorized carrier if the re-rated amount produces a total credit to the customer in excess of 50% of all charges paid to the unauthorized carrier. The authorized carrier does not have to make any refunds to the customer if it fails to receive the funds from the unauthorized carrier.

Q. What about unpaid charges incurred after the 30-day absolution period?

A. If a customer has long-distance charges from an unauthorized carrier for calls after the 30-day absolution period and for which the customer has not remitted payment to the unauthorized carrier, the allegedly unauthorized carrier will remove such charges from the customer’s bill and forward the billing detail to the authorized carrier. The authorized carrier has the right to bill the customer for unpaid calls carried by the unauthorized carrier after the 30-day absolution period. The authorized carrier may either bill such calls at the authorized carrier’s rates or at a proxy rate equal to 50% of the unauthorized carrier’s rate. However, if the authorized carrier bills the calls at a proxy rate, the customer has the right to reject that method and require rating at the authorized carrier’s rates.

Q. What must the alleged unauthorized carrier do after it receives notification of a customer’s slamming complaint?

A. Under the rules, the alleged unauthorized carrier must do the following:

  • Inform the customer of the 30-day absolution period.
  • Refer the customer to the state RGA.
  • Remove unpaid charges from the customer’s bill.
  • Refer the complaint for resolution by the RGA.
  • If available, provide proof of verification to the RGA within 30 days after notification of the complaint, or sooner if required by state rule.
  • Depending on the resolution of the complaint by the RGA, comply with all relevant liability rules, absolution procedures, and reimbursement procedures.

PIC (Preferred Interexchange Carrier) Freeze

Chesnee Telephone offers customers protection from slamming and unauthorized changes in their preferred interexchange carrier (PIC), and that is by using a PIC Freeze. By notifying us that you would like to "freeze" your long-distance company or companies (if you have selected one company as your [out-of-state] PIC and another for your [in-region] PIC), you can avoid being slammed or suffering unauthorized or illegal switches to your account.

If you have requested Chesnee to place a PIC freeze on your long-distance service, your preferred carrier will not be changed without your direct authorization, either written or verbal. There is no charge for this service, and all you need do is sign a PIC Freeze form. If you’d like to take advantage of this protection, just call the Chesnee business office, and a Customer Representative will help you.

Q & A

Ordering a PIC Freeze

Q. How are freeze orders accepted?

A. The FCC has required that customers be able to impose or lift PIC freezes by contacting their local telephone company. Local companies, such as Chesnee may not accept freeze orders from carriers on behalf of customers. The rules allow customers to make a (PIC) change and a PIC freeze at the same time. But, in such a case, Chesnee must verify both the customer’s carrier change and freeze requests.

Q. Are separate authorizations required for multiple services?

A. Yes. The FCC requires separate authorization of each service for which a customer requests a PIC freeze. Customers have the option of using one of the authorization and verification methods specified in the FCC’s rules; e.g., a written Letter of Authorization, third-party verification, in addition to the Internet LOA.

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