20030904_607.pdf

DECISION MEMORANDUM
TO:CO MMISSI 0 NER KJELLAND ER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
WORKING FILE
FROM:NANCY HARMAN
DATE:SEPTMBER 2, 2003
RE:FORMAL COMPLAINT OF GLOBAL TRAVEL AGAINST ELECTRIC
LIGHTWAVE.
On August 15 2003, Global Travel (Global) submitted a letter, attached, requesting that a
formal complaint be filed against Electric Lightwave, Inc. (ELI). ELI is the customer s local and
long distance service provider. Global states that during the time period of May 22 - May 26
2003 , the customer was billed for alleged fraudulent international toll calls totaling $25 853.75.
Included on ELI's bill were charges on behalf of itself ($8 911.03) , MCI ($3 370.80), Sprint
($12 760.95) and Zero Plus Dialing ($16.18). Included in the total disputed amount are charges
($794.79) billed directly to the customer by AT&T for calls placed over its network. Global is
disputing its responsibility for the charges and states that ELI is now threatening to terminate its
telephone service.
BACKGROUND
An informal complaint was filed by Global on June 24 2003, stating that on
May 23 2003 , AT&T, Sprint, and MCI all contacted Global because it appeared Global's PBX
was compromised. These companies had noticed an unusually high number of international calls
that appeared to be made from Global's main telephone number. Global immediately contacted
ELI. ELI immediately blocked all international call traffic, removed the Equal Access Codes
(hackers were then unable to diall0-l0-xxx) and changed the customer s verified account codes.
ELI advised Global that Global had not taken appropriate security measures in its PBX to
DECISION MEMORANDUM - 1 -SEPTEMBER 2, 2003
prevent fraud. The disputed calls were made using a dial around and by using the customer
Verified Account Code.
On June 5 , 2003 , Global requested ELI's assistance on how to dispute the calls and have
them removed from Global's account. ELI provided a list of the calls placed using its network
but refused to remove the disputed charges. Global Travel was advised by ELI to file a police
report concerning the fraudulent calls. A report was filed with the FBI since the Boise Police
Department believed it would not be able to handle this type of alleged criminal activity.
On August 11, Staff received from Global copies of bills showing the disputed charges.
Global disputes all the charges and wants to file a formal complaint on the advice of its attorney.
Electric Lightwave has been directed by Staff to recourse all the disputed charges billed
by ELI on behalf of other carriers. These charges are to be returned to each respective toll
carrier for further billing and collection activity. MCI, Sprint, Zero Plus Dialing and AT&T have
been contacted by Staff regarding the disputed charges. On August 21 , an MCI representative
contacted Staff and indicated that MCI would not be pursuing collection ofthe recoursed
amount. On August 26 2003, NCIC Operator Services notified Staff that full credit was given
for the charges billed on its behalf by Zero Plus Dialing. As of today, responses have not yet
been received from either AT&T or Sprint.
Rule 205 of the Telephone Customer Relations Rules (TCRR) requires that charges for
services not authorized by the customer of record must be removed from the customer s bill no
later than two (2) billing cycles. Rule 310.03 states that local exchange service may not be
disconnected for non-payment of toll. Rule 314.02 states that a customer may lose 0+ and 1+
access to MTS services for non-payment of undisputed charges. Since the international charges
are disputed, it is Staff's belief that toll cannot be restricted for non-payment of the disputed
charges. The full text of these rules is attached. ELI agreed to delay any disconnection or
blocking of any services.
Global filed a complaint regarding the disputed calls with the Federal Communications
Commission early in June. On July 14 2002, ELI provided a response to the FCC very similar
to its response to the PUC. Specifically the response stated that the fault was with Global
Travel's PBX, not ELI's network and Global was therefore responsible for all the disputed
charges. To Staff's knowledge, the FCC has taken no further action on the customer
complaint.
DECISION MEMORANDUM - 2 -SEPTEMBER 2 , 2003
STAFF ANALYSIS AND RECOMMENDATION
ELI has agreed to remove from its bill the charges from MCI, Sprint and Zero Plus
Dialing. MCI and Zero Plus Dialing have stated they will not pursue collection. AT&T, which
separately billed the customer, and Sprint have not yet responded to Staff's inquiry about holding
the customer responsible for the disputed charges. The charges for calls carried by AT&T
Sprint and ELI remain at issue.
Determining the customer s responsibility to pay for disputed international calls raises
jurisdictional questions concerning the Commission s authority. Staff believes the FCC is the
appropriate venue for determining the legitimacy of the disputed calls. Therefore, Staff does not
believe that the Commission can absolve the customer of responsibility for payment of these
disputed charges. Since absolution is the remedy requested by the customer, Staff recommends
that the Commission not accept Global's formal complaint.
This does not mean, however, that there is no remedy available to the customer. With
respect to the issue of disconnection of service for nonpayment of the disputed charges, the PUC
does have jurisdiction. ELI must follow the Telephone Customer Relations Rules. This means
that ELI cannot disconnect local service or block toll access because the customer refuses to pay
for the disputed calls. As a practical matter, Staff recommends that charges for the disputed calls
both carried and billed by ELI be removed from the customer s regular monthly bill. This will
prevent accidental disconnection of local service or blocking of 1 + toll access. ELI may choose
to pursue collection by separately billing the customer for the disputed calls carried over its
network. Staff has provided a copy of this memo to ELI. It is Staff's expectation that ELI'
treatment regarding the disputed toll charges will follow the Telephone Customer Relations
Rules as stated above. Staff expects the remaining question of whether ELI, Sprint and AT&T
will pursue collection of charges for calls carried over their respective networks to be resolved
shortly. In any event, since these disputed charges may not be collected through ELI, the
customer s local service and primary toll access will not be affected.
DECISION MEMORANDUM - 3 -SEPTEMBER 2, 2003
COMMISSION DECISION
else?
Does the Commission want to initiate a formal complaint case against ELI? Something
i:umisc/global trave dec memo
DECISION MEMORANDUM - 4 -SEPTEMBER 2, 2003
AUG. 18. 2003 10: 04AM NO.2 3 5 P. 2
GLOBAL TRAVEL
Ms. Jean Jewell
Commissioner Secretary
Idaho PUC
O. Box 83702
Boise, Idaho 83720
August 15, 2003
Dear Ms. Jewell,
I am requesting to file a formal complaint with the Idaho PUC.
During the time period of May 22 May 26th 2003, Global Inc. has been billed
$25 853.75 in international phone calls that were not made, authorized or otherwise made
with any knowledge of Global Inc., via our lone distance telephone call provider Electric
Lightwave. We dispute that Global Inc. is obligated for these charges. Electric
Lightwave is now threatenina to terminate Global Inc. 's telephone service.
Backup infonnanon surrounding these calls has been forwarded to Ms. Nancy Hannon at
the Idaho PUC, and we ask for your consideration in hearing our complaint.
What we are asking is to have said international calls removed from our billing, as the
remedy.
We sincerely appreciate your consideration of same.
Respectfully submitted,
Cynthia A. Michalski
Executive Vice President
HEADQUARTERS
900 W. Jefferson. P.O. Box 270 . Boise, Idaho 83701 . Phone: [phone] . FAX: [phone]
TELEPHONE CUSTOMER RELA TrONS RULES IDAPA 31.41.01
204. INACCURATELY BILLED SERVICE OR FAILURE TO BILL SERVICE UNDER
CORRECT RATES (Rule 204).
01. Errors in Preparation--Malfunctions--Failure to Bill. Whenever the billing for
telephone service was not accurately billed because of malfunction in billing equipment or error
in preparation of bills, the telephone company shall prepare a corrected billing. If the telephone
company has not billed a customer for service provided, the telephone company shall prepare a
bill for the period in which service was provided and the customer was not billed. The telephone
company may waive rebilling for underbillings in its discretion. (7 -93)
02. Corrections. If the time when the error in preparation or malfunction of billing
equipment or failure to bill began cannot be reasonably determined, the corrected billings shall
not exceed the most recent six (6) months before the discovery of the error or malfunction. If the
time when the malfunction or error or failure to bill began can be reasonably determined, the
corrected billings shall go back to that time, but need not exceed the time provided by Section
61-642, Idaho Code (three (3) years). (7-93)
03. Refunds and Additional Payments. The telephone company shall prepare a
corrected billing indicating the refund due the customer or the amount due the telephone
company. A customer who has been underbilled shall be given the opportunity to make payment
arrangements under Rule 312 on the amount due. At the customer s option, the term of the
payment arrangement may extend for the length of time that the underbilling accrued. The
telephone company shall promptly refund amounts overpaid by the customer unless the customer
consents to a credit against future bills, except overbillings not exceeding fifteen dollars ($15)
may be credited to future bills. (7-93)
(Adopted as Rule 6.2 and 6., O.N. 17744; amended, O.N. 17872; amended and recodified, G.O. 181.
Statutory Reference: Idaho Code g 61-642.
Cross Reference: Rules 5 200 204 311 312.
205. BILLING PROHIBITED (Rule 205).
No person shall bill or cause another person to bill for unanswered or unaccepted telephone calls
telephone calls placed to a toll-free number, or telephone service or other service(s) or
merchandise not ordered or otherwise authorized by the customer of record. Any charges for
these services that appear on a customer s bill shall be removed from the customer s bill no later
than two (2) billing cycles following notice to the telephone company. Disputed charges must be
removed from the customer s bill within two (2) months of when customers notify the company
that the customer has been unable to either contact or successfully resolve a dispute with the
service or goods provider and that the charge is still in dispute. A telephone company that
unknowingly submits a bill containing charges for unanswered or unaccepted telephone calls
telephone calls placed to a toll-free number, or telephone service or other service(s) or
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TELEPHONE CUSTOMER RELATIONS RULES IDAPA 31.41.01
merchandise not ordered or otherwise authorized by the customer of record shall not be
considered in violation of this rule if the disputed amounts are removed from the customer s bill.
(Adopted, G.O. 181; amended, G.O. 197.) (7-99)
Cross Reference: Rules 5, 200.
206. TRANSFER OF BILLS--RESIDENTIAL SERVICE (Rule 206).
01. Customer Defined. For purposes of this rule
, "
customer" means a person whose
name appears on the telephone company s regular bill for residential service or who signed a
written application for residential service or another document informing the customer that he or
she was assuming an obligation for payment of service. (7 -93)
02. Customer s Responsibility. A customer shall not be held responsible for payment of
an amount not billed for the customer s own service or through use of the customer s own credit
or facilities and whose own name does not appear on the current bill or application for serviceunless: (7 -93)
a. The customer expressly accepts responsibility for payment of the other person s bill; or
(7 -93)
b. The customer has a legal obligation to pay the other person s bill.(7 -93)
03. Notice of Transfer of Bill to Another Customer. No telephone company shall
transfer any amount owed by a customer or former customer to another customer s account
without notice to the latter. The notice must include the following information concerning the
amount the telephone company is proposing to transfer: (7-93)
a. The name of the customer of record who owes the bill;(7 -93)
b. The service location and telephone number or account number involved;(7 -93)
c. The time over which the transferred bill was accumulated;(7 -93)
d. The amount owed;(7 -93)
e. The reasons for transferring the bill to the customer s account;(7 -93)
f. Statement that payment arrangements may be made on the amount owed;(7-93)
g. A statement that the customer has a right to contest the transfer with the telephonecompany or the Commission; and (7 -93)
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TELEPHONE CUSTOMER RELATIONS RULES IDAPA 31.41.01
05. Second Postponement. The telephone company must postpone termination of local
exchange and necessary MTS service upon receipt of a second certificate stating that the serious
illness or medical emergency still exists, unless during the period of the first certificate excessive
or unwarranted MTS calls were incurred and not paid or the customer refused to enter intopayment arrangements. (1-95)
06. Verification of Medical Certificate. The telephone company may verify the
authenticity of the certificate and may refuse to delay termination of service if the certificate is a
forgery or is otherwise fraudulent. (7-93)
(Adopted as Rule 3.4, O.N. 15290; amended and recodified, G.O. 181; amended, G.O. 189.
Cross Reference: Rules 5, 300, 302, 305, 307, 312.
309. MEDICAL FACILITIES--SHELTER CARE (Rule 309).
Where local exchange or MTS is provided to a customer known by the telephone company to be
or identifying itself as a medical care facility, including a hospital, medical clinic with resident
patients, nursing home, intermediate care facility or shelter care facility, notice of pending
termination shall be provided to the Commission and to the State Department of Health and
Welfare as well as to the customer. Upon request from the Commission, a delay in termination of
no less than seven (7) calendar days from the date of notice shall be allowed so that action may
be taken to protect the interests of the facility's residents. (1-95)
(Adopted as part of Rule 3.4, O.N. 15290; amended and recodified, G.O. 181; amended, G.O. 189.
Cross Reference: Rules 5, 300, 302.
310. INSUFFICIENT GROUNDS FOR TERMINATION OF LOCAL EXCHANGE
SERVICE (Rule 310).
No customer shall be given notice of termination of local exchange services nor shall the
customer s local exchange service be terminated if:(1-95)
01. Less than Fifty Dollars. The customer s unpaid bill cited as grounds for terminationis less than fifty ($50) dollars. (7-99)
02. Telephone Service to any Other Customer or Former Customer. The unpaid bill
cited as grounds for termination is for telephone service to any other customer or former
customer (unless that customer has a legal obligation to pay the other bill) or for any other classof service. (1-95)
03. Results from the Purchase of MTS and Other Services. The unpaid bill cited as
grounds for termination of service results from the purchase of MTS and other services
including but not limited to: (1-95)
a. Directory advertising;(1-95)
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TELEPHONE CUSTOMER RELATIONS RULES IDAPA 31.41.01
b. Information servIces, operator servIces or other serVIces not provided by localexchange companies; (1-95)
c. Leased or purchased customer premises equipment or other merchandise; or (1-95)
d. Inside wire maintenance.(3-30-01)
04. Other Person Has an Unpaid Balance for Service. The customer lives at a
residence where another person lives and the other person has an unpaid balance for service
except when the customer has a legal obligation to pay the other person s bill. (1-95)
(Adopted as Rule 3., O.N. 15290; amended, O.N. 17744; O.N. 17807; amended, O.N. 17872; amended and
recodified, G.O. 181; amended, G.O. 189; amended, G.O. 207.
Cross Reference: Rules 5 103 300 302 311 313.
311. RESTRICTIONS ON TERMINATION OF LOCAL EXCHANGE SERVICE--
OPPORTUNITY TO AVOID TERMINATION OF LOCAL EXCHANGE SERVICE
(Rule 311).
01. When Termination Not Allowed. Unless the customer affected has consented in
writing, local exchange service shall not be terminated on any Friday after twelve noon or on any
Saturday, Sunday, legal holidays recognized by the state of Idaho, or after twelve noon on any
day immediately before any legal holiday, or at any time when the telephone company s business
offices are not open for business, except as authorized by Rules 303.01 and 303., or for non-
residential customers, as authorized by any Subsection of Rule 303. Local exchange services
may be terminated only between the hours of 8:00 a.m. and 4:00 p., except as authorized by
Rules 303.01 and 303.02. (1-95)
02. Personnel to Authorize Reconnection. Each telephone company providing local
exchange service shall have personnel available after the time of termination who are authorized
to reconnect service if the conditions cited as grounds for termination are corrected to the
telephone company s satisfaction. Customers may be asked to pay reconnection fees beforerestoration of service. (1-95)
03. Service to Persons Not Customers. If local exchange service is provided to a
residence and the account is in the name of one who does not reside there, the telephone
company, prior to termination, shall notify the person(s) receiving service and afford the
person(s) a reasonable opportunity to negotiate directly with the telephone company to purchase
service in the resident's(s ) own name(s). (1-95)
04. No Termination while Complaint Pending. Except as authorized by order of the
Commission or of the Judiciary, local exchange service shall not be terminated for failure to pay
amounts in dispute while a complaint over that telephone service filed pursuant to Rule 402 is
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TELEPHONE CUSTOMER RELATIONS RULES IDAPA 31.41.01
314. DENIAL, RESTRICTION, MODIFICATION, OR TERMINATION OF MTS OR
OTHER SERVICES (Rule 314).
01. Compliance. Telephone companies providing MTS or other services must comply
with Rules 301 , 303 , Subsections 311.03 and 311.04, and Rule 312 in connection with denial
restriction, modification, or tennination of those services. Telephone companies providing MTS
or other services must provide reasonable notice before tenninating or restricting access to such
services, except as provided by Rule 303. Telephone companies providing MTS must provide
reasonable notice before modifying a customer s existing service. Nothing in this rule abrogates
customers ' rights under those telephone companies ' tariffs or filings, written agreements with
customer, or obligations otherwise imposed by statutory or common law. (7-99)
02. Failure to Pay. A customer s failure to pay for undisputed MTS charges billed by the
local exchange company may result in loss of 0+ or 0- and 1 + dialing access to MTS services
until such time as the customer pays the undisputed charges and applicable reconnection chargesif any. (7-99)
03. Loss of Services. Customer failure to pay undisputed charges for other services mayresult in loss of those services. (1-95)
(Adopted, G.O. 181; amended, G.O. 189.
Cross Reference: Rules 5, 300, 301 , 303, 311 , 312.
315. -- 400. (RESERVED).
RULES 401 THROUGH 500. COMPLAINT PROCEDURE
401. COMPLAINT TO TELEPHONE COMPANY (Rule 401).
01. Subject Matter. A customer or applicant for service may complain to the telephone
company about any deposit or guarantee required as a condition of service, billing, tennination
of service, quality or availability of service, or any other matter regarding telephone company
services, policies or practices for local exchange service, MTS , operator and directory assistance
services, or other services. The customer or applicant may request a conference with the
telephone company, but this provision does not affect any statute of limitation that might
otherwise apply. Complaints to the telephone company may be made orally or in writing. A
complaint is considered filed when received by the telephone company. In making a complaint
or request for conference, the customer or applicant shall state the customer s or applicant's
name, service address, telephone number and the general nature of the complaint. (7-93)
02. Obligations for Billing Disputes. A local exchange company that bills and collects
for other entities is responsible for either addressing complaints for all services and merchandise
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