20090504_2552.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KEMPTON
CO MMISSI 0 NER SMITH
CO MMISSI 0 NER RED FO RD
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:BEVERLY BARKER AND DANIEL KLEIN
DATE:APRIL 30, 2009
RE:INTERPRET A TION OF RULES 201 AND 202, TELEPHONE
CUSTOMER RELATIONS RULES (TCRR).
BACKGROUND
A Qwest customer has raised several issues that require interpretation of Rules 201 and
202 of the Commission s Telephone Customer Relations Rules (TCRR), IDAPA 31.41.01.
Qwest disagrees with Staffs rule interpretation, as described more fully below.
INTERPRET A TION OF RULE 201, TCRR
In the course of investigating an informal complaint filed by a Qwest customer, the
Commission Staff identified a Qwest billing practice that does not comply with the Telephone
Customer Relations Rules. Rule 201.01 ( c) requires bills for residential and small business local
exchange service to include the due date of the bill. See Attachment A. Qwest's bills include
the due date except in instances where a customer has selected the option of automatic monthly
payment by credit card, debit card, or electronic funds transfer from a checking account. If a
customer selects one ofthose options, Qwest removes the due date from the bills. See
Attachment B. According to the Company, the due date is irrelevant because the payment
transaction will be processed automatically by Qwest before the actual due date ofthe bill with
no action required of the customer.
Qwest's position is that Rule 201 does not apply to bills issued to customers who have
selected these payment options. See Attachment C. Since, in its opinion, the rule does not
apply, Qwest believes it is unnecessary to seek a rule waiver because it is not violating Rule 201.
DECISION MEMORANDUM APRIL 30, 2009
Qwest points out that any customer who does not find its billing practices to be acceptable may
choose a different method of paying his or her bill.
Staffs position is that the rule clearly requires due dates on customer bills; there are no
exceptions for certain payment options selected by the customer. Payment of bills by electronic
funds transfer, debit card, or credit card is a standard option offered by many companies, both
regulated and unregulated. Ifa customer chooses one of these payment options, the customer
bill typically includes the transaction date for processing the payment and may also include the
regular due date ofthe bill. It could be argued that for those customers who have selected an
automatic payment option, the inclusion of transaction dates on bills would provide more
relevant information to customers than the due date. However, Qwest's bills do not provide
either a transaction date or the due date. Instead, Qwest simply provides a statement indicating
the method of payment. Although Rule 201 does not require that bills for local exchange service
include transaction dates, Qwest is not precluded from doing so.
Staff believes there are reasonable alternatives to Qwest's current practice that would
bring them into compliance with the rule and provide useful information to customers. One
alternative would be inclusion of a due date with a message on bills stating when automatic
payment would be processed, e., within 3-5 days following the bill date.
INTERPRET A TION OF RULE 202, TCRR
Another issue related to billing due dates concerns the timing of transactions. Payment
transactions are processed by Qwest anywhere from 3-5 days following the customer s bill date
which is earlier than the customer s normal due date. Affected customers who receive paper
bills sent by U.S. mail may receive their bills on or after the date of the payment transaction. For
example, in the case of one customer who recently complained, the billing date was November
, the bill amount was posted to his credit card account on December 2, and he received the
paper bill on December 5. The customer objected to the fact that he had no opportunity to
review the bill before it was "paid". In this particular instance, there was a billing error that he
was unable to address with the Company before the payment transaction occurred. This left him
with the choice of either refusing to pay the amount charged to his credit card bill or waiting for
his next bill from Qwest to reflect a credit for the disputed amount.
DECISION MEMORANDUM APRIL 30, 2009
Rule 202 addresses the timing of due dates. It states that "the minimum specified time
after the billing date is fifteen (15) days (or twelve (12) days after mailing or delivery, if bills are
mailed or delivered more than three (3) days after the billing date)." The rule does not address
specifically the timing of transaction dates when the customer has selected an automatic payment
option. Although Qwest has not addressed this issue in its letter, Staff assumes the Company
position is that Rule 202 does not apply in such situations.
STAFF'S CONCLUSIONS AND RECOMMENDATIONS
Staff s conclusions are summarized below:
Rule 201 clearly requires that due dates be included on bills. Qwest must obtain an
exemption if it intends to continue to remove due dates from bills provided to customers
who have selected automatic payment options. Alternatively, Qwest could modify its
current practice to comply with the rule.
Although identification of transaction dates on bills would provide meaningful
information to customers and might even be considered a reasonable substitute for due
dates, inclusion of transaction dates on bills is not addressed in Rule 201.
Rule 202 specifies the minimum amount of time that must be allowed for payment of
bills. Although Staff does not regard Qwest's practice of processing automatic payment
transactions before customers have the opportunity to receive and review paper bills as
being consistent with good customer service, Rule 202 does not address the timing of
automatic payment transactions.
Staff recommends that:
The Commission initiate a case by its own motion pursuant to Rule 009, Request for
Exemption, TCRR, to address whether Qwest should be granted a limited exemption to
Rule 201.01 (c) in instances where customers select the options of automatically paying
by electronic funds transfer, credit card, or debit card. IDAPA 31.41.01.009. Staff
recommends that the case be processed by modified procedure.
DECISION MEMORANDUM APRIL 30, 2009
The issues raised regarding inclusion of transaction dates on bills and the timing of
automatic payment transactions be addressed within the context of a rulemaking
proceeding. Since the Telephone Customer Relations Rules apply not only to Qwest but
to all regulated telephone companies, a rulemaking proceeding would provide all
interested parties the opportunity to comment on any proposed changes to the existing
rules. Staff is not suggesting that a rulemaking proceeding be initiated just to address
Rules 201 and 202. Rather, these rules should be reexamined when the Commission
initiates a general review of the TCRR.
COMMISSION DECISION
Does the Commission wish to initiate a case by its own motion pursuant to Rule 009
Request for Exemption, TCRR, to address whether Qwest should be granted a limited exemption
to Rule 201.01 (c) in instances where customers select the options of automatically paying by
electronic funds transfer, credit card, or debit card?
Should this case be processed by modified procedure?
Does the Commission agree with Staffs recommendation that the issues raised regarding
inclusion of transaction dates on bills and the timing of automatic payment transactions be
addressed within the context of a rulemaking proceeding?
..----/;/
/-V~L?--
Daniel Klein
i:udmemoslRules 201 202 interp.doc
DECISION MEMORANDUM APRIL 30, 2009
201. ISSUANCE OF BILLS--CONTENTS OF BILLS--RESIDENTIAL AND
SMALL BUSINESS SERVICE (Rule 201).
01. Local Exchange Service. Bills for residential and small business local exchange
service shall be issued on a regular basis. Bills must contain the following information:
(7-93)
a. The billing date; (7-93)
b. The time period covered by the bill; (7-93)
c. The due date of the bill; (7-93)
d. Any amounts transferred from another account; (7-93)
e. Any amounts past due; (7-93)
f. Any payments or credits applied to the customer s account since the last bill; (7-93)
g. The total amount due; (7-93)
h. Names of other telephone companies or entities that are not telephone companies
whose services are also being billed, identification of the service(s) billed, and the
amount(s) of those billings; (7-93)
i. The mailing addressees) or toll-free telephone number(s) available to customers in the
service territory for answering inquiries about telephone services billed; (7-93)
j. An itemization of all non-recurring charges; and (7-93)
k. An itemization of the following recurring charges: total local exchange service bill
(mileage or zone charges and charges for extended area service may be included in the
total rather than as separate items), touch tone capability, custom calling features
directory listings, wire maintenance plans, equipment leases, and governmentally
imposed taxes, surcharges or subscriber line charges. All other recurring charges may be
included in a miscellaneous billing category if the local exchange company explains the
charges in writing pursuant to IDAPA 31.41.02.101. Charges for each element of
packaged services, local measured service, or other calling plans in which individual calls
are not billed need not be separately itemized if the local exchange company provides an
explanation of those services pursuant to IDAP A 31.41.02.101. (7-93)
ATTACHMENT A
DECISION MEMORANDUM
4/30/09
. ~?(
0 .Jh -
\~.
:)..f2'r!.l! Slit" 6' '-"" i/ ...
" ,. ,------
.-..Q
J;- ( t !/lrL:7;,-
0ItO~ r -6 'Qwest.-'2
Spirit qf Sl1r~lc#*
Thank you for being a
Qwest customer
SPECIAL $200 QWEST HEW ARC CARD OFFER!
Ask how to get a $2IIO ONest reward card when you
add qualifying QweitHigh-Speed internet and DIRECT'lI$
IGMca available through Qwe8t! Foremana, avaiiabiUty,
restrictions, Of to order, calf us today at
1877-645-4481.
Account Number. 20B I8RSill Date: November 25, 2008
Customer Servica: 1 800-244-1111Repair: 800-573-1311Online: qwestrom
lNCUJDED INYCUR STATEMENT
Phone
Sarvice
Previous
Balance
$29.
- payment
, ,
Oct. 30
, $29.
= Ba!ancs
Please told, tear here and return the portion below with your payment.
Qwcst....t.2
tphit"I&,"""
To change your billing address
call us at 1 800-244-1111
AV 01 009053 70160H 33 A**5DGT
111111111111111111111 11111111111111 1 Illnu llllll/ll
--.
CALDWELL ID 83807.7762
OWEST AlSO OFFERS
Internet Wireless TVServica Servica Servh:a
Call orvisit qwest.com to learn more!
+ Total New
Charges
$30.
=Tctai Amount
Due
$30 .
Totai-AjnOURt"- -
Charged to Your
Credit Card
Thank You!
i 2 3
Acecunt: 208
Total Amount Dua: $30.40
Amount Due Is oharged 10 your Crsdft
Card.
See reverse of this page to enroll if!
paper!sss bim"g or summary bitting
statement!
Qwest
PO Bax 1 i3384
DGnvef. CO 8Q217-3384
IIlIldl'llll l,uUlIIIII,ltwll,lll lll/lult I
"- ~
-I =
- ~
=iC e:::)
, ,
mP I"'1
-"""--'""
-- 0
;:'
::;;;:C.c
$;..-
b!I
---- .- .------. -- -.-.
~M~
_-
---- ...n---
..........,.,
;;U'
--,;
2f;;C'
;::.. .,:::
3: co--~::J -=:JATTACHMENT B
DECISION MEMORANDUM
4/30/09 '--.I
..L...
Jim Schmit
Idal1o President
999 Main Street, 11 tl1 Floor
Boise, Idaho 83702
Mack RedfordPresident ,
,. .
iUi'Idaho Public Utilities Commissi~rWXr::~
472 W. Washington St.
Boise, 10 83702
::;r
:)';'":
208 385 2628 office
208 385 8026 oftice fax
?;'l net ~ OR ~? f ! '13.08 8114600 wirelessUlU ,"
!\ - '-' ~
April 1 , 2009
-"'
0"""'5, ,
;;~11 '
?"""
\ w' est:"
, ,
Spirit of Service
Dear Mr. Redford
A question has been raised about whether or not Qwest's voluntary customer program to allow
automatic payment by credit card complies with the Commission rule regarding issuance of bills
, more specifically, whether or not that rule applies when the customer has chosen this option.
The recurring credit card plan is a voluntary program that allows the customer to have their
monthly bill payment automatically processed approximately 3-5 days following their bill date
each month. If the customer chooses this option , versus a traditional bill, a statement is sent to
the customer, which includes the bill date and the amount to be charged to their credit card , with
associated detail.
There is no "due date" on this statement, since there is nothing for the customer to do. The
purpose of a due date is to give customers time to make arrangements to pay the bill. In
this situation , the customer has made arrangements, in advance, for automatic bill payments.
The rule in question (Rule 201), requiring the bill to include a "due date" does not apply here
since these customers - at their option - have made other arrangements in advance for payment
of the bill.
This is an optional bill paying process made available to our customers at their request and for
their convenience. Should the customer not want this option , a "traditional" paper bill, sent in the
mail , with payment by a specified due date is always available. Customers can pay that bill by
check or by using a credit card.
There are over 9000 customers in Idaho currently selecting this option t~t we have been
providing for over a decade. Qwest is not offering this service to circumvent Commission rules.
Rather, Qwest is providing this option for our customers to allow them choices to best fit their
individual circumstances.
The Commission has long been an advocate for providing customers choice and options, which
we are doing in this case. Again, it is our position that Rule 201 does not apply in this situation.
Please let me know if you have any questions or concerns.
Sincerely,
/ -. ,/ "
\,j, yFf/(
.'
9(7t//;t'~'Lt'i
)" . .., ,,' '
Jim Schmit
Qwest Idaho President
cc: Commissioner Kempton, Commissioner Smith, Beverly Barker, Weldon Stutzman
Mary Hobson
ATTACHMENT C
DECISION MEMORANDUM
4/30/09