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Udall Introduces 'Bill Shock' Act
[October 01, 2010]

Udall Introduces 'Bill Shock' Act


Oct 01, 2010 (Albuquerque Journal - McClatchy-Tribune Information Services via COMTEX) -- Are you afraid to open your cell p one bill? If Sen. Tom Udall, D-N.M., gets his way, you will have a better idea of what's inside the envelope.

Udall introduced legislation Thursday to reduce cell phone "bill shock" by requiring wireless companies to notify customers via a free e-mail or text when they have used 80 percent of their monthly plan limits.

The Cell Phone Bill Shock Act of 2010 would also require companies to get consent from customers before charging for services not covered in their plan.

A recent survey by the Federal Communications Commission found that 30 million -- or one in six -- U.S. adult cell phone users have experienced "bill shock." About 84 percent said they were not contacted by their provider when they were about to go over, Udall said in a news release.



That same survey found that in one in four cases of exceeding text or minutes limit, bills have jumped by more than $100.

"The texting and Internet capabilities that make today's cell phones more useful than ever should be applied to help customers avoid bill shock," Udall said. "Sending an automatic text or e-mail notification to a person's phone is a simple, cost-effective solution that should not place a burden on cell phone companies and will go a long way toward reducing the pain of bill shock by customers." Udall's bill, however, is more likely to cause customer confusion, according to a wireless industry group in Washington, D.C.


"While we appreciate the spirit with which the legislation is offered, we are concerned this bill has the potential to cause customer confusion and frustration," CTIAThe Wireless Association said in a statement to the Journal. "We know those outcomes are not Senator Udall's objective. We look forward to talking with the senator about the many plans and tools that our carriers currently offer their customers so that those who want to monitor their usage are able to do so." To see more of the Albuquerque Journal, or to subscribe to the newspaper, go to http://www.abqjournal.com. Copyright (c) 2010, Albuquerque Journal, N.M.

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