SEATTLE - It's taken years in both cases, but the Federal Communications Commission (FCC) and the Washington State Supreme Court have just handed phone customers a couple of victories.

The FCC has approved new rules to prevent "cramming," the practice of phone companies adding bogus charges to monthly landline bills. And the state Supreme Court has ruled that Cingular, now known as AT&T Mobility, was illegally passing along a business tax to its customers from 2002 to 2006.

A lead attorney in that case, Dave Breskin of Seattle, says deciphering the charges on a typical phone bill takes more effort than customers should have to make.

"They make them look like they're taxes - or, there's no real connection between what's stated on your bill and anything that makes sense to you. So, for most consumers, I think it's a very difficult task to figure out when they're being cheated."

The Washington case began in 2006 with customers who questioned their cell phone bills. Breskin says the amounts billed extra are often so small that it's easier to pay them than fight about it. However, they do not amount to small change to the companies involved.

"These added fees can amount to a tremendous amount of money. In one of the earlier cases that we had, the Universal Connectivity charge that involved AT&T Wireless, the company made over $200 million, easily, on that charge."

In the most recent case, Peck v. AT&T Mobility, he says the estimate is between $15 million and $20 million. There's no word yet on whether AT&T Mobility will refund the charges. The company contended that it is regulated by federal law, not state, but in an earlier decision, the 9th Circuit Court said that doesn't apply to billing practices. A similar lawsuit against Sprint is pending.

Critics say the FCC rules are at least a decade too late. Breskin says he's seeing less federal oversight to protect consumers – and all manner of businesses, including banks and airlines, pushing the same types of limits as the phone companies.

"These different industries have become very aggressive about trying to recoup overhead through added charges. I mean, they like to present seemingly-low costs for their service, but then tack on these added charges after the fact, which just drives up the cost to the consumer."

The lesson, he adds, is to read the fine print on your bills, at least periodically, and request explanations of what you don't understand.



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Wisconsin lawmakers recently debated reforms for payday loans. Efforts to protect consumers come amid new research about financial pain associated with cash advances offered through smartphone apps. The Center for Responsible Lending is out with findings that detail how "earned wage advances" from digital platforms come with extra costs disguised as things like tips. Traditional payday lenders are often criticized for charging excessive interest rates on loans that are usually around $500.

Lucia Constantine, a researcher with the Center for Responsible Lending, said customers are usually seeking smaller amounts from the apps, but she warns they can be just as costly.

"They are trapping consumers in a cycle of borrowing that is similar to that of a payday loan, " she said.

The report said after using these financial products, customers are seeing overdrafts on their checking accounts increase by 56% on average. Industry leaders deny they're barraging consumers with hidden fees, stressing that features such as suggested tips are optional. More broadly, a bipartisan payday loan reform bill in the Wisconsin Legislature failed to advance this month.

Constantine said like longstanding payday lenders, these cash advance apps can be hard to regulate. Meanwhile, she urged those in a bind to explore other options.

"[They should] try talking to their friends and family as a first source. The other option which I would recommend is reaching out to their credit union or banking institution to see if they can get some sort of small-dollar loan," she said.

She noted places such as credit unions typically provide more transparency on loan costs. According to the report, three-quarters of consumers took out at least one advance on the same day or day after a re-payment was posted.


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Food prices remain high, in Montana and across the country.

A new report by the Federal Trade Commission says the country's largest grocery companies are gouging consumers, by keeping prices artificially high.

Many grocers, retailers and wholesalers have consolidated to cut costs. Grocers continue to blame supply chain problems, even though regulators have said most of those issues have been resolved.

President of the advocacy group Farm Action, Angela Huffman, said retailers were doing more than making up for lost revenue during the pandemic-era supply chain disruptions - and the FTC report says they continue to do so.

"In 2021, the retailer revenues, they rose to more than 6% higher than their total costs, and that those profits are still going up," said Huffman. "So, in the first nine months of 2023, the profits increased to 7%."

At nearly 6.5%, Montana had the nation's ninth-highest grocery price increase in 2023.

The FTC data show Amazon, Kroger and WalMart each gained market share during and after the pandemic - while profits continued to rise.

Other large retailers and wholesalers have consolidated, which they say gives them more buying power and the ability to pass those savings on to customers.

Huffman said that isn't what's happening, and calls on regulators to fine the grocers, or more.

"This would be kind of the farthest extent of what they could do, but go so far as breaking them up," said Huffman. "In years past, they broke up the telephone companies and the railroads and, you know, that would be the ideal outcome for us, is to take away their excessive power."

Huffman also points to a 150% increase in egg prices in 2023, which producers blamed on the avian flu. The FTC says the disease did not justify the drastic price hike.

April is Financial Literacy Month, when the focus is on learning smart money habits but also how to protect yourself from fraud.

One problem on the rise in the Southeast is the "impostor" scam, when scammers represent themselves as fake government agents or bogus businesses. They are really on the prowl for your cash and personal info, costing victims in North Carolina almost $190 million last year alone.

Natalya Rice, Southeast Regional attorney for the Federal Trade Commission, listed some key red flags to look out for.

"Utilizing a payment app, sometimes even cryptocurrency, things like that," Rice noted. "Anyone who contacts you from what seems like it could be a legitimate company or business, if they're asking you to send them money or some type of payment through one of these type of payment methods, that is a red flag that you're dealing with a scammer."

Other warning signs include requests to transfer your funds or even demands for a verification code to access an account. If you have concerns, Rice advised it is best to stop communication and contact the actual company directly. Still other scams big in the Southeast include online shopping, investments and job offers.

Nationwide, a record $10 billion was lost to scams in 2023.

More than 25,000 North Carolina residents reported possible identity theft last year. Rice recommends acting promptly when you realize or suspect you have been scammed. The first step is to contact your financial institution and report the incident to its fraud department. She added it is crucial to notify federal and state agencies for further investigation.

"You can go to reportfraud.ftc.gov and fill out a report there and let us know what happened," Rice noted. "In the state of North Carolina, there's also another place you'll want to report it to, and that's the North Carolina Attorney General's Office."

If you suspect your identity has been compromised, Rice stressed the FTC can assist you in developing a recovery plan. She added getting your money back is never guaranteed but the sooner a scam is reported, the sooner it can be investigated and other people can be warned.


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