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Attorney General Richard Blumenthal and Department of Consumer Protection Commissioner James T. Fleming today announced a settlement with Qwest Communications International, Inc. of Denver, CO, that requires the telecommunications company to stop "slamming" Connecticut residents, billing consumers for services not provided, and charging consumers when they are no longer Qwest customers.
Blumenthal filed a lawsuit against Qwest in 1999, demanding that the company cease its practice of "slamming"and other consumer abuses. The lawsuit claimed that the slamming, which is the illegal practice of switching a customer's telephone service carrier without the customer's authorization, continued from early 1998 to August 1999.
"This settlement is very big -- unprecedented in scale -- but so was Qwest's wrongdoing. Thousands of unconsenting and unknowing consumers found their service switched by Qwest. They were victims of an astonishing array of abuses, including the use of false and forged signatures and wrongful charges to former customers. Now Qwest must pay back -- in credits and refunds to its victims, and penalties to the State. It must also comprehensively overhaul its business practices," Blumenthal said. "We welcome and hope for the company's future cooperation."
"The signal to any company slamming in Connecticut is that tough penalties will be imposed and consumers paid back in full," Blumenthal said. "The message to consumers is that they should strictly scrutinize their telephone bills, search for suspicious charges, and help stop slamming by alerting us immediately."
"I authorized this lawsuit against Qwest Communications because the company's business practices were simply unbelievable. Accepting forged or falsified names from marketers in order to switch consumers' long distance, without the consumers' knowledge or permission is bad enough. But when some consumers left Qwest and signed up with other carriers, Qwest continued to bill them," Fleming said. "No company doing business in Connecticut will be allowed to use forged signatures to get new customers and no company will get away will billing consumers for services they don't want and haven't agreed to. This $1.1 million -- as well as restitution we have obtained for the affected consumers -- says that loud and clear."
In the settlement, Qwest agreed to pay $1.1 million to the State. To the extent that consumers have not already received a credit or refund, Qwest will also make restitution to thousands of Connecticut consumers who were victims of Qwest's activities. The Attorney General's Office will monitor Qwest's actions to make sure consumers are given any refunds they are entitled to.
Under the settlement agreement, Qwest has agreed to:
- Pay stiff penalties for forging or falsifying documents to support a switch;
- Allow consumers a choice of both interstate and instate long distance carriers; and
- Resolve slamming or billing complaints within 45 days and ensure that it has properly trained customer service staff to address consumer complaints.
Qwest is also prohibited from:
- Changing a consumer's long distance service without first obtaining and verifying a consumer's permission;
- Billing consumers who have signed up for protective "blocks" on their long distance accounts;
- Billing former customers after they have switched from Qwest to another long distance company; and
- Referring any account to collections, or notifying a credit rating agency, if a consumer challenges Qwest's authorization to provide long distance service, until Qwest proves that the switch was properly authorized, and the consumer has had an opportunity to respond.
Connecticut's settlement with Qwest is more substantial than agreements the telecommunications company has reached with any of the seven other states that have settled. Qwest's payment of $1.1 million to the State is more than double the amount obtained by any other state. This settlement also contains a stronger notice provision, requiring Qwest to notify and reimburse consumers through numerous means, including notification by direct correspondence and publication in English and Spanish language newspapers. The injunctive provisions are more comprehensive than achieved by any other state in protecting consumer credit, requiring Qwest to retrieve and review all accounts previously referred to collection agencies, and to actively notify credit bureaus to correct all consumer credit reports that were damaged as a result of Qwest's improper conduct.
Any consumer who believes that Qwest provided them with long distance service without their authorization, or who continued to be billed by Qwest after they switched to another long distance carrier, should submit a claim to Qwest by calling 1-800-405-1506, or they can e-mail Qwest at ctsettlement@qwest.com Consumers will need to provide their names, addresses, telephone numbers and, if available, account numbers. All claims will be investigated and responded to within 45 days of the claim.
View the Qwest settlement agreement (PDF-50KB)
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