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Stealth Inflation
prostoalex writes "The New York Times on the Web explores the topic of incorrect bills and numerous surcharges with names like 'assessment', 'handling', 'restocking', etc. David Pogue quotes Business Week magazine, where it says that such small charges $100 million annually for hotels, $2 billion for banks and $11 billion for credit-card companies. Users of landline phones, cell phones, checking accounts and credit cards are starting to suspect that such huge revenue might imply the mistakes are made on purpose. Is it just another conspiracy theory, or are we becoming victims to the stealth inflation?"
Is it just another conspiracy theory, or are we becoming victims to the stealth inflation?
Yes, in that order.
Inflation hasn't only gone up because of things like this, but because of the increasing dollar amount of taxes being subtracted from paychecks. Even if your paycheck is the same as 10 years ago, your take-home pay is very likely less. These surcharges are yet another way that make you think you're making the same amount - when really, you're making less and less, every day.
But I haven't any ninjas to tax!
if you think you're getting shafted by a company with "mystery" fees, just cook up an invoice for "services rendered: $11.52" and ship it off to their accounts payable department.
most of the people in accts. payable have a policy that any invoice that's less than a certain amount (twenty bucks or whatever) will just get paid. it's a great way to recoup your costs.
2 1337 4 u!
no, makes a lot of sense. For those places where you pay indirectly (ie through insurance), you must remember that you still pay. The insurance companies are never going to lose money by paying out outrageous fees without fleecing their customers in turn.
.. something, a lawyer could give you a list :), and that would be ok, as her insurance would pay for it......
Trouble is, everyone thinks that its free as they don't have to pay any of it, and so the fees are increased and increased, and the premiums go up and up.
The other thing to watch out for is compensation paytments for everything. (you should have sued your doctor for
its those that cause inflation, not a 0.02 here and there.
Now I doubt that the companies intentionally make the mistakes in order to extract more money from the customer...
Now that being said, I think that the companies intentionally do make extra charges all around and hide them intricately in deals as they see there. It wasnt 800 minutes but 700 plus 100 minutes. Now no one in the world is going to ask about that. I know to ask about extra hidden charges, but no that.
I think that the companies then through the complication of such systems easily profit from mistakes related to calculating the charges and fees. And they are not going to do anything to fix such errors.
So the question remains by not doing anything is that the same as actually cheating the customer... This client says YES.
30% Troll, 50% Underrated, 10% Interesting
Score:5, Troll
I'm sure its all accidental .. and the fact that the charges are never in the consumers favor is a mere coincidence.
Of course sales of 'random billing error' plugin modules are skyrocketing! ... again, coincidence
Wouldn't that be mail fraud?
- CALIFORNIA CODES
The beauty (or horror, depending on your perspective) is the "unfair" part. What was not technically illegal in the past may now be sued for if it is "unfair."BUSINESS AND PROFESSIONS CODE
SECTION 17200
17200. As used in this chapter, unfair competition shall mean and
include any unlawful, unfair or fraudulent business act or practice
and unfair, deceptive, untrue or misleading advertising and any act
prohibited by Chapter 1 (commencing with Section 17500) of Part 3 of
Division 7 of the Business and Professions Code.
Next case, hidden bank and ATM fees...
Slashdot "libertarians": Small government for me, big government for those I disagree with. -1, I disagree with you
Back in the 80's my mom used to record _all_ of her long distance calls and numbers on the calendar next to the phone (having only one phone, and little kids who didn't use it helped) and every few bills they'd try and screw us out of 50 cents to a dollar. After 2 years of calling up and screaming she started going into the main office and grumping in person, demanding the manager etc. After a couple of those and proof that we weren't home on days when calls were billed our bill mysteriously quit having problems and has been that way for the last 15 years.
Yes, the parent poster made a typo. It should be "Fight fire with a federal crime".
Don't get yourself in trouble trying to "get back at the Man." I hate the Man as much as anyone, but there are smart ways and dumb ways to fight.
-B
I'll give you an example of how this thinking is flawed.
In 2000 ATT was my local cable service, I wanted pay channels and a remote control.
They quoted me a price, which was no where close to what I actually paid.
Normal Sales Tax, I calculate this into everything already, I expect it, roads, schools and such.
Additional charge for the remote controls, the installer said they're extra, huh?
County franchise tax, which has something to do with the fact their cable is strung through the county.
City Franchise tax, same as above, but for the wire strewn through the city.
Sales tax was calculated after these taxes, the bill was over $50.00 greater than the quoted rate. I argued with ATT to at least calculate the sales tax corretly, they essentially told me to F$%@ off.
So I did, I canceled cable, went to circuit city, bought a directv system, installed it myself and later that day had crystal clear satellite with just sales tax added in.
Then I canceled my long distance with ATT after a phone conversation cost me $1.00 a minute, they said I'm not on a plan, so I asked about one, they said I had to pay additional fees every month to be on one, I told them to F#$% off this time, canceled long distance service entirely on the landline, the cellphone has nationwide anyhow.
After sometime I saw a deal with ATT cellular online, it looked better than everything else out at the time, and my current cingular contract was up. I signed up online, the phone was shipped quickly, no hassels, until several months later.....
They apparently decided I didn't need the free bonus minutes, or the nights and weekends like I signed up with, I got a $490 cellphone bill, I lost the paperwork I signed up with, they did back credit for that month, but how many other months did they screw me on and how many people actually sit down with the calculator to tally all their minutes?
ATT has forever lost my business, this includes comcast, no matter the marketing spin, no matter the offer, they will never again be someone I pay cash to.
Oh and nearly everyone I know has kicked them to the curb as well.
no it is not.
send them a bill.... Check writing fee : $9.95
you are doing business with them, you have a business relationship with them and it's perfectly legal.
I have done that for the past 2 years with the local Telephone company cince they atsrtedto charge $5.00 a month for making electronic payments.
They refused to pay it for the first 3 months until I sent a letter that I was going to send them to collections. I got a telephone call from their finance department asking what was up and I told them it was a fee they are being charged for me to write them a check every month. They asked how could they avoid the fee and I said, accept my electronic payment without a surcharge.
They keep paying it, and I even recently started sending a note on the bill "remove this check writing fee by accepting no-charge electronic payments!"
works great, is 100% legal (if they want to stop getting billed they can stop the business relationship with me.) and my lawyer thought I was very innovative and also told me that I am within my right to do what I am doing.
YMMV, but doing this is not automatically illegal as the misinformed here say.
Do not look at laser with remaining good eye.
To quote and rebut:
Her salary
All Professions
Her rent
All Professions
Her electricity
All Professions
Her heating/AC
All Professions
Her transcriptionist
All Business related professions (Computer Consultant for example)
Her malpractice insurance
Liability, though not as high, but there
Her receptionist
All Professions
Her phone system
All Professions
Her disposable supplies
All Professions
Her equipment investment
All Professions
Her student loans
Most all professions
So now,tell me now where a doctor is special and gets off charging three times the rate of any OTHER profession!
ALL PROFESSIONS have these charges. As a computer tech you have outragiously expensive equipment, strange arcane knowledge, a bizzare incomprehensible language, and all the other trappings of any of the High Priests of our culture. So how come I can't charge Lawyer/Doctor rates? A con gents is still a con. Even when you drive a BMW to the con.
- Minutus cantorum, minutus balorum, minutus carborata descendum pantorum.
I recently did battle with Sprint over a billing error. I fought and fought with them for months. Eventually I convinced them that if their fraudulant billing were exposed to a larger audience, that more irritating bastards like me would be hounding their accounting department.
I got a free years worth of phone service and long distance to keep my mouth shut and go away. It just ran out. I say give it a go, they're wrong and they know it.
Since this clearly does not apply to you, I don't think you have anything to worry about.