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AT&T Slaps Family With a $19,370 Cell Phone Bill

theodp writes "Mama, don't let your babies send e-mail and photos from Vancouver. A Portland family racked up nearly $20,000 in charges on their AT&T bill after their son headed north to Vancouver and used a laptop with an AirCard twenty-one times to send photos and e-mails back home. The family said they wished they would have received some kind of warning before receiving their chock-full-of-international-fees 200-page bill in the mail for $19,370. Guess they didn't read the fine print in that 'Stay connected whether you are traveling across town, the US, or the world' AT&T AirCard pitch. Hey, at least it wasn't $85,000."

28 of 725 comments (clear)

  1. Oh Noes! by k_187 · · Score: 4, Insightful

    You charged me exactly what it said in the contract I signed said you would! How dare you.

    I would think that in the interests of PR, AT&T might send you a text or something when you go international roaming and pass some threshold of use, just to warn you. But really, if you pay extra to call Canada long distance, don't you think your cell phone/data card would work the same way?

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    1. Re:Oh Noes! by Anonymous Coward · · Score: 5, Insightful

      What planet are are you from? One where it really is OK to charge 6 months wages to send email using a system in use by millions of people.

      Its a sign the markets aren't competitive, the corporations immoral and some individuals so brainwashed that they blame the victim.

    2. Re:Oh Noes! by lysergic.acid · · Score: 4, Insightful

      and it's that kind of attitude that popularized predatory lending practices which created the current mortgage crisis. similar systemic problems have also been observed in the credit card industry, with credit card companies intentionally targeting the most financially distraught members for higher credit ratings knowing that they won't be able to pay off their debts.

      if you lend money to someone who you know can't pay you back or afford the interest rate, and then they file for bankruptcy as a result, why should anyone bail _you_ out when you're in financial trouble? in these cases it's not borrowers who are trying to convince lenders to approve loans they know they can't afford it. it's usually the other way around, where the lenders convince borrowers to take out loans that any conscionable lender should know not to approve.

      most people who fall victim to these practices are first-time homeowners. they're not mortgage industry professionals who are familiar with lending contracts. so it is understandable that they can be misled to sign into a loan which they are unable to pay back. such excuses cannot be made for the lenders. they should be well versed in sound lending practices.

      the deceptive use of fine print doesn't clear a business of responsibility for unethical business practices.

    3. Re:Oh Noes! by C10H14N2 · · Score: 4, Insightful

      Considering I have ATT, I travel internationally, I use data to work using VOIP and RDP over VPN when I do so and have never had a bill from them exceeding $300, yeah, I find this pretty fucking ridiculous.

      It is reasonable to expect charges in Canada to be roughly the same as roaming agreements for many years have included Canada as a basic service. Yeah, it's AT&T's fault if they weren't told they needed that for CANADA when they TOLD THEM THEY WERE GOING THERE.

      I can see charging, double, triple, even ten times as much barring that petty nickle-dime $14 (or whatever the hell it is these days) service fee for included international roaming, but 32,200% more? I'd say that's a tad out of line because you know full well AT&T is buying that airtime in bulk and sure as shit isn't remitting more than about a couple ten bucks of that $19,320 to fucking Rogers.

    4. Re:Oh Noes! by HangingChad · · Score: 4, Insightful

      So? Don't sign it...

      If all the cell providers have basically the same contract, then there is no real choice. You're not dealing with a free market when providers collude to fix service agreements, you're dealing with a cartel. And as long as there are self-righteous apologists sticking up for the cell phone cartel, nothing is going to change.

      AT&T runs commercials all the time advertising their accessibility in Europe and overseas. I don't remember anywhere in there hearing that charges could be as high as $20,000.00. If AT$T had to disclose that in a service contract, no one would sign up for their service.

      It's time consumers stop being victimized by service contracts where one side reserves the right to change the terms at any time. That's not a contract, it's a hostage. And stop wagging fingers at consumer caught in silliness like this. These people could very well be facing financial ruin.

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    5. Re:Oh Noes! by spire3661 · · Score: 5, Insightful

      It does NOT cost $20,000 to send a few megabytes of data on a network in use by millions. No telecomm bill for a single, consumer grade line should be allowed to be billed at that rate.

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    6. Re:Oh Noes! by Bullet-Dodger · · Score: 4, Insightful

      Exactly, if you don't want a full-time job reading through fine-print you're perfectly free not to have phone service, cable TV, rent a house, buy a car, or install any software. If you didn't see the clause about forfeiting your first-born, it's your own fault.

    7. Re:Oh Noes! by Rich0 · · Score: 4, Insightful

      So? If they are it's their own fault. They claimed that they both read and understood all the nuances of the contract when they accepted it. They have no excuse for being surprised by the financial repercussions.

      Should people be free to enter in to ANY kind of contract? Suppose the contract stated that if you didn't pay your bill on time you would become indentured to the phone company until such time as you paid the bill? If you're in really hard straits should you be able to sell yourself into slavery?

      Boilerplate contracts are generally enforcable, but courts have discretion to determine the fairness of any such contract. This is for good reason - they don't represent a meeting of the minds, but rather a deal in which one side has far more bargaining power than the other. When every phone provider in the country has onerous terms your only option is to not own a phone.

      Go ahead and try to live without a credit card, phone, cell phone, internet, or anything else that requires signing a boilerplate contract with one-sided terms. Sure, you can still live that way, but why would you want to? You can't even go to the hospital without signing a boilerplate contract. In some cases you can be treated as if you had implied consent to a contract if you were treated while unable to make decisions.

      Look - I'm fairly libertarian - more so than most. However, consumer protection laws are very necessary in this day and age when just about every cost-effective industry is an oligopoly.

    8. Re:Oh Noes! by lysergic.acid · · Score: 4, Insightful

      well, that's sorta like saying someone who's dumb enough to get conned/scammed deserves to be scammed. i certainly don't promote ignorance (in fact, i find the overwhelming level of ignorance in our society quite frustrating) but you can't support, or let businesses get away with, unethical predatory lending practices.

      and let's be honest here, who has never missed/skipped over a few lines of fine print when signing some kind of business contract? whether it was through conscious choice or accidental, we've all skimmed over parts of contracts or legal forms to some degree. i mean, who has never misread a word or sentence while reading a book/newspaper/magazine/street sign/etc.?

      the very nature of fine print is inherently deceptive. that is precisely why businesses use fine print to conceal warnings, disclaimers or terms/conditions which consumers may be put off by. you can call the use of fine print a marketing tactic to make your service/product look more appealing. and it's considered completely legal usually. but at some point this kind of manipulation of consumers crosses into overt dishonesty.

      if you have a 20-page cellphone contract full of verbose wording for trivial details and standard terms of agreement, but buried near the back you have, in fine print, a special clause that requires the signee to hand over all his personal assets to you and surrender himself to disciplinary flogging if he uses his phone to make a business call on the sabbath, then this probably wouldn't be considered a legally-binding contract by any sane court.

  2. Disgusted by cerberusss · · Score: 5, Insightful

    Some people here will undoubtedly react in this topic, saying that this family "brought it onto themselves" or "should have read this or that".

    I'm saying I'm disgusted, utterly disgusted how these companies treat their customers. Why isn't there a procedure in place that calls the customer upon reaching some limit like $500 or $1000 and warns them?

    Why not? I'll tell you why. Because this is how the world works. But I'm still disgusted.

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    1. Re:Disgusted by jedidiah · · Score: 4, Insightful

      Nevermind the whole "treat them like a 2 year old" nonsense.
      How about being on the lookout for apparent fraud patterns?

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    2. Re:Disgusted by Rachel+Lucid · · Score: 4, Insightful

      How does placing a cap in at, say, $500 worth of charges count as babysitting?

      Who the hell actually WANTS to pay $500 worth of charges without knowing it?!

    3. Re:Disgusted by photomonkey · · Score: 5, Insightful

      I'd warn a lot earlier. Like when you're 50% over your plan.

      Contract or not, this isn't a business game, it's a game of gotcha with customers.

      Lure people in with words like "unlimited," "free," "included" and then trickily word an overly verbose contract to make exceptions for everything.

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    4. Re:Disgusted by mabhatter654 · · Score: 4, Insightful

      it's called a credit limit... they have those on credit cards for a long time and they are heavily policed for fraud. If a bank allowed this they'd be looking at massive SEC and banking fines for such reckless credit behavior.

    5. Re:Disgusted by Rich0 · · Score: 4, Insightful

      It isn't even a matter of clauses buried in fine print. The problem is that this is "standard practice" and it is anti-consumer. Even if the first line in the agreement was 48 point and said "note that when you use your phone internationally you could end up being assessed charges far in excess of normal" it wouldn't be fair. It should simply not be possible to use a phone in a way that could run up that kind of a bill. If nothing else phone providers should be required to allow their customers to set a monthly limit on their spending - if the provider somehow lets the consumer go over the limit without express consent from the account owner they end up eating the cost.

      And I don't want to hear about how roaming billing cycles are too slow to allow that kind of realtime assessment of charges. If they can route a 32kbps digital phone call from my home to a point halfway around the world such that it only takes 2 seconds for the phone to start ringing and there are no gaps in the audio, then they can send a 10-byte estimate of the cost of the call per minute and do a database lookup.

  3. All too common tale by jmorris42 · · Score: 4, Insightful

    This sort of thing has been going on for decades with cell phones and roaming. It is all too easy to get hosed by unexpected charges. They really should be forced to inform you anytime the fees on a call will exceed 10 times your normal per minute fee BEFORE connecting the call or in this case Internet connection.

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    1. Re:All too common tale by gad_zuki! · · Score: 4, Insightful

      Bullshit. My gf just went to india, germany, and russia and texted and called me without tell AT&T anything.

      This is another customer 'gotcha.'

  4. Too bad.. by Creepy+Crawler · · Score: 4, Insightful

    Too bad that our FCC does NOT require reasonable access and reasonable charges on OUR public airwaves.

    Instead, the FCC whores out our frequencies for billions of dollars, and we then get re-charged for using those frequencies. What a crock of shit.

    Question: How much did the roaming agreement with that "roaming carrier" cost AT&T? 10$? 100$? ... Free (peering agreement)?

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  5. Read Contracts & Limits aren't carriers want by weston · · Score: 4, Insightful

    You charged me exactly what it said in the contract I signed said you would! How dare you.

    I expect that in a world where most either read their contracts in great detail (and are sufficiently educated to understand the ramifications) or refused to sign anything that took them more than a minute to read, this would work out great. I'm not sure which plan you're advocating, though, and I expect either plan would actually impede carrier sales.

    I would think that in the interests of PR, AT&T might send you a text or something when you go international roaming and pass some threshold of use, just to warn you. But really, if you pay extra to call Canada long distance, don't you think your cell phone/data card would work the same way?

    I think the particularly telling piece of information is that if you want a plan where they do limit your charges and notify you when you reach thresholds.... you have to pay extra. They're called prepaid plans, and there are no surprises (well, within limits), but for common use cases, it's guaranteed you'll pay 2-4 times the amount a customer on a given rate plan will.

    Why the cell phone companies can't combine the limits on prepaid plans with conventional rate plans is an interesting question, but I suspect the answer is not a technical limitation.

  6. unconscionable contracts are unenforceable by Anonymous Coward · · Score: 5, Insightful

    Isn't there a common law rule about contracts that "unconscionable" clauses are not enforceable? There is no way a sane person would agree to purchase services at these prices or anticipate this level of charges. It's like ordering "a bottle of red" at The Olive Garden and getting a rare 1940 barolo priced at $20,000.

  7. Re:Former ATT Employee, no sympathy by stephencrane · · Score: 5, Insightful

    That's nonsense. It's not disabled by default on all ATT phones. In this case, we're talking about a data card, but it's the same point. You don't have to call to turn it on. I've seen two instances recently where people got hit for 7000 and 9000 bills, with no change in usage behavior. Some folk troubled inside can sneer at these people and justify their disdain behind the fact that an 26-page agreement lists roaming data charges in fine print. These same agreements also say you've signed away half your legal rights because ATT would find them inconvenient in certain situations. Fuck that as a justification. There are tons of cellular service providers that have much better warning systems, like a text or pop-up with fee information, or tools you can use, like self-setting a limit on how much costs you can incur before service temporarily disables. There's no reason why people in this day and age shouldn't expect more. Casual data use goes up every year as files and options take up space, yet somehow it always seems that those with few competitors seem to continually put off revising their rates for networks long paid for. This was Canada in 2008, not Sierra Leone in 1998. The most galling thing of it all is the proof right in what puto is saying. We all know that all that stands between a $20,000 bill and a $100 bill is a fucking SKU. They design the circumstances to encourage these mistakes, or they just don't care enough about their customers to deploy solutions already on other providers' shelves.

  8. Re:Former ATT Employee, no sympathy by Alioth · · Score: 4, Insightful

    Most people, though, simply do not grok how much data a short video or a few dozen lightly compressed photos use up, though. It's not like voice, where everyone understands what a minute is. A few minutes on a data call can transfer just a few kilobytes, or possibly tens of megabytes - and most people who aren't IT people or telecommunications experts simply don't understand this.

    It would be more customer-friendly to by default have the international roaming plan bar calls once the charges reach, say, $100 - instead of let people who aren't IT experts unexpectedly run up gigantic data bills.

    That's before we get to the rip-off profiteering that is international roaming.

  9. It seems to me ... by LaughingCoder · · Score: 4, Insightful

    ... that the mobile carriers could save themselves a great deal of grief if they provided a fact sheet to their data subscribers. Sure, the contract said $0.019 per KB, but most people have no idea what that means. Now, if they handed them a sheet like the following:

    Here are some typical charges at $0.019/KB ...
    1 email would cost about $0.02 to send or receive
    1 web page would cost about $0.20 to display
    1 3.2 megapixel picture would cost $6 to send
    1 10 megapixel picture would cost $20 to send
    1 minute of DV video would cost $5200 to send


    In other words, express the charges in terms of something they can understand. I'm sure if this family was given a fee schedule like this they would have suggested that their son not send home the pictures.

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  10. Real responsibility is more than watch-out-for-#1 by weston · · Score: 5, Insightful

    Yes, because everyone needs to be treated like a two year-old. No, we can't expect people to act like adults and be responsible for their own actions.

    Real grown-up responsibility has more than a watch-out-for-yourself component. There's both an individual and a social component.

    And a reasonably convincing case to be made that among others, most cell carriers don't take enough responsibility in helping people signing contracts understand the whole thing. Or that a reasonable person would find it highly surprising there are corners of the covered terms of service which if you wander into can subject you to fees 2-3 orders of magnitude larger than your conventional bill.

    Think about it this way: when the people in question got the data service, do you really think they *never* asked what the service cost? It's highly unlikely. What is highly likely is that they asked, got the standard answer about the most common usage, and were simply not informed about the additional usage fees. They took an incomplete answer as a complete one.

    You can argue that the contract is a complete answer, but here we have a problem: contracts are not intended to be effective vehicles for communicating terms of agreement to consumers, they're designed to be effective vehicles for specifying terms to the legal machinery. If you want to argue that the contract is the answer, you may as well argue the source code of a piece of software serves as a FAQ or Manual.

  11. Contracts are inadequate customer communication by weston · · Score: 4, Insightful

    As I've said elsewhere in the thread, expecting contracts to serve as effective communication to the customer is like expecting source code of a program to serve as a FAQ or a manual.

    Contracts are not really intended for (nor good at) effective communication of agreement terms to a customer. Especially when drafted entirely by the legal department of one side agreement, their purpose is something else entirely, which is to communicate those terms to the legal system (and, maximize the interests of the side that drafts them under the fullest extent possible under the law).

  12. Re:Apple? by Stuart+Gibson · · Score: 4, Insightful

    Actually, you're not far wrong. By default the iPhone disables international data roaming, you have to explicitly tell it you want to use data when not on your home network.

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  13. See: my bank. by C10H14N2 · · Score: 4, Insightful

    I've had calls from my bank's fraud department when they see a spike in, say, clothing purchases at department stores -- because I hardly EVER do that.

    If they can call me because charges amounting to less than 10% of what flies in and out of my account roll through over a weekend -- not just because of how much, but because of /where/ -- AT&T sure as hell could flag an account that is fast approaching 50 times normal usage in the space of 24 hours.

  14. Incentive to limit profit? by neapolitan · · Score: 4, Insightful

    Exactly. It is definitely not a technical limitation, but designed to enhance profits.

    I am always irked when I travel to a new city, spend $60 on my VISA card, and am called 5 minutes later for a "fraud alert" early warning. Or, better yet, dine in a restaurant in another city and have it "declined for my safety" due to unusual activity.

    For any of you guys saying "Oh, this is good," remember this is designed to protect the Credit Card company, not you. Almost all cards limit your responsibility to $50 for fraudulent transactions. You can rest assured if you were responsible for your own well being, as in the case outlined, you would not get an early warning. Similarly, there is no financial incentive to do so in the case of AT&T above, who can now harass the customer to pay a huge amount of money, and then look "generous" to let them off with only a couple of hundred dollars in fees.

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