Are you one of the tens of millions of cell phone users who have faced unexpected charges of $100 or more on your cell phone bill?  Edward Wyatt for The New York Times reported that, "A 2010 study by the Federal Communications Commission found that one in six mobile users had experienced bill shock and that 20 percent of complaints received by the FCC during the first half of 2010 were for $1,000 or more in overage charges."

The FCC and wireless carriers have reached an agreement that the carriers will begin sending alerts to consumers who are nearing their monthly limit for voice, text, or data services.   The new system will be up and running within a year.

The new alerts come at a time when data usage, especially, has grown with the popularity of tablets and better smartphone technology.  Wireless contracts usually include a flat fee for text, voice and data and any usage over those limits incurs charges that are usually far more expensive than the per-unit basis under the monthly allotments.

Even unlimited plans have their limits.  Downloads are limited to a certain number of megabytes which, "unlike a number of calls or minutes, cannot easily be tracked by the uninitiated." writes Wyatt. "Last October, the F.C.C. highlighted the case of a 66-year-old retiree in Dover, Mass., who received an $18,000 bill after a promotional no-limit data plan expired without warning."

Carriers will provide free alerts by text or voice when consumers approach and/or exceed their limits on voice, data or texting.

Roaming charges can also catch the consumer unaware.  Most times these occur when travelling overseas.  Some carriers already alert users to the fact that the call will incur additional charges, but not all carriers do.  The new alerts will require all companies to alert their customers of potential roaming charges.   

Consumers can opt out of the service if they choose, reports Wyatt. " At least two of the four types of alerts must be started by carriers within 12 months, and all alerts must begin within 18 months."

Read the full story at The New York Times.

photo credit: derrickcollins

Posted in Technology And You

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