Your cell phone bill is a prime source for big profits. While an extra $3 monthly charge doesn't sound like much, it could mean billions each year for North Texas-based AT&T.
What's more: that charge may have been stacked on to your service.
Like many cell phone customers, Christine Ogren rarely reads her cell phone bill.
The balance is auto drafted from her bank account each month.
“I don't look at it,” said Ogren. “I trust AT&T. I've had them for so long.”
But Ogren recently noticed a $3 charge on her bill, and maybe other cell phone customers should start looking.
“I definitely believe and know that there was signing up without customer knowledge,” said a woman who asked to remain anonymous and until recently, worked for Ogren's carrier, AT&T. “…We were threatened quite frequently to be written up if we didn't hit goal. Potential job loss was there.”
She says pressure for stores to meet sales goals and quotas may mean countless customers are paying for a service they didn't ask for and don't need.
“It's a product AT&T wants us to push, and it was basically told to us that if we don't push it, then we don't need to be there,” she said.
The product is called Mobile Protection Pack. At $3 a month, it might not sound like a big expense.
AT&T's Mobile Protection Pack offers enhanced technical support, cloud backup and a GPS location feature which is designed to help find your phone in case it's lost or stolen.
Most of those features already come free and standard on many smartphones, but AT&T insists there's true value since their paid service covers you even when your phone is out of warranty.
“You're paying extra for things you're already getting for free with your devices,” said the former AT&T employee.
So how does the charge appear in the first place?
A spokesperson for AT&T tells FOX 4 you agreed to it -- you verbally signed up in the store and because the process is all-digital, it's the sales representative who documents your decision.
A year and a half ago, when Ogren started the service, there was a digital signature, too. Yet she insists, “They didn't tell us we were signing up for this. They try to say they did, but they didn't.”
Meanwhile, dozens and dozens of AT&T customers are saying the same, taking to FOX 4's Facebook page because they see the same $3 charge, too, and don't remember signing up for it.
The former AT&T employee says the signup process can be a little sneakier than that -- it starts when a customer asks about insurance.
“We would automatically bundle it together in a package,” she said. “We would try to not separate it.”
AT&T offers an insurance plan for their phones from third party vendor, Asurion.
The cost to you is $6.99.
An AT&T spokesperson tells FOX 4 the extra $3 Mobile Protection Pack is completely voluntary -- they're even separate when they're printed on your bill.
But when we took our cameras shopping for the insurance plan at local, corporate-owned AT&T stores, we were told by two employees that insurance was $10. That optional $3 suite of services is slipped in.
“Is it customizable? Or $9.99 flat rate?” asked FOX 4.
“Flat rate,” said an AT&T store employee.
That was the price until we asked one more time.
“Well, OK. So that includes enhanced support,” the employee said.
“One of them for $6.99, one for $3.99…$10,” said the other employee FOX 4 spoke to.
That $3 charge is tacked on in secret.
“I don't think that's fair,” said Ogren. “I think that's taking advantage of the consumer.”
So why risk customer loyalty for a measly $3 a month?
Consider this: by their own published stats, AT&T has 116 million wireless customers -- more than four times the population of Australia.
At $3 a month each, that's $4 billion a year in potential revenue, unless you notice it first.
AT&T declined our on-camera request for this story because they declined our request for a sit-down interview, preferring instead to only answer questions in writing.
We did ask about store quotas and whether it was standard practice for employees to automatically bundle insurance and the $3 add-on. AT&T chose not to answer those questions at all.
If you see anything unfamiliar on your AT&T bill, you can make changes online or by calling 611 from your cell phone.
Remember to always request a back credit for any charges you feel you didn't agree to.
AT&T's full statement is as follows:
“Thank you for bringing this customer's questions to our attention. We resolved her account issues and apologized for the miscommunication.
AT&T encourages customers to review their bills on a regular basis and promptly contact us at 800-288-2020 if they have any questions.
AT&T Mobile Protection Pack is a voluntary insurance service for those who lose or damage their devices. Customers can learn more about this service -- and enroll or cancel at their discretion – by visiting us online at https://mobileprotectionpack.att.com/, or by visiting one of our stores, or contacting us by phone.”
‘We, like other wireless providers, offer mobile phone insurance to our customers and it is entirely up to them whether they choose to purchase it. With phones being very valuable, our customers who elect it often find the extra layer of protection very comforting in the event their phone is lost, stolen or broken since it often costs hundreds of dollars for a replacement.”
“We have insurance options that provide far more protection than what may be provided by the phone manufacturer. For example, we have an option that offers protection if the phone is lost, damaged, or malfunctioning and out of warranty. We also offer personalized device setup and access to expert troubleshooting support for the device. And we have a feature that helps you find your lost device, backup and restore content in the cloud and remotely lock or wipe data from the device to protect your privacy.”
“Our sales representatives are trained to offer our insurance options to customers and we take several steps to validate the customers' choices during the sales process. We confirm those choices once they are made, and customers have the ability to cancel their insurance at any time.”
http://www.myfoxchicago.com/story/27370693/on-your-side-att-phone-bill-charges