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Sunday, May 25, 1997

Seizing a customer's telephone service could cost $5,0000 a day

AUSTIN (AP) - Phone customers angered by companies that take over their phone service without permission will have recourse under a bill on its way to the governor.

The Texas House approved the measure late Friday without debate or dissent.

The bill, by Sen. Gonzalo Barrientos, D-Austin, would allow the Public Utility Commission to fine a company up to $5,000 a day for each violation. If the violations occur repeatedly, the commission could revoke the company's right to do business in Texas.

Already, federal law bars a change without written authorization, a practice known as "slamming." Putting the ban into state law, however, would allow consumers to go to the state regulatory agency rather than the Federal Communications Commission or the state attorney general's office.

Barrientos introduced the bill after his private line at the Capitol was slammed by a long-distance company.

Rep. Debra Danburg, D-Houston, who sponsored the bill in the House, said it was needed because "when (slamming) happens it really angers people."

Although slamming arose from the heated competition among long-distance companies, the bill applies to both local and long-distance service. Though there is little competition in local telephone service yet, it is expected to increase over the next few years.

If the governor signs the bill into law, the Public Utility Commission would have to adopt rules by Nov. 1 detailing how telephone companies must get clear authorization from a customer before switching the customer's service. The bill permits several methods of authorization, including a written notification.

A company could take over a customer's service if the customer called in on an 800 number and if the change applied to the same number from which the customer was calling. Also, if a customer initiated a change, the company would have to get some personal information from the customer so that, if it was accused of slamming, it could demonstrate it had permission to make the change.

A company caught slamming would have to change the customer back and pay any of the usual fees for making such a switch. It also would have to reimburse the original company for the money it lost.

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The anti-slamming bill is SB253. Send a Letter to the Editor about This Story | Start or Join A Discussion about This Story
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