by Andrew Shain
Verizon Wireless' decision last month to curb fees when customers end contracts early was hailed as an end to one of the more anticompetitive and anticonsumer fees out there.
So what would consumer advocates like to see changed next and who could make them happen?
Congress is debating a few consumer issues, notably on cable television and the Web. But just as with Verizon, when a business ends an unpopular policy to win customers, change often comes at unpredictable times.
The key, advocates insist, is consumers fighting back -- writing e-mails, making calls and voting with their wallets.
Here are 10 fees and rules consumer advocates said they'd like to see improved or changed:
• Cell-phone trial periods: Lengthen the amount of time to test new cell-phone service from the typical 14-15 days to an entire billing cycle so customers can examine their first bill and learn better about where the phones work, said Rob Thompson, consumer advocate for the N.C. Public Interest Research Group.
Cingular, one of the Charlotte region's dominant carriers, already offers a 30-day trial.
• Cable channel choice: Let viewers choose their own channels to watch, rather than paying for large bundles of channels cable operators sell. "Many of these channels are making money, so why do I have to pay to have them on my TV?" asked Linda Sherry of Consumer Action.
• Internet network neutrality: What if Internet providers allowed some favored Web sites to load on your computer much faster than others? It's being discussed since Web services could charge for this privilege. Fears are that only bigger Web sites will pay, leaving behind smaller and newer competitors, said Mark Cooper, research director for the Consumer Federation of America: "This closes off the Internet." The Senate could debate the issue this month.
• Paperwork charges on car sales and leases: Called document fees or dealer conveyance on a sale, some dealers charge up to $400. Philip Reed, consumer advice editor for car advice site Edmunds.com, said $100 is reasonable. On auto leases, these are acquisition and lease-end fees, costing about $300 each. Ask to have them waived. "When you go to the store, do they charge you for making out a receipt?" Reed asked. Some states cap these fees, but not the Carolinas.
• Credit card interest rates: Banks can boost interest rates for almost any reason (late payments, changes in credit scores) with 15 days' notice -- even for customers with fixed-rate deals, Thompson said. The reasons and amount can vary. Standardize when and how much rates can change as well as the time between receipt and payment of bills, he said.
In addition, banks need to curb when they can send interest rates directly to the maximum allowed, usually around 25 percent. This instant hike should be used for habitual late-payers, not for customers late a couple of times or whose credit rating dropped slightly, said Greg McBride of Bankrate.com.
• Over-credit-limit fees: Don't charge a $30-$50 fee for going over credit card limits. Instead reject purchases that put customers over, advocates suggest.
• Late credit card payment fees: They average more than $35, but advocates believe they should reflect the true cost for banks -- somewhere under $15.
• ATM fees: Banks are charging $1.50 to $2 to use a machine from a competitor -- and the competitor adds a fee for noncustomers to use the ATM. Getting $20 ends up costing $24. Consumer advocates say those fees should be capped at 50 cents.
• Mail-in rebates: Ban -- or at least standardize rules for -- mail-in rebates.
"Why not just sell the product at the price after the rebate? Don't advertise a cell phone for $25 when it costs $125 but has a $100 rebate -- just sell the thing for $25," Thompson said. "At the least, the information and time needed to redeem a rebate should be standardized." Best Buy and OfficeMax have announced plans to curb or end mail-in rebates.
• Gift cards: No fees or declining balances if cards go unused. In fact, balances should rise: "They're getting to use your money," said Tom Bartholomy, president of the Charlotte-area Better Business Bureau.
