Lawsuit alleges MCI overcharged some customers between Feb. 5, 1996 and Oct. 15, 2000, and Sprint customers may be eligible, too
By: Sue Kramer
If you’ve used MCI (WorldCom Inc. formerly known as MCI WORLDCOM Inc.) to make long distance telephone calls at any time over the past four years, you may be entitled to part of an $88 million class-action settlement. And if you subscribe to Sprint, you, too, may be in for a refund.
The notice of class action and the proposed settlement against MCI, filed in United States District Court in the southern district of Illinois, alleges between Feb. 5, 1996 and Oct. 15, 2000, MCI charged some of its subscribers, non-subscriber rates for long distance calls.
MCI subscribers, people who have chosen MCI as their long distance carrier, dial "1," plus the area code and number, to make a direct dialed long distance call or "011" to make an international call. As subscribers, they are charged a lower rate than non-subscribers, who use a special code (1010222 followed by "1," the area code and number) to access the MCI’s long distance network.
The calls that are made using the special access code are called by a variety of names including "dial-around," "casual," "casual caller," "casual calling," "random," "random caller" and "random calling."
According to the court notice, MCI occasionally charged its subscribers the higher, non-subscriber rates and surcharges without their knowledge when they made direct-dialed calls.
By not giving its subscribers the information about this policy, MCI customers didn’t know under what circumstances or when they were being charged the higher dial-around rates and surcharges. This violated federal telecommunications law, which states telephone service providers must provide rate schedules that clearly describe how the telephone company will charge for services.
A second class action lawsuit is being brought against the long distance carrier, Sprint, for the same reasons as the MCI proceedings. The case is pending in the Kansas court system with no proposed settlement agreed on as yet.
The law firm of Girard & Green, LLP, located in San Francisco, Calif., is handling both cases.
While MCI has denied the overcharge allegations, it has negotiated a settlement, which included the establishment of a settlement fund in the amount of $88 million plus interest, to pay the claims.
There are two claim options: If you know the phone number(s) and time period you were an MCI subscriber, you can receive a refund in the amount of the overpayment. If you don’t know the telephone number or approximate time period you were an MCI subscriber, you can collect a refund in the amount of $75.
Claims can be submitted over the Internet, by going to the Web site www.rateclaims.com. Filing is as simple as clicking on the button labeled, "I Wish to Make a Claim."
Claims also may be filed by telephone at (800) 967-9425 and following the instructions.
For those who wish to file a claim by mail, claim forms can be obtained through the Web site or by calling the toll-free number.
To be excluded from the settlement even though you are eligible, a written request for exclusion should be sent to MCI Non-Subscriber Telephone Rates Litigation, P.O. Box 5053, Portland, Ore., 97208-5053. The request should include your name, address and telephone number. It must be signed by you and include the reference, "In re: MCI Non-Subscriber Telephone Rates Litigation,MDL Docket No. 1275."
The settlement hearing is scheduled for 9:30 a.m. March 29 in East St. Louis, Ill. All claims must be received by April 30 to be included in the settlement.