MCI charging for miles
I just got through a heated email exchange with MCI over my discovery that they have been secretly charging me for miles at the rate of more than $1 for every 1000 miles. This charge is buried in a taxes/surcharges line item and ends up being an unadvertised increase in the per-minute call rate.
While it's not a large amount of money, I'm outraged by their reply (as usual, their customer service is wholly unsatisfying, which is why I've switched back to AT&T). Anyone interested in starting a class-action lawsuit?
Here's their response to me. My favorite line is "Moreover, a customer is presumed to have knowledge of
the filed tariff terms." Right!
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Thank you for contacting MCI WorldCom Online Customer Service with
questions about the federal excise tax mileage surcharge.
The government requires MCI WorldCom and all other companies that buy
airline miles to pay a federal excise tax (FET) on the cost of miles.
MCI WorldCom and other companies must pay these taxes to the airline
directly, and the airline then pays the IRS. In order to recover
these costs and continue to award the same level of miles, MCI must
pass this tax on to airline program customers as a surcharge. This
charge is tariffed by the FCC.
This surcharge appears on the Federal, State and Local Surcharges line
of your invoice along with other nominal taxes and surcharges. After
your airline partner has confirmed posting of miles to your frequent
flyer account, this surcharge is applied. This surcharge appears on
your invoice at least one month after you earn the miles.
While we are sorry that these surcharges were not explained to you
up front, these charges are located in our tariff filed with the fcc.
A customer's relationship with MCI WorldCom is governed under the
terms of MCI WorldCom's tariff, which sets forth its rates,
practices, classifications, and regulations for and in connection
with its communications services. The content of the tariff is
subject to Federal Communications Commission ("FCC") regulation.
The tariff has the force and effect of law and is not merely a
contract. Moreover, a customer is presumed to have knowledge of
the filed tariff terms.
We appreciate the opportunity to service you online. MCI WorldCom
strives to provide you with the highest quality of customer service
and is committed to bringing you new and innovative ways to keep in
touch with your family members and friends. If you have any
additional questions or concerns, please visit MCI WorldCom Online
Account Manager at www.mci.com/service.
Sincerely
John
Online Customer Service