Understanding Your Cell Phone Bill

If your cell phone bill comes in an 8-1/2 x 11 inch manila folder, you're paying too much for your monthly service. But even if your bill is just one or two pages long, you could be paying for stuff you don't owe.

Cell phone statements tend to give obscure names to the extras they charge so it’s not always easy to understand what everything means. If you don’t remember ordering or using all those "incidental" charges, it can be difficult to know whether you're being cheated or not.

Here are four things everyone should know about their cell-phone bill.

1. Agreed-upon Charges
First, check to make sure you're only being billed for services you requested. Some items are frequently listed as “recurring charges” because you pay the same cost each month. Refer back to the original contract or service agreement to identify any services charged under this listing. Most plans charge extra for text messaging, three-way calling, extended hours or additional minutes. You don’t want to be charged for a service you didn’t order.

 Before you sign a wireless service contract, ask for a detailed explanation of costs. Request a sample statement that details only the features you ordered to avoid any surprises when you get your first bill. You'll be locked into these fees for the rest of the contract, once you've signed. Contact your provider if you find charges not listed on the contract and sample statement.

2. Pile-on Charges 
Make sure your statement charges you only for the service-plan you ordered. If you signed for service without text messaging, there shouldn't be a charge for texting. If you find you're being charged for incoming texts, ask to have a block put on this service. Make sure you don't go over the minutes detailed in your contract, however, as providers charge a hefty amount for any extra minutes. If you're consistently going over your allotted minutes, ask your provider if you can upgrade your plan. Most will happily help you out.

3. Charges You Don’t Understand
You must pay federal and local taxes but your cell bill may include several other charges that sound like taxes or government fees. These go by a variety of names, such as “regulatory cost recovery,” “Federal Universal Service,” “E-9-1-1,” or “number portability.” The government does not require the companies to collect these fees. They are the business costs to comply with government regulations. If you see a fee you don’t understand, ask your carrier to explain.

4. For Questions or Complaints
To resolve any issues, begin by contacting your service provider. Try to negotiate with the company if you think you have been wrongly charged. If the provider refuses to resolve your complaint, contact the Federal Communications Commission and with the Better Business Bureau.

Photo by MarkKelley