T-Mobile users to be billed for bills

Rob Connor of Charleston, S.C., watches his bills carefully.  So he's pretty "steamed" that soon he's going to have to pay for the right to do so.

Connor is caught in a debate that could pit environmentalists against consumer rights advocates over the basic monthly task of paying the bills.

Connor's mobile phone provider, T-Mobile, recently sent him a note saying it will now charge customers $1.50 per month to receive paper bills mailed to their homes, or $3.50 per month for detailed bills.  E-mailed bills are free, but Connor says that won't help him. He doesn't have Internet access at home.

T-Mobile says it's making the change, which takes effect in September, in part to help the environment, but Connor doesn't buy that.

"This thing of having to pay so I can pay is just a little too much," he said. "And I'm certainly not interested in some bogus argument about me contributing to global warming by NOT signing on to making it cheaper for T-Mobile to send me a bill."

Is T-Mobile stiffing consumers like Connor or helping the environment?  Many companies are strongly encouraging consumers to forgo paper bills in favor of electronic versions. Sprint offers a $5 credit to consumers to enroll in online billing. Verizon recently offered consumers who make the switch a chance to win a Toyota Prius.   

But T-Mobile's fee for even summary paper bills marks one of the most aggressive steps by companies trying to push consumers into the paperless world.

"After considering a number of factors, including rising costs for paper, printing, and postage, as well as environmental impacts associated with printing paper bills, T-Mobile has started to charge customers who would like to receive a paper bill," the company said in a statement. It stressed that consumers can access billing information online for free at any time or, in some cases, with their handsets.

The firm is not the first wireless company to charge for paper bills. Verizon Wireless and AT&T charge $2 monthly fees for consumers who want to receive detailed bill statements via U.S. mail.  Basic summary bills are still free, however.

The cost savings for the companies are obvious. Verizon recently said it saves about $600,000 each year for every 100,000 customers who go without paper bills. In 2008, the firm replaced paper bills with electronic versions, saving 4.3 million pounds of paper, or about 52,000 trees, it said.

The PayItGreen Alliance – a banking industry group – says that if 20 percent of U.S. households switched to electronic bills, 1.8 million trees would be saved each year. 

But Connor thinks he has a right to the paper bills for free, and he's not alone. T-Mobile customers have taken their displeasure with the new policy to the Internet, registering complaints on dozens of Web sites.T-Mobile's own consumer message boards are full of angry notes.

"It really pisses me off when companies hide behind the environmental wackos for a reason why not to include services anymore," reads one. 

"E-mails don't receive much weight from me, I respond much quicker and better to a physical bill in the mail than an electronic statement," said another.

Get out of their contracts?
Harvey Rosenfeld, founder of Consumer Watchdog and lead attorney in several lawsuits against the mobile industry, says Conner and other complainers may have legal grounds for their objection.  He recently settled a lawsuit against Nextel Corp. for requiring consumers to pay for detailed billing statements back in 2003. As part of the settlement, Nextel agreed to refund customers.  He says consumers are entitled to bills and invoices that itemize costs.

"There's a lot of policy language in state and federal law that says consumers need to be able to determine the validity of a bill," he said. "You need to know if you're being overcharged, if you've received a promotional discount. You can't figure anything out from a bill if all they give you is a single unitemized bill."

Rosenfeld says he's seen hospital bills where the consumer was charged $2.50 to obtain a copy of the bill.

"To bill you for the price of billing you is an outrage" he said. "It's the cost of doing business."

T-Mobile counters that it is providing a free means for customers to receive their bills – on the Web. 

Nextel also made that case, Rosenfeld said, but at the time, millions of the firm's consumers did not have Internet access.  T-Mobile probably has a stronger case on that point today, but Rosenfeld still thinks consumers who want itemized paper bills shouldn't have to pay for them.

Meanwhile, many T-Mobile consumers are wondering if the new paper bill fee constitutes a change in contract terms which would allow customers to break their contracts without paying an early termination fee.

T-Mobile says no.

"It doesn't qualify for opt out in the contract because customers were given 30 days notices as part of terms and conditions. They have the option to opt out. And they have access to bills for free online," said a company spokesman, speaking on condition he not be identified.

But Rosenfeld said the firm has clearly changed the cost to consumers – a $50 plan now costs $50 plus at least $1.50 to get a paper bill – so consumers should have the right to cancel.

"If a company starts charging for a service that they previously did for free ... that's a material change for sure," he said.  "I think consumers can get out of their contracts."

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