State Demands Funds in ‘Cramming’ Case

California regulators ordered four billing companies to turn over any funds they have collected from customers on behalf of Telmatch Telecommunications Inc. of Plano, Texas. Telmatch allegedly billed as many as 60,000 Californians for calling cards they never wanted or received--a practice known as “cramming.” It is accused of using information from sweepstakes forms filled out by consumers to sign them up for the calling cards--and then charging them each $4.33 per month for the cards. If the company is found guilty of cramming, refunds could amount to $5.5 million. However, Telmatch is not expected to have enough money to cover the potential refunds, so the state Public Utilities Commission ordered Telmatch’s billing agents--Hold Billing Services, Billing Concepts, USBI and ZPDI--to turn over any Telmatch funds they have collected. The PUC is expected to rule on the case early next year.