Office of the Ohio Consumers' Counsel

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Ohio Consumers’ Counsel asks for default judgment against long-distance company UMCC

COLUMBUS, Ohio – June 8, 2007 – The Office of the Ohio Consumers’ Counsel (OCC) today will ask the Public Utilities Commission of Ohio (PUCO) to issue a default judgment against UMCC, a company that is alleged to be providing long-distance service without the certificate required by the PUCO.

In May, the OCC filed a complaint against UMCC, the company that acquired the customer accounts of Buzz Telecom. Buzz Telecom was an Indiana-based company that has been the target of customer complaints of misleading marketing practices and switching long-distance service without customers’ permission.

UMCC failed to respond to the OCC’s complaint within the 20 days required under the PUCO’s rules. Based on the rules, the OCC believes that UMCC has effectively admitted each of the allegations brought forth by the OCC, including the billing and switching of customers’ long-distance service without their permission or with any authority to provide telephone service in Ohio.

“UMCC has failed to defend the complaint that Ohio consumers have been billed for service charges and other fees when this company has no authority to provide telephone service in our state,” said Janine Migden-Ostrander, Consumers’ Counsel. “Consumers have been harmed and we urge the PUCO to hold UMCC accountable by issuing a default judgment.”

The OCC will ask the PUCO to:

Order UMCC to reimburse all consumers for any payments made by Ohio customers
Order UMCC to cease and desist from billing and collecting payments from Ohio consumers
Find that UMCC has failed to comply with Ohio laws and rules
Assess penalties of $10,000 against UMCC for each violation of several PUCO rules.
Assess penalties of $5,000 against UMCC for each violation of Ohio’s anti-slamming law.

Beyond failing to receive a certificate to provide telephone service, UMCC has also failed to include the OCC’s and PUCO’s contact information on customer bills as required under Ohio’s Minimum Telephone Service Standards. More than 30 Ohio consumers have complained about UMCC to the PUCO; however, other consumers may not know where to have their problems resolved. The OCC has asked that UMCC be ordered to provide its office and the PUCO copies of each bill that has been sent to an Ohio consumer.

Last year, the OCC called for the PUCO to order Buzz Telecom to stop serving Ohioans and that a formal PUCO investigation be launched. The PUCO ordered Buzz Telecom to stop marketing to consumers and told the company to “show cause” as to why its operations should not be permanently revoked. In the PUCO investigation, the OCC asked for sizable fines against Buzz Telecom. At around the same time, UMCC purchased Buzz Telecom.

About the Office of the Ohio Consumers' Counsel

The Office of the Ohio Consumers' Counsel (OCC), the residential utility consumer advocate, represents the interests of 4.5 million households in proceedings before state and federal regulators and in the courts. The state agency also educates consumers about electric, natural gas, telephone and water issues and resolves complaints from individuals. To receive utility information, brochures, schedule a presentation or file a utility complaint, residential consumers may call 1-877-PICKOCC (1-877-742-5622) toll free in Ohio or visit the OCC website at www.pickocc.org.