© Tomas Rodriguez/CorbisUnaware: Millions of customers are not informed they are being hit by extra charges
Millions of people have been hit with a total of more than $2billion in hidden costs on their cell phone bills, a government investigation has found.
The practice, known as 'cramming', allows third party companies to attach costs onto people's phone bills, often without authorisation, meaning customers are automatically charged for services they have never requested unless they actively opt out.
The charges are often hidden in the final few pages of customers' bills, meaning they often go unnoticed by millions of people who are far too busy, and perhaps too trusting, to inspect their bills with a fine tooth comb.
The investigation, by the Senate Commerce Committee, began in May last year after 'consumers had complained for years that they were finding mysterious charges on their telephone bills for services they had not purchased," the report stated.
The investigation found there is a loophole in the law which allows for third party billing on cell phone bills from companies which provide services such as voicemail and paid for 800 numbers.
Often customers do not know these services have been set up for them and mobile providers are reluctant to clarify the process because they make money from the extra charges, the report found.
The practice of cramming began in the 1990s when phone companies started allowing accounts to be used as credit cards.