The FCC stated that there are thousands of violations by Lifeline service providers in which the companies received duplicate payments and violations to the tune of $14.4 million. Violations include not checking for eligibility and over-billing.
The actions Notices of Apparent Liablility (NALs) were filed against
- TracFone (SafeLink) $4.57 million.
- Assist Wireless $2.2 million.
- Icon Telecom $4.8 million.
- Easy Telephone/Wireless Services $1.58 million.
- UTPhone $1.23 million.
The hefty fines are based on:
- A separate forfeiture of $20,000 for each unlawful payment request seeking USF support for ineligible Lifeline subscribers.
- A $5,000 forfeiture per ineligible subscriber.
- An upward adjustment of three times the total duplicate USF support payments requested and/or received.
The FCC claims that the carriers should have know that based on internal data that customers who received free services were ineligible under Lifeline program guidelines.
We tried to read the original FCC documents, however the website was down due the Federal government closure.
In general if someone is on federal benefit programs such as Food Stamps or have an income less than $24,700 for a household of two people.
Trafone said in statement that the billing is for less than $8,00 and less than 850 people.
The FCC prohibits Lifeline service providers from receiving payments for those who already had lifeline service in another form.
Last year, the FCC created new rules that required Lifeline carriers to certify that Lifeline subscribers are eligible. In fact when free cell phones for low-income people came to California for the first time, it clearly states that you can not received the service if you already have a discount on your landline.
Their rules also state if you are applying for a free Lifeline phone you will need to provide proof of the government assistance that you receive or proof of your household income and upload to the phone service operator.
ReachOut Wireless does not certify or verify your eligibility for Lifeline service without the submission of your Social Security Number.
The money for the program comes from taxes paid on bills for the Universal Service Fund. Carriers receive up to $10 per month per participant.
When the services were first launched the companies did not ask for income verification therefore it could be possible for someone to have multiple free cell phones from more than one company.
The are many free cell phones for low-income customers in other areas read our how-to article.