§ 64.1170   Reimbursement procedures where the subscriber has paid charges.

   (a) The procedures in this section shall only apply after a subscriber has
   determined that an unauthorized change, as defined by § 64.1100(e), has
   occurred and the subscriber has paid charges to an allegedly unauthorized
   carrier.

   (b)  If  the  relevant governmental agency determines after reasonable
   investigation that an unauthorized change, as defined by § 64.1100(e), has
   occurred, it shall issue an order directing the unauthorized carrier to
   forward  to  the  authorized carrier the following, in addition to any
   appropriate state remedies:

   (1) An amount equal to 150% of all charges paid by the subscriber to the
   unauthorized carrier; and

   (2) Copies of any telephone bills issued from the unauthorized carrier to
   the subscriber. This order shall be sent to the subscriber, the unauthorized
   carrier, and the authorized carrier.

   (c) Within ten days of receipt of the amount provided for in paragraph
   (b)(1) of this section, the authorized carrier shall provide a refund or
   credit to the subscriber in the amount of 50% of all charges paid by the
   subscriber to the unauthorized carrier. The subscriber has the option of
   asking the authorized carrier to re-rate the unauthorized carrier's charges
   based  on  the  rates  of the authorized carrier and, on behalf of the
   subscriber, seek an additional refund from the unauthorized carrier, to the
   extent that the re-rated amount exceeds the 50% of all charges paid by the
   subscriber to the unauthorized carrier. The authorized carrier shall also
   send notice to the relevant governmental agency that it has given a refund
   or credit to the subscriber.

   (d) If an authorized carrier incurs billing and collection expenses in
   collecting charges from the unauthorized carrier, the unauthorized carrier
   shall reimburse the authorized carrier for reasonable expenses.

   (e) If the authorized carrier has not received payment from the unauthorized
   carrier as required by paragraph (c) of this section, the authorized carrier
   is not required to provide any refund or credit to the subscriber. The
   authorized carrier must, within 45 days of receiving an order as described
   in paragraph (b) of this section, inform the subscriber and the relevant
   governmental agency that issued the order if the unauthorized carrier has
   failed  to  forward to it the appropriate charges, and also inform the
   subscriber of his or her right to pursue a claim against the unauthorized
   carrier for a refund of all charges paid to the unauthorized carrier.

   (f) Where possible, the properly authorized carrier must reinstate the
   subscriber in any premium program in which that subscriber was enrolled
   prior to the unauthorized change, if the subscriber's participation in that
   program was terminated because of the unauthorized change. If the subscriber
   has  paid charges to the unauthorized carrier, the properly authorized
   carrier shall also provide or restore to the subscriber any premiums to
   which the subscriber would have been entitled had the unauthorized change
   not occurred. The authorized carrier must comply with the requirements of
   this  section  regardless  of  whether  it is able to recover from the
   unauthorized carrier any charges that were paid by the subscriber.

   (g) When a LEC has assigned a subscriber to a non-affiliated carrier without
   authorization, and when a subscriber has paid the non-affiliated carrier the
   charges for the billed service, the LEC shall reimburse the subscriber for
   all charges paid by the subscriber to the unauthorized carrier and shall
   switch the subscriber to the desired carrier at no cost to the subscriber.
   When a LEC makes an unauthorized carrier change to an affiliated carrier,
   and  when  the  customer has paid the charges, the LEC must pay to the
   authorized carrier 150% of the amounts collected from the subscriber in
   accordance with paragraphs (a) through (f) of this section.

   [ 65 FR 47693 , Aug. 3, 2000, as amended at  68 FR 19159 , Apr. 18, 2003]

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