§ 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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