The bill: a business’s secret weapon for cheap profits
Businesses have little incentive for distributing clearly-written bills. If people know exactly what they’re paying for, they’re less likely to pay it (unless you’re running a value-added business). I guess this is why businesses send the type of bills that they do: so convoluted and confusing that you’re not sure quite what you’re paying for. This gives the business an accounting advantage as well - in large part it relieves them of much of the burden of accurate accounting in their billing. If they decide to audit their own system and find that they have under-billed, they can send out a correction bill, and people won’t know what they’re paying for, but chances are they’ll pay it anyway. I have yet to see a corrected bill that came with an enclosed check for overpayment. I’m sure it happens, I’ve just never seen it.
Scrutinizing a bill, besides being depressing, is actually quite aggravating. The most irritating line on any bill (and almost every bill) is the line-item for “miscellaneous charges.” Miscellaneous charges could be anything ranging from “administrative billing expenses” (or as Ralph Nader explained–a business’s way to charge you for the expense to bill you - a bill for a bill), to financial cushions designed to smooth the statistical risk back into the corporation’s favor. I’ve even seen miscellaneous charges for making automatic ACH payments. (I’m eliminating paperwork, reducing risk and increasing efficiency, and they’re charging me for it?)
So, when was it that corporations inherited the authority to charge their customers whatever they want? Sure, some may take them to court (the company has deeper pockets than most of its customers, in the rare case that it ever went to this level) Usually the threat of a negative credit reporting is enough to slap most consumers back into their place and force them to pay it. Just once I’d like to send a company a bill for the time/hassle/resources they cost me and somehow have the legal authority, or at least position of influence, to force them to pay it.
Some day the collective voice of organized consumer campaigns may squeeze unethical billing practices out of corporate, but until then I’ll just continue to be frustrated with the status quo. I wonder if anyone else feels the way that I do.
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October 24th, 2007 at 7:12 am
Amen Brad. Amen.
That stuff makes me so mad that a lot of times I try not to look anymore.