AT&T and the Pennsylvania Bureau of Consumer Protection settled a lawsuit in which the state alleged the company illegally charged some 49,000 Pennsylvania residents a monthly fee for long distance service they did not have or ask for.

AT&T denies the claims.

The $3.95 monthly fee for a basic long distance plan was charged erroneously on customer’s bills for three months in 2004, prompting numerous complaints to BCP and Attorney General Tom Corbett, he said.

Under the settlement agreement, AT&T will refund or credit the monthly fee charged in error to any customers for which it hadn’t already issued a refund or credit. It will also pay $50,000 in costs to the Commonwealth of Pennsylvania, and agree to better inform consumers on how to stop or change their long distance service.

Most customers affected had previously had AT&T long distance service and canceled it following the company’s directions, and so believed that they were no longer AT&T customers.

In order to completely disconnect long distance service, however, customers must contact their local telephone company, as the local telephone company is responsible for connecting calls to the customer’s preferred long distance carrier, or no carrier. Having no long distance carrier on a telephone line is known in the industry as “no PIC.”

Customers wanting no long distance carrier on their line can ask the local telephone company for “no PIC” by name, and must do this to complete the disconnection of long distance service. The long distance carrier cannot do this for you.

Customers with “no PIC” can still use 10-10 codes and calling cards to place long distance calls.

In mid-2005, MCI changed its long distance cancellation process to block calls coming from lines where the subscriber had cancelled the MCI long distance account, but had not disconnected long distance service with the local telephone company.

To verify your current long distance carrier, or ensure that there is no long distance service on your line, dial toll-free +1-700-555-4141. A recording will inform you which, if any, long distance carrier is serving your line. If the carrier is not the one you expected, contact your local telephone company.