Congress to investigate wireless industry

The House Oversight Committee will probe the debt-collection practices of major wireless companies, according to an announcement Thursday from Rep. Dennis Kucinich (D-Ohio), who chairs the Domestic Policy subcommittee.

The concern is that wireless contracts force customers to waive the right to sue, appeal or participate in class-action lawsuits. 

The development broadens a subcommittee investigation so that it also covers mobile providers. 

The subcommittee issued a report last year arguing that banks were misusing forced arbitration processes to collect consumer credit-card debts. 

In forced arbitration, a company requires a consumer to consent to resolving any dispute outside of court. 

Most wireless service providers have forced their customers to settle disputes through this process, according to Kucinich's office. 

“The Domestic Policy subcommittee investigated the practice of debt-collection arbitration and found that forced arbitration is arbitrary — the results depend more on the arbitrator to whom the case is assigned than the facts or the law that applies,” Kucinich said in a statement.  

“Now the subcommittee will turn its attention to the cell phone service providers and see if the situation is any different there,” he said. 

The announcement follows a Federal Communications Commission action on Thursday that will create rules for how wireless companies bill customers.