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America Online and a Rochester, New York, telephone company have agreed to put aside $100,000 each to reimburse AOL customers who received huge phone bills after an area code switch in the fall of 2001.

Both Dulles, Virginia-based AOL and Frontier Telephone will set up the fund to provide refunds and credits to about 400 AOL customers who received phone bills as high as several thousands of dollars after the area code switch, according to a settlement announced by New York State Attorney General Eliot Spitzer's office Monday.

Spitzer spokesperson Paul Larrabee said the settlement does not place blame with either company. "It is not necessary to find fault when we can make consumers whole," Larrabee said this morning. "Both companies have demonstrated good will toward the consumer."

Making the Switch

In the fall of 2001, residents of western New York received a second area code to supplement their longtime area code of 716. The two area codes--716 and 585--were in effect for the entire area for a nine-month period beginning in November of 2001, according to the statement from Spitzer's office. During that time, AOL began rolling out Version 7.0 of its Internet service to customers in the area.

Shortly thereafter, dial-up Internet users of AOL's service began to receive phone bills in the thousands of dollars. The dial-up access numbers that had been local calls were now being billed as long-distance calls by Frontier. At the time, Frontier and AOL blamed each other for the glitch and Spitzer's office began its investigation.

According to the statement, customers who made calls from the 585 area code to AOL dial-up numbers in the 716 area code from October 1, 2001 to May 31, 2002 will be eligible for a credit or refund on their phone bill.

Getting Credit

To receive a credit, customers must fill out a claim form and include a copy of their phone bills and return them to Spitzer's office by January 21, 2003. Claim forms are available online or at the attorney general's Rochester office at 144 Exchange Place.

If the relief exceeds $200,000, the claims will be prorated, the statement says.

In addition to the refunds, AOL and Frontier will assist the attorney general's office in a public education effort about dial-up access numbers and area codes.

AOL spokesperson Nicholas Graham said his company was pleased with the settlement and that the attorney general didn't assign blame to AOL for the problems.

"It puts to rest various theories that AOL was the culprit and erroneously causing long-distance charges," Graham said. "This puts a very firm lid on that once and for all."

A spokesperson for Frontier could not be reached for comment at deadline.

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