Case Ref

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Verizon Wireless Refund Of Fifty Million Dollars Reimburses Phantom Fees

Backed into a corner by the FCC, Verizon will refund at least $50 million to about 15 million current and past customers. For years, customers had complained about getting charged for services they hadn’t ordered. Verizon, after first denying that errors had been made, admitted the grievances were justified. The Federal Communications Commission, which had been investigating Verizon’s phantom charges for 10 months, said questions still remained about why Verizon took so long to admit the billing errors and offer reimbursement.

Phantom charges lead Verizon to refund

The Verizon refund is the result of a Federal Communications Commission examination that determined customers were erroneously billed in two ways. Many were being charged for a service plan that wasn’t ordered, states the Los Angeles Times. This charge was $1.99. Some customers who tried a free demo of an app were hit with the fee. Many got charged for using the internet although they did not mean to. It would only happen by accidently hitting the web button. If you get a refund, you will get to discover out soon. Verizon is informing customers of the reimburse in Oct and November. Most individuals will get just a small reimburse. It can be between $2 and $4. If the person is still a consumer, it will just be a credit on the account. Lots of individuals have left Verizon wireless since. These people will get checks within the mail.

Verizon has to talk to customers about complaints due to FCC

The brand new York Times accounts that customers complained to Verizon wireless about the fees, in 2009, however weren’t being answered which is where the Verizon wireless refund started. Verizon was in denial about the whole thing then, accounts the Times. It said no accidental use or free demos caused fees to be made. The FCC launched a study in January. Verizon wireless and the Federal Communications Commission are fighting about how long these additional fees have been going on. Verizon wireless has agreed to a “consent decree.” This is what happens when a business drops the case and pays a fee. In a statement, Michele Ellison, chief of the Federal Communications Commission enforcement bureau, said getting consumers their cash back is the first step. They have a bigger job next. They will stop it from taking place again.

Protecting consumers with bill-shock regulation

United States of America customers are keeping their cell phones longer than necessary due to the weak economy creating higher monthly service fees and rising contract cancellation penalties for wireless carriers. The FCC is attempting to get an initiative passed. This would protect customers from surprise fees, accounts the Washington Post. Proposed “bill-shock” regulation would require wireless carriers to alert customers via text message of sudden increases in their monthly charges. The Wireless Association hopes that bill-shock won’t go through. Within the FCC’s October meetings, it is sure to be discussed.

Articles cited

Los Angeles times

latimes.com/business/la-fi-1004-verizon-20101004,,2549947.story

New York Times

nytimes.com/2010/10/04/technology/04webphone.html?_r=1 and ref=business

Washington Post

voices.washingtonpost.com/posttech/2010/10/verizon_wireless_amits_wrongly.html

2011 Bowman Draft BDPP Case 1 Recap Orange REF Auto Red REF

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