November 16, 2010

FCC Challenges Verizon Wireless To Reimburse Fifty Million Dollars In Phantom Charges

Relenting under FCC pressure, Verizon agreed Sunday to refund about 15 million customers at least fifty million dollars. For years, customers had complained about getting charged for services they hadn't ordered. Verizon wireless, after first denying that errors had been made, admitted the complaints were justified. The FCC said that after a 10-month exploration, Verizon's lengthy delay in acknowledging the errors and refunding the money had yet to be addressed.

Refunding cash because of Verizon phantom charges

The Verizon refund is the result of a Federal Communications Commission exploration that determined customers were erroneously billed in two ways. According to the Los Angeles Times, most were billed a $1.99 monthly fee for data service they did not order. Most of it begun with a free demo of an app. The fee came after trying it out. Others were dinged for accessing the web by hitting a button by mistake and then cancelling right away. Oct and November are the months that Verizon wireless customers will discover out if they get to have a refund. Most will get refunds of $2 to $6. Accounts will be credited for the amount. That is only if it is a current customer. Ex-Verizon customers will be mailed checks.

FCC states consumer complaints have to be answered by Verizon

The Verizon refund story began in 2009 when the new York Times and other news organizations reported that customers had complained about the fees but were being ignored by Verizon. Verizon wireless was in denial about the whole thing then, reports the Times. It said no accidental use or free demos caused fees to be made. January was when the FCC decided to launch an examination. It begun in January. Nobody knows how long the additional charges are taking place for Verizon wireless. In Fact, the Federal Communications Commission and Verizon are fighting about it. Verizon wireless is going to just pay a fee in order to have the issue dropped which is called a "consent decree.". Chief of the Federal Communications Commission enforcement Bureau Michele Ellison explained the first thing to be done is to get customers their money back. Making sure it does not happen again is next.

Bill-shock regulation will protect consumers the majority of the time

Wireless carriers are changing things because of the weak economy that are making people keep their cell phones longer. These consist of having higher cancellation penalties and higher monthly service fees. The FCC is trying to get an initiative passed. This would protect consumers from surprise fees, accounts the Washington Post. Increases in monthly charges would have to be sent in a text message to customers with the "bill-shock" regulation to protect them. The Wireless Association is lobbying heavily to kill bill-shock regulation, which can be a hot topic at the FCC's October meetings.

Info from

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

Filed under mobile phone by amauser

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