Federal Communications Commission pressures Verizon wireless to refund $50 million in phantom charges

Backed into a corner by the FCC, Verizon wireless will reimburse at least $50 million to about 15 million current and past customers. After years of erroneously charging its customers for unwanted services, Verizon admitted to the practice. The Federal Communications Commission 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 due to Verizon phantom fees

There is only one real reason there is going to be the Verizon reimburse. This is due to a study saying that customers were being billed in two ways done by the FCC. The monthly fee of $1.99 for a data service that wasn’t ordered was what most were saying they were charged, reports the Los Angeles Times. Some customers who tried a free demo of an app were hit with the fee. Many would accidently hit the web button on their phones leaving them left with fees for internet usage. Verizon customers eligible for refunds could be notified in October and November. The refund will only be $2 to $4 for most individuals. Accounts could be credited for the amount. That is only if it is a current customer. Checks will be sent to anybody that has left Verizon.

FCC forces Verizon to address consumer grievances

The new York Times accounts that customers complained to Verizon about the fees, in 2009, however weren’t being answered which is where the Verizon refund started. Verizon wireless said that accidental use and free demos had nothing to do with billing the customers, accounts the Times. The FCC launched an examination in January. Nobody knows how long the additional fees are happening for Verizon wireless. In Fact, the FCC 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.”. In a statement, Michele Ellison, chief of the FCC enforcement bureau, said getting customers their cash back is the first step. The next thing on the list is making sure it never happens again.

Consumers get protection with bill-shock regulation

Verizon and other wireless carriers are scheming for brand new revenue streams within the weak economy as higher monthly service fees and rising contract cancellation penalties are making United States of America consumers keep old cell phones longer. The Washington Post reports the FCC is launching an initiative to protect consumers from surprise fees. Customers may like the brand new “bill-shock” regulation. It makes it so businesses are required to text customers if there is going to be a rise in any of the charges. The Wireless Association hopes that bill-shock will not go via. In 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