Cell Phone Verizon Wireless
Wednesday, September 1st, 2010
Under Pressure From Federal Communications Commission, Verizon Announces $50 Million Refund
A Verizon refund of $50 million to 15 million Verizon customers was announced Sunday. After years of erroneously charging its customers for unwanted services, Verizon admitted to the practice. The Federal Communications Commission, which had been investigating Verizon’s phantom charges for 10 months, said questions nevertheless remained about why Verizon wireless took so long to admit the billing errors and offer reimbursement.
The Verizon refund for phantom charges
The Federal Communications Commission analysis said that customers were being billed in two different ways which is why there is going to be a Verizon refund. According to the Los Angeles Times, most were billed a $1.99 monthly fee for data service they did not order. The fee came to many customers who simply were using an app demo that was free. Numerous would accidently hit the web button on their phones leaving them left with charges for internet usage. Verizon customers eligible for refunds can be notified in October and November. Most people will get just a small refund. It can be between $2 and $4. If the person is still a consumer, it will just be a credit on the account. Ex-Verizon customers will be mailed checks.
Verizon has to talk to customers about grievances because of Federal Communications Commission
In 2009, the Verizon wireless reimburse story started. It started with many customers complaining about fees but not getting answered from Verizon wireless, accounts the brand new York Times. The Times accounts that at the time Verizon wireless denied that it was billing customers for accidental use or free demos. The FCC launched an investigation in January. Nobody knows how long the extra charges are occurring for Verizon. In Fact, the Federal Communications Commission and Verizon wireless have been fighting about it. Verizon has agreed to a “consent decree.” This is what happens when a business drops the case and pays a fee. Chief of the Federal Communications Commission enforcement Bureau Michele Ellison explained that the first thing to be done is to get customers their cash back. They have a bigger job next. They will stop it from taking place again.
Customers get protection with bill-shock regulation
Verizon and other wireless carriers are scheming for brand new revenue streams in the weak economy as higher monthly service fees and increasing contract cancellation penalties are making U.S. customers keep old cell phones longer. The Washington Post reports that the Federal Communications Commission is launching an initiative to protect customers from surprise fees. Increases in monthly charges will have to be sent in a text message to customers with the “bill-shock” regulation to protect them. The Wireless Association is lobbying intensely to kill bill-shock regulation, which could be a hot topic at the FCC’s Oct meetings.
Data 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
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