Money Matters, Simplified.
Verizon admits overcharging customers; announces $50 mln refunds
by Deepika Garg - October 4, 2010 - comments
Verizon will be returning $2 to $6 to most of its customers, although some of them will get larger amounts
Verizon Wireless has announced it would be returning $2 to $6 to some 15 million customers, who were mistakenly overcharged for data usage. The cellphone giant would roll out refunds of more than $50 million to keep the confidence of its customers.
Verizon will be returning $2 to $6 to most of its customers, although some of them will get larger amounts, the Basking Ridge, N.J., company said in a statement.
Customers wrongly charged
Current customers will get the credit on their monthly bills, while former Verizon users will be refunded the money via checks in the mail. Customers receiving refunds will be notified by the company by next month.
“As we reviewed customer accounts, we discovered that over the past several years approximately 15 million customers who did not have data plans were billed for data sessions on their phones that they did not initiate,” Mary Coyne, deputy general counsel of Verizon Wireless, said in a statement.
Our goal is to maintain our customers’ trust and ensure they receive the best experience possible. – Verizon Wireless
The affected customers would normally have been billed at the standard rate of $1.99 per megabyte for any data they accessed from their phones.
“The majority of the data sessions involved minor data exchanges caused by software built into their phones; others involved accessing the web, which should not have incurred charges,” Coyne said, adding that the company has already taken steps to avoid unintended data charges in the future.
Verizon emphases on clean customer relationship
The refund will be largest ever to be paid by a telecommunication provider.
“Verizon Wireless issues credits to customers from time to time based on regular review and monitoring. When we identify errors, we remedy them as quickly as possible.
“Our goal is to maintain our customers’ trust and ensure they receive the best experience possible,” claims the company.
Customers’ concern or lawsuit evasion?
However, customers’ benefit is not the only reason for Verizon’s refunds. It is believed that they were aware of the issue since last year, but did not care to take nay action.
Announcement of refunds came only after Federal Communications Commission started investigating complaints from Verizon customers over falsely applied data charges. Verizon’s latest move is being seen as an endeavor to evade any possible lawsuit.