Verizon to Refund 15 Million Cell Phone Customers

Verizon Wireless, based in Basking Ridge, has announced the company will refund about 15 million current and former cell phone customers for unused data sessions or mistaken charges for web access during the last two years.

Most of the refunds will be in the range of $2 to $6, although some customers will be reimbursed for larger amounts, according to a statement issued on Sunday by Mary Coyne, deputy general counsel for Verizon Wireless.

"In October and November, we are notifying about 15 million customers, through their regular bill messages, that we are applying credits to their accounts due to mistaken past data charges," Coyne said in the statement.

The company attributed the reason for the credits to regular review and monitoring of accounts.

But a separate statement issued at the same time by the Federal Communications Commission said the refunds are being issued after a nearly year-long FCC investigation into complaints from customers about "mystery fees."

"The FCC Enforcement Bureau began looking into this matter 10 months ago after reports from consumers about these mystery fees," according to Michele Ellison, FCC enforcement bureau chief, in a news released issued by the FCC.

"We're gratified to see Verizon agree to finally repay its customers. But questions remain as to why it took Verizon two years to reimburse its customers and why greater disclosure and other corrective actions did not come much, much sooner," Ellison said in the statement.

The Washington, D.C.-based enforcement bureau will continue to investigate the issue of the mistaken charges, Ellison said, "including the possibility of additional penalties, to ensure that all companies prioritize the interests of consumers when billing problems occur."

Ellison said Verizon itself reportedly had put the amount of overcharges during the two-year period at about $50 million.

The statement from Verizon Wireless said that the company strives to remedy errors as quickly as possible once they are identified.

"Our goal is to maintain our customers' trust and ensure they receive the best experience possible," Coyne said in her statement. "Verizon Wireless values our customer relationships and we always want to do the right thing for our customers."

Coyne's statement said that as company accounts were reviewed, it was discovered that approximately 15 million customers who did not have data plans were billed for data sessions on their phones that they did not initiate.

"These customers would normally have been billed at the standard rate of $1.99 per megabyte for any data they chose to access from their phones. The majority of the data sessions involved minor data exchanges caused by software built into their phones; others included accessing certain web links, which should not have incurred charges," according to information from Coyne's statment.

The statement from Verizon Wireless offered the assurance that the company has addressed those issues to avoid unintended data charges in the future.

The statement from Ellison concluded, "Consumers have a right to receive straight bills and to get straight answers when they question them."

The assigned spokespersons for Verizon Wireless did not return phone Monday morning.