Verizon Wireless Loses Early Termination Fee Appeal

Published on: 1st Jan 1970: 1:33am

Verizon Wireless has lost an appeal against a US$21 million refund demand for Californian customers who sued over early termination fees. Each subscriber in the class-action lawsuit is now entitled to a US$87.50 refund from the mobile network operator which had imposed a US$175 fee for breaking a contract early.

Over 175,000 customers could be entitled to the refund payment as as result of the lawsuit.

The lawsuit was based on a previous policy where the subscriber was charged the same flat-fee regardless of when they cancelled their contract. Since 2006, Verizon Wireless has moderated the termination fee depending on how long the contract has left to run.

The lawsuit itself dates back to 1999 and a settlement was agreed in 2008, but appeals were later filed. Verizon Wireless had previously set the funds for the settlement aside in an escrow account.

 

Tags: [verizon wireless]  [early termination fees]  [wireless]  [lawsuit]  [termination]  []