Hey, billing and OSS vendors; a sawbuck for your thoughts. A consumer-rights-leaning law firm in California wants to know why Verizon Wireless is charging a flat $5 late fee no matter how long a bill's been delinquent.
"A customer five days late on a $20 bill would be charged the same late fee as a customer 28 days late on a $300 bill," groused Steve Berman, managing partner of Hagens Berman, who did the quick math and said that the annual percentage rate for that $20 bill would be 300 percent.
Berman admitted that California law allows companies to levy late fees, but those fees must be based on the amount owed. Hagens Berman is, of course, involved in litigation on behalf of California consumers who have paid $5 fees to Verizon Wireless.
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