Charged a late fee? Sue the company!
June 13, 2007/
We never thought we’d see the day where someone sues someone else over $5. Those cases are usually reserved for small claims court, and even so, $5 seems a bit ridiculous. But Verizon subscriber Cathy Gellis is steaming mad over the $5 late fee the company charged her after she submitted her bill nine days late. The claim: Verizon doesn’t incur $5 in costs for her late bill, so they’re unnecessarily profiting. Before we launch into this deeper, let’s hear what Ms. Gellis’s attorney, Peter Fredman, has to say:
As far as consumer contracts like this are concerned, companies are only allowed to use late payment fees to recoup the actual costs associated with late payments. We believe that these late fees are wildly inflated relative to that standard, with the intent and effect of having the fees operate as a profit center, charging California users millions in extra penalties in order to pad Verizon Wireless’ bottom line.”We just don’t see it like that. Sorry, we know we’re here to deliver the news, but we can’t help but chime in on this one. A late fee, beyond allowing companies to recoup the cost of a customer paying late, is incentive for the customer to pay on time. If there wasn’t a late fee in place, why would anyone pay their bill on time? You could let it slide and slide, knowing that you’re only incurring minor penalties. It appears that Ms. Gellis feels she should only be charged interest for the nine days her account was late. Go tell that to your credit card company, Miss. Not only will they hit you with a $30 to $35 late fee, but they’ll bump up your interest rate and charge interest on your entire balance, for an entire month (full disclosure: credit card companies are exempt from the “fair late fee” provision). We just don’t get these people who think everything must be catered to them. Ms. Gellis paid her bill late. Everyone knows that late payments incur a late fee. So what, she’s taking up arms now that it affects her? Where was she four years ago (that’s the period covered by this class action suit)? Oh, not caring about the issue. Seriously, Miss, just pay your late fee and pay your bill on time. The company is providing you a service. Therefore, you must abide by their rules. Maybe this lawsuit will allow you to get out of your contract, but if you think AT&T won’t charge you $5 for a late payment, you need to start paying attention. [Marin Independent Journal]]]>
Posted in Prepaid Services, Verizon Wireless
I agree with you to some extent; however I also disagree with you. I would have to understand this a bit deeper (i.e. was the bill late in getting to her?)
Why is it that people have become so “oblivious” to the fact that it IS the company’s responsibility to send out bills on time to their clients. Sure it’s somewhat the clients responsibility; but if I have to do THEIR job should I get a discount for the service?
The problem is that we’ve become resilient and we allow everything to slide as consumers; that needs to stop. Then and only them will we get customer service back and companies that actually care about their clients.
Pablo
A $5 late fee is way over the top. Why is it imprinted in very small type on the bill if it is fair? Verizon sends out a newsletter with every bill promoting its products. Why is the late fee charge of $5 not presented there? Because Verizon does not want you know about it, that’s why. They are entitled to 1.5% but not $5.
the editorializing here is pretty ridiculous. why is it ok that verizon charges an inflated late fee? how much is too much?
did you know when you pay verizon, you’re actually paying for service for the upcoming month? When they charge you a late fee, they’re penalizing you for not paying for something you haven’t even used yet. it’s ok though, because they are “encouraging you to pay on time”.
that’s dumb, look where it gets us. I had to pay a fee to change my flight because I was late for a layover. I had to pay for that. What was that fee doing? encouraging me to pay on time?
no it was encouraging me to flight a different airline next time. Same as how verizon’s late fees just encouraged me to use AT&T, who doesn’t charge late fees.