Question about late fees...

[LisaSC]

Hi All –

I work with a law firm that’s investigating Verizon Wireless’ practice of charging California consumers a flat $5 late fee and whether the practice violates California’s consumer rights laws.

Customers are charged a late fee if they don’t pay bills on time but according to California state law there may be some issues with charging a fixed late fee as a penalty. There may also be issues with charging all customers the same flat fee, regardless of the cost of monthly plans.

As part of the investigation, Hagens Berman wants to hear from any Verizon customer living in California who’s paid at least one late fee in the past four years.

You can contact the firm at email removed or (206) 623-7292. More information on the investigation is on the firm’s Web site, Hagens Berman Sobol Shapiro LLP - Attorneys at Law.

[Jay2TheRescue]

I don't know. A $5 late fee sounds cheap to me. I have a credit card that I rarely use. I charged lunch on it one day and forgot I used the card. I paid the bill 1 day late and got charged $25 late fee on an $8 balance.

Also -email addresses are not allowed in the public fourms. If someone wishes to contact you it should be done through PM.

[Quint101]

Actually, the late fee is either a percentage of the balance or $5, whichever is greater. I don't have my bill in front of me or I'd tell you the percentage. Otherwise the fee can't be larger than what the state or federal laws allow.

EDIT: The charge is the greater of $5 or 1.5% per month, or as permitted by law.