SAN FRANCISCO – Verizon Wireless, a joint venture of Verizon Communications (NYSE:VZ) and Vodafone (NYSE and LSE: VOD) is the focus of an investigation by a consumer-rights law firm looking into possible violations of California law in the way the company charges late fees.

According to Steve Berman, managing partner of Hagens Berman, the practice in question is the leveling of a flat $5 late fee, regardless of the duration or amount of the delinquency.

"Under Verizon's late-fee scheme, 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," Berman noted. "If you amortize the interest rate for someone with a $20 bill, it equates to an annual percentage rate of 300 percent."

According to Berman, California law allows companies like Verizon to levy late fees, but those fees need to be based on the amount owed, or the damages caused by a the delinquent payment.

The firm is involved in litigation on behalf of California consumers who have paid $5 fees to Verizon, but is interested in talking with others in California who have been charged the $5 late fee. Information from consumers could assist the firm in its investigation, and could help the interests of Verizon customers.

If you have a California cell phone number and paid the $5 late fee to Verizon, please call (206) 623-7292, e-mail [email protected] or visit www.hbsslaw.com/verizon.

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About Hagens Berman
Hagens Berman Sobol Shapiro LLP is a consumer-rights class-action law firm with offices in nine cities. The firm has been named to the National Law Journal’s Plaintiffs’ Hot List seven times. More about the law firm and its successes can be found at www.hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.

Contact
Ashley Klann
[email protected]
206-268-9363