Verizon Criticized for New Fees ; Low-Usage, Late-Pay Charges Targeted

By MARTHA McKAY, STAFF WRITER

Verizon Communications Corp. is tacking on fees to some residential phone bills, and the state’s Public Advocate is crying foul.

New Jersey Public Advocate Ronald K. Chen criticized the phone company Tuesday for a $2 “low volume usage fee” that went into effect in April for certain consumers, and for a Verizon proposal to charge a late-payment fee.

The Board of Public Utilities is reviewing Verizon’s plan to charge the late-payment fee. Chen recently filed a letter with the BPU stating his opposition to the Verizon proposal. Chen said the late-payment fee on a consumer’s monthly bill could go as high as 18 percent annually.

The $2 low-volume fee, which began in April, is assessed on some Verizon customers who don’t spend at least that much on long- distance calls. The charge applies to customers who have Verizon as their long-distance carrier but have not selected a bundled calling plan.

The minimum charge does not apply to customers who use Verizon for local service and another carrier for long distance. Also, customers who spend more than $2 a month on out-of-state calls won’t have to pay more.

In a letter sent to Verizon, Chen stated: “It is common sense that consumers should not have to pay for services they are not using and haven’t signed up for.”

Verizon spokesman Rich Young said the low-volume fee affects “a very small percentage of our customers” and is an “industry standard.” He said most Verizon competitors charge a similar fee.

As for the late-payment fee, Young called it “a matter of equity,” adding “month after month, Verizon is forced to wait for some customers to pay their bills while most others pay continually on time. This is an effort to bring some accountability to a system in which there is none.”

The board has not set a date to vote on the issue, a BPU spokesman said Tuesday.

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E-mail: mckay@northjersey.com

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