Verizon sued over ETF’s

Verizon sued over ETF’s
Even though a trial date has not yet been set, a member of the American Arbitration Association has authorized a class action against Verizon Wireless, for illegal early termination fees. The counsel of the plaintiffs, Scott Bursor said that “It is the largest class ever certified in arbitration, with approximately 70 million members of the subscriber class.” The carrier may be obliged to pay refunds in the amount of $1 billion. Verizon did not comment the ruling, though it is believed to have filed for an appeal in a federal court.

via:  RCR News

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21 Comments

1. unregistered

Why does it suck? It looks like their past misdeeds are finally catching up with them.

2. unregistered

past misdeeds? all cel companys charge ETFs. There is nothing illegal about them, you agree to them in the contracts. Verizon however was the first cell company to pro rate your ETF so it shrank over time. doesnt seem so evil to me.

3. Timmi unregistered

#2: shh... YOU signed the contract, if you don't read what you sign... that's your own stupidity. #3 & #4... thanks! :) just saying that 'this one, is gunna suck...' because it will. we may be America's Most Reliable Network... now, with OVER 63 million customers IN the Network. but a billion dollars, IS well... a billion dollars! :)

4. VZW CSR unregistered

I cannot WAIT to get these calls.... Besides, I certainly would like to know what was so 'illegal' about these early termination fees. You know, the people knowingly agree to when they get that $500 phone for free!

5. LordObento unregistered

70 Million customers in suit, divide $1 Billion with that and you get about $15 a person minus the lawyer fee and what the actual settlement will be. In all actuality, when they figure out who is eligible, they will probably get a free $10 Accessory to settle

6. unregistered

im with you #6, i too am a CSR for VZW. I cant wait till this hits the media and we have a service circus over nothing. there is nothing illegal about ETFs. All other companys will be sued in suite if this succeeds. we give mega discounts on phones in exchange for those contracts. its a win win situation.. all companys do it. otherwise, you can pay 300 for chocolates and 500-700 for a pda

7. unregistered

or 1300 for an iphone! want one now?!

8. davidmcguire unregistered

Most wireless customers shop for a wireless plan, get a new phone, and sign a contract. Usually, it is a two-year contract that explicitly states that if you drop your plan before your contract has been fulfilled, you will be charged an early termination fee. The reason that people get charged the fee is simple: they failed to fulfill their contractual obligations. That is hardly the definition of being victimized by an "illegal ETF." If, on the other hand, your wireless carrier did not fulfill its obligations to you as a customer, that's a whole different ball game. But if you left your carrier early, and you expect the government to bail you out because you wanted a different phone with a different carrier, then you have NOT fulfilled your contract. You need to know what you are agreeing to before you sign a contract.

9. Jim unregistered

So, why did they file to Verizon Wireless. I have At&T, and my wife has Sprint. They have ETF's and higher than Verizon. This makes no sense is this guy smoking crack with the attorney. Are we the tax payers going to pay for this court case, I hope a Judge throws it out. We did sign a contract when we left with our phones

10. unregistered

SO if I understand the article I read the start of this was because Verizon supposedly didn't tell people that the ETF is charged per line not per account. It’s stupid if you ask me because EVERY company charges an ETF per line your signing a contract for each phone so that being why it’s charged PER line. I just wish people would take the time to read what your signing, may be long but wouldn’t you like to know what your being tied to. I personally have skimmed through it but I know that big points, Two years leave early we charge ya for breaking the contract. Just like any other contract with any other company, gym or car loan, other cell phones, or movie clubs. They all have a fee. These are just people trying to get out of paying for breaking the contract. Get over it! Take responsibility of your actions and read between the lines instead of just putting your signature down and realize if you don’t keep your end of the deal you’ll get charged.

11. Joe unregistered

Dang well everyone with Verizon expect an increase on plans if you decide to change your plan after this. Oh lets look at this another way its a contract like if you bought a house or car it gets repoed from you and then you still have to pay the difference on the price of the house or car for what it didn't sell for. So for those that want out they have to pay the difference on the phone so if they got the phone for 100 and its a 600 phone well then do the math pay 500, dang these peeps are stupied.

20. unregistered

And then you can expect an additional increase down the road as VZW tries to make up for all the subscribers who are going to cancel their contracts using the "materially adverse effect" clause. Since it seems that VZW lawyers are advising the CSRs to refund rate increases but not terminate without ETFs, I wouldn't be surprised if this makes it to a class action lawsuit as well. Personally, I think it's a bad move on VZW's part. By refunding the fee (I'm talking about the 5/1/08 15 cent administrative fee here) VZW is acknowledging that customers do not need to pay this; yet they are not refunding EVERYONE, only the people who call and complain about the change to their contract. Then you add in the fact that the contract states that subscribers CAN cancel their contract without paying ETFs in the event of "materially adverse" contract changes... Well, they're just setting themselves up for another lawsuit IMO.

12. VZWGiRL unregistered

I work for VZW and have for2 years now. I agree this is the most ridiculous lawsuit I've ever heard of, like many of you know the agreement is right there on the reciept you sign and it does say that by signing this agreement you agree to the contract term and if you terminate the agreement you agree to pay up to 175$ per line of service. Its not rocket science people. Its even on our website vzw.com and scroll to the bottom and click customer agreement. Its in plain english and we even have a spanish version. Not to hard to understand. Its a contract just like any other that you may have, a car loan mortgage everything, if you get your car repo'd they arent gonna just cut their losses and not go after you for the remaining ammount. Its the same concept. Get over it. Before I came to the company I was with a local unlimited carrier (Surewest, whom Verizon just bought) and I had to pay 200$ per line, there was no discount on it for being with them for years. Its pretty cut and dry.

13. steviecrackberry unregistered

Finally customers can back all the nickel and diming VZW has done over the years

14. vzwsupporter unregistered

#13 should go by crack head instead of crackberry... vzw is the only wireless carrier that tries to save the consumer money...they bend over backwards for their customers....

15. neomobile unregistered

you mean that VZW bends the customer over backwards, forwards, no vaseline etc... cellular rapists at their best.

16. steviecrackberry unregistered

#14 you should def go by VZWsupports_themeselves... Never had that experience when I was w/ VZW?? I def put VZW cust service next to Sprint/Nextel

17. sick of the bitching unregistered

#15/16 no carrier is perfect everyone of them has their own problems. For one Sprint just let go not only customers for calling in on having issues with bills/phones or what ever the case they also let go their employers becasue they are losing money. Att has issues with not being albe to suport the full funtions of the iphone not to mention their network flaws. VZW is not cheep because they spend just as much on the network trying to make it the best. Altel customer servics sucks pretty much ass, and tmob has to pay their customers to stay with them. Verizon is just like any other company trying to make money while providing service You can't please everyone cause someone somewhere is always going to bitch cause they aren't getting their way. GET OVER IT. selfcentered people need to be happy they can even have a damn phone.

18. sick of the bitching unregistered

I'm just sick of people bitching, and for all your info this is from a lawsuite filed in florida in 2004 with people fighting carriers having an etf, not from anything vzw did illegaly. Get your Fax right before you start the hater match. ok i'm done

19. videoguy unregistered

Well, I’ll tell you what’s illegal – or should be. I’d purchase my Verizon XV6700 phone on January 06 2006. From day one I had numerous problems, mainly with week to no signal at all. After three weeks of working with technical support they recommend exchange the unit. The second unit wasn’t any better on coverage and in couple weeks the phone start to lock-up, even in sleeping mode. I was never able to receive any incoming calls a to make phone call, I have to reboot the phone. Again, couple weeks on land-line with technical support and again exchange. Finally, after two months a three phones I was able to use the phone. Then I’d slowly find out, that Verizon coverage was very bad at my place of employment and almost none at my home. (I have to go to the second floor close to the window to make phone call). Of course, I would find out that sooner, if I hadn’t technical support guys telling me the problem is in my faulty units. Then I’d spend two miserable years in area with almost no Verizon service to fulfill my contract. (To give some credit to Verizon, over the years signal somehow improved at my work). I have been counting days, to leave Verizon and join AT&T who have great signal at my home (my wife and my son have AT&T, so I know). I switched one day after my contract was up – only to find out, that Verizon disregard my original contract with the first phone and now they are using the activation date of the third phone (two months later) as a start of the two-year plan. Therefore, I own $175 to Verizon for ETF. I hope, they sue the pants out of them.

21. unregistered

ok, ok, OK... You sign a contract...you get a free phone. You break the contract...you should pay for the damn phone!...not at a pro-rated price (YOU used it). That said, people....(VZW reps...Can you hear me now?...Good...) ...when the aforementioned Contract Terms are changed every other quarter (online only, of course) because we need to charge more for x,y,z, and we told you we could do so when ever we wanted to...(in the Contract you signed...dumb a**) - your service is constantly disrupted because of provider issues (could be solor flare radiation, I guess) - you have to spend 90 minutes or more arguing with csr's to get back the $1.50 they "mistakenly" "...Mr. Smith, I have no idea how or why , Mr. Smith "... is it any wonder why the parade never ends?

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