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Verizon will pay $64 million to settle claims over Family Plan over-billing

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Verizon will pay up to $64.3 million in cash and phone credits to resolve a long-running class action lawsuit that accuses the phone giant of cheating subscribers to its Family SharePlan, which offered a way for members to share minutes and call each other for free.

According to a proposed settlement filed last week in New Jersey, Verizon subscribers who belonged to a family plan between 2001 and 2006 will begin receiving notifications once the judge approves the preliminary arrangement.

The underlying lawsuit claims that Verizon over-billed plan members in one of two ways: 1) by charging plan members for “in-network” minutes that were supposed to be free; 2) by charging the addition phones included in the Family SharePlan 45 cents a minute for exceeding an allotted monthly allowance, rather than the 25 cents that was charged to the primary phone in the plan.

The settlement calls for [company]Verizon[/company] to pay $37.5 million into a fund that will be distributed as cash or phone bill credits to both groups. It also calls for the company to supply members of the “in-network” group with PIN numbers that can be used for domestic or international calls, and are valued at $27.5 million dollars under the deal.

Verizon declined to comment on the settlement.

The proposed payout is just one of a recent spate of “phone companies behaving badly” stories. This month, [company]AT&T[/company] agreed to pay $105 million over claims it crammed customer bills with bogus text charges, while the FTC filed an unrelated lawsuit on Tuesday against AT&T that accuses it of illegally throttling the data speeds of certain customers.

Here’s a court filing, spotted by Top Class Actions, that describes the settlement. (You can find most of the relevant details on page 63.)

Verizon Family Plan Settlement

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2 Responses to “Verizon will pay $64 million to settle claims over Family Plan over-billing”

  1. Ms. Petes

    I’ve been a Verizon customer here in California and have used their family plan almost every renewel over 10-15 years now. How do I find out if I have a refund coming for
    being over charged?

  2. RingBe.Com

    In result no one wants to see their empty wallets. Roaming bills are just too MUCH and roaming price has to be decreased. We believe in one intelligent app that adapts user calls, allowing to save up to 95% of all roaming calls. No more trouble no more suffering. Just one app can really help you