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Home > News & Information > Press Releases > Verizon faces fine for charging incorrect rates to low-income customers March 18, 2009 Verizon faces fine for charging incorrect rates to low-income customers Penalty also recommended for incorrect billing of city taxes OLYMPIA, Wash. – Staff members of the Washington Utilities and Transportation Commission (UTC) have proposed a fine against Verizon Northwest, Inc., for failing to charge the correct rates for service. In a complaint filed today, commission staff recommended Verizon be penalized $107,800 for violating state law by overcharging Washington Telephone Assistance Program (WTAP) customers, providing WTAP customers with misleading information, and for incorrectly billing city taxes to customers who reside outside city limits. WTAP is a state program designed to make sure low-income families and individuals in our state have access to affordable telephone service. The three-member commission is not bound by its staff recommendation and will set a schedule for hearing this complaint soon. UTC staff has conducted three investigations of Verizon since 2005. In the initial investigation, staff found an increasing number of complaints from WTAP-eligible customers. In complaints filed with the UTC, Verizon customers alleged the company provided incorrect and misleading information about the program and failed to charge the discounted tariff rates for the phone service. To monitor the company’s complaint-handling progress, the UTC staff launched a second investigation in September 2007. Results of that investigation showed Verizon failed to respond to UTC-referred customer complaints, continued to overcharge WTAP-eligible customers, and discontinued phone service without good cause. In response, commission staff set up a six-month compliance plan to help the company improve its business practices in these areas. The most recent investigation was conducted in December 2008. Staff found that more than one-third of Verizon customer complaints were from WTAP participants. The December 2008 investigation also revealed complaints against Verizon by customers living outside city limits who were inaccurately charged city taxes on their phone bills. Even when contacted about the inaccuracy by a Verizon customer, the company failed to investigate the issue, correct the billing error or issue a refund. At UTC staff’s insistence, Verizon telephone customers located in the same geographic area as those identified with improper city tax errors on their phone bills were also issued refunds. The UTC is the state agency in charge of regulating the rates and services of telephone companies operating in Washington. Verizon, formerly known as GTE, is the second-largest local telephone provider in Washington, serving 518,341 phone lines in cities such as Redmond, Kirkland, Everett, Bothell, Woodinville, Wenatchee, Kennewick, Pullman, Chelan, Richland, Naches, Westport, Lynden, Anacortes, Mount Vernon, Newport, Oakesdale, Republic and Camas-Washougal. ### Staff contact: Amanda Murdock Posted/updated: 05/29/2009 |
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