Business

Verizon pulls plug on fee

Verizon Wireless got the message.

A day after announcing it would start charging customers a $2 “convenience” fee to pay their bills, the wireless giant backtracked after the plan outraged consumers and prompted regulators to investigate.

The nation’s biggest wireless company is canceling its controversial plan to charge customers a $2 fee for paying their bills

The company backtracked yesterday on its plan to hit customers with a $2 “convenience fee” for one-time payments of bills online and by phone.

The nation’s largest wireless provider had planned to implement the fee on Jan. 15 for customers who make one-time payments through its Web site or over the phone.

Verizon did present options for consumers to avoid getting hit with the charge, including setting up automatic monthly payments. Customers also would have been warned of the charge when paying their bills.

“Based on [customer] input, we believe the best path forward is to encourage customers to take advantage of the best and most efficient options,” said Dan Mead, president and CEO of Verizon Wireless.

Word of the new fee leaked earlier this week, sparking an immediate firestorm that spread online as irate customers expressed outrage over the notion of getting charged to pay their bills.

On top of the widespread backlash, regulators weighed in yesterday, threatening to investigate the fee. The Federal Communications Commission said it was “concerned” with the new levy and was looking into its potential impact on consumers.

Before a probe could get very far, however, Verizon Wireless pulled the plan, saying it was prompted to reverse course given the customer feedback.

Among the most vocal critics was Change.org, which sent out a release yesterday touting its collection of 95,000 people protesting the fee.

The organization launched a similar campaign against Bank of America earlier this year when it planned to charge customers a $5-a-month fee for debit-card transactions.

“The days of corporations bullying their customers are over,” Cause.org said.

Verizon Wireless serves more than 90 million customers. Its main rival, AT&T, does not charge for online payments, although it does have a $5 fee when its reps, in stores or by phone, handle the billing.