Verizon Wireless Backs Off $2 'Convenience' Fee

Just days after it stumbled badly in its handling of a series of 4G LTE network failures, Verizon Wireless has hastily abandoned an ill-conceived "convenience" fee of $2 for some customers paying their bill online or over the phone.

The holiday period around the end of the year -- when consumers are not paying attention to the news -- is when companies and politicians often try to sneak through new policies they hope will manage to flit under the radar.

It didn't work this time.  Verizon Wireless ran into the same wall of consumer outrage that Bank of American encountered just a few months ago with its $5 debit card fee, also quickly abandoned.  

Speed of light

Verizon's landline division likes to talk about its FiOS fiber-optic service operating at the speed of light, and that's just the speed at which consumers landed on Verizon Wireless. They lit up the Internet in no time with denunciations of grinchlike behavior befouling their holidays.

"I am unhappy with the fee for paying my bill online," said Victor of Lutz, Fla., in a complaint to ConsumerAffairs.com.  

"I think this is terrible," said Ria of Glendale, Ariz. "I will be looking for a different cell phone company that does not charge to make a payment over the phone."

A ConsumerAffairs.com survey of comments made on Twitter, Facebook and other social media wasn't much better.  In fact, it might have been a little worse.

Verizon kept a stiff upper lip and managed to mouth platitudinous assurances that it had had its customers' best interests at heart at all times.

"Improve efficiency"

"The company made the decision in response to customer feedback about the plan, which was designed to improve the efficiency of those transactions," a spokesman said. "The company continues to encourage customers to take advantage of the numerous simple and convenient payment methods it provides."

Even more solicitous was Dan Mead, Verizon Wireless CEO.  “At Verizon, we take great care to listen to our customers. Based on their input, we believe the best path forward is to encourage customers to take advantage of the best and most efficient options, eliminating the need to institute the fee at this time," he purred.

One might reasonably expect there were harsher words behind the scenes as Mead and his lieutenants sought someone to take the fall for the blunder.

The $2 fee would have applied to customers making one-time payments via the Web or over the phone. Besides attracting 100,000 angry consumers who signed an online petition, the affair drew the attention of the Federal Communications Commission, which isn't easy to do over the holidays.

The commission said Friday it was "concerned about Verizon's actions" and was looking into the matter, the Wall Street Journal reported.