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Verizon Could Use a Lifeline

May 13, 2015

Yesterday, the Consumer Financial Protection Bureau (“CFPB”) filed suit against Verizon Wireless in the Southern District of New Jersey, in line with a previous suit filed against Sprint last December, for allowing third-parties to illegally “cram” unauthorized charges to their customers’ mobile accounts. The Complaint alleges that “Verizon unfairly charged its customers by creating a billing and payment-processing system that gave third-parties virtually unfettered access to its customers’ accounts.” CFPB v. Cellco Partnership, Case No. 3:15-cv-03268-PGS-LHG (D.N.J., May 12, 2015). “While its customers suffered losses, Verizon retained 30% or more of the gross revenue it collected for third-party charges, totaling hundreds of millions of dollars.” Id. The CFPB and Verizon filed a proposed Stipulated Final Judgment yesterday whereby Verizon would agree to pay a minimum of $35,000,000 as redress to all customers affected by these unlawful actions.

A copy of the complaint can be found here: