State OK's a late fee for Verizon But Reilly calls levy exorbitant and vows battle with regulator
By Bruce Mohl, Globe Staff | June 22, 2006
Over the strong objections of Attorney General Thomas F. Reilly , state regulators have given Verizon Corp. the green light to assess a
1.5 percent late fee on consumers who pay their monthly bills more than 30 days late.
Officials at the Massachusetts Department of Telecommunications and Energy said they approved the late fee after persuading Verizon to exempt customers with Lifeline service, which is available to consumers receiving public assistance.
Reilly said Verizon's fee is exorbitant (19.56 percent on an annual basis), higher than what business customers are charged, and tantamount to double billing, because the phone giant's rates already include an allowance for the cost of customers paying late.
Reilly's aides said they plan to fight the late fee in another proceeding that's pending before the DTE.
The attorney general had urged the DTE to bar Verizon from imposing a late fee, just as state law currently prohibits electric, natural gas, and water utilities from assessing late fees.