Monday, October 4, 2010

Verizon to issue Tens of Millions in refunds for erroneous data charges.

As reported on CNN.com Verizon will be issuing tens of millions of dollars in refunds to customers that were erroneously charged for data usage that they did not initiate.

This has nothing to do with the VerizonMath data rate quoting issue that I was involved with, but is very interesting nonetheless.

I've often wondered about the implications of software glitches, and this one is a doozy. It's probably been hurting Verizon's bottom line for some time even just in customer complaints, customer service calls and customer dissatisfaction (assuming individuals were not able to get the charges reversed). It is tangentially related to my situation in that the CS feedback should really be a priority that is investigated and reacted to early, such that these types of problems are handled when the costs are low (nip in the bud) rather than the typical brush it under the rug and hope it will go away mentality. I can't help but think that if this problem had been caught when the refunds would have amounted to a few million that Verizon's net costs would have been significantly less. Administering millions of refunds has to be a costly process. I wonder if they will issue the refunds including interest.

PS: thanks to Chris for bringing this to my attention.