Verizon offers to settle shocking $17,500 bill
Carlos Mota, of North Philadelphia, got a shocking $17,500 "data roaming" bill from Verizon Wireless after a trip to his native Dominican Republic. Verizon says it's offered to settle the charges for about $1,000.
Verizon offers to settle shocking $17,500 bill
Jeff Gelles, Inquirer Business Columnist
Carlos Mota holds his Verizon bill, now more than $18,000 with late fees. (David Maialetti / Staff Photographer)
Did you see the Daily News' great (and disturbing) story last week about a North Philadelphia man, Carlos Mota, who got a shocking "data roaming" bill from Verizon Wireless after a trip to his native Dominican Republic?
Mota had a laptop computer and a wireless modem, and said he used the laptop twice, for about 90 minutes, before he got a warning about "data roaming" and immediately stopped accessing the Internet.
When he returned to Philadelphia, he got a $17,505 bill that ranks among the largest "bill shocks" reported to the Federal Communications Commission, which is campaigning to help consumer and carriers avoid unintended cell-phone charges that can run into the hundreds or thousands of dollars.
Mota's story broke - click here to read Stephanie Farr's Daily News piece - just after Verizon Wireless agreed to pay the government $25 million to settle a 10-month investigation into generally much smaller bill shocks. In addition to that payment, the carrier said it would refund at least $52.8 million to about 15 million customers who have gotten unexpected pay-as-you-go data charges since November 2007 for data that, in most cases, they weren't trying to download.
Mota's case is different in that he knew he was buying data - he just thought his $60.75-per-month fee would cover it all. Until he noticed the "data roaming" warning on his computer, he wasn't aware of the potential for charges that in some countries can run as high as $20 per megabyte, according to Verizon Wireless spokesman Sheldon Jones.
"We're talking about trying to settle his account with a reasonable payment," Jones told me. "At this point, we're waiting to hear back." Jones says Verizon Wireless has said it's willing to take about $1,000, paid out over a six-month period.
Of course, almost any Verizon Wireless customer would classify a $1,000 hit as "bill shock," even if it's a lot less shocking than $17,500.
There's got to be a better way to control this kind of costly surprise. As Mota's niece told the Daily News, "For them, it means nothing, but for him, it means his life. It would ruin him."
Jones said he didn't know how much Verizon Wireless pays its data-roaming partner in the Dominican Republic. But he says, "We pay carriers overseas for that service."
Click here to read about the FCC's efforts to combat bill shock.
Comments (57)
$1000? Are they serious? The "Executives" at Verizon driving BMW's and eating lunch in Rittenhouse Square clearly have no idea how much money that is to working folks.— NickEeee
Comment removed.
NICKEeee,don't forget the 60 or 70 million dollar golden parachutes these fools get also at the expense of working people!!!- Comment removed.
- He's getting off easy. He should have to pay the full amount. There's a difference between an informed consumer and those that make assumptions such as this. Before he signed the contract, he should have known what the conditions were. If he still couldn't figure out, Verizon offers customer service. A simple phone call could have saved him $18000. Is that too much to ask? Settling this for $1000 only perpetuates the problem and encourages others like Mr. Mota to continue in ignorance. Nothing in life is free, and the stupid people who expect handouts are tearing this country to pieces.— maacj
- Thanks for passing that cost along to the rest of us, Carlos. Let us know if you'd like us to handle any of your other household bills.— Echo
- Comment removed.
- The guy is on disability and doesn't work and has money for expensive toys like laptops with cell phones built into them (wish I could afford one), travels internationally, and owns a house. Hey immigration! Are you looking into this guy?— UncleJoe
- I didn't know that if I turn my heat up I will burn more gas so I got a higher bill than expected. Please bail me out Daily News!!— Freddy
- You people defending Verizon are a bunch of morons. So let me understand something, so if someone is on disability they are not allowed to have a USB or visit relatives in another country? Verizon pays next to nothing for the transfer of this data and charges outrageous amounts on roaming and also on non-roaming data transfers. I've gotten killed more than a few times by this greedy, underhanded company for going over data limits and so called roaming. There should be more regulation on price gouging in this and other industries including cable tv and gas pricing. You guys keep defending deregulation and corporate giants and talk to me in few years when you can't afford these basic everyday services. Blind, Rightwing, fools.— XPHAT
- Los, it cost you $1,000 to go to the Dominican, I don't think your hurting that bad. Pay the G, lesson learned.— Lcrest
- Who cares if he's on disability or has a fancy laptop? I don't care what he does or where he goes. Where is his sense of personal responsibility? It't not up to Verizon to babysit him and make sure he uses his internet connection within the confines of the contract. Be a man and own up to your mistakes.— maacj
- It's called reading your contract. Just don't sign you name to something without reading it. I have a mobile data plan and it clearly states where I can use it, all I had to do was read. He should be thankful they are willing to settle for only $1,000 and let him pay it over 6 months.— AgentBauer
- Another bailout....— scootch
- I would not be surprised if Verizon spent big bucks on Republicans because Republicans love when the little guy gets socked by big business, and really loves it when the victim is a minority.— eldiablodelsol2009
- Comment removed.
- maacj, echo:
Only the strong survive, right? Let those who are left behind die, right? This is wrong! HOW do you DEFEND these companies who make outrageous profits? This is one of a MILLION examples of corporate excess. Someday, profits and compensation will be determined by what's FAIR not by what is ALLOWABLE.
Tea Partiers are ruthless, disgusting people.— pcags 
Some folks need to get off their moral high horse regarding the reading of the contract. How many of you folks actually read every single line of everything you sign? If you do, you are in the minority. And if as CEO of Verizon, I want to give all my executives new Yachts, I can write into every service contract that you will be billed $100 for every second that you spend with a Verizon account executive. There are reasonable charges, and unreasonable charges, and Verizon should not be allowed to gouge for data services when it charges some customers $30 per month for unlimited usage.— jp8899- Customer service calls are free. All it really costs is your time, which in comparison to $17,000 really is insignificant. This isn't about funding the CEO's yacht, it should be about learning from your mistakes, not trying to blame someone else. It doesn't take a genius to read a contract and you don't have to read every single line to know that cell phone or data contracts are not honored outside of the US. How many contracts do you enter into that you can't keep track of? How could you blindly enter into a contract potentially worth thousands of dollars and not know the terms? If you're a CEO, maybe you can afford these mistakes, but as a struggling middle class American, you should be more diligent. Be proactive, responsible and take pride in yourself, otherwise the middle class will die from it's own stupidity. — maacj
- His niece says "there's got to be a better way to control this type of surprise"....well, how about learning your plan!!! It doesn't even have to deal with reading the contract. 2 clicks on the website...Data Plan/Coverage Area. That simple. Hmmmm.... I see all kinds of state, but nope, no Dominica Republic. Geez I better call customer support before I go on my trip to see what it would cost me.— perkgolf
- In less than 60 seconds you can go to the VerizonWireless website and find out that the roaming rate in the Dominican Republic is $0.02 / kb. If you do the math, My Mota's bill is the exact amount it should be. 872,255 kb x $0.02 / kb = $17,445.— russ0112
- $17k+ for roaming internet service is obviously unreasonable yet quite a few comments support that absurd charge and vilify the guy stuck with the bill. Our country does have some problems and a big one is the legions of mean, nasty people who will say just about anything on the internet where they can hide their identity while preaching about personal responsibility.— brs50
- I don't know how old everybody is on here, but when the world wide web was invented, it was free, you just needed a modem. Then AOL, NetReach, Verizon, and Comcast started charging. Also if you live in Canada and Japan your wireless internet service is allowed to roam everywhere is the world for a WAY less then $17000, it like $12 a GB.— millsie9969
- who was your service provider that didnt charge you to install wired connections from your home to their network which then provided a link to the WWW? id be very interested to know...
- who was your service provider that didnt charge you to install wired connections from your home to their network which then provided a link to the WWW? id be very interested to know...
I tried to use mine in canada and at once ghot a warning so stopped and no grief. My guess is he didn't stop at once, like he claimed.— Graves- I don't understand why a company that makes a profit must be vilified. Nor do I understand why it's wrong for a company to do exactly what the customer agreed it could do. This guy made a mistake. He's getting out of it, probably at VZW's loss. So he made out okay, but who's making up for the shortfall? You and me, as our rates go up over time. Why should I pay for this guy's mistake?— Echo
- Why talk about bill shock if only to state that in the next paragraph that this story is different?
As for a $17000 bill, excessive? sure but it is not a stretch to assume that someone will read a contract they are signing which tells them what is covered and what is not. It is not like that information is hidden and if you are not sure a 5 minute phone call will answer the question... 
Carlos isn't the only one that has experienced this, but the fact of the matter is he failed to make sure he KNEW what the Terms of Serivce were: http://www.snydeysense.com/2010/04/13/verizon-data-roaming-nightmare/— mccarte1- There is a difference between making a profit and gouging. It is not OK for companies to charge $500 for a 2x4 after a hurricane when that same 2x4 costs $5 before the hurricane. Charging somebody, anybody, $17k for roaming internet charges is gouging, not a company making a profit. Just because the contract says .02/min for roaming does not make it right. It is especially unreasonable when other customers are charged much less than that. THAT was the point.— jp8899
- Comment removed.
- $17K is excessive, but at what point is the consumer held responsible? Like many have said before me ... a few clicks on Verizon's website and a 5 minute call to customer service would have solved the problem. It's the exact same thing I do before I travel.— JimW
- It's disappointing to see that so many readers support Verizon, a multi-million dollar company that frequently boasts on its commercials that the vast majority of Americans rely on its services.
A company is only as good as its relationship to its customers. Because it is such a popular company, Verizon should encourage better business practice with its customers. Just as credit card companies flag unusual purchases, Verizon should similarly be required to notify its customers of unusual activity/exorbitant fees.
Carlos Mota undoubtedly could have been more proactive in checking over his agreement with Verizon. But Verizon and other big business companies do not design agreements and contracts to be easy to learn, with the specific intent of nabbing extra money from its clients.
Readers should support Mr. Mota.
Mr. Mota's case is extreme in the penalties he has accumulated. But this has happened to all of us. Unfortunately, people don't seem to recognize that they too are victims, and instead have to revert to pointing out Mr. Mota's race and financial situation to divert the conversation. It is a shame that people have succumbed to blaming their fellows in continued support of big business, that they now see speaking out as wrong.
A company is only as good as its customers allow it to be. That is what our country was originally built on; the minions having the power to control its leaders, and the fight for Independence from authoritative England.
— theritztorubble -
"Just because the contract says .02/min for roaming does not make it right." Is it just me, or is the key word in this sentence "contract"? Even though he's been here for something like 23 years and can't speak English, he could have called and pressed dos for espanol. I traveled to Europe this summer and took my blackberry with me. What did I do first? I called my provider to find out what the charges were for calls and internet use in the countries I was visiting. It was pretty easy. It was expensive, but didn't come as a surprise.
— stefek23 - Substitute Verizon bill for ARM and you have the housing crisis. What my interest rates could go up? I was only paying for interest? You expected me to read the contract and understand the transaction I was entering?
- This is one of those logistics you check whenever you leave the country. Basic mistake by this guy and now he's crying foul. Tough break, but you can't abuse the system and then cry ignorance after the fact. Sixty something dollars for unlimited internet doesn't mean anywhere in the world!— pb35
- I'm not defending Verizon but being annoyed with the lack of willingness to take reaponsibility for our own actions. I'm in France right now and I called A T & T to find out what I need to know about using my phone overseas. Sorry, bu I think he owes the 17.5k. I know that I should only use my iPhone when I have a wireless connection. Otherwise I just keep my phone off. But then again I called A T & T to find out what would coat and when.— PotteryPete
- He no speak English. He no work. He on disability. He be poor. Then how the heck does he fly around the world with a laptop?— Mayor Squidward
- Gouge? Too much for Verizon to charge? How much should we set that Verizon can charge? Mr. Mota needs to man up and take responsibility and also own up to more than 90 minutes on the Internet. Something more is going on. I think Verizon should pursue this.— PotteryPete
- This issue is 50/50.......he should not have taken his modem to another countery perhaps he was not aware of the charges.
His monthly covers local IM sure there is a communication issue.
IM guessing he can't afford the low or high bill perhaps some fair settelment.......I wish the best for him he should take some responsibility he should have tried to contact verizon be he made the trip. He can't afford the low or high bill perhaps they should make him work it off somehow to get part of there money back. Best of luck senor.....— merchandiser - I actually had a party when my Verizon wireless contract ran out...They are vile scumbags. They still want an extra $10 for the week after the contract expired...I sent them a letter inviting them to sue me for it— JSaq
- If you think Verizon has stopped this practice, they haven't. Since they lost that last judgement against them, they have raised administration charges again this month. Check your bills.— Pinkie
- He should pay the full amount.— sam_i_am
- I'll say it......if this was a white guy that went on a Euro or Mediterranean vacation it wouldn't even warrant an article. Enough with the "poor me" attitude about traveling. Do some research and figure out what you need when you travel!— pb35
- Hey all you mega geniuses: disability is for one who is no longer able to work at making an INCOME! And they must have paid into 'SS' (no, not the storm troopers...jeesh). Assets are NOT part of it, but then you wouldn't unnerstant that wouldnn't ya. Assets are what you get when you save money out of money you have worked for and earnt....... e-a-r-n-t, got it? Oh yeah, one of those assets could (just possibly-maybe) be.....da, daa.......a kumputr! Ease up guys, ever see a disabled person? A real slog.
— KILAPH - So what would people have Verizon do? I am totally curious about this. This guy is paying 6% of his bill. Verizon didn't make this up it was auto-generated through his usage. You expect he should get a full pass? Is this society THAT unaccountable? I could care less what his social status is. If he is dumb enough to think usage charges are the same no matter where he is in this world maybe he shouldn't be handling any technology in the first place. Corporate America is not to blame for dumb people.— ant8817
- based on the facts of the story, i can't see how anyone can think that >17K for 90 minutes of internet with no warning that a reasonable person would notice isn't ridiculous. being an informed consumer is one thing...getting man-handled financially by your internet provider is another. i don't understand all these people bashing this guy and plaining stating that he got what he deserved because he didn't memorize international charging practices and rates for verizon internet and he didn't memorize the language in his service contract. how many of you read every single word of every single page of documentation the day you closed on your home? how many of you have read your own fine print contracts with your cable provider, internet provider, phone provider, utilities provider, insurance provider, etc.? and as for all these people preaching "take accountability without question", i bet a few of you have gone to a courthouse at some point to try and get out of a driving violation. the justness (word?) of verizon's billing practices have nothing to do with this person's employment status or physical ability. if you still can't separate this man's social status from the issue, try to picture how you would feel if verizon pulled something similar with your mom....and i would be surprised if you still had no compassion.— phlubber
- ant8817, you're correct. this guy was a complete dummy for ever assuming that the world wide web was relatively easy to access world wide.
by your logic, if you order a beer in a bar in england, and you take a sip and they then inform you that the price is 17 grand...then you're saying you'd gladly cut them a check since you embody true accountability? the bottom line is that we should all expect verizon to act ethically...and this doesn't pass the smell test by any means.— phlubber - phlubber that makes absolutely no sense. In your ridiculous and unrelated bar scenario, there is no contract signed before the consumption of the beer. There is a contract signed before the purchase of internet service. Verizon isn't signing this contract. Mr. Mota is. And accessing the internet from a foreign country is a little different than accessing it from your parents basement.— dcs245
- phlubber - Cmon now. Throwing in terms like "World Wide Web" to better your argument? It's the internet and it is accessible around the world. Just like using a telephone is accessible. But wait, common sense indicates it is more expensive to use this technology when traveling. The first thing I do anytime I have ever traveled is check my minute/text charges for my phone. This is no different. I have no special interest in Verizon or any other telecom company but its just common sense. And I think Verizon acted quite ethically by eliminating roughly 95% of the bill! You can't just give someone a free pass and set that type of precedent for the next goofball that does the same thing. Your analogy with the beer is completely erroneous.— ant8817
- Unbelievable! This guy comes here from another country and then goes on disability. Your tax dollars at work.— UncleJoe
- Maybe Carlos should use the laptop and internet access find a job in the Dominican Republic and stay there.— fresa63
- Simple solution. Eliminate service contracts. They are the problem to begin with. Verizon wouldn't need contracts with their customers if they always strove to provide the best customer service. Customers would voluntarily choose them. Have the FCC or a regulating body cap maximum rates for internet usage, because as a telecom engineer I know that the usage costs Verizon very little. Even the $1000 is enough for Verizon to turn a good profit.— jp8899
- NickEeee - too bad the man in question isn't working folk. He should have to pay the full amount of the bill. Because he was irresponsible and too lazy to check for international data plans, it's Verizon's fault? Please.... this guy is living off of working folk's tax dollars and probably has no intent on paying any of that bill at the $1000 discounted rate.— the sichee-ation
- Wow, I guess none of you haters have ever been ripped off and you read all of the microscopic print on everything you sign. The truth is even if you do read everything you would still get ripped off by Verizon Wireless because they just admitted to ripping people off without them knowing it and have to pay up. They would never admit a mistake either, unless they are sued or put in the public spotlight for their thieving. I used to work for them, I know that they loved getting over on as many customers as they could, including texting and minutes overages. That extra cash went to pad the pockets of the top brass who are all retiring young now with $10-30MM bonuses each to help them out. The FCC is cracking down on them now, just like the SEC is cracking down on the thieves on Wall Street. So they can retire now that they have got over on all of you. And you didn't even know it until someone like this poor guy told you about it!— Wilkeeee
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The Inquiring Consumer blog takes a broad look at issues affecting consumers. Jeff Gelles, who also writes The Inquirer's weekly Consumer 13.0 and Tech Life columns, welcomes calls and e-mails about readers' concerns. Contact him at 215-854-2776 or jgelles@phillynews.com. Follow him on Twitter @jeffgelles.
Reach Jeff at jgelles@phillynews.com.
Jeff Gelles
Inquirer Business Columnist
Reach Jeff at jgelles@phillynews.com.
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