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Judge strikes down Bell late fees
The Ontario Superior Court of Justice ruled that Bell Canada Inc.’s policy of charging a $25.00 “administrative fee” plus interest charges to Bell ExpressVu customers for late payment constituted a criminal rate of interest, pursuant to the Criminal Code. Mr. Justice Paul Perell, who rendered the decision, rejected Bell Canada Inc.’s argument that the charge was a result of costs incurred for collecting on overdue accounts. Justice Perell found that Bell Canada Inc.’s conduct in charging the administrative fee amounted to extending credit and charging interest, given that customers retained Bell ExpressVu services while their accounts were in arrears. The class action on behalf of 33,00 former and current Bell ExpressVu customers seeks $100 million in damages and $10 million in punitive damages. It is likely however, that the parties will attempt to reach a settlement on the issue of damages. This proceeding is in line with a growing trend in Canada to bring class action lawsuits against Canada’s telecommunications giants, challenging a variety a so-called fees, including for system-access and 911 services.
For additional information, visit:
http://www.thestar.com/Business/article/500052