RCN Telecom Services unfair late fee $6.65M class action settlement

RCN Telecom agreed to a $6.65 million class action settlement resolving claims it charged an unfair late fee that violated its own terms and conditions.

The settlement benefits current and former RCN Telecom customers who were charged and paid a late fee between Aug. 12, 2014, and April 25, 2022. Eligible consumers may have received a settlement notice via mail or email.

RCN Telecom is an internet and cable company owned by Astound Broadband. In January 2022, Astound announced its regional companies would change their names — RCN Corp. became Astound Broadband powered by RCN.

According to a class action lawsuit against RCN Telecom, the company violated its own terms and conditions by charging its internet customers late fees. 

The telecom company uniformly charged its customers late fees of $15 when RCN policies stated late fees would be no more than $9, plaintiffs contend. Additionally, the company allegedly charged late fees without observing the grace period or providing advanced written notice of deadlines, as promised in RCN’s terms and conditions.

In addition to violating the company’s policies, the RCN Telecom class action lawsuit claims these “unfair” fees violated New Jersey laws including the New Jersey Consumer Fraud Act, Truth in Consumer Contract, Warranty and Notice Act and Uniform Declaratory Judgment Act.

After nine months of negotiations, RCN agreed to pay $6.65 million to resolve these allegations. The company hasn’t admitted any wrongdoing.

Under the terms of the settlement, class members can receive a payment based on a number of factors. These factors include whether class members were subscribers, the number of total claimants in the settlement and whether class members choose to receive their settlement payment as a bill credit or a check/electronic payment. 

For example, current customers who choose to receive their payment as a bill credit will receive 100% of their “allocated loss.” Class members who are current customers who choose to receive their payments as checks or electronic payments will receive only 50% of their “allocated loss.”

Allocated loss is determined by a class member’s service experience. 

Class members who signed up for RCN Telecom services after Feb. 17, 2019, have an allocated loss of 80% of the total fees they paid. Those who signed up for services before Feb. 17, 2019, but were customers after that date have an allocated loss of 40% of the fees paid. Former customers who signed up for services before Feb. 17, 2019, and were not customers after that date have an allocated loss of 20% the fees paid.

RCN Telecom has also agreed to revise its terms and conditions to update or delete any language about late fees, delinquency notices and related grace periods. These changes will comply with New Jersey law and better inform customers of the late fees they may be charged.

The deadline for exclusion and objection is July 11, 2022. 

The final approval hearing for the RCN Telecom class action settlement is scheduled for July 29, 2022. Class members may voice their opinions at this hearing, but are not required to attend.

In order to receive a payment for unfair fees, class members must submit a valid claim form by Aug. 23, 2022. Through their claim forms, class members can determine how they want their payment distributed (bill credit, check or electronic payment).

Who’s Eligible

The settlement benefits current and former RCN Telecom customers who were charged and paid a late fee between Aug. 12, 2014, and April 25, 2022. Eligible consumers may have received a settlement notice via mail or email.

Potential Award

Varies

Proof of Purchase

Proof of Purchase Text

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

08/23/2022

Case Name

Reid v. RCN Telecom Services, LLC et. al., Case No. MER-L-315-22, in the Superior Court of New Jersey for Mercer County

Final Hearing

07/29/2022

Settlement Website

RCNLateFeeSettlement.com

Claims Administrator

Reid v RCN Telecom
c/o Kroll Settlement Administrator
P.O. Box 225391
New York, NY 10150-5391

Class Counsel

Stephen P. DeNittis
Joseph A. Osefchen
Shane T Prince
DENITTIS OSEFCHEN PRINCE PC

Daniel M. Hattis Esquire
Paul Karl Lukacs Esquire
HATTIS & LUKACS

Defense Counsel

David E. Sellinger Esquire
GREENBERG TRAURIG LLP