Cable Firm to Give Rebates to Settle Late-Fee Case

Thousands of Century Cable subscribers in the San Fernando Valley and other areas of Los Angeles County will receive rebates as reimbursement for allegedly exorbitant late fees, authorities said Wednesday.

Century also agreed to pay more than $200,000 in fines to local governments under a settlement of allegations that the firm charged 10 times the costs it incurred in processing late payments.

Century admitted no liability in agreeing to pay the fines and provide $3.99 coupons good for one free pay-per-view event, according to a spokesman. Asked how many customers will receive the rebates and when, Joseph DiBacco , southwest divisional manager for Century Cable, said he believed it was “a very small percentage” but that he could not provide exact numbers because it was “late in the day.”

The coupons are designed to reimburse selected customers who were charged $10.50 late fees between 1992 and 1996. The alleged overcharges continued through Dec. 31, 1996, according to prosecutors--the day before a new state law went into effect prohibiting charges over $4.74.

The higher fees allowed Century to collect $1.6 million more in revenues than the late payments cost the firm, prosecutors alleged.

“Under the law, you are only allowed to collect what covers expenses due to late payment,” Deputy Dist. Atty. Lisa Kaas Boyle said.