Have you ever noticed wonky service charges on your cell phone bill that didn’t add up? Well now, you might be able to claim some money because of those bogus fees. If you have a current or had a Verizon Wireless plan in the last seven years, you could be eligible to participate in a $100 million class action settlement.
Verizon postpaid wireless users — people who pay their monthly wireless bill after usage — are eligible for a piece of the class action settlement. Why? Because the company tacked on “administrative fees” that raised their rates from the lower advertised one. Here’s what to know.
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Verizon lawsuit details
Between January 1, 2016, and November 8, 2023, Verizon Wireless conducted an advertising campaign offering new users an attractive low monthly rate. According to Verizon’s monthly fact sheet, 93 million new monthly plan members looking to save on everyday essentials received the new rate.
However, they were also hit with an “administrative charge” that increased their rate. According to the lawsuit filed in New Jersey, this was a premeditated “deceptive fee scheme.”
Rather than go to court and dispute the charges, Verizon Wireless opted to settle with the complainants “Esposito et al. v. Cellco Partnership d/b/a Verizon Wireless.” Settlement funds will be divided and disbursed among class action lawsuit members, at the rate of $100 each.
Who is eligible for the settlement?
This settlement can affect anyone with a Verizon Wireless consumer account between January 1, 2016 and November 8, 2023, who received either an administrative charge or an administrative charge and Telco Recovery Charge on their monthly bill.
Both former and current customers are eligible for the settlement as long as they were charged an "Administrative Charge and/or an Administrative and Telco Recovery charge" anytime between Jan. 1, 2016, and Nov. 8, 2023 and also had a postpaid wireless or data service plan.
How to claim your $100
Once the settlement is finalized, Verizon will place the $100 million into a separate fund. The payout per person will vary from $15 to $100, which may help your paycheck stretch a bit further. This depends on how long the consumer has had the account and the number of respondents participating.
Verizon Wireless is sending out postcards to anyone billed the monthly administrative fees/Telco Recovery fees within that period. Consumers have until April 15, 2024, to receive payment. A website has been set up for postcard holders to enter their information. Consumers relinquish the right to sue Verizon Wireless over the fees by participating in the settlement.
Between January 1, 2016, and November 8, 2023, Verizon Wireless billed their postpaid users “administrative fees” and “Telco Recovery Fees” designed to raise their monthly rates artificially. A class action lawsuit filed in New Jersey challenged the rate scheme.
Rather than go through a trial, Verizon Wireless settled the class action lawsuit for $100 million. Consumers affected by the rates have up to April 15, 2024, to file a claim. Each consumer affected will get a postcard with the pertinent information needed to file a claim.
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