In 2024, Verizon Wireless agreed to settle for $100 million an alleged imposition of undisclosed administrative fees on postpaid wireless plans for customers. Such settlement bears weighty prospects for a good number of Verizon customers. A detailed overview of the settlement will be presented here, including eligibility requirements, payment scheme, and distribution time.
Overview of the Settlement
In a class-action suit, it was alleged that Verizon has been in violation of an obligation of full disclosure as to the administrative fees imposed on its postpaid wireless customers. Such fees were mostly unknown to customers and were allegedly not adequately described in the servicing agreements. Although denying wrongdoing, Verizon decided to settle the case with a payment of $100 million to avoid a lengthy litigation process.
Eligibility Criteria
To become eligible for a settlement award, the following eligibility criteria must be met:
- You were a Verizon Wireless postpaid customer at any time from January 1, 2016, to November 8, 2023;
- During this time period, you were charged for administrative fees;
- You submitted a valid claim form within the timelines set for this settlement, by April 15, 2024.
- You cannot become a payee if you opted out of this settlement before February 20, 2024, or if you are an employee of Verizon or are affiliated with Verizon in any way.
Amount of payment
This settlement is determining payments for eligible claimants according to this formula:
- Base payment: $15 for each claimant.
- Additional payment: $1 for every month that the claimant was a Verizon Wireless customer during the period described above, to a maximum additional payment of $100.
However, payouts turned to be lower than expected due to an overwhelming number of filed claims. Most customers received an amount ranging between $4 to $15 distributed on a pro-rata basis.
Payment distribution time
The eligible claimants received payments on January 2025 and according to the following schedule:
- Electronic payments: Claimants who selected electronic payment options like PayPal or Venmo or Zelle would receive their payments fast after distribution’s onset.
- Physical checks: Claimants who chose checks as a form of payment dealt with more time-consuming processing with checks arriving within a month’s deferment from the start of distributions.
Be sure the actual payment amounts were affected by the volume of valid claims and the time of imposition of such administrative fees.
Customer Reactions
There have been wildly divergent opinions on this settlement from customers. Some appreciated the effort to bring attention to the previously hidden charges., while many were disappointed about the small award amounts. With many claimants, the average payment was considerably lower than the initial expectations.
Summary of Important Points
- Amount of Settlement: $100 million
- The eligibility is the postpaid Verizon Wireless subscribers who paid administrative fee and submitted claims until April 15, 2024, between January 1, 2016, and November 8, 2023.
- Payout Amount: Initially estimated to be between $15 and $100, but would be lowered due to the number of claims.
- Date Payout: Payments began occurring starting January 2025.
Next steps
If you qualified for the settlement and still have to receive the payment, it would be best to either contact the settlement administrator or check this site for updates. Also, ensure that one’s contact and payment information is updated to avoid inconveniences.