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Verizon will keep charging frivolous monthly fee even after $100 million settlement payout

The $3.30 monthly fee could also go up in the future.
By
January 16, 2024
Verizon logo on smartphone with a colored background Stock photo 9
Edgar Cervantes / Android Authority
TL;DR
  • Verizon will continue billing customers for its vague administrative charges even after settling a $100 million lawsuit.
  • The carrier says the monthly $3.30 fee could also go up in the future.
  • The fee is implemented over and above Verizon’s advertized plan charges.

Verizon recently started sending payout emails to customers as part of a $100 million class action settlement. Eligible Verizon users are getting a payout of up to $100 from the carrier. The lawsuit alleged that Verizon charged and increased an administrative fee for postpaid wireless plans in a deceptive manner. Now, even after initiating payouts to customers and settling the lawsuit, the carrier has said it’s going to continue charging a monthly “Administrative and Telco Recovery Charge.” Verizon has also said that the fee could go up in the future (via Arstechnica).

Verizon currently bills $3.30 per line as its Administrative and Telco Recovery Charge for wireless phones and other devices. In 2022, the carrier charged $1.95 for the same. It’s unclear when the rates will go up again and by how much.

“Verizon has denied and continues to deny that it did anything wrong and that the lawsuit has any merit,” the company says in its settlement notification email. “Verizon states that it will continue to charge the Administrative Charge and that it has the right to increase the Administrative Charge.”

According to the carrier, the Administrative fee “helps defray and recover certain direct and indirect costs” the company or its agents incur. These charges include the following:

  • Costs of complying with regulatory and industry obligations and programs, such as E911, wireless local number portability, and wireless tower mandate costs.
  • Property taxes
  • Costs associated with our network, including facilities (e.g., leases), operations, maintenance and protection, and costs paid to other companies for network services.

Meanwhile, If you used Verizon’s postpaid wireless or data services and incurred an Administrative Charge from January 1, 2016, to November 8, 2023, you have the opportunity to submit a settlement claim by April 15, 2024. This allows you to receive a payment from the carrier.