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Verizon (VZ) , the leading mobile provider in the U.S., recently had its feet held to the fire over a fee it charges its mobile customers; and the controversy just took an unexpected turn.
Last year, Verizon faced a class-action lawsuit for allegedly “misleading” customers about its Administrative and Telco Recovery Charge. According to the company's website, the charge helps to “defray and recover certain direct and indirect costs” its agents incur.
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Customers in the lawsuit argued that the fee, which was $3.30 per line at the time, was not disclosed in the monthly price of their wireless plans. They also alleged that there were discrepancies in what Verizon claimed the charge was actually for.
Related: Verizon quietly makes a change that just made customers very angry
“The first time Verizon customers learn about the existence of the Administrative Charge, or the amount of the charge, is on the customer bills, which they begin receiving only after they have signed up for wireless service and are financially committed to their purchase and cannot cancel without penalty,” reads the lawsuit. “Verizon then omits or misrepresents the so-called Administrative Charge on its customer bills to further its scheme.”
Verizon settled the lawsuit in October for $100 million, agreeing to send affected customers payouts starting at $15, plus an extra $1 for each month they were charged that administrative fee while receiving postpaid wireless or data services. Payouts are capped at $100.
However, customers are flagging that their settlement payments are falling well below the $15 minimum that was promised.
Verizon customers frustrated after receiving settlement payments
In a recent Reddit post, a Verizon customer shared a screenshot of a Verizon Administrative settlement payment they received in their PayPal account, which totals $7.85.
“Got my Verizon settlement check today. Thanks, lawyers,” wrote the customer in the post.
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In response to the post, other Verizon customers also claimed that they also received payments below $15.
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One customer even shared a screenshot in a post on social media platform X to show that he received a Verizon Administrative settlement payment of $2.37 to his prepaid Mastercard.
“Got my pay out from the Verizon lawsuit !!! These lawsuits are a joke, waste of time,” said the customer in the X post.