Verizon Wireless recently agreed to a settlement amount of $100 million to settle a large class-action lawsuit. The lawsuit was filed against Verizon over allegations of deceptive advertising and charging hidden fees. According to the case, the company charged “administrative fees” without informing customers, leading to very high bills.
Although the deadline to file claims has now passed, customers who are eligible will start receiving payments from January 2025.
What were the allegations against Verizon?
Customers and consumer rights protection groups had made several allegations against Verizon:
- Hidden admin fees: Verizon added administrative charges to the bill, but customers were not informed about it in advance.
- Deceptive advertising: The ads showed that the plans were cheaper, but additional charges were added to the actual bill.
- Overbilled: Customers found they were paying more than they thought they would.
Settlement details – who will receive how much?
Verizon has set up a fund of $100 million to compensate its customers. The distribution process is as follows:
- Base payment: $15 for each valid claim.
- Monthly bonus: $1 for each month the customer faced overcharges, up to a maximum of $85.
That means a customer can receive a maximum of $100, depending on how many months he was charged overcharges.
What were the eligibility criteria?
Customers had to meet certain criteria to receive money from the settlement:
- Customer type: Verizon postpaid customers who had a wireless or data plan.
- Time period: Service must have been taken between January 1, 2016 and November 8, 2023.
- Fees: Administrative fees must have been imposed on the customer during this period.
Important dates and payment method
- Settlement approval: Final approval given on September 20, 2024.
- Payments start: Payments will be sent to customers from January 2025.
Payment methods:
- Bank transfer – Direct deposit to customer account.
- Check by mail – Check will be sent to the address given in the claim.
If a check remains unclaimed, it will be considered as ‘Unclaimed Property’ as per the state rules and some administrative fees will be deducted from it.
What if you don’t claim on time…?
If you did not fill out the form before the last date of claim, then now you will not get money from this settlement—even if you are eligible. This rule is very strict and there will be no exceptions.
What is the lesson from this case?
There are important lessons for both consumers and companies from this case:
- Transparency for customers: Companies should provide clear information about their charges and prices in advance.
- Corporate responsibility: Companies should act honestly, otherwise legal action can be taken.
- Customer awareness: Always check your mobile or data plan bills thoroughly and complain immediately if you see any unknown charges.
Conclusion
This settlement by Verizon will not only compensate the affected customers, but it is also a warning to all companies that transparency and honesty with customers is important. Customers should also be sensible and read the documents and fee information related to every service carefully. This can prevent such losses in the future.
FAQs
Q1. What is the $100 million Verizon Wireless settlement about?
A: The settlement resolves allegations that Verizon Wireless charged customers undisclosed administrative fees or misrepresented them in billing. It’s a result of a class action lawsuit filed on behalf of affected customers.
Q2. Who is eligible to receive a payment from the settlement?
A: Anyone who was a Verizon Wireless customer and was charged administrative fees between January 1, 2016, and November 8, 2023, may be eligible for compensation.
Q3. How much money will eligible customers receive?
A: The exact payout per customer depends on how many valid claims are submitted. Estimated payments may range from $15 to $100 or more, depending on individual circumstances.
Q4. Do I need to file a claim to get the settlement money?
A: Yes, eligible customers must file a valid claim form before the deadline to receive compensation. The form can typically be submitted online or by mail.
Q5. What is the deadline to file a claim?
A: The claim deadline is usually listed on the official settlement website. As of now, it is expected to be sometime in mid-to-late 2025, but always verify on the official site.
