Millions of Verizon customers are receiving payouts from a $100 million class action settlement over hidden “administrative fees.” Here’s who qualifies, how much you could get, and how to check your payment status.
Verizon $100 Million Settlement: Overview
| Item | Detail |
|---|---|
| Company | Verizon Communications Inc. |
| Settlement Amount | $100 million |
| Case Type | Hidden & undisclosed “administrative” and “recovery” fees |
| Period Covered | January 2016 – November 2023 |
| Average Payment | $15 base + $1 per month charged (up to $100) |
| Eligibility | Verizon postpaid plan users (2016–2023) |
| Claim Deadline | April 15, 2024 (now closed) |
| Payment Methods | Zelle, direct deposit, or mailed check |
| Official Settlement Site | verizonadministrativechargesettlement.com |
Why Verizon Had to Pay?
For years, Verizon tacked on small “administrative” and “telecom recovery” fees — often $1 to $3 per month — to postpaid wireless bills. Customers argued these were hidden charges, not properly disclosed when plans were advertised.
“It wasn’t about the amount — it was about transparency,”
said consumer advocate Laura Simmons, who helped organize the case.Also Read
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The class action lawsuit claimed Verizon violated consumer protection laws by masking these charges as regulatory costs, even though they were company-imposed.
Verizon denied wrongdoing, but agreed to pay $100 million to settle the case and “avoid further litigation costs.”
How the Verizon Settlement Works?
Under the U.S. District Court–approved terms, Verizon created a $100 million fund to compensate affected customers.
Payout Structure:
| Component | Amount |
|---|---|
| Base payment | $15 |
| Extra per month charged | +$1 per month (Jan 2016–Nov 2023) |
| Maximum payout per user | $100 |
Payments started rolling out in mid-2025, via:
- Zelle (for those who provided digital payment info)
- Direct deposit
- Paper checks sent by mail
Actual amounts vary depending on:
- How long the customer was billed those fees
- Whether they filed a valid claim before April 15, 2024
- The number of total approved claimants
Who Is Eligible?
To receive a payout, you had to meet all of the following criteria:
- Had a Verizon postpaid plan (not prepaid) between Jan 1, 2016, and Nov 8, 2023.
- Were charged administrative or telecom recovery fees during that period.
- Filed a valid claim form by April 15, 2024.
- Provided current payment or mailing details for disbursement.
Those who didn’t file before the deadline, or used prepaid accounts, are not eligible.
“If you ignored the email or postcard last year, you’ve likely missed the payout,”
warned consumer attorney Patrick Donnelly, who represented several claimants.
How to Check Your Payment or Claim Status?
You can still verify whether your claim was received and processed:
- Visit verizonadministrativechargesettlement.com
- Click “Check Your Claim Status”
- Enter your Claim ID or Confirmation Number (found in your email)
- See your payout method and estimated date
Alternatively, you can contact the Settlement Administrator at:
📧 [email protected]
📞 1-833-915-0881 (toll-free)
The Bigger Picture: Junk Fees Under Fire
Although individual payouts average $30–$50, this case has broader implications.
Consumer rights advocates say it sends a clear signal to telecom giants and subscription-based businesses about hidden or misleading charges.
“Small fees repeated millions of times can become massive profits — or, as Verizon learned, a $100 million liability,”
said FTC economist Dana Willard.
The Federal Communications Commission (FCC) and Federal Trade Commission (FTC) are now investigating similar “junk fees” in telecom, banking, and airlines.
President Biden has also vowed to eliminate “surprise add-on fees” as part of his broader Junk Fee Prevention Act initiative.
Verizon’s Response
Verizon, while settling, continues to deny any admission of guilt. In a public statement, the company said:
“We strongly dispute the allegations but chose to settle this matter to put it behind us and continue focusing on providing transparent service to our customers.”
As part of the agreement, Verizon promised to:
- Simplify billing language for administrative charges
- Clearly disclose all plan-related fees during signup
- Train customer service reps to avoid misleading explanations
This could serve as a new benchmark for industry billing standards.
Impact on the Telecom Industry
The settlement has already sparked similar investigations across the U.S.:
- AT&T and T-Mobile are reportedly facing consumer complaints about their “recovery” and “surcharge” fees.
- Smaller carriers are voluntarily updating their billing transparency policies.
- Lawmakers are considering mandatory “all-inclusive pricing” displays for phone and internet plans.
Experts say the case could pave the way for regulatory reform, just as Wells Fargo’s fake accounts scandal reshaped banking oversight.
Key Takeaways
| Topic | Summary |
|---|---|
| Settlement Fund | $100 million fund for affected Verizon postpaid customers |
| Payout Range | $15 – $100 depending on billing duration |
| Eligibility Period | Jan 2016 – Nov 2023 |
| Claim Deadline | April 15, 2024 (closed) |
| Payment Start | Mid-2025 |
| What It Means | A milestone in the fight against hidden “junk fees” |
The Bottom Line
The Verizon case is a milestone in consumer accountability. While most customers won’t receive more than $100, the settlement sends a powerful message — that transparency is not optional, even for America’s largest corporations.
“The real win isn’t the cash — it’s that millions of consumers made their voices heard,”
said consumer attorney Donnelly.
If you were charged unexplained “administrative” or “recovery” fees, it’s worth checking your claim status — or at least watching how this case reshapes how telecom companies handle billing transparency going forward.
FAQs – Verizon $100 Million Settlement
What was the lawsuit about?
Verizon was accused of charging hidden “administrative” and “recovery” fees on postpaid accounts between 2016 and 2023.
How much will customers get?
Eligible users get $15 base + $1 per month charged, up to $100 maximum.
Is the claim period still open?
No. The deadline was April 15, 2024.
How are payments being made?
Via Zelle, direct deposit, or mailed checks.
When did payments start?
Disbursements began in mid-2025, depending on claim verification.
What happens next?
Verizon will simplify billing and avoid undisclosed surcharges in future plans.






