Verizon Customers Frustrated by Small Payouts in $100M Settlement
- StewartWood Injury Lawyers
Categories: class action , Customer Frustration , settlement , Verizon
Verizon customers are expressing disappointment after receiving unexpectedly low payouts from a $100 million class action settlement over unadvertised administrative fees on postpaid wireless plans. While eligible customers were told they could expect payments between $15 and $100, many have taken to social media to report receiving significantly less—some as low as $2.37 on prepaid Mastercards.
The settlement covered customers charged an "Administrative Charge" or "Administrative and Telco Recovery Charge" between January 2016 and November 2023. Payouts were calculated at $15 per account, plus $1 for each month administrative fees were applied, capped at $100.
Customers had until April 15, 2024, to submit claims. Verizon has yet to comment on why some payouts fell short of expectations. Many recipients speculate that the unexpectedly low amounts may be due to the high volume of claimants diluting the settlement pool.
The backlash highlights ongoing frustrations with class action settlements, where advertised compensation often fails to meet customer expectations.