Were you recently notified of an incoming payment from Verizon? If so, this may be why.
In January 2024, Verizon agreed to pay $100 million to settle a class action lawsuit. The lawsuit, which was filed and overseen by the Superior Court of the State of New Jersey, alleged that U.S. customers who purchased post-paid wireless plans from the company were charged undisclosed administrative fees which Verizon “implemented, charged, and increased” in a “deceptive and unfair manner.”
Customers who were charged and paid an administrative charge and/or an administrative and Telco Recovery Charge between Jan. 1, 2016, and Nov. 8, 2023, were eligible to file a claim in this settlement.
Verizon denied any wrongdoing in this case, arguing that the lawsuit does not have any merit. The company stated that it will continue to charge the administrative charge and contended that it has the right to increase the charge, according to the settlement website. As a part of the settlement, the company will amend its customer agreement to include disclosures of the charge.
The deadline to file a claim online or by mail was April 15, 2024. Now, as of Jan. 7, customers who filed claims have started to receive their settlement payouts, many of which seem to be much smaller than originally anticipated.
Verizon customers who filed claims in this settlement have taken to social media with their reactions to the payouts. One X user described the payout as a “tiny drop of money in the account.”
“Got my pay out from the Verizon lawsuit … These lawsuits are a joke … Not even $15 bucks,” wrote another user on X.
Another X user said that they applied for the Verizon settlement “a while ago” and were just sent a deposit of $3.
While Verizon has not released a statement regarding the payments, and did not immediately respond to a request for comment, the settlement website says that payment may be up to $100 but is dependent on how long you were a Verizon subscriber and how many settlement class members filed valid claims.
Story Continues
The website states that there would be an “initial minimum allocated amount” of $15, plus $1 for every month your account received postpaid wireless or data services and was charged the aforementioned fees.
However, it also states that if the settlement fund is not enough to pay all filed valid claims after deducting the costs of settlement administration, attorneys’ fees, and incentive awards to class representatives, then the payments made will be decreased from the initial allocated amount on a “pro-rata basis.”
If you filed a valid claim and have not yet received payment, keep an eye on your account. According to the settlement website, payments are expected to be distributed in early January 2025.
This article originally appeared on NorthJersey.com: Verizon settlement money hitting bank accounts now. See if you qualify