Verizon could raise the Telco Recovery fee even after agreeing to a $100 million settlement over it

Earlier this month we told you how Verizon subscribers will be sharing a $100 million settlement of a class-action suit. The lawsuit alleged that Verizon charged subscribers "a monthly Administrative Charge and/or Administrative and Telco Recovery Charge (collectively, 'Administrative Charge') that was unfair and not adequately disclosed." Those with legitimate claims can receive as much as $100 each.

Part of the verbiage used in such settlements says that the defendant does not admit any wrongdoing. That is why Verizon, the nation's largest wireless carrier, not only plans to continue charging its subscribers the Administrative and Telco Recovery Charge (currently $3.30 per line per month) but might even raise it. One notification about the settlement that Verizon sent to customers said this much. "Verizon has denied and continues to deny that it did anything wrong and that the lawsuit has any merit. Verizon states that it will continue to charge the Administrative Charge and that it has the right to increase the Administrative Charge."

The emails directed Verizon customers to the Settlement website. Verizon customers "who received postpaid wireless or data services from Verizon and who were charged and paid an Administrative Charge between January 1, 2016, and November 8, 2023" are eligible to file a claim and all claims must be submitted by April 15th.

According to ars technica, the last time Verizon hiked this fee, it was in the middle of 2022 and the fee went from $1.95 to $3.30. At the same time, the name of the charge was changed from "Administrative Charge" to the current name of "Administrative and Telco Recovery Charge." The charge debuted in 2005 and was originally 40 cents per line per month.

The suit said, "The Administrative Charge is never adequately or honestly disclosed to customers...Verizon utilizes the Administrative Charge to unlawfully charge its customers more per month for Verizon wireless services without having to advertise the higher monthly rates." 

It is important to note that the lawsuit didn't demand that the carrier stop charging subscribers these fees. Instead, it said that Verizon should "honestly and adequately disclose the Administrative Charge and its true nature and basis in Verizon's customer bills and in communications with Class members at or before the time the wireless services contract is created. It also suggested that the carrier reimburse customers "for any and all undisclosed (or inadequately disclosed) extra-contractual fees they were forced to pay."

If you believe that you are entitled to a share of the settlement money, visit the Settlement website and click on the link to file a claim.