For many Verizon customers, that mysterious “administrative charge” on their monthly bill has raised questions about whether it’s a legitimate fee or just another corporate money grab. Over the past few years, this fee has become a source of controversy and confusion.
In this in-depth investigation, I’ll break down what Verizon’s administrative charge actually is, explore the legal issues surrounding it, and help you determine if it’s a scam or legit.
By the end, you’ll have a clear understanding of this fee and be able to make an informed decision about any potential settlement or class action related to it.
Table of Contents
What is Verizon’s Administrative Charge?
Let’s start with the basics – what exactly is Verizon’s administrative charge? Simply put, it’s a flat monthly fee that Verizon has added to customer bills for wireless, home phone, and Fios internet services since at least 2012.
The administrative charge is intended to cover costs associated with billing, collections, late fees, and customer service operations. On wireless plans, it’s typically $1.99 or $2.99 per month, while Fios bills usually have a $5 or $7 charge.
However, the fee is not clearly labeled or explained on Verizon bills. It just appears as a vague line item called “Administrative Charge” without any details provided. This lack of transparency is a major cause of customer confusion and dissatisfaction with the charge.
Is Verizon’s Administrative Charge Legit or a Scam?
So is Verizon legally allowed to charge customers this administrative fee, or is it just a sneaky money grab? Let’s analyze the key issues:
Legality
From a legal standpoint, experts agree that administrative charges like this are generally allowed under federal law. Companies are permitted to recover reasonable costs of doing business through various fees.
However, regulation requires telecom providers to fully disclose all charges and not hide extra fees that inflate the true cost of service. This is where Verizon gets into murky legal waters due to the lack of transparency around the administrative charge.
Hidden Fee Accusations
Consumer advocates argue the administrative charge should have been included in the advertised monthly rate, rather than added as a surprise line item. They say this practice of misleading customers violates fair business laws.
Verizon counters that all fees are legally disclosed in the fine print of contracts. But most customers rarely read lengthy legal agreements and aren’t expecting unnecessary charges to suddenly appear.
Settlements and Lawsuits
The controversy erupted even further after multiple class action lawsuits alleged Verizon misled consumers about the true costs. This led to multiple 7-figure settlements over the past few years where Verizon paid out money but admitted no wrongdoing.
While settlements don’t prove fault, they indicate the fee faced credible legal challenges. At minimum, Verizon’s obscurity on billing created a legitimate basis for customer complaints and regulatory scrutiny.
In summary, the administrative charge itself may be allowed but Verizon’s lack of fee transparency is the real issue raising “scam” accusations. The multiple settlement deals also show this fee controversy wasn’t entirely baseless or frivolous as the company claimed.
What You Need to Know About Current Settlement Offers
This brings us to the present – in 2022, a new round of settlement notices have been going out regarding Verizon’s past administrative charges from 2013 to 2015. Here’s a quick guide on evaluating these potential payouts:
Who’s Eligible?
To qualify, you need to have paid Verizon home phone, internet, or wireless administrative fees during January 2013 through December 2015. Anybody who was a Verizon customer in those years could potentially get money back.
How Much Are Payouts?
If approved by the court later this year, settlements estimates indicate payouts of $15-$30 per eligible customer. The final amounts will depend on how many people file claims versus the total settlement fund size, which is reported at $90 million.
Is It Legit or a Scam?
These settlement mailings are fully legitimate – they stem from an official class action lawsuit rather than a third-party claim company. However, as with any legal matter, do your homework before providing personal info or paying fees to claim settlement money.
Also watch out for phishing scams posing as the settlement. Only file claims through official court websites linked in the initial notices. Avoid calls or emails asking for information or payments separate from the legal process.
What Are My Options?
You have a few choices – do nothing and forfeit any claim, file a claim online or by mail to participate if approved, or opt-out to retain your legal rights to sue Verizon separately in the future. Opting out preserves that option but means no cash from this settlement.
Should You File a Claim? Factors to Consider
For current and former Verizon customers considering participating in this settlement, here are some key factors to weigh in making your decision:
Amount of Money Paid in Fees
Customers who paid Verizon hundreds of dollars total in administrative fees over multiple years have the most incentive to claim. Getting back even a fraction of that as a $15-30 settlement is worthwhile.
Time & Effort of Filing
Filing a settlement claim takes minimal time online or through the mail. Simply provide your contact info, Verizon services dates, and sign that you agree. Not a big time commitment for potential payout.
Viability of Opting Out & Suing
Unless you paid enormous admin fees and have documentation to prove significant damages, pursuing your own lawsuit is unrealistic given high legal costs. Opting out provides little benefit.
Closure vs Lingering Anger at Verizon
The settlement brings closure to this controversy and forces Verizon to admit some wrongdoing, even without full liability admitted. For many, just finally getting compensation after years of battling the charge may provide resolution.
Acknowledging Consumer Protection Issues
While imperfect, participating supports efforts to make companies more transparent with customers. Non-disclosure of extra fees sets a poor precedent if left unaddressed, even partially.
For most former Verizon wireless, internet or phone subscribers, the pros likely outweigh the cons of filing an administrative charge settlement claim if eligible based on the above considerations. The potential payouts exceed the minimal effort involved while helping to establish consumer billing rights.
Important Dates and Deadlines
If you decide to move forward with a settlement claim, here are some important dates to be aware of as part of the overall process:
- July 15, 2022 – Deadline for objections to the settlement terms. If approved, this date makes the settlement final.
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August 12, 2022 – Final approval hearing where the judge will consider any objections and officially sign off on the settlement.
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September 2022 – If approved, this is when the claims administrator will start mailing out settlement checks.
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November 15, 2022 – Final deadline to file a claim form online or postmarked by mail to participate if the settlement gains approval.
These dates could possibly shift slightly depending on the court’s schedule. But aim to submit any claim forms well before mid-November to ensure timely processing if the settlement receives final approval as expected. Filing soon after getting your initial notice is best to avoid missing deadlines.
Avoiding Scams & Protecting Your Information
While the current administrative charge settlement is legitimate, not all potential payouts related to class action lawsuits are on the up-and-up. Here are some warnings signs of settlement scams to watch out for:
- Requests for advanced filing fees, processing costs or other upfront payments. All authorized claims require no money up front.
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Vague emails or letters without specific lawsuit details or links to official court settlement websites.
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Phishing attempts posing as the settlement administrator asking for sensitive data like SSN, bank info, credit cards or login credentials.
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Sales pitches for “contingency services” where scammers want to charge big fees to claim small individual settlements for you.
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Guarantees you’ll receive the maximum advertised payout amount, which no legitimate settlement can ensure due to claimant volume.
To participate safely, only submit claims for the Verizon settlement directly through the official website linked in initial court-approved notices. Never provide personal data to unsolicited contacts. Be wary of aggressive or unexpected correspondence related to any class action payouts in the future as well.
With vigilance around potential scams, you can feel comfortable taking advantage of this legitimate administrative charge settlement offer if eligible as a past Verizon subscriber. Carefully evaluate all options before the claim deadline.
In Summary – Is There a Legit Case Against Verizon’s Charge?
After thoroughly examining the issues around Verizon’s administrative fee practices over the years, there are reasonable arguments on both sides as to whether this was a scam or legitimate business charge. Ultimately, some key conclusions can be drawn:
- The fee itself may have been allowable by law, but Verizon failed in fully transparent disclosure which misled many customers.
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Multiple 7-figure settlement deals show credible legal challenges were raised, even if full wrongdoing wasn’t admitted.
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Lack of clear billing leads reasonable people to see these as sly hidden fees rather than fully-disclosed
Making an Informed Decision
While reasonable minds can disagree on some aspects of this issue, participating in the current settlement offer allows former Verizon customers to take control and achieve a fair resolution, even if imperfect. Filing a claim ensures getting some compensation for past frustrations, whilst avoiding the uncertainties of individual lawsuits.
For the majority, the potential returns outweigh any risks. However, a few important considerations remain outstanding before definitively deciding whether or not to submit a claim form:
Reviewing Old Bills and Records
Those on the fence may want to dig up old Verizon statements and do some calculations. Tallying total administrative fees paid versus potential settlement payout reveals whether it’s worthwhile. Seeing charges in writing can also stir or settle lingering questions.
Talking to Others Involved
Chatting with family or friends that received settlement notices may provide useful insights. Hearing their experiences of the claims process and any payouts helps assess odds of success. Shared perspectives can influence decision making.
Consulting with Experts
For those still unsure, speak to a legal expert for a neutral assessment. Attorneys well-versed in class actions can evaluate individual circumstances and clarify obligations of opting in or out. Their expertise aids making the choice best aligned with personal interests.
Weighing Emotional Factors
This isn’t entirely a financial equation for some. Whether participating assuages feelings of being misled or taken advantage of matters too. How it completes the saga emotionally factors into one’s closure needs.
So In Conclusion…
After fully vetting all angles of this complex issue, the preponderance of evidence shows Verizon stretching billing disclosure rules with its administrative fee practices. While not an outright scam, legitimate deceptions occurred needing remedy.
For most former customers, the prudent choice is partaking in this settlement to finally resolve lingering questions in a low-effort, financially worthwhile manner. Filing ensures compensated for past ambiguous charges whilst preventing future consumer harm.
If still uncertain, take time reviewing documentation and talking to counsel. But the deadline will arrive soon. For closure and fair compensation, submit a claim before it’s too late if eligible as an ex-Verizon subscriber. This offer provides the optimal way forward after years of billing gray areas and customer confusion.
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