Verizon administrative settlement payments paid, but less than expected – NBC Chicago

Some Verizon customers may become aware of automatic payments to their bank accounts as part of a $100 million class action settlement in 2024.

But the actual amount deposited could be much lower than many expected.

The lawsuit, first announced last year, claimed that Verizon charged certain account holders a “monthly administrative fee” or “telecommunications collection fee” that was “unfair and insufficiently disclosed.”

The wireless carrier denied any wrongdoing and said the suit was without merit, according to the settlement site.

“Verizon clearly identifies and describes its wireless administration fees multiple times during the sales transaction, as well as in its marketing, contracts and billing,” Verizon told NBC Chicago in a statement at the time . “These fees help our company recover certain regulatory compliance and network costs. As always, our company is committed to transparency and clearly disclosing all consumer fees and charges.”

According to the settlement website, customers eligible for payment were notified by mail or email when they were identified by Verizon and included “all current and former individual account holders” to whom the charge was made. billed between January 1, 2016 and November. 8, 2023.

The claims were due to be settled on April 15, 2024 and the settlement was deemed effective on September 20, 2024, the site said, with payments expected to begin being distributed in January 2025.

The settlement website said payments of $100 were expected, with eligible claimants receiving a minimum of $15 for their account plus $1 for each month a fee was charged.

How much were the payments?

Some users confirmed to NBC Chicago on Tuesday that they received automatic payments from the settlement via Zelle or Venmo. However, the payouts were significantly lower than expected, with one coming in at $5.33.

Others said on social media that they, too, had received smaller payments.

Why were payments lower than expected?

The settlement website also indicated that the final amounts could be lower, depending on how long the plaintiffs were subscribed to Verizon and how many people filed valid claims. The site also stated that if the settlement fund was not sufficient to pay all valid claims filed after deducting court costs, attorney fees and incentive fees, payments to class members would be ” reduced by the amount initially allocated pro rata. “

According to court documents, payments began being distributed to approximately 5.2 million class members on January 6, 2025. Payments were originally scheduled to be made in early December, but were delayed until January due to the winter holidays, according to court documents.

Court documents also showed attorney fees and costs totaled $33.3 million, or 33 percent of the $100 million settlement fund. The settlement also included 129 plaintiffs each earning $3,500 in “incentive awards” as part of the settlement, according to court documents.

The settlement administrator did not immediately respond to NBC Chicago’s request for comment.