Verizon settlement money goes out to customers, but some payments fall short

Verizon settlement payments have started hitting customers' bank accounts as part of a $100 million resolution of a class-action lawsuit.

Eligible customers had until April 15 to claim their share of the $100 million class-action settlement alleging customers who purchased postpaid wireless plans were charged administrative fees that the company had not advertised. Those affected were promised payouts of between $15 and $100.  

On Tuesday, however, customers reported receiving payments that were well below the settlement's minimum of $15. On social media sites including X, Verizon subscribers groused about measly sums they say the wireless provider had paid them. 

One customer posted a screenshot showing he'd been sent a prepaid Mastercard worth $2.37 as his Verizon Administrative settlement payment. Other social media users also reported receiving less than $15, and far less than the maximum payout of $100. 

Payouts were determined based on the following formula: Each legitimate claimant was entitled to $15 per account, plus an additional $1 for each month they received postpaid wireless or data services from Verizon and were charged an administrative fee. Payout amounts were capped at $100, according to the settlement terms. 

Verizon did not immediately respond to CBS MoneyWatch's inquiry about why some users' payouts totaled less than $15. 

Current and former Verizon customers who purchased postpaid wireless or data service plans and were charged an "Administrative Charge" and/or an "Administrative and Telco Recovery charge" between Jan. 1, 2016, and Nov. 8, 2023, were eligible for compensation, according to the class-action settlement agreement.