Verizon class action claims company pads bills with ‘administrative charge’

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Verizon class action lawsuit overview:

• Who: Five plaintiffs have filed a class action lawsuit against Verizon Wireless.
• Why: Verizon allegedly unlawfully charges a Verizon administrative charge that is not disclosed to customers until they receive their first billing statement.
• Where: The Verizon class action lawsuit was filed in New Jersey federal court.

A new class action lawsuit claims Verizon Wireless has engaged in a “bait-and-switch scheme” by advertising flat rate fees but charging mobile customers a Verizon administrative charge on top of the promised price.

A group of five plaintiffs lodged the Verizon class action lawsuit against Cellco Partnership d/b/a Verizon Wireless and Verizon Communications Inc., claiming they charged the Verizon administrative charge without customers’ consent.

The Verizon class action lawsuit alleges Verizon began charging the administrative charge on its postpaid wireless customers’ bills in 2005. The Verizon administration charge allegedly started at a rate of 40 cents per month and increased on a regular basis.

Currently, the plaintiffs say the Verizon administrative charge is $3.30 per line per month, which is more than eight times the original amount.

“Verizon has used the Administrative Charge as a revenue lever to covertly jack up its monthly service prices and to squeeze its existing subscribers for more cash whenever Verizon desires,” the Verizon class action lawsuit alleges.

Verizon has allegedly improperly reaped billions of dollars from the Verizon administrative charge scheme.

Customers are not informed of Verizon administrative charge until they receive their first bill, plaintiffs allege

Customers are not made aware of the Verizon administrative charge until they receive their first monthly billing statement, “which they begin receiving only after they have signed up for wireless service and are committed to their purchase and cannot cancel without penalty,” the Verizon class action lawsuit explains.

The plaintiffs allege that Verizon provides conflicting information about the reasons behind the charge. On the monthly bills, Verizon allegedly falsely states that the administrative charge is imposed to “cover the costs that are billed to us by federal, state, or local governments.”

The Verizon website allegedly falsely states that the Verizon administrative charge is tied to the company’s operating costs.

The plaintiffs are asking the court to compel Verizon to notify potential customers about the Verizon administrative charge in its advertising and to reimburse Class Members for undisclosed extra-contractual fees they paid.

This is not the first time Verizon has faced a class action lawsuit over allegedly undisclosed fees.

Verizon has also recently agreed to settle a class action lawsuit alleging it violated the Telephone Consumer Protection Act with pre-recorded debt collection calls.

Have you seen a Verizon administrative charge on your cell phone bill? Tell us what you think of the Verizon class action lawsuit in the comments!

The plaintiffs are represented by Stephen P. DeNittis, Joseph A. Osefchen, and Shane T. Prince of DeNittis Osefchen Prince PC, and by Daniel M. Hattis and Paul Karl Lukacs of Hattis & Lucacs.

The Verizon Administrative Charge Class Action Lawsuit is Cintia Corsi, et al. v. Cellco Partnership d/b/a Verizon Wireless, et al., Case No. 2:22-cv-04621, in the U.S. District Court for the District of New Jersey.

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