Verizon customers are livid after company increased a monthly charge again

Companies are always coming up with ways to saddle their users with high fees and while some are begrudgingly stomached, others, such as Verizon‘s Administrative and Telco Recovery Charge, result in a lawsuit. The company has learned nothing, as one furious Reddit user has discovered, and is going to increase the monthly charge again.

The Administrative and Telco Recovery Charge, which was known as the Administrative Charge before June 2022, helps the company cover some direct and indirect expenses such as the cost of complying with regulatory obligations, property taxes, and network maintenance charges. The Administrative and Telco Recovery Charge was previously $3.30 per voice line, and starting this month, it will be increased to $3.50.

Granted, that’s a minuscule increase, but considering customers think they are wrongfully subjected to the fee, they are not willing to put up with the increase. Some are already plotting a switch. Others are considering writing to the Federal Communications Commission (FCC).

Also, when you consider the fact that the Administrative Charge was only 40 cents/month when it was first introduced in 2005, it’s easy to see why customers are not willing to let any more increases slide. The fee was mostly recently increased from $1.95 to $3.30 in June 2022.

Verizon previously agreed to settle for $100 million after it was accused of levying administration charges to boost its revenue and not adequately disclosing them. The carrier admitted no wrongdoing but decided to resolve the lawsuit by offering money, which is what companies often do when they want to avoid lengthy court battles. Verizon notes on its website that the “charges are subject to change from time to time.” When settling the lawsuit, the company made it clear that it might hike the fee again. The company also revealed that most customers who sued it did not terminate service after the Administrative Charge was introduced. Perhaps that’s what gave the company the confidence to slap another increase.