T-Mobile promised to 'never change the price you pay' for your phone plan — then hiked rates. New Yorkers just got back $38M in value

“New Yorkers deserve clear and honest prices, not misleading offers with hidden fine print,” James added in the announcement. “Consumers shouldn’t have to pay the price for a misleading sale.”

James’ office told Moneywise they started investigating T-Mobile’s price hikes in 2024 and that the reimbursement doesn’t mean the company is cutting a $38 million check. Rather, they said, it’s an expression of the value of the offers available for those who qualify.

T-Mobile essentially told Moneywise the same, noting that the $38 million is “not the amount in refunds or payments.”

What, then, does the $38 million “in value” mean for the customers who had their prices hiked?

What customers can actually claim

The attorney general’s office noted that the $38 million is the maximum value of the benefits impacted customers can choose as a reimbursement.

For example, according to the settlement agreement, those eligible customers who choose to cancel their plans could receive “T-Mobile’s payment of their last month’s recurring charge and a $25 cash card.”

Eligible customers who stick with T-Mobile can choose from “either a free or discounted 5G-equipped wireless phone for each line experiencing less than 5G service,” along with T-Mobile’s promise “not to increase the monthly recurring charge on the account’s current plan until no earlier than May 30, 2029.”

Any other affected customers can either cancel and have T-Mobile pay their last month’s bill or stay and accept T-Mobile’s promise of not increasing monthly recurring charges until May 30, 2029.

Such benefits, spread across all impacted customers, can add up to $38 million, the attorney general’s office said. T-Mobile acknowledged they will also pay the state of New York $98,000, adding, “We’re glad to have this matter resolved and remain focused on delivering value to our customers.”

The breakdown of the payout, meanwhile, might seem surprising when a headline figure like $38 million isn’t carved up in bigger chunks among those impacted. But this isn’t uncommon.

A $177 million AT&T data breach settlement for exposed Social Security numbers from earlier this month reportedly only paid out the suggested $5,000 per customer if they could prove the exposure of the information led them to suffer actual losses. Otherwise, the share of that $177 million topped out at around $40 per victim, with the lowest payout equalling about $6.50.

In January, a $95 million settlement with Apple netted customers impacted by alleged Siri eavesdropping $20 per device, with a $40 cap. And last year, a $100 million class-action lawsuit against Verizon, for allegedly charging improper administrative fees, offered a potential maximum payout of $100 per customer, though some reported only receiving around $2.

Meanwhile, at the end of September, a judge declared that individual customers suing T-Mobile over raised rates must pursue individual arbitration rather than a larger class-action lawsuit.

How to protect against surprise bill hikes

Hidden or unexpected fees can lead to unwelcome surprises on your phone bill. There are ways, however, that you can be proactive in avoiding, or correcting, such price hikes.