End phone plan scams: How to unmask the hidden costs in your bill

A “free” phone is often a three-year anchor designed to lock you into the most expensive data plans. Kim Komando uncovers the ghost subscriptions and insurance overkill costing you hundreds of dollars in hidden fees. Learn how to audit your statement and stop being a donor to the big carriers.

⚡ TL;DR (THE SHORT VERSION)

    • That $75 plan that really costs $110? It’s not all taxes. Carriers invent fees to pad your bill.
    • Verizon paid $100 million to settle a lawsuit over deceptive administrative charges.
    • “Free” phones, sneaky insurance and ghost subscriptions are draining your wallet.

    📖 Read time: 3 minutes

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📬 Reader Question

“Kim, I just looked at my phone bill, and it’s $40 more than what I signed up for. I haven’t changed anything. What’s going on?” — Dave from Ohio

Dave, you’re not crazy. And you’re definitely not alone. Here’s what’s happening.

You sign up for a $75 plan. If you’re not watching, that bill creeps up to $110. Sound familiar? Those extra charges aren’t taxes. They’re tricks. 

Let me show you exactly how they work.

1. The administrative fee game

Carriers tack on administrative fees or regulatory cost recovery charges that sound official. They’re not. These are made-up fees to cover their overhead while they advertise a lower price.

How bad is it? Verizon paid $100 million in 2024 to settle a lawsuit over deceptive charges. If they’re paying that much to make it go away, imagine what they made.

2. The ‘free’ phone trap

That “free” phone? Read the fine print. You have to sign up for the most expensive plan and stay for 36 months. Leave early, and you owe the full balance.

It’s not a gift. It’s a three-year anchor.

3. Insurance overkill

Check your bill for protection or device security plans. Carriers often auto-enroll you at $18 to $25 a month. Over two years, that’s $600, enough to buy a new phone outright.

4. Ghost subscriptions

That free streaming trial you forgot to cancel? It’s now $10.99 to $14.99 buried in your bill every single month. They’re counting on you not noticing.

Go check your bill. I’ll wait.

5. Paying for customer service

Some carriers charge for the privilege of talking to a human. Seriously. Want to skip the robot and speak to a real person? That’ll be $10. Walk into a store? Some charge a $35 assisted support fee to help you in person.

You’re already paying them monthly. Now they want more just to answer your questions.

🕵🏻‍♂️ Tired of playing detective with your own bill?

I was with a big carrier, looked at my bill one day and my jaw dropped. I shopped around, found Consumer Cellular and never looked back. I’m saving a ton, and that’s exactly why they became a sponsor of my show. I know you like to save money, too.

Here’s what you get:

  • Transparent pricing: No hidden fees. No predatory charges. What you see is what you pay.
  • Plans for real life: Starting at $20/month, pay for what you use. If you’re over 50, you can get two lines for $30 each with unlimited talk, text and data.
  • #1 in customer service: Ranked #1 by J.D. Power 16 times in a row. And you can actually talk to a person without paying extra.
  • Same great coverage: 5G covering 99% of the U.S. 
  • Your choice: Keep your phone number, or get a new one.

Reader Rebecca wrote in to tell me she’s saving $800 a year since switching. That’s a vacation. That’s a new laptop. That’s money back in your pocket instead of padding some carrier’s bottom line. Stop being a donor to the big carriers.

Switch now. Second month’s FREE. You’ll love saving money! I know you!

Share the savings: Know a friend who’s always complaining about their phone bill? Use the icons below to forward this story to them. Their wallet will thank you.