Verizon imposes new roadblock on users trying to unlock paid-off phones

Verizon this week imposed a new roadblock for people who want to pay off device installment plans early in order to get their phones unlocked. The latest version of Verizon’s device unlocking policy for postpaid customers imposes a 35-day waiting period when a customer pays off their device installment plan online or in the Verizon app.

Payments made over the phone also trigger a 35-day waiting period, as do payments made at Verizon Authorized Retailers. Getting an immediate unlock apparently requires paying off the device plan at a Verizon corporate store.

Unlocking a phone allows it to be used on another network, letting customers switch from one carrier to another. Previously, the 35-day waiting period for unlocks was only applied when a customer paid off the plan with a Verizon gift card.

“If you payoff [sic] a device payment agreement balance online or in the My Verizon App, or if a Verizon Gift Card is used to purchase a smartphone or pay off a remaining balance, the unlocking process will be delayed by 35 days,” the current version of the policy says. “This window allows for the verification of the gift card’s funds to ensure they were not obtained through fraudulent or illegal means.”

The paragraph above only explains why the waiting period is necessary for gift-card payments despite applying the 35-day wait to online and app payments as well. In a previous version of the policy that was implemented on January 27 and still in place as of February 9, the 35-day waiting period applied only when a Verizon gift card is used to buy a phone or pay off the remaining balance.

The 35-day waiting period provision was changed to include online and app payments by February 11. We were made aware of the most recent change thanks to a tip from Ars forum member User_E.

Customers must go to Verizon corporate store

Despite the significant update that happened this week, Verizon still lists the effective date of the device unlocking policy as January 27. It thus appears that Verizon is applying the 35-day wait after online and app payments retroactively, without disclosing that the policy changed after January 27.

The 35-day waiting period seems to apply regardless of how long the phone has been in use. For example, if you were 18 months into one of Verizon’s 36-month device installment plans and decided to pay the remaining balance early and switch carriers, you’d still have to wait 35 days for an unlock in most scenarios.

A Verizon spokesperson told Ars today that customers meeting the requirements for a quick unlock will “typically” receive it within 24 hours. But “if you pay online, through the app, or use a ‘non-secure’ method (like a Verizon Gift Card, paper check, or magnetic stripe swipe), there is a 35-day security delay before the unlock triggers to prevent fraud,” the spokesperson said. Verizon did not explain why the device unlocking policy still has an effective date of January 27 despite the change made this week.

It is possible to pay off an installment plan early by going to a Verizon store. But there are limits on this, too. Another Verizon FAQ says the company will unlock a phone “when you use a secure payment type at a Verizon store. Payments made through your account online, in the My Verizon app, a Verizon Authorized Retailer, or by phone delay the unlock by 35 days.” It’s not clear when this FAQ was last updated.

The Verizon Authorized Retailer limitation means that to get a quick unlock, you have to go to a Verizon corporate store rather than a Verizon Authorized Retailer that isn’t owned by Verizon. Verizon corporate stores accounted for only about 20 percent of Verizon stores, according to Wave7 research cited in a 2021 Fierce Network article.

As for the “secure payment type” requirement, you can satisfy that by paying with cash, a credit card with an EMV chip, or contactless payment method like Apple Pay, Google Pay, and Samsung Pay. The requirements may be different for consumer and business customers. A Verizon business FAQ says paying off a device using a bill credit also triggers a 35-day wait, but that caveat isn’t mentioned in the Verizon consumer FAQ.

Even if you happen to live near a Verizon corporate store, it’s still less convenient than paying online or in an app. A customer can alternatively buy a phone from Verizon at full price at the beginning to get it unlocked right away, but not everyone will want to or be able to do that.

“Devices purchased directly from Verizon are locked to our network. Devices will be unlocked automatically when purchased at full retail price or if the device financing agreement balance is paid in full,” the unlocking policy for postpaid devices says, right before disclosing the 35-day waiting period that applies in various scenarios.

There shouldn’t be a wait for unlocking if a customer pays off a device plan on schedule via automatic payments. Verizon confirmed to Ars that “if a Verizon customer has automatic monthly payments set up on a device payment plan, the device is automatically unlocked after the final scheduled payment.”

Prepaid phones locked for a year

Verizon’s latest unlocking policy for prepaid devices is simpler than its postpaid policy but still locks customers to the Verizon network for a year. “Devices purchased from us will remain locked to the network until the completion of 365 days of paid and active service,” the prepaid device unlocking policy says. “After 365 days of paid and active service, we will automatically remove the lock unless the device is deemed stolen or purchased fraudulently.”

Despite using the phrase “automatically remove the lock” in reference to prepaid devices in its device unlocking policy, Verizon seems to contradict this on an FAQ page by saying that prepaid customers must request an unlock after 365 days. Unlocks are made “upon request” if a customer meets the criteria, the page says.

Until recently, the US government required Verizon to unlock handsets automatically after 60 days, via rules imposed on 700 MHz spectrum licenses and merger conditions imposed on Verizon’s purchase of TracFone. The Federal Communications Commission eliminated the 60-day unlocking requirement on January 12 for all phones activated on Verizon’s network after the FCC decision. Verizon says it is still honoring 60-day unlocks for phones bought from its flagship brand before January 27.

The AT&T policy says postpaid phones purchased at least 60 days ago can be unlocked when the device is paid in full. The T-Mobile policy says that postpaid phones active on the T-Mobile network for at least 40 days can be unlocked after being paid in full. AT&T has a six-month waiting period for unlocking prepaid phones, while T-Mobile has a 365-day waiting period for prepaid phones.

A week after the FCC ruling, Verizon started enforcing a 365-day lock period on phones purchased through its TracFone division. Customers of TracFone and other “Verizon Value” brands have to request unlocks after the year is over as Verizon doesn’t promise to unlock phones automatically for those subsidiary brands.

“Most people pay their bills online”

The policy for Verizon’s flagship brand promises automatic unlocks, albeit with the new restrictions and waits described earlier in this article. John Bergmayer, legal director of consumer advocacy group Public Knowledge, told Ars today that he doesn’t understand why Verizon isn’t offering immediate unlocks to people who pay their bills online.

“Gift cards, sure, are a pretty high-fraud area. But most people pay their bills online with normal credit cards. It’s hard to see what is likely the most common way people pay Verizon as being somehow high-risk,” he said.

Verizon also shouldn’t apply the change retroactively, he said. “People should be able to benefit from the policy that was in place on the day they bought the phone,” Bergmayer told Ars.

Public Knowledge and other consumer advocacy groups urged the FCC last year to reject Verizon’s petition to end the 60-day unlocking requirement, but the FCC sided with Verizon. Although the federal rules have changed, Verizon can be forced to uphold its previous terms in cases where the company tries to change them retroactively.

In December, we wrote about a man who sued Verizon and won after the firm retroactively tried to enforce a new policy and refused to unlock a phone he purchased before the policy change. In that case, Verizon decided it would only unlock phones after “60 days of paid active service” even though FCC rules at the time required unlocks 60 days after activation regardless of whether paid service was maintained.