Verizon is changing tack after recent policy changes sparked a backlash from consumers.
Last week, Verizon quietly updated its website to reveal that it had adjusted its device unlocking policy for postpaid phone customers.
The policy currently states that postpaid phones purchased from Verizon must be paid in full to be automatically unlocked, meaning customers won’t be able to use the phone to switch to another carrier if it has an unpaid balance.
Additionally, if customers pay off their phone online or in the My Verizon app, they must wait 35 days before the device can be unlocked.
This delay can also be triggered if a customer purchases or pays for a phone using an unsecured payment method, such as a Verizon gift card, paper check, or magnetic stripe swipe card. It’s also important to note that bill credit is also considered an unsafe payment method for business customers.
Verizon claims this 35-day waiting period will help deter fraud. Customers can avoid this if they use a secure payment method, such as a credit card with an EMV chip, cash, or contactless payment, to pay off the device balance; however, the catch is that it must be done at a local Verizon store.
Signing up for automatic monthly payments on a device plan is another way for customers to avoid this delay.
Verizon claims to have updated its device unlocking policy on January 27, but the change was not posted on its website until February 11, suggesting that these new rules will apply to transactions that occurred before the policy change was released.
The updated policy sparked a backlash from consumers, who took to the social media platform Reddit to express their displeasure with Verizon.
“How is this legal? I understand (but don’t like) that the phone has to be locked to pay like other carriers, but once you pay postpaid, waiting another 35 days is crazy unless you do it at a company store. I’m sure COR employees would love to do this more often,” one consumer commented on a Reddit post.
Another wrote: “This is so anti-consumer and upsetting. If there’s a lot of fraud going on with gift cards, sure, maybe I can understand the delay with this method. But if you’re paying off your phone online with a credit card? You shouldn’t be held hostage for another 35 days.”
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“Verizon is making me more and more angry every week. This may be the final nail in the coffin for our business accounts,” one Verizon customer wrote.
Roger Entner, principal analyst at Recon Analytics who has been following Verizon for years, also believes that Verizon’s updated policy is not very attractive to consumers.
“If the phone is paid off, it should be yours, and not within 35 days,” Entner said in a statement to PCMag. “I think they exceeded their goal.”
After facing backlash, Verizon has now admitted that the change is a “pain point” for customers, according to a recent report from Android Authority.
In a statement to the news outlet, Verizon said the policy change was intended solely to prevent fraud.
“We’ve rolled out the Instant Unlock feature for customers who pay at our company stores or use automated payment methods as these systems can verify transactions in real time,” Verizon said. “For other channels like our app or authorized retailers, the 35-day window is strictly focused on fraud prevention and ensuring payments fully clear.
However, the company plans to “soon” allow all payment methods to unlock the device immediately.
“That said, we recognize this is a pain point for our customers and we aim to provide immediate device unlocking for all payment methods as soon as possible,” it said. “Our team is working hard to bridge this gap and we will update the website/policy if possible.”
Verizon also clarified that customers who purchased new devices before the updated terms were made public online on February 11 were aware of the policy change, which took effect on January 27.
“Regarding website update timing, the new device unlocking policy takes effect on January 27,” Verizon said. “Customers purchasing or upgrading from this date have (and are) seeing the full terms of the new policy at the point of sale. We will ensure that all public-facing information is also clear and consistent across channels.”
Verizon began tweaking its device unlocking policy last month after it received approval from the Federal Communications Commission to waive a rule that would have required it to automatically unlock devices sold to customers after 60 days.
The operator was first required to comply with the rules in 2008 after receiving a license to use the 700 MHz spectrum. This claim was reiterated in 2021 when Verizon acquired TracFone.
Verizon claims that automatically unlocking phones after 60 days leads to “device fraud” and makes phones more unaffordable for low-income consumers.
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The FCC confirmed that Verizon saw a spike in fraud after the rule took effect, with claims that its stolen phones were even being resold at inflated prices on the dark web in multiple countries.
Days after receiving approval from the FCC to waive the rule, Verizon updated its device unlocking policy for its prepaid brands, with the change taking effect on January 20.
The policy now states that devices purchased from StraightTalk, Total Wireless, Visible and Tracfone can now only be unlocked on request after 365 days of paid active service and subject to certain conditions.
Verizon’s device unlocking policy changes also come as it struggles to retain loyal customers.
While Verizon added 616,000 new postpaid phone customers in the fourth quarter of 2025, the company’s postpaid phone churn rate (the percentage of postpaid phone customers who canceled service) hit 0.95%, according to its latest earnings report. This is higher than its reported churn rate of 0.88% in the same quarter of 2024.
Verizon Chief Executive Dan Schulman said customer churn after multiple price increases last year largely contributed to higher churn this quarter, along with increased competition.
“It’s a price increase without corresponding value,” Schulman said during an earnings call last month. “It’s just going to piss off some customers and we’ve seen churn go up because of it and we’ve stopped doing that and we’re going to start adding value to it.”
Many consumers across the country have been exploring non-traditional phone service options as they battle higher prices.
Mobile virtual network operators (MVNOs) have become a popular choice as they offer phone plans that are often cheaper than traditional carriers, according to a WhistleOut survey last year.
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approximately 42% of Verizon, T-Mobile and AT&T customers have seen their phone bills increase over the past year. 7% high Above average.
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These customers spend $76 On average, one phone line per month, while MVNO customers spend $44 per month.
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also, 58% Among these customers are Consider switching As prices go up to different phone carriers, and 34% say they might change to a virtual network operator Within next year.
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Verizon risk losing 84.7 million customers Because of the high price.
Source: WhistleOut
“Millions of people are already leaving the major carriers behind as wireless customers begin to see the potential savings of switching to an MVNO,” WhistleOut senior writer Max McCaskill wrote in the survey.
“If prices continue to rise, this number will only increase,” he continued. “According to our investigation, the three major carriers (Verizon, T-Mobile and AT&T) are at risk of losing a combined 230 million customers due to overpriced mobile plans.”
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This article was originally published by TheStreet on February 21, 2026, and first appeared in the Retail section. Click here to add TheStreet as your preferred source.
