Not resolved

I was told that this $ 6.39 charge on my bill was for them to recover some of their tax cost to be in business in the state of Texas. Also I,m having to pay $ 3.63 extra for a "Regional Sports Fee", for sports channels that were in my package, something about how it is in Texas.

I've never had a recovery fee on any net work before. Even on a cel phone that fee is just a few cents per phone on AT&T, their parent company.

To get out from under this mess it would cost $ 320.00. As fast as I can check out the other services and compare getting out and breaking even with another service at a cheaper rate for same length of time I will try it.

Product or Service Mentioned: Att Switch To Att Deal.

Reason of review: Poor customer service.

Monetary Loss: $160.

Preferred solution: Price reduction.

ATT Cons: Unhappy, Incompetency and training of customer service staff.

Do You Have Something To Say ?
Write a review


You will be automatically registered on our site. Username and password will be sent to you via email.
Post Comment

Any fee such as the FCC cost recovery fee that was not in the original agreement is a unilateral change in the conditions of the contract. They can either remove the charge or the other proper remedy is recession of the contract with each party being put into the position that they were prior to entering into the contract.

In short, you are not bound to the contract if they insist on changing the conditions without your consent. But you do have to object and insist on not paying and if they refuse insist on a recission of the contract.

The contract or terms of service operate on "Qui tacet consentit" or silence means assent. If you do not object, then you agree to any change or charge imposed.


A "franchise fee" is something Time Warner Cable has always charged - until very recently after being bought by Spectrum. We as customers were forced to pay THEIR tax for being permitted to monopolize New York for decades. Pretty crazy.


By law, if a company represents a fee as a state regulatory assessment, that fee MUST be paid to the state. If not, it's illegal...period.

If you feel you are being illegally assessed a fee, you need to file a complaint with the attorney general's office.

This is how the legal process works.

And if Ken Paxton receives 1000 complaints, he will give it his attention. BTW this wouldn't the first time AT&T had a run in with the FCC or it's first class action lawsuit.


I called Directv today (1/21/2017) because my Directv bill in Jan 2017 had a $3.44 charge for Texas State Cost Recovery Fee. I asked why this month and what was it for.

The answer I got was WRONG. She said it was an FCC charge and the percent was 3.447 percent. Taking the free ($3.44) and dividing by .03447, you get $99.80. Well, that wasn't my bill.

So I don't know what they are charging it on, somethings, not others. It makes sense that Directv is now passing along its TX Franchise tax bill to customers, but why now? Their accountants just figured it out to do this?! It just ticks me off that when you call, the person you talk to, doesn't have a clue what charges are for.

I was told to call the 'government.' BTW, the delivery charge on my electric bill (TXU) was supposed to be calculated by kilowatts used X a specific rate PLUS and flat fee. I recalculated the charge for the last 4 months, and all 4 were wrong. There are crediting my account. If you have TXU, recalculate the delivery charge on your bill.

My son's was wrong. I think this is a class action suit waiting to happen.


I have Directv service and a charge of $2.73 appeared on my January 07th statement, here's what I found out what the charge is for:

According to a State of Texas Comptroller notice, Texas businesses may charge customers a cost-recovery" fee in order to recoup the Texas franchise tax the State of Texas collects from businesses owners. While businesses who charge customers a Cost-Recovery fee must be careful to use specific "recovery fee" wording, so as to not imply the charge is a direct state tax on consumers, they are, in effect, passing along the Texas franchise tax the state collects from them.

Many companies simply work the cost of the Texas franchise tax into product margins, but the Texas state comptroller says a specific recovery fee may be charged with the explicit purpose of recovering the tax expense.

Comptroller website: A company choosing to bill customers a Recovery Charge may explain to its customers that the charge is made in order to recoup money paid by the company for taxes imposed on it.

The company may not, however, represent the charge as a tax imposed directly on the customer. To this end, the Recovery Charge must not appear in the "Government Fees and Taxes" (or similar section) of the customer's bill, invoice or contract. Further, the company should disclose that the Recovery Charge is not a tax the company is required to collect from its customers by law.

The Texas franchise tax applies to all business entities except sole proprietorships and general partnerships. The rate is between 0.5 percent and 1 percent of revenues.

I did a chat online with Directv and didn't get a satisfactory answer (no surprise there!) from customer service. I think it's a legit charge, although pretty cheesy, however they shouldn't list it under "taxes", it's not a tax, guess that's what they want their Texas customers to think.


Thank you for the info. On hold with them now for someone to explain this charge to me.

The first rep says "I don't know, call back in tomorrow and we will have an answer" what?!!!

No, you tell me now!!! Still in hold...


Don't bother calling Directv back - you won't get any information. I was advised to email or contact my state legislature.

Companies must pay a Franchise Tax to operate in TX.

The "Texas State Cost Recovery Fee" on the bill is being used to recover their cost. That means the consumer is footing the bill for Directv to operate in TX. So we are paying for their service (which all packages are going up $2 - $6 this month) PLUS a tax Directv owes TX.

The Franchise Tax started in 2008 and it wasn't passed through to the customer until Jan 2017. It's a cost of doing business so they USED to just build it into the cost of their service.

But now they have added the recovery fee to our bill and prices are going up.

It looks like they are double and triple dipping the consumer.


On hold with Directv now. Thanks for your explanation, I'm sure it's much better than what I'll get from Directv.

It appears to me that the AT&T accountants have combed through Directv's books and found some additional revenue they can legally collect that they weren't getting before.

Directv hasn't been the same since AT&T took over.

I'll be looking for another service. If anyone in TX knows of a better provider, let us know!


Good info. I think I win the prize, though.

My fee was $9.11.

That's the highest I've read so far. Not really a contest I was hoping to be the leader in.


Mine is over $8.00 and I noticed they are taxing it. I am only third month into this and thought I would be locked into a contract that would not change in cost, in return if I tried to cancel early would pay a hefty fee.

They are being allowed to increase my bill and disguise it as necessary fees. Customer service has no clue about this and tells me they are helpless.

Please put this all over the internet, this may just be the beginning.


I also had a Texas State Recovery Fee on my Direct TV bill. Is this going to be a monthly charge?

Also, in March, we will also be subjected to a FCC Recovery Fee.

What the ***? I am also subjected to a $3.00 monthly "Whole Home Service" charge even though we only use one television in the whole house.


Not at&t customer, have to pay a $5.16 texas state recovery tax

for directv bill. Why charge a tax for at&t? Bill too high & service is just fair.

ATT Reviews

  1. 1128 reviews
  2. 507 reviews
  3. 187 reviews
  4. 52 reviews
  5. 28 reviews
ATT reviews