Billings / upgrades concerns

[Zoopy]

We’ve been with VZW for nearly 7 years now and had two separate AmericaChoice Plans at various times. One having 3-lines with 500-Anytime-Minutes (1st Plan) and the other having 2-lines with 600-Anytime-Minutes (2nd Plan); separate accounts & separate billing cycles. Last week, we consolidated both accounts (all five lines) into one Nationwide Plan with 1400 minutes which would give us not only additional minutes but overall savings each month along with 10 free “F&F” (the rest of the features are standard). This consolidation was done just one day prior to the monthly cycle period of the 1st Plan so that not only the change but the billing takes affect in a consistent manner without incurring additional or prorated charges. However, the bill on our 2nd Plan was prorated and paid in full.

Now as soon as the change was made, we received a hefty bill for both the new 1400 plan (dated usage for previous month, lol) and the current pending bill for the previous month (understandable). I called the CS to question and after much explaining, hesitation and going back & forth, the CSR (after consulting her supervisor) made her final statement that the bill is accurate, the upgrade plan must be paid in advance and the entire bill must be paid in full amount and then terminated the phone. Needless to say and not surprising that she sounded rude and arrogant right from the beginning as is the case with most other CSRs I presume (especially here in the US). I called back again and essentially got the same reply.

Is this typical of all wireless service providers or just Verizon to charge in advance for plan upgrades in-spite of being long term loyal customers? What happened to the advance payments already made on both our previous separate plan accounts when we first registered? As a matter of fact, even my $50 outstanding credit got guttered due to plan change?

Also, three phones were upgraded and all were charged much higher taxes based upon their original retail prices in-spite of them being “FREE” after discounts/rebates and one of the phones was a “certified refurbished”. It's like buying a used or a discounted car and paying taxes on a brand new MSRP??? When I had inquired, they simply stated that it’s the California Law! Is this some kind of a joke or plain corporate greed? Has anything been done about this or is it all LEGAL to say the least?

Your support and suggestions will be appreciated. Thanks.

[Mobile Mike]

Not to defend Verizon, but it doesn't surprise me that combining your two separate family accounts would cause a billing mess.

As far as being taxed for the MSRP amount versus a reduced amount because the phones are refurbished, it's sadly true. Taxes are based on the full unsubsidized amount, even on refurbs. Is this wrong? In many ways yes, but...Verizon is notoriously staunch on getting as much as they can out of their products and services. This behavior of theirs doesn't surprise me and it's not unique to them.

Though I've had other carriers, I've never been in the situation you're in to say how they would handle it. They all have their fees and charges.

I've been a long-time customer of theirs long before it even became Verizon. I can't say Verizon has treated me any different because of my loyalty. They're a business out to make money, as the other carrier are as well. Unfortunately this means they aren't always going to behave as we believe they should where loyalty is concerned.

If you've gone over the bill thoroughly with them and the charges are legitimate, there's not much you can do. They do bill in advance, so with prorates and other fees and taxes, it can be a sticker shock. Your situation is an unusual one, which is why I'm guessing the charges were more than expected. Having two lower priced plans on separate accounts then merging them into one (with a higher plan selected) will complicate billing. Hopefully it will work itself out next month.

[Zoopy]

Thank you for your thoughtful reply, Mobile Mike.

Originally Posted by Mobile Mike

Not to defend Verizon, but it doesn't surprise me that combining your two separate family accounts would cause a billing mess.

If you've gone over the bill thoroughly with them and the charges are legitimate, there's not much you can do. They do bill in advance, so with prorates and other fees and taxes, it can be a sticker shock. Your situation is an unusual one, which is why I'm guessing the charges were more than expected. Having two lower priced plans on separate accounts then merging them into one (with a higher plan selected) will complicate billing. Hopefully it will work itself out next month.

My concern is towards the upgrade plan charged in advance and dated for the previous month cycle. In other words, the upgrade plan started from 29th April (our billing cycle) and used as we speak but the account statement shows as "Bill Summary for 29th March through 29th April". But then we are also charged for the amount incurred during that same period for actual usage, which is what it should be in the first place. They also invalidated my $50 outstanding credit since my account merged with another account, though both plans were part of one family and paid by me. I also wonder if we can get credits to our advance payments made on both accounts when we first registered with them years ago? Anyhow, as you mentioned, hopefully our current billing situation will work itself out by next billing cycle.

As far as being taxed for the MSRP amount versus a reduced amount because the phones are refurbished, it's sadly true. Taxes are based on the full unsubsidized amount, even on refurbs. Is this wrong? In many ways yes, but...Verizon is notoriously staunch on getting as much as they can out of their products and services. This behavior of theirs doesn't surprise me and it's not unique to them.

The question here is WHY do they charge taxes based upon original Retail Prices? It surely is a deceptive tactic for gains but is it LEGAL? If it is, then I have yet to come across any other product taxed that way. I wonder if the Consumer Affairs Commission, BBB, etc. are aware of this or anything done about it. We have too many businesses, corporations and even government official exposed and accounted/punished for their deception and malpractices to lure customers and stab them from behind. Why is Verizon getting away from using such tactics? I would've expected them rather lenient and "forgiving" in our current troubled times.

[Quint101]

The question here is WHY do they charge taxes based upon original Retail Prices? It surely is a deceptive tactic for gains but is it LEGAL? If it is, then I have yet to come across any other product taxed that way. I wonder if the Consumer Affairs Commission, BBB, etc. are aware of this or anything done about it. We have too many businesses, corporations and even government official exposed and accounted/punished for their deception and malpractices to lure customers and stab them from behind. Why is Verizon getting away from using such tactics? I would've expected them rather lenient and "forgiving" in our current troubled times.

If I am not mistaken, some areas do tax the equipment based on the full retail price... I remember hearing that in California the cell phone companies collect taxes based on the full retail. I don't know whether it is legal (I'm in Florida and they only tax the price paid at the register); perhaps some fellow Californians should chime in... also you may want to research the tax rules for your area...

[JTowles]

My store charges tax on the price of the phone before rebates.
So as an example LG VX9100 (ENV2) we charge $150 before rebates and charge the typical 5.25% sales tax.
So $7.50 vs. the $20 it would be if it was based on full retail price.
We are in Massachusetts of course but that's ridiculous what they're doing in CA.

[LRando]

The whole Verizon billing dept needs to be overhauled. I have just hung up with Cust service myself. I went into verizon last week and upgraded my phone. I have been on the America's Choice family plan forever. Well when I upgraded, the cust service rep changed me over to the Nationwide Plan. I just assumed my phone had to be activated on this plan. I was not concerned as he told me they are basically the same. Well after 2 days of not using the internet at all, yet seeing my "data" usage was going up, I decided I didn't like the Nationwide Plan. I checked online and realized my phone did NOT have to be on the Nationwide Plan. I called verizon at the time and told them I wanted to go back to America's choice. They said ok. Well I got my bill online today. My month runs from the 7th of one month to 6th of the other. I have 700 shared minutes between 3 lines. What verizon did was break the bill up into 2 sections: may 1st -31st and june 1-6th. They prorated the 700 minutes between the 2 sections. Because of this, even tho we only used 705 minutes (over by 5), the bill said we used 123 minutes over the 700! They billed us an extra $60! I called tonight and explained the situation. The 1st rep I talked to told me that we went over. I explained that NO we didn't. I said the guy at Verizon changed me to Nationwide needlessly, therefore there shouldn't have been any change to my plan. He said he could credit me a portion of the overage. I said I wanted it all credited. He then said he'd have to call the store where I got my phone and "clear up a few things first. " Huh? I asked why he needed to talk to the salesman at the store to confirm this. Again, huh? He calls the store and conferences the guy in. He tells the guy he needs to confirm a change to my account before he can give me the credit. Even the guy at the store said "huh?" Then he said he was w/a customer and could we hold on. My guy says "sure." We sit on hold.....and I ask him WHY we needed to talk to the store rep. Again he says he has to confirm things??? I ask to speak to his supervisor instead. He says ok. Puts me on hold where I wait and wait and wait...I finally realize he isn't coming back. I hung up and called back. Got a new rep. Explained WHOLE story again. At 1st he tells me the charges are right. I tell him "NO NO NO!" He then took a few minutes to look at the bill and then said "Oh you are right." YEAH!!!!!!!!!!!!!!! Finally!!! He said he will put through the credit. Now the next step is to see if this actually happens!!