Being charged for phone while waiting for replacement!

[Android Central Question]

So I love gadgets....I have of course had issues with gadgets, so I usually opt to get the "insurance". This is my first experience using Google Fi insurance as I was fortunate that the first issue was while under warranty, BUT this was not the "policy" then: When you want to make a claim they CHARGE you for the new phone, oh wait, I am sorry, they call it a "HOLD". Well my bank doesn't care if it is called a charge or a hold, money that I can't use is not longer my money as far as I am concerned. Not to mention that if I have to choose between paying rent and a phone, well rent comes first. EVERY other tech company that I have used the insurance with, well they send you a new device, you send back the old/broken one, right? And IF you chose to not send back the device you get billed then. BUT WAIT! Google Fi wants you to PAY, oh sorry, HOLD on your money, until they get the device back. Now since they told me it would be about 5-7 days to get the phone, then I have to send it back for them to verify it all and that it "qualifies" for their program (oh ya, I have the program that for ANY reason I have an issue I get a new phone), then that looks like at least 2 weeks, or longer, that my $800 is "HELD". And my phone is no longer made, so I get one I don't even want on top of that. I paid $450 for my original phone 2 years ago, but I have to put $800 on "hold" now? for the phone I don't want otherwise I would have already bought it! And the best part is, the phone keeps freezing up, and it is my work phone. So even though I got crappy customer service at Sprint, at least they always honored the insurance and NEVER charged me, oh sorry again I mean HELD my money. For the last 2 years I have been LOVING this Google Fi program, until now. Not everyone has a credit card or an extra $800 lying around to be tied up for 2+weeks. And when you speak to customer service, they NEVER disclose this $800 "hold". They just tell you that there "may be" a "small" cost. So if I need to make a homeowners insurance claim do I need to come up with $300,000 for a "hold" for a roof repair? I mean seriously Google, this is the stupidest "policy" I have ever heard of! Anyone else feel this is beyond WRONG?

 

[hallux]

While I admit that I can't seem to find mention of this in the terms document I found for Preferred Care, this is definitely NOT the only time I have heard of this as a policy. I know for a fact that other companies DO have this option for service, it's called "advance replacement" in some cases and is explained when it is offered.

By the way - if they DON'T put a "hold" on your card, they have no way to know if you're good for the payment should the time come. They HAVE to run it and put a hold on so if they do have to charge you they get paid, they can't just take a card number you provide on good faith that it's valid AND has credit limit available to cover them.

 

[Ry]

This type of policy is not news to me.

 

[ManiacJoe]

This is also one of the reasons for credit card vs debt card.
Always use a credit card. That way it is the bank's money that is getting played with, not yours.