Why "month-in-advance" charges?

[Simon_y7]

I've been with VZW for years. Purchased a new phone in early January and was forced off UDP. Now came a new bill and with 12GB data for three lines (technically four, but one dumb) it increased by $55 because a month-in-advance charges were added to two lines. What's up with that? A rep said it's mandatory and "sort of like a deposit, like when you rent an apartment" whenever one changes to a new plan and all providers do that. This is fishy, with me being a long time customer. He said I'd get a refund if I'm no longer a customer. I asked him, "Like if I right now switch to another provider?" He just laughed. Crazy stupid. What do you think, guys?

 

[thedonp]

It's always been that. Unfortunately it should have been something they should have explained prior to the plan change. They could have backdated it and it wouldn't have cause such a dramatic effect. But yes it's always been there.

 

[Simon_y7]

But what is the rationale for such "deposit"? What's the purpose? To keep customers in or to influence them to leave?

 

[thedonp]

Because all services are billed in advance

 

[Ry]

I've been with VZW for years. Purchased a new phone in early January and was forced off UDP. Now came a new bill and with 12GB data for three lines (technically four, but one dumb) it increased by $55 because a month-in-advance charges were added to two lines. What's up with that? A rep said it's mandatory and "sort of like a deposit, like when you rent an apartment" whenever one changes to a new plan and all providers do that. This is fishy, with me being a long time customer. He said I'd get a refund if I'm no longer a customer. I asked him, "Like if I right now switch to another provider?" He just laughed. Crazy stupid. What do you think, guys?

What plan were you on? What were the contract end dates for the multiple lines? What was the billing date? When did you switch compared to that date?

What plan did you switch to?

 

[dpham00]

I have seen that before and perfectly normal to see a significant increase for the first month when making a plan change due to the month in advance charge. If you want you can post your bill removing any personal information and we can take a look to see if the charges make sense

 

[Simon_y7]

I understand that a provider may bill in advance when the customer first signs up, in case that new customer signs up, uses service, but chooses not to pay for it. In my case, it was awhile ago and, while i don't remember it, I understand it had happened. But years later, when I get a bill, I see services for the month that had passed. At that point, it doesn't look like I'm any longer billed in advance. Now, when I'm that very same old customer and the only thing changed is my plan, by what logic should I again be billed in advance in addition to for the services for the month that had passed?

 

[thedonp]

It's a price plan change plain and simple. Any price plan will and always have caused "bill in advance" charges. What he should have done is explain in detail or backdate it and it would have all been avoided.

 

[Simon_y7]

What plan were you on? What were the contract end dates for the multiple lines? What was the billing date? When did you switch compared to that date?

What plan did you switch to?

My usual billing cycle is from the 5th to the 4th of the following month. I paid for Nov 5 to Dec 4 by the end of December. The cycle in question is from Dec 5 to Jan 4. My plan was changed from Nationwide Talk&Text with UDP on the first line to 12GB plan effective Jan 5. So in my current bill I was charged for service Dec 5 to Jan 4 and for Jan 5 to Feb 4.

 

[Simon_y7]

It's a price plan change plain and simple. Any price plan will and always have caused "bill in advance" charges. What he should have done is explain in detail or backdate it and it would have all been avoided.

So, once I "pay in advance", I won't be charged for the same period again on my next bill?

 

[thedonp]

Nope

 

[dpham00]

Why "month-in-advance" charges?

So, once I "pay in advance", I won't be charged for the same period again on my next bill?

If you make changes to the current billing cycle qns have it effective before the end of the current billing cycle then Verizon would make adjustments to the current Billing cycle. You can have Verizon set the effective date to the first day of the next billing cycle to avoid this.

 

[Simon_y7]

Re: Why "month-in-advance" charges?

If you make changes to the current billing cycle qns have it effective before the end of the current billing cycle then Verizon would make adjustments to the current Billing cycle. You can have Verizon set the effective date to the first day of the next billing cycle to avoid this.

It appears that my billing cycle stayed the same, i.e., both my new phone and my plan were activated on the same old last cycle date. Just like before, I should've been billed for the month that had passed with the old plan, and, the next month for all the changes.
As to the rep saying that VZW would reconcile and refund the money paid in advance (now twice, right?) when I terminate service, does it ever really happen?

 

[dpham00]

It should in theory. As to in practice you might need to escalate to Verizon ecr or use the notice of dispute form as outlined in the customer agreement or file a complaint with the bbb, if you can't get it resolved with regular reps. And honestly if the System doesn't automatically fix it then there's a good chance that the regular reps can't fix it.

 

[trucksmoveamerica#AC]

I have always thought it wierd the bill in advance and call it post paid. Post pay meansyou pay after you use the service, it's more like prepaid IMO. I've also wondered the need for credit check if you're paying month in advance. If you don't pay, shut the phone off. I can see credit check if you're doing the DPP, but if you bring your own phone or pay all of it right away, credit check shouldn't be needed anymore, don't pay, you get shut off

 

[dpham00]

I have always thought it wierd the bill in advance and call it post paid. Post pay meansyou pay after you use the service, it's more like prepaid IMO. I've also wondered the need for credit check if you're paying month in advance. If you don't pay, shut the phone off. I can see credit check if you're doing the DPP, but if you bring your own phone or pay all of it right away, credit check shouldn't be needed anymore, don't pay, you get shut off

Prepaid only let's you use the money in your account. If you want to move to a higher plan and you don't have sufficient funds then you will have to add more funds immediately in order to make the plan change.

On post paid, you can change from a 1 line 1gb plan to a 10 line/100gb plan with all new lines on dpp and you don't have to add any funds, Verizon will bill you at the end of your cycle. Also i have bought a phone for hundreds of dollars and billed it to my account, so i can pay it with my statement for that cycle. Also with post paid Verizon won't cut off service if you exceed your plan limit and will bill you for the overage(with prepaid, once you hit the limit then they will cut you off).
The reason why they need to do a credit check is because they are extending you a line of credit, for dpp, contract or plan changes and overages.

 

[Simon_y7]

This is the mess at VZW. Just hung up with the rep #4 and, as if by magic, my bill went from $389.74 down to $245.89. No talk about "in-advance" or anything, just like that.

 

[dpham00]

This is the mess at VZW. Just hung up with the rep #4 and, as if by magic, my bill went from $389.74 down to $245.89. No talk about "in-advance" or anything, just like that.

Well i have been given inaccurate information many many times so it's hard to say what it really is.

 

[Simon_y7]

Well i have been given inaccurate information many many times so it's hard to say what it really is.

I have absolutely no illusion that the latest quote was more accurate than the other two. Just the lowest.

 

[dpham00]

I have absolutely no illusion that the latest quote was more accurate than the other two. Just the lowest.

Lowest doesn't matter if it isn't actuate