Beware of PhonePower Renewal Practices

[PeterK]

BUYER BEWARE.

In what I consider a very sleazy and unethical policy, beware that PhonePower will not give you any notice that your service is about to renew. According to their contract, you must cancel at least 30 prior to renewal, otherwise you will be billed the FULL amount and they will not refund your money, prorated or not.

So in essence, unless you can remember the day that you signed up for PhonePower, you will be stuck with the full amount whether you cancel or not.

I don't know about you, but I believe that you should get ample notice that a service is about to renew and give you the opportunity to continue or not. At the very least, they should refund you money if you decide to cancel.

BUYER BEWARE.

[LTN1]

What exactly are you complaining about after your contract term ends? Is it the automatic monthly renewal or are you claiming that after the 12-month contract term, they automatically renew you for another 12 months automatically?

[ceg3]

I'm not sure exactly what the issue is, but as a PhonePower subscriber through Obihai my account (at the end of my subscription year) will automatically renew in November at the fixed rate promised Obi users.  I find that completely acceptable and it was understood by me to be the case when I signed up.  I took the time create an alert in my calendar as a reminder that my account will renew.  It's important to get the information you need when you sign up, so there are no surprises.  I have found the service very good and am happy that my rate will never go up from the rate I have now.  In fact, I was once told by a tech with PP that if I started using a different BYOD device, other than an Obi, I would still keep my rate.

[Mooserator]

Agreed that this is really not an issue.  I anticipate the $60 charge to show up each October on my credit card from Phone Power.  Heck, I bet I've scheduled it as a recurring transaction in Quicken.  Even if I choose to cancel at some point, I've saved hundreds of dollars in the past few years compared to POTS or the cable company...

[videobruce]

$60 for a year?? Their site says $147. 

[LTN1]

$60 for a year?? Their site says $147. 

It is a special rate for OBi users who sign up after logging into the OBiTalk site then signing up to PhonePower. Of course, you are confused since you have a hard time logging in.

[videobruce]

Ok, I navigated around ans found the $60 deal. When did this start?

AFA the OP, I wouldn't call the lack of notifications "very sleazy and unethical", but it would be nice if they sent a email notifying you of the renewal as a courtesy.

[SNSN]

I forgot about my Phone Power and Obihai in general, and never really check the email associated with it. Well I decided to go through my mail today and found a bunch of emails from Phone Power. First few said my credit card on file got declined and that I would be disconnected. Fine, I don't really use it anymore anyway. Then next few mails said I owe $60 and that if I don't pay it will be sent to Collections. What do I owe?!? I prepaid for one year, and after that year they tried to renew me for another year but couldn't, so they disconnected me. Obviously I'm not getting service anymore, what do I need to pay $60 for??

[videobruce]

Did you actually discontinue service in writing?  Most 'subscriptions' are continuous unless you state otherwise.
AFA e-mails, you don't regularly check your e-mails??   

[SNSN]

So if they can't charge my credit card for the renewal, they continue my service anyway and count it as a debt? How does that sound ethical in any way? Besides, they did discontinue my service because they couldn't charge my credit card. Perhaps you're confusing my situation with the OP's.

And no, I don't check that particular account that often.

[videobruce]

Because you sign an agreement for the service without YOU canceling it. Cancellation of a CC isn't canceling the service.
They stopped the service because you stopped payment, not because YOU stopped the service.
I'm the LAST one to stick up for corporations, but deciding that you don't need something anymore doesn't hold water when it comes to paying the monthly bill. It really isn't much different if you have a subscription to a magazine, then decide not to read it anymore, tossing it in the recycle bin and stop payment.

You need to check you e-mail more often. Sounds as you don't need that e-mail address like you didn't need the phone.

[Taoman]

So if they can't charge my credit card for the renewal, they continue my service anyway and count it as a debt? How does that sound ethical in any way? Besides, they did discontinue my service because they couldn't charge my credit card. Perhaps you're confusing my situation with the OP's.

It's all in the ToS which you agreed to when you became a subscriber. After your contract term you automatically become a "monthly subscriber" or in this case you were billed for another year. It's automatic. The only way you can cancel your subscription is with a "written termination request." PP will indeed send your bill to collections which you really don't want to happen.

8. TERMINATION BY SUBSCRIBER. Subscriber may terminate this Agreement at any time for any reason by providing PhonePower with a thirty (30) day written notice in the form of a valid written termination request and paying all fees and other charges accrued or otherwise payable under the terms of this Agreement. Such thirty (30) day period begins on the date on which PhonePower receives Subscriber's valid written termination request.

This actually is common practice. SiriusXM is another example. They have yearly subscriptions. You can only cancel your subscription by calling in and requesting it.......and they won't make it easy. Some people think they can be tricky by using a virtual credit card that expires before the subscription does. Makes no difference. You are still on the hook for the money unless you formally cancel your subscription.

There are four ways to cancel the Phone Power service:

• Go to the following link: http://www.phonepower.com/cancel and submit the form as directed.

• Send an email to: cancel@phonepower.com

• Send a fax to: (818) 301-7465

• Mail a letter to:

Phone Power LLC

Attn: Cancellation Department

9221 Corbin Ave Suite 155

Northridge, CA 91324


Please include the complete account name, the telephone number you are canceling, a callback telephone number, a good time to reach you at that callback telephone number and a brief explanation as to the reason for canceling.

http://www.phonepower.com/wiki/Cancellation_of_Service

[SNSN]

Hold on, when do they charge you for the renewal? I assume at the start of the new term right? They couldn't charge my card, so they disconnected my service, therefore I'm not getting the yearly service worth $60, so again I ask, what do I owe $60 for? This is a TOTALLY different situation from pre-paying for a magazine subscription and cancelling, because you still get those magazines you paid for (whether you read them or not) and if I'm not mistaken, get reimbursed for the magazines you will not be getting after your cancellation.

And Taoman, it's interesting you bring up Sirius' renewal practices. From what I've read, State Attorneys are getting involved now to address their tactics.

[ceg3]

Are you saying you can no longer get the OBi rate of 59.99, because there was an issue with your card?  A check in OBiTALK shows you can still set it up at the 59.99 rate.  They no longer have the lite package, but the unlimited is still in force.  It's a great deal, because if you move your service to PP direct they will send you an OBi302, but your rate will then be at least 150.00 a year.

Maybe I misunderstood.

[SNSN]

No, the problem is they couldn't charge my card for one more year, therefore they disconnected my service. Which is fine, that's totally understandable. Same thing happens when you can't pay your electricity or a regular phone bill: you get cut off. The problem is Phone Power is now saying I have a debt with them of $60 for a year's service that I never got. Here's the timeline of what happened:

1. I prepaid for a year of service ($60)
2. When the year is up, they tried to renew me for another year but my credit card was no longer valid. So they disconnected me. Fine. But they say I still owe them $60. For what? I didn't get a year's service to warrant me owing them $60. That is what I have a problem with.

[Taoman]

so again I ask, what do I owe $60 for?

For your ongoing yearly subscription that you signed up for but did not formally cancel as detailed in the PhonePower ToS.

Trust me, I am in no way defending PP's tactics. It is one of the reasons I no longer use that provider. I'm merely telling you the way it is according to their ToS.

My advice is to contact them immediately to cancel so you won't be liable for the entire $60. They will send it to collections.

Edit: According to the OP you will be liable for the entire $60 with no proration?!? If so, that truly sucks.

[ceg3]

OK, so I did misunderstand.  Definitely not cool to pay something for nothing.  I'm very happy with them and have had a good experience with billing and support.  Hard for me to imagine you can't work it out with them.  Usually, with any company, when it's person to person things can be worked out.

Good luck!

My first renewal took place this past weekend, ironically, and I didn't get a notice, but that might be my "fault" for pre-paying a week earlier, though the balance remained not taken until the actual renewal day.  I knew it was coming and made plans to expect the charge.  I am very proactive about alerts in my calendar for this sort of thing.

[SNSN]

Edit: According to the OP you will be liable for the entire $60 with no proration?!? If so, that truly sucks.

Yes, that's exactly what I have a problem with. I have no problem paying for a service I received (whether I used it or not) but I'm not getting another year's worth of service that they say I owe them for, since I've been disconnected.

[SNSN]

OK, so I did misunderstand.  Definitely not cool to pay something for nothing.  I'm very happy with them and have had a good experience with billing and support.  Hard for me to imagine you can't work it out with them.  Usually, with any company, when it's person to person things can be worked out.

Good luck!

Thanks. I will be contacting them and let you all know how it goes...

[SNSN]

Well, I emailed Phone Power asking why I owe, and surprisingly they said I have no balance on my account. I don't know what happened, but I'm not complaining!