Minimum term service contract fee
myounis
Enthusiast - Level 2

I noticed a $20 charge on my last two bills for a minimum term service contract. I was very confused as to what this charge was until I did some research. Appears this is a charge for subsidized smartphone purchased from Verizon. I purchased my phone in full from Apple and have the receipt to prove it.

 

A couple of months ago I transfered responsibility of the phone line from my previous employer to me as I wanted to keep my number. I spent about a week with customer service on the phone until finally I got up escalated high enough that the supervisor removed the term from my line. Appears now it's back and I'm still getting charged.

 

I'm pretty fed up with Verizon and will do whatever it takes to leave this carrier even if it means worse coverage for better customer service / transparency.

 

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1 Solution

Correct answers
Re: Minimum term service contract fee
mama23dogs
Legend

@myounis wrote:

That seems really messed up. In essence, I'm subsidizing the benefit my previous employer (A fortune 500 company) gets from Verizon (wether it be discounted devices or reduced line costs). It's like welfare for coporations.


I get what you mean, but it has nothing to do with it being a big corporation.  Individual accounts would transfer an obligation as well.  Too bad the business didn’t make sure your line was free and clear.   Or that you didn’t port to another carrier, which would have stuck them with the ETF

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Re: Minimum term service contract fee
NewOldcustomer
Contributor - Level 2

You can file an FCC complaint.  What a bogus charge!  

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Re: Minimum term service contract fee
Ann154
Community Leader
Community Leader

"A couple of months ago I transfered responsibility of the phone line from my previous employer to me as I wanted to keep my number."

This transfer of financial responsibility is where the minimum term service fee is coming from. If you kept the phone and number from your previous employer the transfer created a one year service contract on your new account especially if the previous employer had purchased the phone under a contract pricing agreement. 

I'm most definitely NOT a VZW employee. If a post answered your question, please mark it as the answer.

Re: Minimum term service contract fee
Ann154
Community Leader
Community Leader

@NewOldcustomer wrote:

You can file an FCC complaint.  What a bogus charge!  


It is more likely to be a legitimate charge. 

https://www.verizonwireless.com/support/transfer-your-service-faqs/

I'm most definitely NOT a VZW employee. If a post answered your question, please mark it as the answer.

Re: Minimum term service contract fee
rcschnoor
Legend

@myounis wrote:

I noticed a $20 charge on my last two bills for a minimum term service contract. I was very confused as to what this charge was until I did some research. Appears this is a charge for subsidized smartphone purchased from Verizon. I purchased my phone in full from Apple and have the receipt to prove it.

 

A couple of months ago I transfered responsibility of the phone line from my previous employer to me as I wanted to keep my number.

 

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If you take over responsibility of a line from another entity, you are "responsible" for any contractual agreements for which the previous entity was "responsible". Even if you purchase a new phone after taking over the line, the previous contractual obligations will be on your line until you fulfill the requirements.

Re: Minimum term service contract fee
myounis
Enthusiast - Level 2

The phone was always mine, they had a BYOD policy. The employer never purchased a device for me. So if my previous employer purchased a device for another employee on my line I'm still obligated for that device?

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Re: Minimum term service contract fee
Ann154
Community Leader
Community Leader

@myounis wrote:

The phone was always mine, they had a BYOD policy. The employer never purchased a device for me. So if my previous employer purchased a device for another employee on my line I'm still obligated for that device?


Yes, you would be still responsible for the contract service term associated with that phone purchase on your line. 

I'm most definitely NOT a VZW employee. If a post answered your question, please mark it as the answer.

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Re: Minimum term service contract fee
rcschnoor
Legend

@myounis wrote:

The phone was always mine, they had a BYOD policy. The employer never purchased a device for me. So if my previous employer purchased a device for another employee on my line I'm still obligated for that device?


No you are not obligated for that device, you are obligated for the line of service and any contractual obligations for the line. When someone(company) enters into a service contract on a line in exchange for some sort of discount, whether it is for a phone or whatever, that line is under contract for a specificed term unless a ETF is paid. If someone takes over responsibility for that line while it is still under contract, the responsibility for the contract term or ETF passes on to the person who has taken responsibility for the line. That is one of the problems with taking over a line from someone(company) else. You are taking over the liabilities for that line.

Re: Minimum term service contract fee
myounis
Enthusiast - Level 2

That seems really messed up. In essence, I'm subsidizing the benefit my previous employer (A fortune 500 company) gets from Verizon (wether it be discounted devices or reduced line costs). It's like welfare for coporations.

Re: Minimum term service contract fee
Ann154
Community Leader
Community Leader

@myounis wrote:

That seems really messed up. In essence, I'm subsidizing the benefit my previous employer (A fortune 500 company) gets from Verizon (wether it be discounted devices or reduced line costs). It's like welfare for coporations.


The minimum term service fee would have happened if the line you took over was owned by another individual too. In this case it doesn't matter if the previous owner is an individual or a company. 

I'm most definitely NOT a VZW employee. If a post answered your question, please mark it as the answer.