Add'l Taxes when Paying monthly plan with Credit Card?

[wilberfan1]

I've been a happy Virgin Mobile customer for a couple of months now (Optimus V).

I've noticed that my last two payments (automatically taken by Virgin Mobile on the 16th of every month) have included sales tax--an add'l $2.17 or something.

I checked the website and it says the $25 plan "includes all taxes and fees". I just tweeted @VMUcare and they're telling me my plan is subject to,

Taxes that may be charged USF Federal Tax, E911 Tax, USF State Tax, Cost Recovery Fee and Sales Tax when using a credit card.

That's like paying 13 monthly payments a year for this plan. Are there any non-credit-card payment options? Have any of you run into this situation?

 

[Zmaniac]

When I went to set up my payment option, I saw the tax and canceled before submitting. I put $25 in a TOP UP account from my credit card and there was no tax added!

 

[smankins]

I use a $25 top up card and pay no additional taxes or fees.

 

[wilberfan1]

Awesome! I had no idea that was an option. Thanks for the money-saving tip!

 

[lindalo5032]

If you add a top up card a week or so ahead of your billing date, will they just automatically renew your monthly service? I'd like to do it early (I'm going to be traveling on my billing date and don't want to mess with it when I'm on the road).

 

[greg4android]

If you pay with a credit card, the extra $ you're seeing is the LOCAL SALES TAX for your state. (mine's $27.31)

If you purchased a TOP-UP card at a retail store, you'd pay sales tax at the time of purchase.

If you purchased a TOP-UP card online, you'd pay no sales tax.

LIKEWISE, if you call 611 from your phone, and ask for account balance, you will see the charge for the next monthly charge for service is $25.00 PLUS your local sales tax %age.

 

[benslgdroid]

I have the 40 dollar plan and I get a $10 top up card once a week and it charges the top up balance on my bill date.

 

[agianne]

I checked the website and it says the $25 plan "includes all taxes and fees". I just tweeted @VMUcare and they're telling me my plan is subject to...

"All" means all, regardless of what the@VMUcare person said. VM can't legally make an offer and fail to follow it.

I'd suggest you call in, then re-ask the question. If/when the tier one rep. gives you a scripted answer indicating that you have to pay taxes, ask for a supervisor. Re-ask the question and note the supervisor's answer. Try to write it down word for word and note the time and date of the call. Write down the reps names if they give them. If the supervisor indicates that you are subject to taxes, file a complaint with your state's Consumer Protection Division of the Attorney General's office. (The name of the part of the AG's office that handles consumer complaints varies from state to state, but it will be something like that.) Take a screen shot of the web site (or several if they state it several places) and see if you can grab a pamphlet at the store as evidence that VM is advertising "All taxes included" so you can submit that evidence with your complaint. Take a screenshot of the @VMUcare response to your question as well.

When filling out your complaint, state that you contacted @VMU care, and a call center customer service rep and a call center supervisor. (The AG's office usually wants you to demonstrate that you took reasonable effort to resolve the problem on your own.) Request that the AG's office force VM to comply with their offer as advertised and refund any additional taxes collected from citizens that were not in compliance with VM's offer, etc.

The AG's office probably has their complaint form on-line (to print out and mail and/or to submit electronically) Web search on "attorney general consumer protection [your state]"

Your state won't get shortchanged. VM will have to pay sales tax to the state, but the sales tax will have to be deducted from the $25, not added on top as they are trying to do now.

I renew tomorrow and I'm going to pay the tax, escalate through customer service and file a complaint if necessary. VM is advertising "all taxes included" so I expect them to follow the offer as advertised.

 

[greg4android]

Good luck with that!

"all" means all, regardless of what the@vmucare person said. Vm can't legally make an offer and fail to follow it.

I'd suggest you call in, then re-ask the question. If/when the tier one rep. Gives you a scripted answer indicating that you have to pay taxes, ask for a supervisor. Re-ask the question and note the supervisor's answer. Try to write it down word for word and note the time and date of the call. Write down the reps names if they give them. If the supervisor indicates that you are subject to taxes, file a complaint with your state's consumer protection division of the attorney general's office. (the name of the part of the ag's office that handles consumer complaints varies from state to state, but it will be something like that.) take a screen shot of the web site (or several if they state it several places) and see if you can grab a pamphlet at the store as evidence that vm is advertising "all taxes included" so you can submit that evidence with your complaint. Take a screenshot of the @vmucare response to your question as well.

When filling out your complaint, state that you contacted @vmu care, and a call center customer service rep and a call center supervisor. (the ag's office usually wants you to demonstrate that you took reasonable effort to resolve the problem on your own.) request that the ag's office force vm to comply with their offer as advertised and refund any additional taxes collected from citizens that were not in compliance with vm's offer, etc.

The ag's office probably has their complaint form on-line (to print out and mail and/or to submit electronically) web search on "attorney general consumer protection [your state]"

your state won't get shortchanged. Vm will have to pay sales tax to the state, but the sales tax will have to be deducted from the $25, not added on top as they are trying to do now.

I renew tomorrow and i'm going to pay the tax, escalate through customer service and file a complaint if necessary. Vm is advertising "all taxes included" so i expect them to follow the offer as advertised.

 

[agianne]

Good luck with that!

Thanks, but after all that, I found this statement on the VM website:

"All Taxes & Fees Included, except those charged at the point of purchase"

on the "Plan Details" tab of this page: Cell Phone Plans - Pay As You Go and Prepaid | Virgin Mobile

"Point of purchase" means sales taxes, so after all that tough talk, I don't even have a valid complaint. I would be willing to bet $500 Internet dollars that the "except at point of purchase" qualifier wasn't on older brochures and the web. I'd like to think I would have noticed that.

 

[Thorsten]

FWIW, this sounds like a software bug on VMU's side. I guess that whoever programmed the payment software assumed that when people added money to the top-off accounts, they had already paid sales tax when they bought the used top-off card in a local brick-and-mortar store. The option of using a credit card to add top-off money apparently just wasn't taken into account.

I think we can safely assume that VMU won't forward any sales tax in those cases, which means that technically, the customer will still be on the hook for declaring and paying those uncollected sales taxes on their state tax returns.

Just sayin'

 

[greg4android]

i'd be willing to bet $500 internet dollars (what ever that is), that your complaint to the attorney general consumer protection agency will yeild ZERO results.

Thanks, but after all that, I found this statement on the VM website:

"All Taxes & Fees Included, except those charged at the point of purchase"

on the "Plan Details" tab of this page: Cell Phone Plans - Pay As You Go and Prepaid | Virgin Mobile

"Point of purchase" means sales taxes, so after all that tough talk, I don't even have a valid complaint. I would be willing to bet $500 Internet dollars that the "except at point of purchase" qualifier wasn't on older brochures and the web. I'd like to think I would have noticed that.

 

[plasmadis]

Yup, I've been paying the tax. It sucks. Could get around it buying top-up cards online, so guess that's the price of convenience.