Contributor
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1 Message
Is it legal to charge taxes and other fees on early termination fee?
I paid my last bill and cancelled service. I received a final bill with ONLY early termination fee on it, no service charge because I cancelled. ATT charged me taxes, service fees and other fees on the early terminatio fee. I had two phones and fee came to $155 per phone for $310.
As I said they added taxes and other charges to this which come to about $75 bringing total bill to$385. I'm wondering if this is even legal to collect service fees and taxes on a penalty charge. I don't pay tax on late fees or bounced checks, so why should they charge for a early termination fee?
It also is unfair. My other charges on my regular bill came to about $25 per month wile I did have serve. Now that I DON'T have service they want $75? This is outrageous and again, I don't think it is legal. I am contacting my local representative to find out how they can do this, it seems they do it to everyone.
I've offered to pay the $310 and no fees or taxes but they won't accept. I told them they can have nothing or $310 as agreed in contract and they chose nothing. What dopes.
I've been through this before. They send lots and lots of collection letters and then settle for about half in the end. It cost them a fortune to collect so little. That's some kind of stupid. And I have excellent credit and lots of it so this little thing won't bother me a bit.
RStephenson
Contributor
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1 Message
7 years ago
{edited for word filter evasion}
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formerlyknownas
ACE - Sage
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117K Messages
7 years ago
Taxes for ATT, Verizon and Sprint are based on your state and federal tax rates. You can calculate the amount here: https://www.wireless.att.com/cell-phone-service/additionalcharges/
I used my own bill to test the calculator and what I pay is less than the calculator says by 34 cents per line. Taxes are on the line fee only. Tax on a $40 line fee would be more than on a $20 line fee, which is the current line fee.
Cellular quotes are for service only. Prices for phones vary widely and should be added to the service price.
TV prices for any provider are always service only. It's like pulling teeth to get equipment cost included, but you can ask. I thought I recal someone writing that Satellite TV isn't taxed.
The introductory price includes a bunch of free channels that will stop being free in 24 months. My answer was to drop the channels, which you can do at any time. I choose to not have them at all so we wouldn't get hooked.
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MicCheck
ACE - Expert
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14.2K Messages
7 years ago
The fact that you would come here and type up a long rant about how you don't want AT&T suggests otherwise.
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pfossier
Contributor
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2 Messages
6 years ago
True, except that some of these fees and/or portion of some fees are "recovery" fees that carrier lobby state and local government to impose onto customers and are subsequently returned to the carrier. It is incorrect to say that all fees and taxes do not benefit the carrier.
If one wants to break the shackles of fees and restrictions, buy an unlocked phone on the open market and sign up for Google's wireless service.
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formerlyknownas
ACE - Sage
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117K Messages
6 years ago
@pfossier That would be all sunshine and roses if they covered everyone....they don’t.
Well, wait, My ATT bill for 6 lines is $181, or $34 per line. (Only $23 of that is tax and fees)
I actually USE data, so based on Google fi prices, it would cost me $5 more per line, and $100 to $200 for data as opposed to the flat $78 I pay for data now.
I have used well into my roll over a couple times, which on Fi would have cost me $270 for data and $120 for line fees. That’s $390.
For people that use data the big carriers are still cheaper. If you don’t use data, MVNO or consumer cellular are cheaper.
Im not dissing Fi. For frequent travelers it’s the way to go. It’s a great idea that just isn’t cheap enough now for most families. I still like the phones and we are all in on google products. They just cannot beat my cost now, even with the taxes on top.
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Moonbrother
Contributor
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1 Message
6 years ago
No, the customer never agreed to pay taxes on late fees, reconnect fees or early termination fees. AT&T is in breach, not the customer.
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formerlyknownas
ACE - Sage
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117K Messages
6 years ago
Talk what you know...🙄 And in this case you do not.
Each month while under contract, tax is charged on line fees which include the value of the phone. If you cancel early the remainder of the contract to pay for that phone is billed as an ETF and is subject to taxes and fees.
Installments are not taxed. The tax on the phone is paid upfront and no more tax is charged or due on the phone. Since there is no equipment included in the line fee, you are only taxed monthly on the line fee.
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