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Switched to unlimited minute plan after using 2/3 included minutes. Koodo then charged me $70 airtime for those previously used minutes.

Basically I want to know how Koodo can do this, and how I can get that charge removed. I was in a pretty normal situation, where I checked my minutes, realized that I was using more than normal, and decided to use Koodo's feature of changing rate plan to accommodate usage. What is supposed to happen, as advertised, and as logic dictates, is that I would pay for a more expensive plan, and get the added minutes. Instead, upon changing plans Koodo took away the minutes I was given for the previous plan and then charged me for those minutes), and then charged me for the unlimited minutes plan as well. It is completely idiotic for someone to go into their account, and buy more minutes (by switching to the unlimited plan), and then get retroactively charged for minutes that are taken away. What's the point of paying a small amount extra for unlimited minutes, if it means koodo will charge me an additional 10x that amount for minutes that were previously considered free? I hope this serves as a warning to everyone else, to be very careful with switching plans, as it seems by default Koodo will cheat you terribly.

4 replies

Userlevel 7
Badge +4
Hello JH.

It's very unfortunate what happened to you, but this is how it works. Why? Because someone could use 1000 minutes in their first week and then say : "OMG, I busted my minutes. Let's switch to an unlimited plan so I don't pay extra". He then switches to another plan and the next month switches back to his old plan. 

See what he did there? He didn't want to pay any extras so he switched to an unlimited plan only to switch back the next month to his old plan.

BUT, I must say that I'm with you on 1 points. there should be an alert for honest people who are switching in order to not find themselves in your situation.
Userlevel 7
It's Prorationing. Let's say you have a plan with 100 minutes.

So that's 100 minutes for 30 days or 3.33 minutes per day

Now 15 days in let's say you've used all your minutes and you switch plans.

that would put you over for the first 15 days of use.
You're charged for your overage for the first 15 days and then for your new plan for the next 15 days and then again for your new plan for the next 30 days.

The way to avoid this is to switch on your bill date.
So I paid $40 for 500 minutes with the first plan. I used 257 chargeable minutes (daytime use). I was charged $68 for these minutes upon switching. I could have been charged the entire $40 plan, plus the entire new $48 plan I switched to, and it still would have been way less. Also, Koodo advertises the ability to switch plan mid cycle to be flexible. What is the point of switching plans and buying a more expensive plan, that gives you more minutes or data, will actually cost you way more than not switching?

Instead Koodo uses this method as a way to rip people off. Proof? If Koodo actually wanted to be completely uniform with cost/minute (while still not allowing people to switch plans mid cycle as a means to buy more usage at the best rate), they would charge the portion of your rate plan according to proportion you used: In this case 257/500 * $40 = $20.56, NOT $68. And this even ignores that proportion of that $40 that covers the data portion that was unused.

To be clear, the $40 plan does not say "you may use 16.5 minutes per day and if you use any more than the average daily amount, we will charge you per minute". It says you have 500 minutes this month, to use when you feel like it. If the claim is that they charge you the proportion you use, they should actually do that, and not create extra charges that are more than the entire monthly plan!

The way the system is run is very dishonest, unclear to users, and meant to cheat people, and this is what I am super unhappy about.

Using the 1000 minutes example: Lets say they pay $50 for this, and use all 1000 minutes in the first week (assuming 4 weeks/month for quick calculations). They then switch for a new $60 unlimited plan. By Koodo's method, they would be allowed 1 week of minutes (250), and be charged the going rate of $0.45/minute for the remaining 750 minutes. Additionally they would be charged for 3 out of 4 weeks of the $60 unlimited plan. So: 0.75*$60 = $45, Plus airtime use $0.45* 750 = $277.50.

In this case, the customer chose plans that designated that he would pay $50 for 1000 minutes used within a 1-month period, as well as $45 (3/4 month at $60/month) for unlimited minutes. He should pay $95 on his bill. Instead, Koodo would charge him $277.50 for 750 minutes, plus $45 for unlimited minutes. Clearly an enormous ripoff, and not what the contracts stipulated, ie, $50 for 1000 minutes used within a 1 month period, plus $60 for unlimited minutes within a 1 month period.
Userlevel 7
J H wrote:

So I paid $40 for 500 minutes with the first plan. I used 257 chargeable minutes (daytime use). I...

Every carrier does billing this way. When you changed plans the system also gave you an example of what to expect by changing your plan at that time. it's not ripping you off. It was plain and simple and explained and by clicking to change plans you agreed to the charges. Fair or not. It pays to read and understand what your clicking.