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Please explain (in plain english) prorating, and why my bill is doubled?


My bill was almost doubled.

A portion of the bill is $52 (May 14 - June 9).

The monthly charges are $60 (May 10 - June 9).

The same thing happened last year after a similar plan change, and a rep told me over the phone that it was being prorated, but really failed to explain why. Now it's happened again, and I thought it was a good idea to figure it out. A lot of people just say prorated but don't actually explain what that is as it specifically relates to being billed twice.

Any clarification in simple terms would be very much appreciated!

Thanks!

13 replies

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The term proration refers to when you get a service or change where it's partway into the billing cycle or some other cycle for things not related to cash. So in your case, your monthly bill is broken down into daily increments of about 2 a day in your case, and so since it's four days short, you got charged 52 for that first month, and then tacked onto the first complete billing cycle bill. It happens to make things line up with certain billing cycles. You didn't get billed twice or extra so much as the partial month plus first full month were lumped together. Your bills afterwards will be normal just as in the example you mentioned a year ago. Did that satisfy you or did I mis sout on explaining something or you didn't get something?
Goran wrote:

The term proration refers to when you get a service or change where it's partway into the billing...

Thanks, I get most of that. My question would be that if I got prorated the first time when I signed up for my account, why get prorated again and again? If prorating simply means paying for the month in advance, there would have to be a reduction of payment at some point for it to  be prorated again. I mean if I get 'prorated' every year, then every year I would be making 13 payments, unless of course, I wasn't charged on one of the months prior to the plan change. But I don't recall not being billed in any given month.  

Secondly, if I was paying a prorated amount for next month, why would it say May 10 - June 9 on the bill? Wouldn't that full $60 be for the next billing cycle?

Quite confusing, but thanks a bunch for trying to help! 🙂
Goran wrote:

The term proration refers to when you get a service or change where it's partway into the billing...

I signed up for fifty dollar plan now they charge me 110.00
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Goran wrote:

The term proration refers to when you get a service or change where it's partway into the billing...

I it your first bill? Look at page 3 for the detailed breakdown. It'll cover any proration or overages or whatever else.
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http://help.koodomobile.com/my-bill/charges-explained/charges-on-your-first-bill

https://www.koodomobile.com/sites/default/files/uploads/billexplainer_e.pdf
Dennis wrote:

[url=http://help.koodomobile.com/my-bill/charges-explained/charges-on-your-first-bill]http://help...

Thank you, but I've seen that, and it doesn't actually explain what is happening with being prorated, or why you would be prorated more than once. If everyone gets prorated on their bill when they sign up, why would they have to do that again if they change plans?
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Dennis wrote:

[url=http://help.koodomobile.com/my-bill/charges-explained/charges-on-your-first-bill]http://help...

You are only proated once when you start.  And when you end assuming you dont end at the end of your billing cycle
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Dennis wrote:

[url=http://help.koodomobile.com/my-bill/charges-explained/charges-on-your-first-bill]http://help...

Unless you're changing to another plan that costs the same, your bill is now different. So say you change 15 days in from 40, to 50. Being different amounts, proration of a sort kicks in to make things settled again. Your regular bill should only then show 45 instead of piling onto the next full monthly bill.
Dennis wrote:

[url=http://help.koodomobile.com/my-bill/charges-explained/charges-on-your-first-bill]http://help...

I was proratd twice, and assuming a 3rd time when I signed up for the account. So what is the opposite of prorated? Conrated? To be prorated more than once, you would have to have an opposite effect on your account to make up for the extra billing expense. Where would I find information on that?

@Goran, in your example you would be billed $45, and $50 in the same month for a total of $95 + tax.
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Dennis wrote:

[url=http://help.koodomobile.com/my-bill/charges-explained/charges-on-your-first-bill]http://help...

What should happen is you get a bill of 45 for the month as normal instead of paying nothing that month and getting 45+50 the next month as you're already a customer.
Dennis wrote:

[url=http://help.koodomobile.com/my-bill/charges-explained/charges-on-your-first-bill]http://help...

Thx @ Goran, but I'm being charged 2x THIS month (May - June). I paid the previous month as well. It doesn't make sense unless there was an opposite effect on my bill at some point.
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So, what I see on your bill is:
Your billing cycle is 10th of the month to 9th of the next month.

You paid $15 for a seasonal hold last month for May 10th-Jun 9th.
You switched to $60plan(1GB+ ulm min) from seasonal hold on May 14th. 
 > You got credit back of $13 - unused portion of seasonal hold. 
 > add partial charge of $60 plan for may 14th - Jun 9th = $52

Then you changed it to $60plan (2GB +ulm min) on May 16th.
 > you got credit back of $48 - unused portion of $60(1GB plan)
 > add partial charge of $60 plan for may 16th - Jun 9th = $48

It's because you switched from seasonal hold to $60(1GB) and to $60 (2GB), you can see many partial charge. But I don't see anything you get double or extra here.

Partial charge/Proration happens when you sign up, because your sign up date is not the first day of your billing cycle.  
Also it's happens when you changed your plan (if it's not the last day or first day of your billing cycle.) But you always get credit for old plan since you pay your monthly charge in advance.

Is this explain to you?

Add:  Oh, and full charge of  monthly charge of $60(2GB) should be for Jun 10th - Jul 9th
Mayumi wrote:

So, what I see on your bill is:
Your billing cycle is 10th of the month to 9th of the next month....

Thanks Mayumi, really appreciate the breakdown. Yes, it would make sense if they mentioned the payment of $60 is for next month, but it says nothing like that. It says that the full payment of $110 is for May 10th - June 9th.

If a payment is prorated, there has to be an opposite effect, unless of course, it's your first month. But back when I changed my plan a few months ago (seasonal hold), I was not given a credit for the following month. It sounds like I get an extra 'prorated' payment every year.

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