Old Tab Deduction Rate Per Billing Cycle

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I have a tab on the old plans but I do not believe my monthly tab deduction is correct.

I understood that I was under a 2 year Tab contract for $300 for the phone.

Every month my monthly deduction is 10.85 (Koodo contribution + my contribution).

$300/$10.85/month - that means I would pay my tab off in 27 months
$300/$12.50/month - that means I would pay my tab off in 24 months.

Shouldn't my deduction be $12.50 a month because of two year max contract?

Additionally, the new Self-Serve tab tracker sucks. You used to be able to see a month to month deduction or accrual of your tab. Now it just shows a final balance. Less information in this situation is not better for anybody.
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Gary

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Posted 3 years ago

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Mathieu, Mobile Master

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Hi Gary,

What is the cost of your plan?
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Gary

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The cost of my plan is $39/month.

My understanding was that my tab contribution would be (15% of 39)5.85 + $5/month and that Koodo would subsidize the remaining per month for the 24 months of $1.65/month.
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Spence

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When did you put the phone on the TAB?
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Gary

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April 2015
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Mathieu, Mobile Master

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Hi Gary,

All that Koodo subsidizes is the 15% you get on your tab, they do not pay an extra 1.65$ a month. In the old tab system there was never a real guarantee of paying off your tab in 24 months. They added the 5$ tab charge to the tab medium back then to make it closer to 24 months as possible. For example, without the 5$ tab charge it would of taken you nearly 52 months to pay off the tab. 
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Yannick

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Hi Mathieu, just a little precision: with the old Tab and the monthly Tab charge, we guarantee that the Tab will be paid in 24 months. If there is still an amount left on the tab after 24 months, we simply remove it and set the Tab at $0. Thank you. 
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Mayumi, Mobile Master

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Your calculation is correct.

Koodo's 15% + your $5 tab charge =$10.85

If you stay with Koodo for 24 months, rest of tab will be wiped by Koodo after the 24 months.

They don't deduct extra $1.65/ mo each month,. Because if you upgrade your phone or cancel your account before 24 month, you will need to pay off remaining balance.
(Edited)
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Gary

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Thanks - though unfortunate, this makes sense.
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BobTheElectrician

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Old historical presentation of all tab transactions was good. Stands to reason since that is being phased out, they want to encourage people to switch to the new system ASAP.

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