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Paying off the tab...?


Hi, I am still a bit confused about the Tab as to how clearing it up will go. For example: I get a $29 plan. I get a phone with a retail value of $300. I get the Tab small ($150 tab). Koodo will reduce my tab by $4.35 (15% of my monthly plan) each month. It says that Tabs will be clear in 24 months and there are no additional Tab contribution fees for Tab small. How will my $150 Tab clear in 2 years if 24 payments of $4.35 is only $104.40? Thanks.

14 replies

Userlevel 7
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If the tab is not cleared after 2 years, Koodo will zero it
Userlevel 5
Also, if you are on a Tab Small, I believe 10% of your monthly plan will go towards reducing your tab. Only the Tab Medium and Tab Large, you get 15% of your monthly plan to you tab. However, the tab will automatically clear itself after 2 years.
Userlevel 7
John Lee wrote:

Also, if you are on a Tab Small, I believe 10% of your monthly plan will go towards reducing your...

No, it's 15% for all.
Userlevel 7
The Tab payoff is indeed 15% of your plan each month, but there's more involved. The original way Koodo started the 2 year Tab guarantee was at some point in July 2013, before the code became enforced on December 2nd 2013, they implemented wiping the Tab after 24 months. This was okay, but they did some digging and it turns out it wasn't allowed. The rule states that a subsidy has to be reduced in equal monthly payments over 24 months and the balance must reach 0 no later than that date. Since the customers' balances would not technically be 0 after 24 months despite the wiping method, they had to change it before December 2nd. Koodo decided on the following: [Tab S, M, or L starting balance]/24 months = X. That means a customer's Tab must be paid off by a minimum $X each month. 15% of a $29 plan with Tab S for a Moto G, for example, doesn't meet that requirement. So every month, Koodo manually rounds up the remaining amount from their end, if needed. Assuming full Tabs are used: basically, at least $6.25 for Tab S, $12.50 for Tab M, and $20.8333- for Tab L comes off each month. For Tab M and L, the Tab charges are factored in after the 15% calculation and do contribute to the above figures. Keep in mind the advantage of doing it this way; if you have a more expensive plan (start around $45/$50+ plans with Tab S), the 15% can technically have the phone pay off your Tab before 24 months is even up!
Jonathan I wrote:

The Tab payoff is indeed 15% of your plan each month, but there's more involved. The original ...

Could you elaborate on "So every month, Koodo manually rounds up the remaining amount from their end, if needed"? Thanks.
Jonathan I wrote:

The Tab payoff is indeed 15% of your plan each month, but there's more involved. The original ...

I also read that with the Tab medium, you pay the $5 monthly fee until the Tab has been cleared or 24 months has passed, whichever is first. Does that mean that if in a situation similar to the one I mentioned above—where the Tab has not been cleared after 24 months—,Koodo will not chase for the remaining Tab fees? Thanks.
Userlevel 7
Badge +4
Jonathan I wrote:

The Tab payoff is indeed 15% of your plan each month, but there's more involved. The original ...

There is no situation where the tab is not cleared after 24 months. When you get a phone on the tab, e.g. for 150.00, koodo calculates 150/24==6.25. Each month koodo contributes either 15% of your monthly bill or 6.25, whichever is larger, meaning that your tab is always cleared within 24 months.
Jonathan I wrote:

The Tab payoff is indeed 15% of your plan each month, but there's more involved. The original ...

Does this 2 year Tab guarantee only work for subscriptions after July 2013? What happens to contracts started prior to that?
Userlevel 7
Jonathan I wrote:

The Tab payoff is indeed 15% of your plan each month, but there's more involved. The original ...

They stay on the 10% system until you upgrade your device/make a Tab redemption.
Userlevel 7
Badge +4
Jonathan I wrote:

The Tab payoff is indeed 15% of your plan each month, but there's more involved. The original ...

Tabs from prior to july 2013 still fall under the old rules. Yes, you will have to pay off any remaining tab balance if you cancel or upgrade.
Jonathan I wrote:

The Tab payoff is indeed 15% of your plan each month, but there's more involved. The original ...

Does this 2 year Tab guarantee only apply to subscriptions after July 2013? What happen to contracts started prior to that date? I have a plan started in 2010 and am still paying tab. Do I have to pay the balance of the tab if I cancel my plan today? Thanks
Jonathan I wrote:

The Tab payoff is indeed 15% of your plan each month, but there's more involved. The original ...

Is the zeroing of the tab after 2 years still true for plans registered before July 2013? Mine was in May 2013
Userlevel 7
Badge +4
Jonathan I wrote:

The Tab payoff is indeed 15% of your plan each month, but there's more involved. The original ...

Did you read the thread before posting? I already answered this same question 9 months ago, two posts above yours. Tabs from before July 2013 fall under the old rules and are NOT cleared after 24 months.
I think I understand now. Thanks to all that helped!

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