mJ cancels $59.95 5-yr plan in order to force paying $69.95.

[GuyOnTheAir]

A couple of years ago, I purchased two magicJack devices online to help cut my phone bills. While this isn't a post to complain of their sometimes unreliable service, beeps during calls, and strange software updates that seem to make their product worse, it is a note to bring to light some business practices I find troublesome.

I registered my devices a few days apart, and used the included year of service. When it came time to renew in 2009, I renewed one device for another year at $19.95, and the other device I renewed in their 5-year plan for $59.95.

Things went on as normal until this year. The first device came up for renewal. I went to renew on their Web site (the only way, as there is no way to contact them via phone), and their order form would not let me complete the process, giving me a "AddRenewal QuickOrder Problem: K." Chat Customer Service representatives offered no resolution for over a week, although they claimed they'd escalate the issue.

Finally, I made a formal complaint with the South Florida Better Business Bureau, where magicJack is headquartered. In that complaint, I noted my problem. Within a few days, a simple message instructed me to try again. And this time, my order went through.

Now I faced a new problem. My second magicJack was now claiming it was up for renewal, yet, with the 5-year plan, it should not have expired until 2013. I waited, thinking that the erroneous message would go away. But, finally the magicJack was made inoperable, as my service had expired.

I tried contacting magicJack via Chat Customer Service, and representatives were completely unhelpful, and would even end the chat on me. Finally it was determined that magicJack had arbitrarily cancelled my 5-year plan. And, it was even later determined that when they did this, they had refunded my $59.95 back to my credit card! All of this was done without my request, or consent. Now, they tell me the only way to restore service, is to either pay the $19.95 for a year of service, or get my 5 year plan back, at a new price. Now the price is $69.95. It seems like a sort of bait and switch kind of game, where you pay one price, and get certain things promised. But instead of delivering on those promises, they just refund your money in order for you to have to pay MORE money to get what was promised the first time. This is very frustrating.

So, I went back to the South Florida Better Business Bureau. I wrote of my new problem, and how they company had cancelled my cheaper plan, in order to get me to purchase the same plan for more money. magicJack responded, and told me "Customer can e-mail [email protected] and he can assist the customer if he wants to re-order the five year plan for $59.95."

Numerous detailed emails to [email protected] have gone unanswered. I've since submitted 2 subsequent complains to the South Florida BBB, and they will not open a case about it, which is strange.

So, I'm not sure what to do about this. All over the internet, there are complaints about this company and its business practices. I'm surprised that a site like Consumerist.com doesn't really seem to list any information about it. Now my only hope is to bring some light to my situation, to see if it can be resolved.

[Bill Smith]

After reading your post, I checked my account. I have only 1 MJ and renewed last summer. They haven't done to me what they did to you (yet).

[conniemadagain]

one year at a time ... 19.95 ...

[GuyOnTheAir]

Well, my latest experience with them shows that even one year at a time isn't possible.

magicJack "back-bills" for time you didn't renew.

So, if your mJ expires in January, but you don't renew until April, your new expiration date will still be January, making you lose 4 months of service.

Here's my customer chat about this issue:

Please wait for a site operator to respond.

Chat InformationYou are now chatting with 'Sheri'

Chat InformationYour Issue ID for this chat is XXXX

Sheri: Hello, how may I help you?

GuyOnTheAir: Hello. I purchased an additional year of service today, April 25, yet my account now shows that my jack will expire on March 10, 2011. That is not a full year of service.

Sheri: I'm very much like to assist you with that.

Sheri: May I have your magicJack phone number, please?

GuyOnTheAir: XXXXXXXXXX

Sheri: May I know the account name and email address that you used under the phone number (XXX) XXX-XXXX?

GuyOnTheAir: GuyOnTheAir

GuyOnTheAir: [email protected]

Sheri: Thank you for that information.

Sheri: Please wait while I check that for you

Sheri: Thank you for patiently waiting.

Sheri: Please allow me to inform you that expiration date of magicJack will still base from the day the service has began. As I can see here, phone number (XXX) XXX-XXXX service began last 3/10/08, so even if you renew your magicjack this day 4/25/10, still the expiration date will follow the date where the magicjack service began, so that's why your magicJack will expire on 3/10/11.

Sheri: Thank you for understanding.

GuyOnTheAir: I don't understand. I did not have service from March 10, until April 25. Therefore, I don't care when the service began...

GuyOnTheAir: I only care that I paid for a year of service, and am not getting a year of service, since my service expired on March 10...

GuyOnTheAir: The renewal says it is for one year.

GuyOnTheAir: It does not say it is for one year from the anniversary of when it was first activated.

Sheri: I am transferring you to one of our top 10% agents as rated by our customers. Please hold while I transfer you.

Chat InformationPlease wait while I transfer the chat to the best suited site operator.

Chat InformationYou are now chatting with 'Michaela'

Chat InformationYour Issue ID for this chat is XXXX

Michaela: Hello GuyOnTheAir . My name is Michaela. To better assist you, let me put you on hold while I read your previous chat. Thank you.

Michaela: Thank you for waiting.

Michaela: As I have checked it here, you activated this Phone No: (XXX) XXX-XXXX last 2008-03-10 right?

GuyOnTheAir: Sure. But, my licenses expired 2010-03-10. I didn't renew until today, 2010-04-25. I did not have service and was not able to make or receive calls from 2010-03-10, to 2010-04-25. Therefore I did not have service. I renewed for ONE YEAR today, 2010-04-25. So, my new expiration should be 2011-04-25. It doesn't matter when I activated it.

Michaela: Please allow me to inform you that it's continuous.

GuyOnTheAir: Service wasn't continuous. There was no service from 2010-03-10 to 2010-04-25. Therefore, it is not continuous.

GuyOnTheAir: I've paid for a year of service, starting today, and I want a year of service, starting today.

Michaela: Even though you did not renew the service for how many months, it will still be deducted for those months you haven't renewed it. That is why we have the feature AUTO RENEWAL for it to be renewed auomatically.

GuyOnTheAir: I will not allow my service to be deducted, for service I did not receive.

GuyOnTheAir: You cannot charge me for service I did not get.

GuyOnTheAir: That it fraud.

GuyOnTheAir: Because I chose NOT to use your auto renewal, does not mean you can charge me for it later.

Michaela: No this is not fraud GuyOnTheAir, that is why you need to renew the service as early before the expiration date.

GuyOnTheAir: Yes, it is fraud. Fraud is charging someone for service they did not get.

GuyOnTheAir: There is nothing that says I must pay for the service before it expires, if I don't choose to renew at that time.

GuyOnTheAir: I chose not to.

GuyOnTheAir: I paid for 1 year of service, starting today. I want my one year of service.

GuyOnTheAir: If you cannot give me the year of service I paid for, I will report this fraud to the proper authorities, including my credit card company.

Michaela: I understand GuyOnTheAir but this is how magicjack works regarding renewal service.

GuyOnTheAir: And that is fraud.

GuyOnTheAir: I will have the credit card company issue a charge-back against your service.

GuyOnTheAir: Or, you can simply extend my service until April 25, 2011.

Michaela: I do apologize for that GuyOnTheAir.

GuyOnTheAir: Don't apologize. Fix it.

Michaela: As I have said, that is how magicjack works regarding renewal services.

GuyOnTheAir: And as I have said, that is fraud, and not proper.

GuyOnTheAir: So, what are you going to do to resolve this issue?

GuyOnTheAir: If you cannot help with this issue, then transfer me to someone who can.

Michaela: I will make a report on this and will forward to the right department so they can check on this. Please provide me the needed information below.

Michaela: Complete name.........

Michaela: Email address..........

Michaela: MJ number.........

GuyOnTheAir: YOu already have that information.

GuyOnTheAir: GuyOnTheAir

GuyOnTheAir: [email protected]

GuyOnTheAir: XXX-XXX-XXXX

Michaela: Thank you so much.

GuyOnTheAir: What is the "right department"?

GuyOnTheAir: When can I expect to hear back from them?

Michaela: Please hold while I make a report on this matter.

GuyOnTheAir: How can I contact them?

Michaela: I will be the one to make a report on this and they will contact you through email.

GuyOnTheAir: They will never contact me. I've had one of you say that before, and they never get back to me...

Michaela: I will do the best I can to correct this matter.

Michaela: I won't stop sending follow up reports unless they will fix this GuyOnTheAir.

GuyOnTheAir: Yeah, I'm sure.

Michaela: Hope you are not mad at me personally.

Michaela: Rest assured that this will be taken cared of and fixed as soon as possible.

GuyOnTheAir: Well, I'm mad because everywhere I turn, this company is not acting properly. They screwed me out of my 5-year plan, as you can see on the account, and now, even when I go to renew for one year, they're screwing me again.

GuyOnTheAir: Just because you have an inexpensive service, doesn't mean you need to lie, cheat, and defraud your customers.

Michaela: This continuous service is one of our newest feature this year, before you can renew it anytime of the year but this feature has been changed by our higher department.

Michaela: If I were you, I will be mad too because this is not right but there's nothing I can do on this matter that to submit a report to them and let them know your side.

GuyOnTheAir: Well, as I have put it previously, it is fraud. When someone pays for a year of service, they deserve a year of service.

Michaela: Yes GuyOnTheAir, I will do the best I can to negotiate with them.

GuyOnTheAir: Thank you.

Michaela: You are most welcome.

Michaela: Hope you are not mad at me personally.

Michaela: Thank you for your patience and understanding today.

GuyOnTheAir: I don't even know you. But thanks.

Michaela: Have a great day GuyOnTheAir and be Safe always.

[Nobody beats the Whiz!]

I agree that is foul.

[Nobody beats the Whiz!]

Actually, when someone pointed out that the back billing is a fee for reserving your phone number, I changed my mind.

It seems fair in that light. Exactly how long should MJ hold your number, just in case you decide to renew at some future date? Indefinitely?

Perhaps they could offer you a chance to zeroize your renewal with a different phone number, plus a $5/10 fee to change your number (heh, heh).

[GuyOnTheAir]

I don't expect them to hold my number. If they don't, they can assign a new number when I sign up for another year of service.

[Nobody beats the Whiz!]

I don't expect them to hold my number. If they don't, they can assign a new number when I sign up for another year of service.

I understand that. However, that obviously is not how they currently operate.

There should be an option to give away your phone number at the end of your current subscription. That way, "if" you decide to renew at a later date, you can start fresh.

As it stands, I can see why they reclaim their number "reservation" fee.