What happens after internet service contract periods expire?

[drsmith]

Someone in the past day or so started a thread whereby they stated they were charged $25.95 per month by Telstra for dialup internet after a 12-month contract expired and the bill, post contract was now either ~$600 or ~$1200 for that service, some of which is unpaid. The original poster had moved on to some other internet service but was still getting a bill for $25.95 from Telstra each month for the dialup service.

I can't find the original thread but it was poorly titled (had Trujillo in the title but a search of that term failed to reveal the thread) so I will respond here.

My understanding is that these fixed period contracts are an agreement for to a service for that period. The minimum amount payable in the above contract would therefore be $25.95x12 even if terminated sooner by the user.

After the contract periods ends it is typically up to the user to terminate the service and can do so without penalty. The ISP will not typically initiate action to terminate under these circumstanses but will continue to charge a monthly fee until the user terminates the service.

As the poster in this example was getting a bill each month from Telstra for $25.95 he should have acted to terminate that service immediately after the first bill after the contract period. Any debate would have then been over $25.95 and not the much larger sum that is the case now.

 

[Awesomandy]

Re: What happens after internet service contract periods expire

This is correct. The service generally continues until the user asks the provider to disconnect the service. Please, however, note any promotion or discounts that may also expire at the end of the contract. Also, on some occassions, you may not need to contact the provider to cancel the service (e.g. most of the times when you are churning if you are on adsl).

 

[Dreadweave]

Re: What happens after internet service contract periods expire

This is correct. The service generally continues until the user asks the provider to disconnect the service. Please, however, note any promotion or discounts that may also expire at the end of the contract. Also, on some occassions, you may not need to contact the provider to cancel the service (e.g. most of the times when you are churning if you are on adsl).

This is correct, however you should contact your provider as sometimes you can renegotiate a better package after the contract has expired. Also if you were paying off your modem while your contract was active, you may beable to get a considerably cheaper package seeing as you now own the hardware.

 

[jono1887]

Re: What happens after internet service contract periods expire

This is correct, however you should contact your provider as sometimes you can renegotiate a better package after the contract has expired. Also if you were paying off your modem while your contract was active, you may beable to get a considerably cheaper package seeing as you now own the hardware.

dont they usually separate the hardware and data packages. eg. 5Gb for $40 a month + $5 for the modem.. so after the 24 months, you're only paying the $40??

 

[waz]

Re: What happens after internet service contract periods expire

As a general rule:

For any contract you enter, always confirm with the company what you plan to do on expiry. Don't make assumptions.

 

[jono1887]

Re: What happens after internet service contract periods expire

As a general rule:

For any contract you enter, always confirm with the company what you plan to do on expiry. Don't make assumptions.

People are just to trusting of all the big corporations :

 

[chrisalex]

Re: What happens after internet service contract periods expire

The original story was mine. Still being charged $25.95 20 months after the contract expired.I stopped the contract, got invoice to that effect, everything to their rule, but still it persists. Do they leave it ongoing just to make the books look better,would it be that simple?
The odd part is they have made no attempt to recover the money, just keep sending it attached to my phone bill. I have been using wireless since Nov. '07
so there is no confusion about usage.
cheers chrisalex

 

[awg]

Re: What happens after internet service contract periods expire

The original story was mine. Still being charged $25.95 20 months after the contract expired.I stopped the contract, got invoice to that effect, everything to their rule, but still it persists. Do they leave it ongoing just to make the books look better,would it be that simple?
The odd part is they have made no attempt to recover the money, just keep sending it attached to my phone bill. I have been using wireless since Nov. '07
so there is no confusion about usage.
cheers chrisalex

From what I hear Telstras computer billing system is very imperfect.

However, if i was you, I would definitely email them to ensure thats all it is, cause if they decide you do really owe them money, at some later stage, it is equally difficult to stop the chasing payment, including debt recovery companies, black marks on credit file, etc.

think robocop

and make sure u dont stop till they confirm!

 

[chrisalex]

Re: What happens after internet service contract periods expire

Thanks AWG, my wife's thoughts exactly,although I did involve the telco
ombudsmen in early '08 so I have some backup.
chrisalex