Device Payoff adds extra charge? Can anyone explain the extra payoff amount?

[Chaelaz]

Not sure if this is a billing questions or device question, but here are the details. This is for every phone I have and I am curious if others see this too.

My understanding for the device payment agreement is there are not service charges, interest, or anything of the sort, but it is simply the cost of the device divided equally by 24 payments. You can see below, that is what shows when I pull up the device payment agreement on any of my phones. This one was was $849.99, which broke down to 24 payments is $35.41 a month. That is what I get charged each month. No other taxes or such listed.

If you look at the payoff, that too is correct at $141.64 ($35.41 x 4 payments = $141.64). All good, right?

Now, when I click to payoff the device, I get a completely different Due for Pay Off amount of $153.68.

I contacted Verizon via chat, and their response was because it was close to the end of the cycle to wait until after in the next cycle. Makes no sense for one because it is a set payment each month and nothing should change, but also I have checked this for the last three cycles at the beginning, middle, and end of each and it is ALWAYS incorrect.

Can anyone explain the extra payoff amount?

[lewisr13]

It's not extra. What shows online is payments not included in your current bill. You started your plan in May, first payment was June 2015 bill, probably paid in July. Your 20th payment is for January 2017, probably due in February. Thus after this bill you have 20 payments left.

[Weth]

Difference is exactly 8.5%, sounds like a sales tax amount?

[Chaelaz]

It does sound like sales tax, which is what I figured, but that is NOT noted anywhere and not in the financing contract for payments. The contract states the price of the phone divided by 24 payments.

No sales tax ever mentioned. There has to be something legally that they have to declare that tax, but I don't find it. The contract doesn't include it and my bill never shows it.

Here is what the billing looks like:

For the line

Where Taxes SHOULD be listed if being included

I asked Verizon directly and have no response. They said it was something to do with the billing cycle, but it isn't. The fact it comes out exactly to our sales tax rate is suspect.

Anyone else have insight?

[lewisr13 · Accepted solution]

Bill says 3 x 35.41 = 106.23, that's after this payment is made. If you look online it will say 106.23 to pay it off(because it deducted payment due), but when you click to buy it out it will say 141.64, because you haven't paid the current bill yet.

[lewisr13]

My bad I can't read, sorry.

[Chaelaz]

FYI - Verizon has told me twice now they would have to get back to me on this, and still no answer.

Interesting.

[rcschnoor]

Taxes for phone purchases on the Device Payment Plan are made at the point of purchase. There will be no taxes for your device included in your monthly bill because you have already paid the taxes in full for that purchase.

[Chaelaz]

Thanks. That is what I thought, but that still makes no sense then what the extra charge is between the device balance and when I click device payoff.

[Ann154]

Have you paid your current bill already?