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bjcatlin
join:2001-02-27
Longmont, CO

bjcatlin

Member

End of Reg Fee = Higher Reg Compliance Fee???

Just finished looking at my invoices from Speakeasy. It looks like they have removed the Federal Regulatory Fee, but then they increased the Regulatory Compliance Fee for both my DSL and VoIP accounts.

The interesting thing is that the Regulatory Compliance Fees went up almost the same amount as what the Federal Regulatory Fee was, so my net savings is a whopping $0.35!

Am I crazy in thinking that when a regulatory fee goes away, shouldn't it cost less to comply with the regulations that went away?

Old:
Federal regulatory fee: $6.00
DSL Reg. Compliance fee: $5.12
VoIP Reg. Compliance fee: $4.95

New:
Federal regulatory fee: $0.00 ($6.00 decrease)
DSL Reg. Compliance fee: $9.52 ($4.40 increase)
VoIP Reg. Compliance fee: $6.20 ($1.25 increase)

Total: $0.35 decrease

Something smells fishy around here...

grobinette
Southeast of disorder
MVM,
join:2001-01-27
22152-1106
·Verizon FiOS

1 recommendation

grobinette

MVM,

They did the same here.

I find it irritating that in their sample bills they show all the applicable taxes from Seattle
but they just can't seem to break down exactly what that Regulatory Compliance Fee is for on my invoices.

In their sample bill, there is no regulatory compliance fee.
russotto
join:2000-10-05
West Orange, NJ

russotto to bjcatlin

Member

to bjcatlin
Regulatory compliance fee = random extra charge tacked on by Speakeasy, supposedly representing their cost for complying with various regulations.
claudeo
join:2000-02-23
Redmond, WA

claudeo to bjcatlin

Member

to bjcatlin
Those regulatory fees are just part of the cost of doing business, but they are tacked on as a separate item to allow them to advertise a lower price. *Every* business incurs costs in following government regulations. Unfortunately Speakeasy is only following the lead of many other companies and especially mobile phone companies, airlines, etc. that lowball the price but then add those bogus charges and charge another price. It's just gravy for the bottom line. Basically it is also dishonest.

CylonRed
MVM
join:2000-07-06
Bloom County
·Metronet

CylonRed

MVM

It is dishonest if they state that the price they have is the end price with no other fees/taxes - they don't do that. They have always stated that taxes and fees are not included.

What I find more dishonest is telling users that they will pay $x dollars and that is the price on the bill - then they don't break out the fees. They basically hide the fact they pay the same fees that SE puts on their bills - but Se puts then on in the open...
artisticcheese0
join:2004-11-09
The Colony, TX

artisticcheese0

Member

Don't you find it's dishonest to tell people how they are dropping Federal Regulatory Fee making cozy feeling that ISP doing something for you which will cost you less to have the service, just to find out that behind your back they at the same time jacked up other fees so at the end you are still paying the same fee and probably they are getting richer becouse they are not remitting those compliance fees to government while regulatory fee they were.

CylonRed
MVM
join:2000-07-06
Bloom County
·Metronet

1 edit

CylonRed

MVM

Hmmm - no. Why? Well - it is not like they "jacked up" the other fee - the regulatory fee drop was about 20 cents and rasing another fee to the same amount (20 cents) is not something I would call jacking up the price. To me - jacking up the price is taking a fee from $1 to $3... Not to mention I have yet to see the other fee increased as of yet.

Personally - I would bet you would be suprised by hiw little they are getting "rich" off of the other fee. They are in business to make money - they have to afford the build out for DSL2 among other things. Most people don't really know or understand how business works and just jump to conclusions that the additional fee is just there to make "them" (whomever "they" are) richer.

Again - as I always say to those that complain about the fees and any changes.... Don't like them - then get another ISP and tell SE the reason...

I find the example I posted to be far more dishonest...

deaddog
@verizon.net

deaddog to bjcatlin

Anon

to bjcatlin
i can't say it any other way, so:

why the frick are you still with covad?!?!?!? some subscribers can be so STUPID AND LAZY, it's UNREAL!
switch the hell out, before its too late and they keep price gouging you!!! unless your only alternative is the satellite in the sky, get on the cancelation dept's ass, pronto!
but, knowing covad, they'll have recently hired the fired aol retention reps to fill this role!
gjgfjfgj
join:2006-04-07
Tucson, AZ

gjgfjfgj to bjcatlin

Member

to bjcatlin
For what it's worth, my bill went down by $0.50 or 1%.

Old Fees: $3.42 - That's about 7%, which is what I pay for sales tax on almost everything else I buy anyway.

New Fees: $2.92 - That's about 6%, which is less than I pay for sales tax on almost everything else I buy.

For comparison purposes:

Landline Phone Fees: 50%, which should be illegal Qwest.
Mobile Phone Fees: 15%, which is way too high Sprint.
valderost
Here, There, Everywhere
join:2004-02-03
Boston, MA

valderost to CylonRed

Member

to CylonRed
said by CylonRed:

It is dishonest if they state that the price they have is the end price with no other fees/taxes - they don't do that. They have always stated that taxes and fees are not included.
The "regulatory compliance fee" isn't a tax. If you want to think of it as a true fee, then by that logic, Speakeasy could arbitrarily up that fee to $10/mo and you would be contractually bound to pay it. That doesn't sound quite right though, does it?

My Verizon bill has taxes and fees on it, but they are accompanied by a clear statement that these amounts are mandated by the government.

In fact, during a protracted email discussion with Lawrence McBride on this very topic during winter/spring 2004-05, he asked me about taxes and fees on my telco bill, and I scanned and emailed it to him, along with a request that Speakeasy make a similar claim. What I got back from him was this: complete and utter silence. Of course Speakeasy can't make that claim, because to do so would be fraud.

Lawrence, I reiterate my request: can you please state definitively that the taxes and fees that Speakeasy charges are mandated by government, just like my telco does? And if this isn't the case, and Speakeasy will terminate my service for non-payment of these "fees" which set at Speakeasy's sole discretion, please explain how these "fees" are not part of the pricetag of the service itself?

KoolMoe
Aw Man
Premium Member
join:2001-02-14
Annapolis, MD

KoolMoe to bjcatlin

Premium Member

to bjcatlin
I agree these fees are, at least generally, BS.
It's nice to get a 10% loyalty discount. It's lame that the 10% I save is pretty much negated by additional fees.

I completely agree that additional fees on top of stated prices are lame. The fault, however, lies everywhere. I still remember the anger and disappointment as a kid when I went to 7-11 by myself with a nickel to buy a piece of Bazooka and I was asked for 6 cents. WHAT? I've been bushwacked! What is this 'tax' thing you speak of?!

If there are additional fees that increase the ultimate price, then include those damn fees in the price you're quoting me...

And it continues on through life.
So who wants to initiate the legal proceedings? Not It!
KM
TheOtherPete
join:2001-06-28
Boyds, MD

TheOtherPete to valderost

Member

to valderost
said by valderost:

The "regulatory compliance fee" isn't a tax. If you want to think of it as a true fee, then by that logic, Speakeasy could arbitrarily up that fee to $10/mo and you would be contractually bound to pay it. That doesn't sound quite right though, does it?

My Verizon bill has taxes and fees on it, but they are accompanied by a clear statement that these amounts are mandated by the government.

In fact, during a protracted email discussion with Lawrence McBride on this very topic during winter/spring 2004-05, he asked me about taxes and fees on my telco bill, and I scanned and emailed it to him, along with a request that Speakeasy make a similar claim. What I got back from him was this: complete and utter silence. Of course Speakeasy can't make that claim, because to do so would be fraud.

Lawrence, I reiterate my request: can you please state definitively that the taxes and fees that Speakeasy charges are mandated by government, just like my telco does? And if this isn't the case, and Speakeasy will terminate my service for non-payment of these "fees" which set at Speakeasy's sole discretion, please explain how these "fees" are not part of the pricetag of the service itself?
I agree completely and would like to hear Speakeasy's official position on this issue.

As you said, since the fees are arbitrary, what is stopping Speakeasy from charging any amount they want and forcing customers to pay it (or face huge early-termination charges)?

The Speakeasy website has verbage about applicable taxes and fees but I think a common sense interpretation of that means gov't mandated taxes and fees.

The only bogus fee I agreed to when I signed up was the fee that was in-place at that time. If they want to increase that fee then they need my explicit approval IMO.
TheOtherPete

TheOtherPete to bjcatlin

Member

to bjcatlin
Put in a service ticket and Speakeasy responded that the increase in the "Regulatory Compliance Fee" is attributed to increased gov't fees that they are simply passing through to their customer and is not an arbitrary increase.

This contradicts what Verizon is saying about their increase on the same line item for DSL.

Does anyone buy this?
said by Me :

I see that the Regulatory Compliance Fee on my invoice has risen from $1.47 to $2.73.

It is my understanding that this is not a gov't assessed fee but it just an add-on that Speakeasy has arbitrarily decided to collect in order to compensate for removing the Federal Regulatory Fees which were actual gov't fees that have been eliminiated (FUSF).

On what basis is Speakeasy allowed to arbitrarily assess additional monthly fees without confirming with me that I agree to them?
quote:
It is not an arbitrary amount. There are over 4500 government agencies that assess taxes and fees. As these are assessed to us, we pass them on. This fee sometimes goes up and sometimes goes down. We receive quarterly adjustments from all agencies and adjust this rate accordingly. This fee is covered as well in out Terms of Service found at www.speakeasy.net/tos which you agree to by using our service.
said by Me :

Let me be clear - you are saying that the $2.73 Regulatory Compliance Fee is composed only of mandated government fees that Speakeasy is simply passing it through in its entirety to government agencies and Speakeasy is not keeping any portion for itself?
quote:
There is a flat administrative add on that does not change quarterly.
said by Me :

So you are saying that the difference between what I used to pay ($1.47) and what I pay now ($2.73) is due solely to increases in government fees attributed specifically to my line which you are simply passing through?
quote:
Yes, that is exactly what I am telling you.

CylonRed
MVM
join:2000-07-06
Bloom County
·Metronet

1 edit

CylonRed to TheOtherPete

MVM

to TheOtherPete
said by TheOtherPete:
said by valderost:

The "regulatory compliance fee" isn't a tax. If you want to think of it as a true fee, then by that logic, Speakeasy could arbitrarily up that fee to $10/mo and you would be contractually bound to pay it. That doesn't sound quite right though, does it?

My Verizon bill has taxes and fees on it, but they are accompanied by a clear statement that these amounts are mandated by the government.

In fact, during a protracted email discussion with Lawrence McBride on this very topic during winter/spring 2004-05, he asked me about taxes and fees on my telco bill, and I scanned and emailed it to him, along with a request that Speakeasy make a similar claim. What I got back from him was this: complete and utter silence. Of course Speakeasy can't make that claim, because to do so would be fraud.

Lawrence, I reiterate my request: can you please state definitively that the taxes and fees that Speakeasy charges are mandated by government, just like my telco does? And if this isn't the case, and Speakeasy will terminate my service for non-payment of these "fees" which set at Speakeasy's sole discretion, please explain how these "fees" are not part of the pricetag of the service itself?
The only bogus fee I agreed to when I signed up was the fee that was in-place at that time. If they want to increase that fee then they need my explicit approval IMO.
Please list any and all companies that only increase fees after YOUR explicit approval???? I know the answer for me is a grand total of..... none...

Again - vote with the pocket book - that is the only way tyo get any business attention and tell them exactly why you choose to leave their services.

nixen
Rockin' the Boxen
Premium Member
join:2002-10-04
Alexandria, VA

nixen

Premium Member

said by CylonRed:
said by TheOtherPete:
said by valderost:

The "regulatory compliance fee" isn't a tax. If you want to think of it as a true fee, then by that logic, Speakeasy could arbitrarily up that fee to $10/mo and you would be contractually bound to pay it. That doesn't sound quite right though, does it?

My Verizon bill has taxes and fees on it, but they are accompanied by a clear statement that these amounts are mandated by the government.

In fact, during a protracted email discussion with Lawrence McBride on this very topic during winter/spring 2004-05, he asked me about taxes and fees on my telco bill, and I scanned and emailed it to him, along with a request that Speakeasy make a similar claim. What I got back from him was this: complete and utter silence. Of course Speakeasy can't make that claim, because to do so would be fraud.

Lawrence, I reiterate my request: can you please state definitively that the taxes and fees that Speakeasy charges are mandated by government, just like my telco does? And if this isn't the case, and Speakeasy will terminate my service for non-payment of these "fees" which set at Speakeasy's sole discretion, please explain how these "fees" are not part of the pricetag of the service itself?
The only bogus fee I agreed to when I signed up was the fee that was in-place at that time. If they want to increase that fee then they need my explicit approval IMO.
Please list any and all companies that only increase fees after YOUR explicit approval???? I know the answer for me is a grand total of..... none...
Don't have any credit cards, eh?

-tom

CylonRed
MVM
join:2000-07-06
Bloom County
·Metronet

1 edit

CylonRed

MVM

Many - either none have ever increased a fee or they have never notified me and made sure I agree to them...

My garbage folks added ina fee for gas - I had no opportunity to explicitly agree to the fee - they just notified us they were charging for it - same for taxes/fees at airports for airplane tickets - fees are added or increased with no notice or opportunity to pay it or not.
TheOtherPete
join:2001-06-28
Boyds, MD

TheOtherPete to CylonRed

Member

to CylonRed
said by CylonRed:

Please list any and all companies that only increase fees after YOUR explicit approval???? I know the answer for me is a grand total of..... none...

Again - vote with the pocket book - that is the only way tyo get any business attention and tell them exactly why you choose to leave their services.
Really? I can think of several but that's irrelevent to this discussion.

Since I have a 12-month contract with Speakeasy I don't expect them to change their price during that period nor can I just walk away during the 12-month period without incurring a huge early-termination fee, which should answer your second point. Rest assured I will be voting with my feet when the 12 months is over.

nixen
Rockin' the Boxen
Premium Member
join:2002-10-04
Alexandria, VA

nixen to CylonRed

Premium Member

to CylonRed
said by CylonRed:

Many - either none have ever increased a fee or they have never notified me and made sure I agree to them...

My garbage folks added ina fee for gas - I had no opportunity to explicitly agree to the fee - they just notified us they were charging for it - same for taxes/fees at airports for airplane tickets - fees are added or increased with no notice or opportunity to pay it or not.
If your credit card company changes interest rates, yearly fees, etc., they send you a new cardholder agreement. You're given the choice of closing the account or accepting the new fee/rate structure. If you don't close the account, it's implicit agreement to the new fee/rate structure.

-tom
TheOtherPete
join:2001-06-28
Boyds, MD

TheOtherPete to CylonRed

Member

to CylonRed
said by CylonRed:

same for taxes/fees at airports for airplane tickets - fees are added or increased with no notice or opportunity to pay it or not.
I buy my airline tickets ahead of time online - all fees and taxes are listed before I confirm that they can charge my credit card for whatever the total amount is.

I have never shown up at the airport with paid tickets and been asked to pay additional fees or taxes.

Apparently I live in a different world then you (or at least use different airlines & airports).

CylonRed
MVM
join:2000-07-06
Bloom County
·Metronet

CylonRed to TheOtherPete

MVM

to TheOtherPete
said by TheOtherPete:
said by CylonRed:

Please list any and all companies that only increase fees after YOUR explicit approval???? I know the answer for me is a grand total of..... none...

Again - vote with the pocket book - that is the only way tyo get any business attention and tell them exactly why you choose to leave their services.
Really? I can think of several but that's irrelevent to this discussion.

Since I have a 12-month contract with Speakeasy I don't expect them to change their price during that period nor can I just walk away during the 12-month period without incurring a huge early-termination fee, which should answer your second point. Rest assured I will be voting with my feet when the 12 months is over.
They covered that in their TOS:

"Pricing Guarantee:
In the event that Speakeasy's pricing increases, your monthly recurring charge will remain at the price set during order placement or special billing agreement for 12 months following your Activation Date. Additionally, if your account is invoiced quarterly, semi-annually or annually, you will receive your set monthly recurring charge until the end of the current payment period. This does not include new orders under the same name and/or location or new orders associated with a service relocation, nor orders for service changes that may be required if the desired service is not available due to technical or other reasons. Price changes for different packages at the same speeds, technologies, and throughput level are not included; one-time charges, applicable state and federal taxes, and promotional pricing are excluded. This guarantee only applies to the recurring broadband service charges.
"
CylonRed

1 edit

CylonRed to TheOtherPete

MVM

to TheOtherPete
said by TheOtherPete:
said by CylonRed:

same for taxes/fees at airports for airplane tickets - fees are added or increased with no notice or opportunity to pay it or not.
I buy my airline tickets ahead of time online - all fees and taxes are listed before I confirm that they can charge my credit card for whatever the total amount is.

I have never shown up at the airport with paid tickets and been asked to pay additional fees or taxes.

Apparently I live in a different world then you (or at least use different airlines & airports).
That is up to you - if you want to fly any where you have to agree (by buying the ticket) to ANY and ALL fees and ANY and ALL increases to those fees - it is not really a choice if that is the only way you need to get somewhere. They simply increase the fees and never have to disclose it anywhere and never ask you first BEFORE they put the fee on - they just tack it on...

Again - companies can change fees and prices anytime they want - they can even give you a small portion for the same price anytime they want - with the consumer having no vote on it before it happens. That to me is REAL explicit approval - asking for consumer approval before buying and offering the same product without the increased prices/fees...
TheOtherPete
join:2001-06-28
Boyds, MD

TheOtherPete to CylonRed

Member

to CylonRed
said by CylonRed:

They covered that in their TOS:

Pricing Guarantee:
In the event that Speakeasy's pricing increases, your monthly recurring charge will remain at the price set during order placement or special billing agreement for 12 months following your Activation Date. Additionally, if your account is invoiced quarterly, semi-annually or annually, you will receive your set monthly recurring charge until the end of the current payment period. This does not include new orders under the same name and/or location or new orders associated with a service relocation, nor orders for service changes that may be required if the desired service is not available due to technical or other reasons. Price changes for different packages at the same speeds, technologies, and throughput level are not included; one-time charges, applicable state and federal taxes, and promotional pricing are excluded. This guarantee only applies to the recurring broadband service charges.
I'm not sure what the above quote proves except that Speakeasy is not allowed to raise my rates during the 12-months which they are effectively doing with this increased "Regulatory Compliance Fee"

I agree that they are allowed to pass through any additional state and federal taxes that they incur but as far as I can tell this "Regulatory Compliance Fee" increase is not based on any state or federal tax increase - it is nothing less then a backdoor price increase to boost their own profits.

CylonRed
MVM
join:2000-07-06
Bloom County
·Metronet

1 edit

CylonRed

MVM

Read the last sentence of the paragraph..... RCF will not be included in the "broadband service charges" thereby making the RCF excuded from the guarantee.

Look - if it is illegal then start a classaction lawsuit against the entire industry - I am sure a ton of lawyers would jump at the chance if there was anything illegal about it - my guess is no lawyers think it is illegal or illegal enough to even bother.

houstontarge
Target
join:2005-01-08
Houston, TX

houstontarge to bjcatlin

Member

to bjcatlin
Seems like we not the only ones upset with these backdoor tactics...
»Bell South Backs Out Bogus Fee
jcricket
join:2002-08-30
Seattle, WA

jcricket to bjcatlin

Member

to bjcatlin
For the life of me I can't understand what's happened to Speakeasy. I'm not saying they've always been a perfect corporate citizen, but this really takes the cake.

Adding bogus fees at the point when a fee they merely "passed on" to the government goes away is nothing but screwing over their customers. Sure, Speakeasy's within its rights to charge each customer more, but doing so in an underhanded way that make it appear a tax or government fee is involves is something I expect from Qwest or Verizon (i.e. a near-monopoloy)

One of the prime selling points of dealing with a third-party, non-monopoly company is that they know you can switch to other providers, so they won't do things like this. Now I'm starting to wonder why we all just don't just switch to Qwest. What's the difference anymore?
artisticcheese0
join:2004-11-09
The Colony, TX

artisticcheese0

Member

They probably would not get a kick in the a** like Verizon and BellSouth did (»FCC Chief 'Furious' Over New DSL Fees)
claudeo
join:2000-02-23
Redmond, WA

claudeo to jcricket

Member

to jcricket
said by jcricket:

For the life of me I can't understand what's happened to Speakeasy. I'm not saying they've always been a perfect corporate citizen, but this really takes the cake.
How about giving the man a piece of your mind:
Mike Apgar
CEO, SPEAKEASY.net
email) speakeasy-ceo at speakeasy.net

wcweaver
Premium Member
join:2002-02-22
Fort Myers, FL

wcweaver to CylonRed

Premium Member

to CylonRed
Bottom line is if the government drops a fee, a provider should drop their monthly charge by the same amount. If they don't, then they are putting money that went into the government's pocket and putting it in their own pocket.

And also, their administrative costs should actually drop becaue this is one less item they have to keep track of and pay to the government.

It is a hidden rate increase no matter how they hide it and it borders on theft because they are trying to disguise the rate increase as something else that is bogus.

If they want a rate increase then be upfront about it and call it a rate increase.
TheOtherPete
join:2001-06-28
Boyds, MD

TheOtherPete

Member

Bellsouth and Verizon have announced they are dropping this bogus fee hike - time for Speakeasy to follow their lead!

xerxes3642
join:2006-02-24
Saint Charles, MO

xerxes3642 to claudeo

Member

to claudeo
cable has done the same thing with franchise fees. They are a cost of using government rights-of-way, however, they are put on a seperate line-item and not figured into the advertised price.