Try a chargeback. Yes, they may disclose the terms, but that still isn't the definition of "rebate." Worth a shot - nothing to lose.

I had a similar situation last year. I tried to cancel my service in September '08 after 14 months of service. I was told that because I accepted the first month's service for free I was obligated to a 2 year service agreement or pay a 39.99 cancellation fee.

I weighed my options after another month and talked to another service rep who gave me another month free for keeping the service. I called back after the free month to cancel and was offered ANOTHER free month and then a reduced rate of $9.99/ month for 3 months. Then after 1 month, they upped it to $14.99. I'm not going to complain about a half price phone line, so I'm continuing the service for now, but they obviously need to work on terms of service with their reps.

Vonage has always been known for its shady practices. One simple google search will bring up pages and pages of various complaints including being locked in to a service with a "money back guarantee"

They offer an inferior service with catch marketing which is why they have grown. If people do their homework before signing up for services such as this, they would know what they were getting into.

We use Att Callvantage which Att still supports but doesn't market any longer. Its a business based system with a lot of free services. The adapter is built into a linksys router. Anytme we had a problem they sent us a new one, for free. Its good for 2 lines.

A few years back I called to cancel my service. Waited on hold for 45 minutes to get a rep, line disconnected! Call back again (another 45 min) only for Vonage to tell me I have to keep my service active one more month to avoid the cancellation and "rebate" fee. I called back a month later (30 min hold) and said goodbye to that company for good.

OP fault, read terms and conditions. Most programs have these in fine print READ!

Lesson? Don't sign contracts?

@Skankingmike: Did you read article??? If placed by phone and rep didn't tell him he would never have known. I am not saying this is the way it went down but I would think reasonable doubt goes to the OP.
In any case this shouldn't be a "fine print" debate. Vonage should be able to protect themselves but if that were the case why are they not more open about this horrible scam...I mean rebate. I guess maybe they could even return the router if it were only about protecting the investment.

I had Vonage for a while, and it was great. The reason I switched back to Verizon was because of the Fios Triple Play.

The voice quality was MUCH better than Verizon's is now.

But I didn't have any trouble canceling like some people do. I just made my request clear and they honored it. I wouldn't mind going back to them.

I've been using Vonage exclusively for about 5 years now. They've never let me down.

Their customer service is a basket of farts, but I've only had to call them a handful of times and they've always given me the answer I needed, even if they weren't terribly polite.

They shouldn't call it a rebate, simple as that. It's more like a reverse deposit.

This is legit. I bought a few cell phones a few years ago for negative dollars w/ a rebate and if I cancel before my term is up, I will get charged the full price for the phones. You just need to read the terms of a rebate.

I just cancelled vonage 2 months short of 2 years and got charged the 30 dollar fee. It was still cheaper than just paying out 2 months I didn't want.

Also, if you've ever had Vonage before, but then cancelled for whatever reasons, you can't use your previous converter (the IP-to-voice modem). I tried to do this, and they basically deauthorize the NIC/MAC address in your router once you cancel your service so you MUST buy another device if you sign-up again. And THAT is a total pain in the ass if you're in the military and think VoIP is a great tool when stationed back-and-forth between Asia/Europe and the US every two years.

Vonage is a rip off. Buy an Analog Telephone Adaptor (Linksys SPA or the like) on eBay for $30ish. Goto www.callcentric.com. Get an incoming phone number with unlimited minutes for $2.95 a month. If you want unlimited long distance, you can get a plan for $19.95/month. If you don't make a lot of landline calls, like us, stick with the $0.02/min pay as you go plan. No monthly minimums, no contracts, no hassle. I've been using them for 6 months as my home phone service, and have never had an issue. My average monthly phone bill for two phone numbers is $5-$8.

He called the FBI?

People do stupid things. Like use Vonage.

It pays to read the fine print these greedy companies put on their websites, ads, promos. etc...IF you have the time. Most people don't have the time and the companies know it and rake in the cash.

i know this is sort of off subject but has anyone used magic jack? what is the call quality like?

@Cassius98: When I had Vonage, the terms and disclaimers took most of the time on the phone. When they send you your Equipment there is a bunch of paperwork that accompanies teh equipment, and I would bet that the same terms as are on their website are on the paperwork and were disclosed during the phone conversation.

From their website "IF YOU CANCEL WITHIN THE MONEY BACK GUARANTEE PERIOD, YOU MUST RETURN THE DEVICE." (The money Back Guarantee period is 30 days).

The Rebate is just like a subsidized cell phone, where Vonage wants a 1 year commitment from you, and in exchange, they will give you the equipment for free, but if you cancel before you have met your commitment, they want the money for the equipment.

@Rachacha: thanks

@Cassius98: yes I did read unlike the OP.

@Brian James Schend: yes it's a rebate with a condition. Just like every other rebate that exsists.

Vonage advertises no contracts. I signed up using my cell phone as we just moved into a new house--so no internet or phone service yet. I call Vonage to join and when the rep read the terms there was no mention of any cancellation fee. It all pertained mainly to e-911 info. A few days later I got the Vonage package in the mail, and a day or two later I had internet/cable hooked up.

I canceled 17 months later and was hit with a $30 cancellation fee. When I contacted them they said the fee is listed on their website. I said I joined over the phone in which they replied that just by clicking on the website at anytime I had service is an acknowledgment of their terms. That is ridiculous considering I would need to know that condition BEFORE I join.

I wish there was a contract to sign as I could have read it, but I had to rely on the sales rep for the terms in which she conveniently left out the fact that there is a 2 year commitment to avoid disconnect fees and 1 year to avoid paying for the router. I should have taken them to small claims since the BBB and attorney general were of no help.

@captainpicard: I haven't tried it myself. But when I heard about it I was curious too. I found this [www.ripoffreport.com]
Makes me not want to try it.

I remember when I realized that I didn't need vonage anymore as I was using my cell phone, and forwarding vonage calls to the cell. I looked up how to cancel. I got a killer deal on the router, I got paid to take it with a gift card from best buy. I waited until the right date then called to cancel for free. They fought hard for me to stay. But I still have my wireless router and i works just fine.

I posted that this is what they do, in a previous thread about Vonage.

I was lied to and told I had 60 days to "try" the service. I called on the 32nd or 33rd day, I don't remember which, to cancel because while I was happy with the service, I just didn't really need it. I was told there would be a cancellation fee and router fee because I was only allowed to cancel within the first 30 days. So I told them nevermind, I'll just keep the service. Then I reported my debit card lost, got a new one and Vonage can't auto-charge it. Then I called and cancelled. They wanted cancellation payment. I told them good luck with that.

@Mr_Human:

I'm with you on this one. The FTC or FCC I can understand but the FBI?

@Mr_Human: My thoughts exactly-I don't see a SWAT team descending on Vonage, extracting $70, and leaving.

@allstarecho: Careful-they may send you to collections over it.

@Coles_Law: I'm not worried. They can't get blood from a turnip.. as the saying goes.

@Cocoa Vanilla: it is also not the definition of "chargeback". Vonage delivered per their agreement.

Filing a complaint with the FBI? Seriously? "Hey FBI! I didn't read my contract, so I'm not responsible for it! Vonage is trying to do what they said they would do! Help me, I'm an idiot!"

Actions like this merely dilute the effectiveness of properly executed EECB's and other consumer protections.

@RevolutionMaster: People do stupid things. Like use other services...

I love Vonage!

@waitaminute: Just because a contract says one thing, it doesn't give them a right to start spouting another thing on their website or over the phone. False advertising is more serious than not reading your contract.

@Rachacha: The cell phone companies say "1 year contract price" vonage says "rebate"

If I canceled verizon right now I still keep the 50 dollar rebate on my verizon wireless phone.

REBATE MEANS ITS YOUR MONEY. LOOK IT UP.

@DonkeyJab:

Vonage: "Clicking on the website at anytime you have Vonage service is an acknowledgment of our terms."

I've never used Vonage, so I don't know, but wouldn't a site click be nearly impossible to prove? Do you use the site to operate the service?

I'm suggesting that they had no proof of your acknowledgment and therefore couldn't consider that a valid TOS.

I cancelled Vonage last year. After about a year and a half of good service, I ran into a ton of problems over a one month span. Calling their customer service to cancel was akin to cancelling AOL. (Which I've also had the pleasure of dealing with)

Me: I'd like to cancel
Them: Take a month for free and stay with us
Me: No thanks, I'd like to cancel
Them: Sir, I'm trying to help you, blah blah blah

Went on for about 10 minutes. I think I'm too polite with CSR reps sometimes. I just can't get off the phone!

I LOVE VONAGE..... People, STOP whining and get real.... Vonage is great and $100 cancellation fee is nothing compared to outrageous monthly dues you have to pay for a traditional telephone service. If you don't like Vonage that much why did you sign up for it in the 1st place? Go back to AT&T and then come back to Consumerist.com in a month or so and complaint about them here :-)
Peace.............

@tsume: Actually, very few states (3, I think) have laws pertaining to rebate advertising. It's a very grey area; there is nothing to "look up".

@ShirtNinja: Same here. I had Vonage now since the summer of 2005. I love it and I've never had a problem with it... ever.

I did call them once to change my plan from paying yearly for unlimited minutes to paying monthly for 500 minutes and they have things switched for me on the next billing cycle. I didn't have any issues with them being impolite or anything, but of course, I only had to call them one time in 5 years.

@Mr_Human: I can understand his logic; the FBI does investigate Internet-related scams (IC3). But this is a little far fetched.

@ken2148:

Some of the points in that post are valid, some of them aren't. I think the key issue in that is he didn't research Magic Jack. When I first heard about it I already knew that some of those things were already true (the fact your computer needs to be on, for example). The lack of customer service however is really a good reason to be alarmed.

@Caveat: [QUOTE] If you don't like Vonage that much why did you sign up for it in the 1st place?[/QUOTE]

Uh...because it's kind of impossible to know whether it will work as expected without using it yourself? Just because your neighbors or friends use it without issues doesn't mean you won't have any.

Just wait. They're going to send you a million letters trying to get you to sign back up. I was pleased with my Vonage service while I had it. My advice would be to buy equipment that isn't going to be worthless. I got a linksys router when I signed up for Vonage that I still use now.

Oh so this gets published, but a major billing flaw I sent weeks ago with documentation doesn't, makes sense =P

@waitaminute:

I actually thought the same thing. You don't need to access their site to use the service but you can use it to adjust optional settings. When I voiced my opinion about not having to access the site to use the service they replied stating their records showed I had accessed the site during my membership. I'm guessing they have IP logging but I'm not sure.

The catch is, by Vonage claiming that just accessing the site is an agreement to the terms doesn't hold water with the disconnect fee as it's a catch 22. You need to access the site to read the full terms, and by accessing the site you have automatically agreed to them and will be charged a disconnect fee. It makes no sense whatsoever.

@Caveat:

I had a few minor issues with Vonages service itself in the first month or two, but for the most part it was fine. Alot of the service really depends on your internet connection.

My issue is their business practice. They advertise no contracts to sign leading you to believe theres no term commitments. When joining over the phone they make no mention of any cancellation or equipment fees, or of any 2 year term "agreements", at least they didn't when I joined. They didnt even tell me about the disconnect fee when I canceled over the phone! I only got an email saying my service was canceled and my account was billed a $30 disconnect fee.

Did you actually read the TOS that is on the site, plus what comes with your adapter when you get it? Look at this:

8.8 Recovery Fee.
If you disconnect service based on a commitment before the end of the commitment period, you agree to pay us the applicable recovery fee. A recovery fee is equal to the difference between the price you paid and the regular price of the good, service, or other benefit you received. Any recovery fees are cumulative and are in addition to any other amounts you may owe us, including any disconnection fees.

You can't expect to get 2 free months and a discounted router and then after your trial period or anytime before your 2 years. Hey did you ever sign up for a cell phone and get it free on a 1, 2 or 3 year contract and tried to cancel? You are going to pay a hell of a lot more then the $39.99.

I hate people bashing a company that they have no idea about.

@Ross Craig:

I didn't get any free months when I joined. I mainly use my cell phone so I got the 500 minute $15 plan(which they raised). I paid an activation fee and they gave me a basic box to use their service. So wheres the benefit of a 2 year commitment? When I sign a cell phone contract I'm getting a free $300 phone. A basic Vonage adapter was going for like 30 bucks at Walmart--a far cry from a new phone.

This person also joined over the phone and the reps don't tell you about any disconnect fees or 2 year commitments. I can also attest to the fact there were no ToS in the Vonage box. The only thing it had was an adapter with connection directions. I still have my original orange Vonage box and theres no ToS in it.

Even if the terms are included in the box now it doesn't matter. When they mail you the box your already committed. You can try to return the box the next day and they still charge the disconnect fee. Horror stories are all over the web how they also try to stall in giving you an RMA number as to push you over 30 days to charge for the equipment as well. It's not hard considering the 30 days start when you join, not when you actually receive the equipment.

These SOBs wouldn't even honor the rebate on my router when *I* bought it via Circuit City (obviously a while ago).

The service has been ok though.

So, using the logic of repaying instant rebates companies could choose to give you a LARGE instant rebate for like 100% of the item and say they gave it to you for half price...and then get you with the instant rebate bit when you try to leave them.

I canceled Vonage on 4/9/2009 after 30 months of use. No problems with the service in that time, decided to go with Ooma, buy the equipment and no monthly fees. Required 22 minutes to cancel, 2 to navigate the menus and 20 to say no to all retention offers. Of Course I was out of the 1 yr window for the cancellation fee, etc. But yes, read the TOS and research the on the internet can save a lot of hassles.

I have been using it for over 7 months and did not have any issues so far. I also enjoy calling Italy ~~~~FREE & UNLIMITED~~~~ without paying any long distance charges or buying calling cards~(which I did in the past). Their customer service is not the best but I am able to manage most of the issues online by myself. No offense but I really think that VONAGE rocks....