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Merged: Set up Fee & Rounding Up Lark

glloyd
Rising Star
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Registered: ‎06-04-2007

Merged: Set up Fee & Rounding Up Lark

Why are we charged a 5p set up fee when the tariff list says "Set up fee 4.5p"?
50 REPLIES 50
HPsauce
Rising Star
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Registered: ‎02-02-2008

Re: Set up fee

Rounding? VAT?
glloyd
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Registered: ‎06-04-2007

Re: Set up fee

If it's rounding then it's 5p and not 4.5p and mis selling.
paulby
Grafter
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Registered: ‎26-07-2007

Re: Set up fee

You are charged 4.5p.  The total for call and set up is then rounded up.
From this page:
Quote
Calls are charged for a minimum one minute duration
Call durations are then rounded up to the next minute
A setup charge of 4.5p is added to the charge
The final total is rounded up to the next whole pence.

So, for example a 4 minute chargeable call would be:
4 x 3.5p +4.5p = 18.5p rounded up to 19p
A 3 minute call would be
3 x 3.5p + 4.5p = 15p
glloyd
Rising Star
Posts: 1,670
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Registered: ‎06-04-2007

Re: Set up fee

Right lets look at it this way:-
I made a 2 minute 0845 call - 2 x 2p = 4p call charge shown 9p that's 5p for set up.
I made a 3 minute 0845 call - 3 x 2p = 6p call charge shown 11p that again is 5p set up charge.
It may not sound much but all those half P's add up. It's all very well and acceptable to round up the final total of all calls at the end of the month but not on for each call because it distorts the true cost of the call.
James
Grafter
Posts: 21,036
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Registered: ‎04-04-2007

Re: Set up fee

Hi George,
Lets look at it this way:
Call 1 = (2*2)+4.5 = 8.5p, rounded up giving 9p.
Call 2 = (3*2)+4.5p = 10.5p, rounded up giving 11p.
It;s the total call charge that is rounded up, not the actual setup fee itself.
glloyd
Rising Star
Posts: 1,670
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Registered: ‎06-04-2007

Re: Set up fee

Which ever way you like to put it, in my examples you are charging 5p set up charge. Why are each call rounded up instead of the final total at the end of the month? Call times are already rounded up to the full minutes. All this rounding up distorts the true cost of calls.
itsme
Grafter
Posts: 5,924
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Registered: ‎07-04-2007

Re: Set up fee

Believe BT round up to the half pence for each call exclusive of VAT.
James
Grafter
Posts: 21,036
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Registered: ‎04-04-2007

Re: Set up fee

It's the way the Product is designed.  It is designed to round up calls the nearest minute and to round up proces to the nearest penny.
itsme
Grafter
Posts: 5,924
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Registered: ‎07-04-2007

Re: Set up fee

Not hard to make it round to the half pence, which is what BT does.
James
Grafter
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Registered: ‎04-04-2007

Re: Set up fee

Perhaps not, but we're not BT and it isn't the way that our product was designed.
glloyd
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Registered: ‎06-04-2007

Re: Set up fee

Then when doing comparisons all this rounding up should be shown otherwise the comparisons are not accurate and misleading.
Anotherone
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Registered: ‎31-08-2007

Re: Set up fee

Quote from: itsme
Not hard to make it round to the half pence, which is what BT does.

Not any more I believe. Everyone (main providers) are rounding up to the nearest penny, without double checking. BT, Talktalk, OneTel etc.
glloyd
Rising Star
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Registered: ‎06-04-2007

Re: Set up fee

If the cost of the call is rounded up to the nearest minute and then the cost of the call is rounded up to the nearest penny the the set up fee becomes 5p and not 4.5p. There is no way, no matter which way you work it out, can you pay 4.5p set up fee so it is miss selling.
On the face of it it seems a small amount but if all those half P's plus the rounded up of minutes are added up over thousands of calls it's a heck of a lot of money.
itsme
Grafter
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Registered: ‎07-04-2007

Re: Set up fee

Quote from: Anotherone
Not any more I believe. Everyone (main providers) are rounding up to the nearest penny, without double checking. BT, Talktalk, OneTel etc.

Price list
Quote
Call Charge Rounding - Light User Scheme,
and BT Standard Rate Customers -
VAT Exclusive Billing
Each call charge will be rounded up to half a penny, except for
calls to Number Translation Services (NTS) which will be
rounded up to a tenth of a penny. Calls to mobiles using NTS
will be rounded up to half a penny. Fixed Fee prices where
duration charges do not apply will be rounded up to a tenth of
a penny. The total call bill will then be rounded up to the next
whole penny before VAT is added. VAT will be calculated up to
the next whole penny