Sent to you by Tony via Google Reader:
If you cancel your Vonage service before the end of the first year, you're going to need to pay $70 for Vonage's proprietary router on top of a $29.95 cancellation fee. Don't even try to return the soon-to-be useless router because that's simply not an option.
Reader Kevin writes:
Here's the deal:
When you sign up for Vonage they offer you a "Rebate" on their little proprietary device. (needed for service) What they don't tell you, is that if you cancel, they CHARGE YOU THE REBATE! That's right, they charge you the rebate back! So it's not a rebate, it's a temporarily delayed fee! I asked if I could return the equipment, they said no, I had no choice but to pay the $70! In addition, YOU MUST PAY A CANCELLATION FEE! So, I got charged a $29.95 cancellation fee, plus a $70 rebate fee!
Sounds like the folks at Vonage need to look up the word "Rebate."
Other parts of their website contain a small print disclaimer, but what about parts of the order that were done over the phone? The Vonage rep said, "They didn't tell you?...They should have told you."
I've filed complaints with the FBI, BBB, etc, as have hundreds of others. People should be warned!
Vonage does disclose the terms on their website with the following: "Instant Rebate condition: If you cancel your Vonage service after the Money Back Guarantee period and within 1 year of activating service, your account will be charged for the remaining balance of the equipment."
Vonage has a right to protect themselves from grabby customers looking to cash the instant rebate and flip their equipment, but they should give customers the option of returning their routers—especially since they sell refurbished routers for the cost of new ones.