Warehouse Mobile - Is the credit expiring logic breaching consumer guarantees act?

Forums › New Zealand Mobile and Wireless › Warehouse Mobile - Is the credit expiring logic breaching consumer guarantees act?

zyo

510 posts

Ultimate Geek

#214875 1-Jun-2017 10:09

I just joined WM a week ago, topped 10 dollars then realize any spending (purchasing data packages, casual calling/txting) uses your latest top up instead of what's about to expire.

This is rather a nasty surprise that goes against the norm of what NZ carriers usually operate.

I am wondering if this is in some way breaching the fair trade act or consumer guarantees act by deception and "stealing" unused credits?

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cadman

1014 posts

Uber Geek
Inactive user

#1792964 1-Jun-2017 10:46

Against the Fair Trading of Consumer Guarantees Acts? No.

They all do exactly this on pre-pay - just over longer periods. Your credit is a liability on their books so they don't want to carry it indefinitely. Although 1 month is a bit of a piss-take it's about encouraging you to spend over the minimum by forcing you to use it all and top up early.

kobiak

1578 posts

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Trusted

#1792969 1-Jun-2017 10:50

I'm not sure how can you miss that and how it's misleading

helping others at evgenyk.nz

dickytim

2514 posts

Uber Geek
Inactive user

#1792972 1-Jun-2017 10:56

Wow that is really poor form!

What a complete rip off!

zyo

510 posts

Ultimate Geek

#1792973 1-Jun-2017 10:57

kobiak:

I'm not sure how can you miss that and how it's misleading

Please re-read my original post.

I understand credit expires 31 days after it's loaded, what's misleading is, if you have 3 dollars remaining on your account with an expiry date of tomorrow and you top up your account with 10 dollars, whatever you use comes out of the 10 dollars you just topped up instead of the 3 dollars that's about to expire.

With the data/text/minute package being at 4 dollars each and minimal top up at 10 dollars, you will never be able to use the remaining 1 dollar (13 - 4 X 3 = 1). So obviously WM's plan is designed so there is no way to spend your remaining balance with the closest expiry date.

MikeAqua

6820 posts

Uber Geek

#1793027 1-Jun-2017 12:01

Seems unfair. Surely the data should be rotated so oldest is used first?

I think that's what reasonable person would do/expect.

Mike

tripp

3672 posts

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Lifetime subscriber

#1793035 1-Jun-2017 12:17

I would also expect the oldest credit to be used first. i.e. So if I topped up $100 on monday 29/05/2017 then topped up $10 on wednesday 31/05/2017 I would expect the top up from Monday 29th to be used first.

I would be sending them an email to confirm this is how it should be working etc

cadman

1014 posts

Uber Geek
Inactive user

#1793039 1-Jun-2017 12:24

zyo:

Please re-read my original post.

I understand credit expires 31 days after it's loaded, what's misleading is, if you have 3 dollars remaining on your account with an expiry date of tomorrow and you top up your account with 10 dollars, whatever you use comes out of the 10 dollars you just topped up instead of the 3 dollars that's about to expire.

With the data/text/minute package being at 4 dollars each and minimal top up at 10 dollars, you will never be able to use the remaining 1 dollar (13 - 4 X 3 = 1). So obviously WM's plan is designed so there is no way to spend your remaining balance with the closest expiry date.

OK so I also misread your post. That does seem unreasonable. That's the way Prezzycard make a lot of their money too I'm sure - you can't top up an existing card - so you have to buy a new one at $5.95 and unless you know exactly what you'll be spending it on, you'll likely have a residual balance you can't use too.

AidanS

458 posts

Ultimate Geek

#1795798 7-Jun-2017 10:32

I've just been caught out by this 31 day expiry after using them for a couple months for a secondary phone.

Seems a bit ridiculous 1) You can't auto renew packs

2) Credit expires after 31 days

3) New credit is used before old credit.

It seems their low cost business model is complimented with borderline scammy tactics with their expiration rules...

When you topup online there's nothing that says this credit will expire in 31 days either.

cadman

1014 posts

Uber Geek
Inactive user

#1795806 7-Jun-2017 10:42

AidanS:

3) New credit is used before old credit.

That alone is reason enough to ditch them.

sbiddle

30853 posts

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Biddle Corp

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#1795812 7-Jun-2017 10:56

I'm not sure there is anything they're doing that goes as far as breaching the FTA / CGA. They make it very clear all credit expires after 31 days.

Whether this is a good model or ethical is another question entirely - but it's the pricing model they've chosen, and when you're targeting a very small user base that are very price conscious with a very low margin product then every $ counts.