Confused over an O2 Credit?????

Simon83

Just checked my bill on the unbilled summery to see what i've spent so far and i noticed this

Other Charges & Credits
Promotional Credit Non Vatable Subs :20 Aug 2006 -102.13


what does this mean?

Should I question this or not? if it's a mistake then i don't want them to no? or does it actually mean something?

cantcope

Looks like a line rental refund.... how much do you pay per month? If its £35 ish? it could very well be 6 months half price refund although o2 usually send out cheques for this.

Simon83

my line rental should be £25 a month as was agreed, but they put this through at £35, so they was going to amend this.

but this is my 1st month on this new tariff so i havn't been charged as of yet untill 18th september.

But shouldn't it be £120 sub then?

cantcope

Hmm not sure. Maybe you should just call them.... otherwise if it is an error it could bite you on the bum later on.

fonesaver

The credit is correct. It represents £120 inc VAT.

The reason for the credit being only £102.13 is that the credit amount is taken off your bill amount excluding VAT prior to VAT being added to your bill at the end.

Therefore for example to get a discount of £10 off your bill you only need a credit of £8.51.

Weird but true:)

Simon83

Ahh I see, thanks alot mate.

So does that mean that this credit will stay and be used each month for the bill. then after its used the amount will be deducted from bank. so what i mean i wont pay anything untill the credit is used then i'll pay the full £35 from my bank.

i would of hoped they would of just amended this and charge me the £25 line rental. i dont want to be payin £35 out of my bank once the credit has used.

is this how this works?

fonesaver

Yes the credit is applied to the account and will reduce each month until it is used up by your line rental and call charges.