- Report: #1375628
Complaint Review: Nextiva - Nationwide
Reported By:
business client -
Port Washington, New York, USA
Submitted:
Updated:
-
Author Confirmed
Why?
Nextiva
Nationwide, USA
Web:
www.nextiva.com
Categories:
Business Rating:
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Nextiva Illegal overcharging of sales tax and excessive fees amounting to over 40% of invoices Scottsdale Nationwide, Internet, NY
We changed our VOIP phone and fax service provider to Nextiva when they quoted us what appeared to be a great deal. ALthough we had trouble from the start we persevered and got things sort of worked out after a couple of months. Our 1st invoice showed fees of all kinds that weren't on our previous provider's or on Verizon's invoices. In addition, I noticed that the sales tax seemed very high. I thought they were taxing the fees they were adding. No, they provided some lame excuse about even more fees being part of sales tax, which is in direct violation of NYS law. They refused to yield from taxing us at over 10% (our tax rate should be 8.625%). We complained that they added over 40% in fees and taxes to our previously agreed to price. AGain, we gave Nextiva the opportunity to correct this, but they refused.
What's more, they were going to provide us with two phones for free and no contract. Just month to month. Later that week, they called to advise we could get 2 free phones IF we signed a 2 year agreement. AS we needed at least 3 phones and 4 would make things easier, we took them up on it. Only to find out that they only shipped two phones and that the 2 year areement for 2 phones was the same exact deal we were given without having to sign a contract. I think they enticed us with a bogus offer to get us to sign a lengthy agreement where we got nothing out of the deal. The added a line and gave us one more free phone. For an additional $25 per month of course. Nevertheless, we figured in the long run it wouldn't matter because we didn't plan on switching again.
Well, so much for that thought. When we shoed Nextive comparable invoices from two other VOIP vendors we used, they refused to reduce eithe r the taxes which are illegal, or the excessive (and in some cases redundant) fees added on. As stated, these fees amount to over 40% of our total invoice, with our invoice much higher than we were originally quoted.
We already filed a claim with the NYS Public Service commission. Next is NYS department of taxation and then the federal public service commission and the FCC. I find it hard to imagine that this company has not yet been served with a class action sut or fined heavily for willfully overcharging sales tax and defrauding the public.
DO NOT USE NEXTIVA. Don't get fooled or believe their lies. We will be switching providers and I fully expect to be sued for "breaking" the contract they already broke on day one.
2 Updates & Rebuttals
Nextiva Lowered their invoices!!!
#2Author of original report
Fri, June 02, 2017
After days of emails and phone calls back and forth, Nextiva agreed to lower their pricing, so that we would pay a grand total of what we expected to pay. They have sent me a new contract to sign, which includes all of the services we expected, abd their internal pricing has either been lowered or credited so that the fees and taxes don't matter.
I was told that they are looking into this internally but at this time can't reduce these fees and tax. So this is what they were able to do given current Corporate guidelines of Nextiva. I have decided to stay with Nextiva and will sign the new contract for the balance of 2 years.
UPDATE on Nextiva
#3Author of original report
Sun, May 28, 2017
I beleive in fairness. Even though I am angry, I wish to advise that Nextiva has contacted me, trying to work this out. Unfortunately they continue to stick to their misinformation and wrong answers, inssisting that they are charging the legitimate sales tax, while not disagreeing with the amount charged, wwhich is mind boggling. They also misunderstood the percentage, claiming it to be 30% not 40% (not that it matters much). They didn't read properly. I stated that they added over 40% to the base invoice in fees and taxes which is correct.
You can do your own math and decide for yourself. Our base invoice was $85.50. Our total invoice was $122.31. This much is not contested by Nextiva. If you take $85.80 and multiply that by 40% ($34.32) and add them, the total is $120.12. As our invoice is greater than this amount, they are have added in excess of 40% to our base invoice. Precisely what I stated.
Nextiva incorrectly calculated the fees and taxes as a percentage of the total invoice, which is working backwards and yields an incorrect and misleading number. It is an easy mistake to make for those unfamiliar with businesss accounting.
Amazingly, they are still holding on to the statement that their sales tax figure is correct, while not denying the percentage of 10% or more. It boggles the mind.
Let me please say this. Nextiva should be commended in their attempts to soothe an unhappy customer. I have been contacted by several people, including someone from Nextiva reching out to me about my post here in ripoffreport.com. Unfortunately they refuse to see the reality of their illegal taxation (confirmed by NYS tax dept.) and excessive fees as shown to them in the invoices I sent them from other VOIP providers. I did offer to not pursue this further with other government agencies if they allow us to part company in a non combative way. In other words, if they don't try to enforce their "contract" and they port over the numbers without a fight, we will not contact the other state and federal agencies which would cause them problems even if they had done nothing wrong. They have, but at this point I have spent way too many hours dealing with this and other issues with Nextiva. I just want it over at this point.
It reminds me of an old Marx Brothers film where Groucho says "Who are you going to beleive, me or your own eyes?"
