Results 1 to 27 of 27
  1. #1
    Join Date
    Jun 2007
    Posts
    83

    * Can a Hosting Company charge me for unused period? Legal in US?

    I'm with a dedicated servers company with a simple TOS

    About: Termination and Suspension:
    Account suspension may occur if payment is not received by 5th day of a new service period. Account
    Termination may occur if payment is not received by 7th day of a new service period.
    Ok, everything normal, i have the same automated policy for my customers.

    I let the termination in the 7th day for my customer too because the customer never paid the renewal.

    But six months later and after some additional services has been bought and correctly renewed, month to month, etc i keep receiving interest charges on that invoice for a service already terminated and for a period i never used, only 5 days were used because was auto-terminated in the 7th day.

    I keep ignoring that emails because the service was terminated after all.

    Three months ago i open a ticket with billing to solve that issue but they say we should have cancelled the server at least 2 days after the due date.

    I just ignore that because i don't think fair or legal? pay a full month of a service terminated more 6 months of interest.

    Now the hosting company are sending me some menacing emails, if i don't pay that old invoices they will proceed to suspend active products:
    Failure to make payment, or discuss this issue with us, will result in account suspension, which we would like to avoid. This may mean other service(s) on the account will be suspended as well, and/or that future orders may not be processed---until the overdue/unpaid invoice(s) are resolved.
    Should i really pay for a service i never received? Or should the hosting company charge only for the 7 days like any Energy, Gas or Telephone company would do?

    Regards

  2. #2
    Join Date
    Aug 2004
    Location
    Indiana
    Posts
    71
    Ok so what I understand is that your customer never paid the renewal and now your provider is threatening to suspend services unless you pay even though your client never paid the renewal..

    Ok I just want to say that not paying an invoice is not an acceptable way to cancel a service and you are responsible for the bill. If you used any service past the due date you owe it. If you would have canceled the service before an invoice was due you would not. You don't get a partial month for free just because you have seven days grace.

    With my hosting company you have to cancel at least 48 hours before the due date or you will owe me the money + late fee + collections fee if sent to an outside collections company.

  3. #3
    Join Date
    May 2011
    Location
    Columbus, Ohio
    Posts
    270
    Energy, Gas, and Telephone companies (in the US), are public utilities.

    Web hosting is not. The company you sign up with can clearly state that the bill in one month increment minimum, so any part of that used you pay for the whole month.

    There are a lot of services out there that charge a minimum, ie. repair companies. Some say time is billed in 15 minute increments, some 30 minute, some an hour. So if you call a place that tells you that you pay in 30 minute increments, and it only takes 5 minutes, you are paying for all 30 minutes (better think of some questions to ask to fill the time ;-)

    My advise, read over the entire TOS, and pay up. Make sure YOUR tos to your customers covers at minimum the terms you are held to. Yeah it will suck you have to pay that month while you try to get it from your customer, however this is the risk you take in running a business.

    Another way to think about it... If you owned a retail store. You rent space from someone for your store. A customer breaks you window. Your landlord has to come replace it. You as the tenant are going to have to pay for it. Yes, you have to option to try to collect from the person that actually broke the window, but you as the tenant are responsible back to who you are getting service from. (And thus the insurance companies were born... LOL)

  4. #4
    Join Date
    Nov 2008
    Location
    Florida, U.S
    Posts
    1,686
    First of all, stop ignoring your provider.. It's very disrespectful and rude... You didn't follow the proper cancellation procedures, so you have to pay the bill, period. They are well within their rights to cancel any active services you currently have, if you don't want to pay your outstanding invoice.
    HOSTLEET.COM, LLC - Elite Website Hosting Since 2008!
    Fast Reliable Affordable Secure Friendly & Courteous
    RISK-FREE Money Back Guarantee PCI-Compliant Checkout
    U.S.A Based & Operated Read Through Our Most F.A.Q's!

  5. #5
    Join Date
    Jun 2007
    Posts
    83
    The company you sign up with can clearly state that the bill in one month increment minimum.
    Ok, you seem to have the point here.

    I charge for programming in increments too, but it's a manual, personal process, the hosting instead, is an automated process, they don't have any cost associated to the automatic-termination (Or maybe a minimum opportunity cost) (It was a vps by the way).

    Maybe it's time to change to a provider with more flexible cancellations procedures, maybe a 7th day maximum cancellation it's ok, the same day like the termination. Seems more Fair.

    Regards

  6. #6
    Join Date
    Jun 2007
    Posts
    83
    First of all, stop ignoring your provider.. It's very disrespectful and rude...
    Rude is start managing clients like this, because now i have to suspend an account on the 30th day, and terminate their services on the 32th day to avoid losing money. If the customer was out of the town or didn't receive emails or had problems with their credit card, sorry "Account Terminated and Files Deleted".

    Like i said a 7th day maximum cancellation, the same day like the termination seems more fair.

  7. #7
    Join Date
    Nov 2008
    Location
    Florida, U.S
    Posts
    1,686
    What you think is fair is irrelevant.. They have their procedures and policies, and you have to follow them. The only one to blame here is you.
    HOSTLEET.COM, LLC - Elite Website Hosting Since 2008!
    Fast Reliable Affordable Secure Friendly & Courteous
    RISK-FREE Money Back Guarantee PCI-Compliant Checkout
    U.S.A Based & Operated Read Through Our Most F.A.Q's!

  8. #8
    Join Date
    Jun 2007
    Posts
    83
    Quote Originally Posted by HostLeet View Post
    What you think is fair is irrelevant.. They have their procedures and policies, and you have to follow them. The only one to blame here is you.
    Is not irrelevant at all, i'm a customer who is paying a good amount of money monthly and it's not fair to pay a service i didn't receive, PERIOD.

    No matter what their policies are it will never be fair.

    Anyway i will have to comply with their policies because is not an illegal thing to do, like noted previously and that was my initial question.

    I don't know if you talk to your customers in the same way HostLeet, but iĦm sorry for them if you treat people like this in a friendly conversation.

    Regards

  9. #9
    Join Date
    Feb 2008
    Posts
    335
    Quote Originally Posted by wwwcad View Post
    Rude is start managing clients like this, because now i have to suspend an account on the 30th day, and terminate their services on the 32th day to avoid losing money. If the customer was out of the town or didn't receive emails or had problems with their credit card, sorry "Account Terminated and Files Deleted".

    Like i said a 7th day maximum cancellation, the same day like the termination seems more fair.
    Go for holidays a whole year and stop paying your house rent... them let me know where landlord have droped your things
    WebTuga Hosting - Portuguese Shared, Virtual and Dedicated Web Hosting
    CloudFire WebHosting - European Low Cost Cloud WebHosting

  10. #10
    Join Date
    Nov 2008
    Location
    Florida, U.S
    Posts
    1,686
    Quote Originally Posted by wwwcad View Post
    Is not irrelevant at all, i'm a customer who is paying a good amount of money monthly and it's not fair to pay a service i didn't receive, PERIOD.

    No matter what their policies are it will never be fair.

    Anyway i will have to comply with their policies because is not an illegal thing to do, like noted previously and that was my initial question.

    I don't know if you talk to your customers in the same way HostLeet, but iĦm sorry for them if you treat people like this in a friendly conversation.

    Regards
    I'm sorry if your feelings were hurt by my post.. I'm simply stating the facts as I see them. You didn't follow their procedures and noone else is at fault but you. If you think it's unfair, switch providers, simple as that. This is a public forum... If you don't want people to post and speak their mind, go hide under a rock and don't rant on a public forum.
    HOSTLEET.COM, LLC - Elite Website Hosting Since 2008!
    Fast Reliable Affordable Secure Friendly & Courteous
    RISK-FREE Money Back Guarantee PCI-Compliant Checkout
    U.S.A Based & Operated Read Through Our Most F.A.Q's!

  11. #11
    Join Date
    Jun 2007
    Posts
    83
    Quote Originally Posted by HostLeet View Post
    I'm sorry if your feelings were hurt by my post.. I'm simply stating the facts as I see them. You didn't follow their procedures and noone else is at fault but you. If you think it's unfair, switch providers, simple as that. This is a public forum... If you don't want people to post and speak their mind, go hide under a rock and don't rant on a public forum.
    OK, Nevermind. You're the troll way.

  12. #12
    Join Date
    Nov 2008
    Location
    Florida, U.S
    Posts
    1,686
    Quote Originally Posted by wwwcad View Post
    OK, Nevermind. You're the troll way.
    No troll, just saying it like it is.
    HOSTLEET.COM, LLC - Elite Website Hosting Since 2008!
    Fast Reliable Affordable Secure Friendly & Courteous
    RISK-FREE Money Back Guarantee PCI-Compliant Checkout
    U.S.A Based & Operated Read Through Our Most F.A.Q's!

  13. #13
    Join Date
    May 2011
    Location
    Columbus, Ohio
    Posts
    270
    Quote Originally Posted by wwwcad View Post
    No matter what their policies are it will never be fair.
    The question. Were these policies in place when you signed up? Is there something on their site when signing up where you say you agree to them?

    If I tell you I'm going to charge you $200/hr to program something for you and you sign up and agree to those terms, do you think you can get out of paying it later by saying you don't think my rates are fair?

    If you agree to someones terms, as long as they are legally binding, it IS irrelevant how fair you think they are. I'm assuming no one forced you to sign up with them.

    I'm older, so yeah it is a pet peeve of mine that society now a days sign up for things without knowing all the details, and then late cry foul when it doesn't go their way.

    Consider it a learning experience and move forward, if you continue with the same company, use the learning experience to modify your TOS for you customers to make them liable for the same thing you are. If you choose to go somewhere else, use the experience to double check the complete TOS before signing up.

    (yeah, I know, a lot of companies TOS are not the easiest to read, in fact some seem to contradict themselves in different sections. When in doubt, hire a lawyer to assist in reading theirs and writing yours)

    -Greg

  14. #14
    Join Date
    Oct 2007
    Posts
    4,033
    Well this is a normal policy with most, if not all dedicated server companies.

    If you pass the grace period, you will be charged for a whole month no matter whether you are terminated or not.

    Most providers will not even provide any grace period after your due date.

  15. #15
    Join Date
    Dec 2007
    Location
    Indiana, USA
    Posts
    16,087
    Quote Originally Posted by JLHC View Post
    Most providers will not even provide any grace period after your due date.
    Indeed - most I've worked with require that you submit a cancellation PRIOR to the due date (at least 24 hours, some are as much as 7 to 14 days PRIOR) to avoid being billed for the following month.

    Them being willing to give you 48 hours AFTER your due date to submit a cancellation is going above and beyond, imho.

    Why on earth would you simply ignore the emails and not discuss this with your provider? You certainly could have worked something out a long time ago instead of letting it build up to what it is now.

    All of that aside - if you feel the contract/agreement is not legal then consult an attorney. If your attorney thinks that you have a case then shut your mouth in any form of public venue and speak only through your attorney. It's likely that your attorney will tell you that you have no case, at which point, be careful how much you slander your provider as anything you say against them could ultimately be used against you in a court case against yourself if they chose to pursue that.
    Michael Denney - MDDHosting LLC
    New shared plans for 2016! Check them out!
    Highly Available Shared, Premium, Reseller, and VPS
    http://www.mddhosting.com/

  16. #16
    First off, there is a confusing part on your post.


    Was this a renewal or a new service?
    About: Termination and Suspension:
    Account suspension may occur if payment is not received by 5th day of a new service period. Account
    Termination may occur if payment is not received by 7th day of a new service period.
    If this was an existing service, that they failed to pay the renewal, then you need to change YOUR billing cycle, so that your customers pay 5-10 before your payment is due to the provider.

    If this was a new service, that say NOTHING about a grace period. It says if you don't pay they will terminated it, but if they still provided the service, and they do not offer partial month services, then the FULL month service would be due.

    That is just a fact of business. You should do well to think about your business model, and change your policies, or find a different provider that will work with you a little more.
    The nice thing about facebook, is you can post comments from someone, and no one will know if that person actually said it. - George Washington

  17. #17
    Join Date
    Dec 2007
    Location
    Indiana, USA
    Posts
    16,087
    Quote Originally Posted by VicToMeyeZR View Post
    or find a different provider that will work with you a little more.
    I think the provider would have been likely to work with them if the provider's emails hadn't been ignored. For whatever reason the OP thought that ignoring something = it goes away which is certainly not the way the world and/or business works.
    Michael Denney - MDDHosting LLC
    New shared plans for 2016! Check them out!
    Highly Available Shared, Premium, Reseller, and VPS
    http://www.mddhosting.com/

  18. #18
    Quote Originally Posted by MikeDVB View Post
    I think the provider would have been likely to work with them if the provider's emails hadn't been ignored. For whatever reason the OP thought that ignoring something = it goes away which is certainly not the way the world and/or business works.
    That may very well be true also. Just from reading the replies, I think the OP was a little misunderstood, and what the policy actually stated that he posted...

    The nice thing about facebook, is you can post comments from someone, and no one will know if that person actually said it. - George Washington

  19. #19
    Join Date
    Dec 2007
    Location
    Indiana, USA
    Posts
    16,087
    Quote Originally Posted by VicToMeyeZR View Post
    That may very well be true also. Just from reading the replies, I think the OP was a little misunderstood, and what the policy actually stated that he posted...

    From my understanding - they understood what it meant but thought it was unfair (or) not legal so they felt they didn't need to follow it. I guess this is a learning process for the OP.
    Michael Denney - MDDHosting LLC
    New shared plans for 2016! Check them out!
    Highly Available Shared, Premium, Reseller, and VPS
    http://www.mddhosting.com/

  20. #20
    Join Date
    Feb 2006
    Location
    Kusadasi, Turkey
    Posts
    3,273
    For example, a VPS may have a cPanel license associated with it, which renews on the first day of your payment period. It may also have a virtualization software license associated (some software are licensed per vps), or any other type of monthly license or cost. When you don't pay on the first day, and terminate later and not pay, the provider will be losing money because they automatically renewed the license assuming you would pay. This is why they ask you to inform them prior.

    In general, termination after the due date requires payment. It is fair. It's not fair to not pay and ask for termination one week after the due date.

    I've had problems with providers who requested that I inform them of termination 30 days before the renewal date. Some ask for 2 days prior, and some of them allows instant termination. However no provider with a sustainable business plan will let you terminate after due date and non-payment.

    Shared hosting is easy to cancel, however this is not the case with most VPS and dedicated providers. If I was selling VPS or dedicated servers, I would ideally require 1 day notice in advance, but I wouldn't let people cancel a week into the new service period.
    Fraud Record - Stop Fraud Clients, Report Abusive Customers.
    █ Combine your efforts to fight misbehaving clients.

    HarzemDesign - Highest quality, well designed and carefully coded hosting designs. Not cheap though.
    █ Large and awesome portfolio, just visit and see!

  21. #21
    Join Date
    Jun 2003
    Location
    Las Vegas, NV
    Posts
    842
    Here's something to think about. When most larger hosting providers and datacenters buy bandwidth, their network providers bill them based on 95% billing. The implication of this is that if a customer uses a server for 2 days and uses a lot of bandwidth, the datacenter / host is billed for that bandwidth as if it were used for the entire month - the cost is the same. That's one reason why most providers require notice prior to the end of their billing cycle to cancel.
    Rob Tyree
    Versaweb - DDoS Protected Cloud and Dedicated Server Hosting
    Fiberhub - SAS70 Type-II Colocation in Las Vegas and Seattle

  22. #22
    Join Date
    Feb 2006
    Location
    Kusadasi, Turkey
    Posts
    3,273
    Quote Originally Posted by Rob T View Post
    ... The implication of this is that if a customer uses a server for 2 days and uses a lot of bandwidth ...
    And before OP tells that he didn't use the server, I'd like to add that a provider cannot differentiate between someone who kept using the server after the due date and who didn't. Some clients will say "I barely used it", and there is no line between a used and a not used service. If the operating system is running on the machine and it's connected to the internet, then it uses CPU cycles, a RAM allocation and a daily bandwidth for updates and everything. Maybe even some old DNS entries are still pointing at it, the provider doesn't have to keep track of what is being used and what is not.
    Fraud Record - Stop Fraud Clients, Report Abusive Customers.
    █ Combine your efforts to fight misbehaving clients.

    HarzemDesign - Highest quality, well designed and carefully coded hosting designs. Not cheap though.
    █ Large and awesome portfolio, just visit and see!

  23. #23
    Join Date
    Jun 2007
    Posts
    83
    That is just a fact of business. You should do well to think about your business model, and change your policies, or find a different provider that will work with you a little more.
    Ok, It seems to be the standard in most companies. We have to adjust our policies to stop losing money in new services.

  24. #24
    Join Date
    Dec 2007
    Location
    Indiana, USA
    Posts
    16,087
    Quote Originally Posted by wwwcad View Post
    Ok, It seems to be the standard in most companies. We have to adjust our policies to stop losing money in new services.
    That's probably a good idea.
    Michael Denney - MDDHosting LLC
    New shared plans for 2016! Check them out!
    Highly Available Shared, Premium, Reseller, and VPS
    http://www.mddhosting.com/

  25. #25
    Join Date
    Jan 2011
    Posts
    884
    Another thing to think about is that your provider is in a really tough spot if you ignore their e-mails. Your server/hard drive/data is all there. What if you were just late on a payment for financial/health/unknown reasons and wanted to pay the balance on your account the next day, week, etc? What are they to do if they do not hear from you? They want to provide good service, but they don't want to sit on a server they could be renting out to someone else. It puts them in a really rough spot.

  26. #26
    Join Date
    Apr 2011
    Location
    Washington
    Posts
    324
    Yes if your business is depending on your provider giving you service, then you need to stay in very good communications with them. This issue should have been talked out with a couple days of when you knew what the situation was on your end. Most hosting companies out there will work with their clients, if the clients talk to them and not ignore them. Plus your business life depends on things running, not worth the risk of everything getting turned off over a misunderstanding between parties. You have a problem with the way your provider is handling things once you are staying in good communications with them, then you have the right to move to a new provider.

  27. #27
    I guess the thread starter may have misunderstood the term Account Termination may occur if payment is not received by 7th day of a new service period in the TOS.

    Account termination doesn't mean that your contract with them gets automatically terminated or cancelled when the account (or service) gets terminated. That are two different things.

    Your account got terminated because of non-payment but your contract with them is still valid until the contract gets cancelled by you.

    Tom Tomson
    IP.MN - the fast and easy way to check your IP Number

Similar Threads

  1. hosting company wants to charge me for another year.
    By kimstock in forum Web Hosting
    Replies: 17
    Last Post: 04-02-2011, 03:19 AM
  2. What is the grace period for your dedicated hosting company
    By ceridius in forum Dedicated Server
    Replies: 26
    Last Post: 06-05-2009, 03:51 PM
  3. Legal or Not? Charge from host
    By dynawebd in forum Web Hosting
    Replies: 104
    Last Post: 09-01-2007, 10:03 PM
  4. charge.com charges ? for a simple hosting company
    By munawar555 in forum Running a Web Hosting Business
    Replies: 0
    Last Post: 08-05-2001, 01:26 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •