MagicJack "Custom" Number Add-On Charges Internet

After 2-1/2 years of phone service, the MagicJack phone service decided to completely disable my phone because they required a "renewal fee" to continue my "custom" phone number service.  But when I signed up with the MagicJack service 2-1/2 years ago, there wasn't a "renewal" fee specified for the next 6 years I was pre-paying for: my phone service was suppose to be prepaid until the year 2015.  Now in June 2012, the MagicJack service is stating that the phone was "expired" in Dec 2010 (which is 1 year after the initial startup of the MagicJack service).  I did not, nor would have I, sign up for a phone service that required a pre-payment for the 6 years of "service" and would also be looking for a "renewal" fee annually to use a "custom" number.  When I contacted their online customer service to question them on why they would discontinue my phone service 2-1/2 years into the 6 year contract, here is what transpired:

All operators are currently assisting others. Thanks for your patience. An operator will be with you shortly.
You are now chatting with 'Damian'
Your Issue ID for this chat is LTK554077371777X
Damian: Hello, how may I help you?
James: Why did my phone line become inactive when it doesn't renew until 2015?
Damian: Let me assist you with that.
Damian: May I ask if ###-###-####, is your magicJack phone number?
James: yes
Damian: Please wait while I check that for you
Damian: Thank you for waiting.
As I have checked in here, your Custom number has expired already. Please log on to your account to renew your number.
Damian: http://my.magicjack.com
James: It doesn't renew.
Damian: Please allow me to guide you.
Damian: May I know if you are on your account right now?
James: yes
James: My "Custom" number does NOT have a renewal....
Damian: Please be reminded that a custom number has an annual fee of $3 a year, James.
James: No. It did not back in 2009 when I selected a "custom" number...
Damian: I can see here that the (###) ###-#### is a custom number, James.
James: Yes. When I signed up with MagicJack in 2009 there was a 1 time fee to select your own number which I paid back then. I have not been under any obligation to pay anything else until 2015 when this thing renews...
James: The phone# has been in use since 2009 until today.
Damian: Thank you for the information.
However, there is actually an annual fee for a custom number and please do add 2 years renewal for the custom number.
James: I do NOT have a renewal for my number.
James: My account page says my phone number "expired" back in Dec 2010, but it didn't because I don't have any annual renewal fee for this account...
Damian: Yes, that is correct that the phone number is expireed, please do add 2 years for it to be able to make calls once more.
James: Do you understand english?
Damian: I'm sorry?
James: If my phone "expired" back in Dec 2010, why have I been using my phone?
Damian: As I have explained, that is only for the number and you were given a chance to use the number until today for the renewal.
James: There was a 1 time fee when I signed up for MagicJack back in 2009. I prepaid this account until the year 2015...
Damian: Yes, that was explained as well that the renewal plan is only for the renewal of the device and not for the phone number.
James: Are you saying that you have to pay for the device, pay to keep the device active, and pay a separate fee to keep any phone# active also?
Damian: Yes, you are entirely correct, James.
Damian: $3 for your custom number and $29.95 for a year of the device.
James: Why have I not paid anything since Dec 2009 when I activated the MagicJack in the first place then?
Damian: Yes, since the number was given grace period until today.
James: My original price was not $29.9
James: Do you have a supervisor?
Damian: That is the price of the original magicJack.
Damian: We do.
James: Thanks. Please forward this transcript to the supervisor so I can speak to them.
Damian: Please allow me to inform you first that the same information will be given by our supervisor if I transfer you now.
James: Bear in mind I have had a MagicJack before it instituted the "annual" renewal fee...
Damian: Yes, if you mean the auto renewal of the device, correct?
Damian: However, that is only applied to the device and not for the phone number, James.
James: What good is this device without a phone#???? You've lost me...
Damian: Since you have chosen a premium number(Custom). There is an additional annual fee which is $3 only a year.
James: Can I use my device with my prepaid money I paid?
James: Can I just have a real number that is not a "custom" number?
Damian: May I verify if you mean a phone card?
James: No. Just a phone#...
James: What is a phone card?
Damian: Yes, you can change your number anytime on your account for a US number, James which has no annual fees.
Damian: A phone card is an International minute card.
James: I didn't sign up for a $3 per year phone#. And yes, at one time I did buy International minutes for the MagicJack account which is (hopefully) still there.
Damian: Since you have a custom number which you have bough for $10 when you registered the device, there is an annual fee of $3 for it.
For the international minutes, please be reminded that it will expire after 6 months from purchase.
James: Can you switch my number to a NON-CUSTOM number?
James: I don't like the number anyhow. Bill collectors keep calling looking for someone I have no idea who it is...
Damian: Yes, you can do that today, James.
Please click on the link and add a US number to your magicJack.
Damian: http://my.magicjack.com
James: Ok. That just takes me to the same page I was on before to sign up for more...
Damian: Please click on the phone numbers tab.
Damian: Then click on the Add a number tab on the next page.
James: So MagicJack wants to charge me again?
Damian: The fee to change your number is $10 for a US number, $20 for a Canadian number and $20 for a US Vanity number.
James: So the only option is to pay $3 annual fee to renew a number that expired 2 years ago (that I've been using), or option#2 is to change my phone# for a 1 time fee of $10?
Damian: Yes, you are correct, James.
Damian: $10 only for today for a new number.
Damian: US number.
James: Boy. I can't wait to eliminate MagicJack from my life.
Damian: I am sorry to hear that, James.
Please be reminded that it is only $3 in a year.
James: But when I signed up with magicJack, it was a 1 time fee to select that nasty "custom" number.
James: I HATE that custom number...
Damian: I am sorry to hear that as well.
There might have been a reminder before the purchase was done for the custom number and might have been forgotten due to the time.
Damian: Please allow me to advise you to renew the phone number.
James: I'm going to go back to 2009 and review the information which I have.
Damian: Yes, you can do that, James.
For the moment, please allow me to guide you in renewing your phone number, is that okay?

Then, after paying for 2 years of "Custom" phone# service...

James: I can't tell if it has processed or not?
Damian: Please wait while I check that for you
Damian: Thank you for waiting, James.
Yes, it did went through.
Damian: On the dial pad click on Menu > Advanced Users > Restart. Your magicJack dialpad will restart.
Try to place a call afterwards.
James: When is "afterwards?
Damian: I mean after restarting the magicJack dial pad.
Damian: See if you can make a call already.
James: No. Still doesn't work...
James: Retrying...
Damian: Please click the link to download and run the magicJack upgrade:
Damian: http://upgrades.magicjack.com/upgrade/magicJackSetup.exe
Damian: Please inform me when the upgrade is complete.
 
Damian: Please take yuour time.
James: ok. working now.
Damian: May I know if you can make a call already, James?
James: Yes. A call went out...
Damian: That's great, James.
Thank you for your patience.
Damian: Is there anything else I may help you with today?
Damian: We would love you to stay with us, James, but we do respect your opinion as well.
James: I definitely have an opinion of MagicJack now...
 
The moral of this story...  Be careful of MagicJack...   They are apparently "dialing for dollars" now.