We purchase a Verizon prepaid phone a couple of months ago and it's been a disaster. The coverage area is very limited and much smaller than the regular service you get with a contract. They tried to not pay us a rebate that came with the purchase from Circuit City.
When you purchase minutes for the phone you only have a 30 day period and then the minutes vanish if not used - they shut my phone off a day early even though it had minutes available. I called customer service and they admitted the phone had been shut off early and would not even send a refund for the minutes they cost me. They said "we don't send out checks" Avoid these thieves like the plague.
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