Can you get out of a contract if you can't pay it?

alunp

True scenario:

someone has 450 pound mobile phone debts that can't be paid. same person can no longer use the phone (been locked) until the debts are paid. same person is on a contract phone which will cost £30 or more.

is it possible for that person to get the company (Orange) to get rid of the contract so that the debt doesn't keep climbing by 30 per month, while arranging some way of paying the current debt off to them?

pennypincher_2

Orange will discuss terms to clear the balance,the account holder should do this sooner rather than later.Needless to say the phone service is likely to be suspended.

alunp

penny/pincher wrote:

Orange will discuss terms to clear the balance,the account holder should do this sooner rather than later.Needless to say the phone service is likely to be suspended.

Already has been suspended. But given that its been suspended, can the account holder stop paying the monthly contract fee given that its 30 per month for a frozen account?

Reading Martin's stuff, at the very least one can switch to the lowest tariff after 6 months, though that is 3 months away yet.

I just wondered if they'd ensure the debt wasn't climbing by scrapping the contract and simply insisting on payment of current debt by arrangement.

Woby_Tide

£450 in 3 months? crikey
can but ask Orange to put a freeze on the contract, not sure they will cancel it just put it on hold till debt is paid, then unfreeze it and it runs it's course.

Another option is to sell the handset to put money received towards the debt.

deutzkiwi

alunp wrote:

Already has been suspended. But given that its been suspended, can the account holder stop paying the monthly contract fee given that its 30 per month for a frozen account?

I doubt it. In the contract Orange agreed to provide the service, and the customer agreed to pay X amount each month. S/he hasnt kept up their side, so why should Orange.

Steve_xx

You could opt to pay the contract off early. If you did that then you would get the remaining payents reduced by 5% with Orange. However, that would not be entirely satisfactory since, as you say, you could reduce to a lower tariff at the 6th month. But you could point this out to Orange and it might be a possible point for negotiation.

Really you will need to negotiate directly with Orange and see if there might be a compromise to be reached.

I have to say that it is unlikely that Orange will scrap the contract in its entirety. It would be damaging to your credit rating if you did not reach an amicable settlement with Orange.

alunp

Steve_xx wrote:

You could opt to pay the contract off early. If you did that then you would get the remaining payents reduced by 5% with Orange. However, that would not be entirely satisfactory since, as you say, you could reduce to a lower tariff at the 6th month. But you could point this out to Orange and it might be a possible point for negotiation.

Really you will need to negotiate directly with Orange and see if there might be a compromise to be reached.

I have to say that it is unlikely that Orange will scrap the contract in its entirety. It would be damaging to your credit rating if you did not reach an amicable settlement with Orange.

The thing is, the person who I'm asking on behalf of, their credit rating is knackered anyhow.

Thanks for the advice everyone. Good tip about selling the handset too.