Cancelling my contract..

kellyb1234

I phoned orange the other day and its £400 to cancel my contract (the phones only worth £100)
But what i was wondering is, could i get out of it penalty free because the VAT rates changed?
Please help i dot have that kind of money and they are handing my contract over to bailiffs.

Annie._2

It wasnt Orange's fault the VAT rate changed. When the VAT rate was reduced, Orange would have passed the benefit onto you.

You committed to a contract, which is a credit agreement and it will need to honoured.

You could try speaking to Orange, they may be able to arrange a repayment plan.

iamcornholio

VAT rise will not help you

If you entered into the contract, then you are obligated to pay for it's minimum term.

Did you not think about whether you had the money or not when you took out the contract?

You will just have to carry on paying untill the end of the minimum term, and then cancel it for free

kellyb1234

I had the money but lost my job due to the company going down the drain.
I now have other bills to pay along with a kid to take care of..
And the money i do having coming in goes straight back out again

nickmack

kellyb1234 wrote: »

I had the money but lost my job due to the company going down the drain.
I now have other bills to pay along with a kid to take care of..
And the money i do having coming in goes straight back out again

I suggest you speak to your network and ask when you'll be able to reduce your tariff.

Also visit the Debt Free Wannabe forum on this board and seek some help about reducing your outgoings.

kellyb1234

Thanks I've already lowered all my payments going out so that i will be able to afford food ect..
Will i be able to use the loo pole that occurred?
I took my contract out like 3 weeks before the terms came into affect!

Fire_Fox

kellyb1234 wrote: »

I had the money but lost my job due to the company going down the drain.
I now have other bills to pay along with a kid to take care of..
And the money i do having coming in goes straight back out again

kellyb1234 wrote: »

Thanks I've already lowered all my payments going out so that i will be able to afford food ect..
Will i be able to use the loo pole that occurred?
I took my contract out like 3 weeks before the terms came into affect!

Orange cannot simply call in the bailiffs, your account will probably go to an in-house debt collection who will write or telephone you. NEVER speak to debt collectors or bailiffs on the telephone as they have a habit of lying to get money out of you. If this ever does go to bailiffs NEVER let a bailiff into your home and NEVER sign anything. They cannot levy on your goods unless you have let them in (open door or window is enough) and signed a 'walking possession'. If you get harassed by telephone this is illegal and can be stopped.

Try not to panic, head over to the Debt-free Wannabe board and check out the template letters plus read all about debt collectors and bailiffs, what they are and are not allowed to do. You should contact any creditor - including your mobile network - in writing to inform them of your change in circumstances and offer token payments of £1 a month.

According to the debt charities CCCS and PayPlan your priority debts are rent/ mortgage and council tax (as you can get evicted or taken to court), food, then after that energy bills. Everybody else should be sent a template letter by recorded delivery. You may also find it helpful to complete a budget planner, press 'format for MSE' and post on the DFW board for advice and support - they are really friendly and knowledgeable:
http://www.makesenseofcards.com/soacalc.html

And something to make you giggle!
http://forums.moneysavingexpert.com/showthread.html?t=741653

iamcornholio

The main thing to always remember is that Bailiffs can only be involved after the case has been to court and then only if repayments ordered by the court are not met.

Before any court action (which wil be very unlikely for a long, long time), the only recourse is for the debt to be passed to a firm of debt colectors who have absolutely no power and no rights - you tell just them politely to do one.

Talk to Orange nicely ... perhaps not the robot who answers the phone initially, but someone with a bit more nouse and higher up the chain who may actually care. Google for contact details for the Chief Execs Office.

£400 is alot of money for them, so they may not let that go too easily, but may agree to lower the line rental or extend the contract to make payments easier.

Check out (and suggest to Orange) the Orange 5 contract - £5 per month for 36 months with 50 minutes and 50 texts. Then they will get near as damit their £400 over three years (and may get some extra income from you rather than nothing at all - suggest this to them too), and you get to keep a mobile phone and a good credit rating.

DarkConvict

As above, you can't cancel to VAT, you agree to a price + VAT. So vat changes do not affect your contract.

You are in the long line of people who have lost jobs and have a pricey mobile contract still on going. Like gym membership you can't just cancel these as you feel free.

My advice would be to try and get an old cheap phone, and sell your current phone to at least pay for some of your contract length. Ask orange if they have a hardship team for those who lost there jobs and see if they will drop you down to the bare basic package. Your initial phone cost is subsided by the line rental, phones devalue quickly, so they can't just wipe of the contract due to current phone value.

p.s. Mobiles are service agreements, not credit agreements.