Help save us money on an 18 month O2 contract?

mattcoxonline

My girlfriend has been an O2 customer for 6 years and things didn't look like that would change - so she took out a 24 month contract 6 months ago, complete with a shiny new iPhone.

Due to unforeseen circumstances (I basically got a job offer in Norway, so we're moving abroad), she needs to cancel the contract as she'll no longer be using it.

We realise that once you've signed a contract - that's it. However, to break the contract, O2 are asking for £810 (which, divided by 18 months, equates to £45 per month - the price of her monthly contract). This is an obscene amount to pay for in one go - especially since we need all the money we can right now.

O2 have suggested that she take the phone with her, pay the £45 per month contract and just pay for any additional calls or texts she makes on top of this. At international call rates of 30p per minute, 14p per minute to receive a call and 12 pence per text - this is pretty expensive - one can only imagine what any roaming data usage would be!

She has insurance with a third-party on her phone, but we've not yet been able to find out whether that covers an event such as this - but presuming it doesn't, does anyone have any advice of how we can escape this contract without paying such a large amount?

It's a shame that a loyal customer of 6 years can't get some discount on this £800 cost.

TLDR: Moving abroad, trying to cancel 18 month O2 contract - advice needed.

[Deleted User]

How much would you get by selling the iPhone? Can you drop the contract down to a lower amount after a certain number of months?

KingElvis

Do you know anyone trustworthy enough who would be willing to "take over" the contract?

Saying that, 45pm for a phone seems like huge cash to me :eek:

drbesty

Either sell the iPhone and put the proceeds towards paying off the contract, continue to pay the monthly line rental or just leave the country and forget about. You signed a contract and agreed to pay for a service over a fixed term, this funded your shiny iPhone

Oscar_The_Grouch

After 9 months, you can reduce your tariff by 1 bracket. You can then reduce by 1 bracket each following month until you get to the minimum for the iPhone. The O2 site is down for some reason, but I believe their lowest 3GS tariff is £30.

You're 6 months in, so you need to do 3 months at £45, then 1 at £40, 1 at £35 and then the remainder at £30.

So thats a total of £270 for the remainder of "year 1" then £360 for the whole of "year 2". Total cost £630. It's not a great saving, but it's better than nothing.

What I'd suggest you do is change the answerphone message to "Hi I'm out of the UK for an extended period, so please do not send any texts to it or leave a message. If you do, I won't be able to reply. Thank you". Get the iPhone unlocked and take it with you.

Get a "sim only" contract in Norway. I don't know their prices, but let's presume you can get something for £15. If that's the case then if you add 18 months at £15 (£270) to the reduced cost of your O2 contract (£630), you come to £900 - only £90 more than O2 were asking for. You also have the advantage of a UK sim to put back in the phone when you come back for visits to family, holidays and the like, as well as the ability to change the answerphone message to "I'm out of the country and can be contacted on...." as well as the fact that you will be paying the money over 18 months rather than trying to find a large sum all in one go.

Hope this helps.

mattcoxonline

ringo_24601 wrote: »

How much would you get by selling the iPhone? Can you drop the contract down to a lower amount after a certain number of months?

O2 have said that every 6 months they'll be able to downgrade the contract to the tier beneath that. This means that instead of paying £810, it would total £720 after 18 months* (minus whatever charges may have been incurred in the meantime for roaming charges)

* This works out at:
1st - 6th month on £45 = £270
7th - 12th month on £40 = £240
13th - 18th month on £35 = £210

KingElvis wrote: »

Do you know anyone trustworthy enough who would be willing to "take over" the contract?

£45 per month is quite a lot to take on. However, it's possible that someone may wish to do that. In the US, this process is possible and is called 'Transfer of Liability'. Unless anyone can correct me - I dont think that's an option in the UK.

The phone contract would have to remain under my girlfriend's name, but you can have someone else paying it. However, their failure to pay means my girlfriend would be liable - as it's under her name.

I don't think finding someone to take up the contract would be hard - especially since they'd receive an iPhone too - but it's just finding someone that's trustworthy. So, this is one of the 'last resort' options.

drbesty wrote: »

Either sell the iPhone and put the proceeds towards paying off the contract, continue to pay the monthly line rental or just leave the country and forget about.

I have to admit that to 'just leave the country' was an option. I mean, the bank account that's funding the contract is going to be closed anyway. However, doesn't this really damage credit ratings should you wish to return?

Oscar_The_Grouch

Matt, your post crossed with mine!

Jon_01

If you're not coming back just leaving would be an option. You'll have a trashed credit file here for 6 years, but if you don't intend returning. . .
You may find that collection agents show up at all the address they can't find for you in the UK, which might be something to consider? People over here may have to prove to them that they aren't you ?