3 Price Increases - not just VAT

coupleuk

Received a letter today to inform me that my Mobile Broadband 24 Month Contract with 3 is being increased in price from Jan 4th.

They are adding the extra VAT increase of 2.5% which is acceptable.

However, they are increasing the monthly rental price by 56p/month too.

That takes my bill from £15/month to £15.99/month.

I dont think it is fair that 3 can simply increase the price of a Contract part way thru it (though it is in their long but tiny T&Cs).

My package is still £15/month on their website but they claim that they're telling everyone that it will be £15.99 when they enquire - I question that they will actually do that.

I have 3 accounts with 3 and Ive just cancelled a £5/month rolling 1 month contract mobile broadband dongle.

Surely the "Unfair Contract Terms Act" (dont know correct title) should ensure Companies cant hide these price increases within their T&Cs; especially when you have a contract with them.

Paul

Guys_Dad

Arthur Fallowfield in Beyond Our Ken used to reply to any question "The answer lies in the soil"

Well, here in this forum, the equivalent is "The answer lies in the t&c in force at the time you took out the contract". Not so catchy, but true.

So, if the t&c say they can - then they can. Usually, however, there is a get out of jail free card as well that allows you to reject any increases within a set period.

You write "I dont think it is fair that 3 can simply increase the price of a Contract part way thru it (though it is in their long but tiny T&Cs)." Well, check the tiny print further and see if you have a get me out of jail free clause. If not, then you have to live with it.

gjchester

coupleuk wrote: »

Received a letter today to inform me that my Mobile Broadband 24 Month Contract with 3 is being increased in price from Jan 4th.

They are adding the extra VAT increase of 2.5% which is acceptable.

However, they are increasing the monthly rental price by 56p/month too.

That takes my bill from £15/month to £15.99/month.

The T&C state

4.1 We may vary any of the terms of your agreement, including our Packages, on the following basis:


(iii) increase the fixed periodic charges for your Package (if applicable) by an amount which is more than the percentage increase in the Retail Prices Index Figure (or any future equivalent) in any twelve month period.

You can end the agreement for such variations as explained in Section 10.

56p on £15 is 3.7 %, RPI is 4.5 % so they can increase it.

It is as you say in the contract and you agreed to it when you signed up.

Sorry

coupleuk

Yep - I now know the clause is there - that isnt the real issue.

The issue is should they be allowed to slip terms like this deep within the T&Cs.

Its fine for the general legal clap-trap that every purchase has these days but this is something which wholly affects the Contract.

I could get out of the contract because of it but that doesnt mean there would be a suitable deal out there now to replace it.

However, if terms such as this were clearer from the outset, I may well have gone for a different deal from a provider without this ability to hike my contract rates, or I may have made a clear informed decision to go with it.

TBH I think it is a very underhand way of dealing with customers - to simply say that inflation has risen is not good enough - they should be more aware of external pressures in their market and build it into the Contracts they offer - and not rely on less than clear tactics to bump up their revenues.

Oh well, I guess its just me who feels this way.

But, whilst (at the moment) I probably cant lose my main contract with them and will have to pay the extra £1/month, I can do away with the monthly contract deal I have with them and save £5/month (it was only a spare for my wife).

3 are now down £4/month on the deal - great way to increase revenue!

Paul


Ive also noticed that the T&C keep refering to changes to the "agreement" - well, I dont have an "agreement" with them, I have a CONTRACT.

Money_Grabber13579

I understand where you're coming from. When you agree a contract, the price should be fixed for the lifetime of that contract. After all, you couldn't go to them and say, I feel like paying you £5 less every month from now on...

I'm not sure how enforceable some of these contracts would be if they were ever challenged under unfair terms act and the like, but as far as I'm aware, no one has ever dragged it through the courts dues to the sheer expense of doing so. Hence, they will always get away with things like this.

coupleuk

....thanks, thats what I was trying to get at.

Paul

gjchester

coupleuk wrote: »

Yep - I now know the clause is there - that isnt the real issue.

...

However, if terms such as this were clearer from the outset, I may well have gone for a different deal from a provider without this ability to hike my contract rates, or I may have made a clear informed decision to go with it.

All providers have a clause like this, from mobiles to energy suppliers. They need it in case their costs hike up. If you had gone elsewhere then they may not have put the price up this year end but it may have gone up another time.

Remember they have costs too, no doubt all businesses have to take the higher electricity costs and that has to be passed on somehow.