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Tesco mobile- letter stating VAT rise would be implemented

Just out of curiosity...

I've had a letter today from Tesco Mobile saying they're adding the extra 2.5% to my contract as of 28th Feb 2011.

Now, I know this is an insignificant amount of money, but I HATE this network and have had nothing but trouble and so would do anything to get out of the contract.

I used to work for o2 as a student and I remember when they increased some monthly prices this meant that it was technically a breach of contract on the networks' part, meaning the consumer could get out of it without cancellation fees.

So is this a 'change'/ breach of contract on their part meaning I can get out of it without paying fees; or is that generally allowed and not a breach of the contract?

Thanks in advance...

:money:

Comments

  • Guys_Dad
    Guys_Dad Posts: 11,025 Forumite
    10,000 Posts Combo Breaker
    There are so many threads on the same subject. Worth searching.

    Answer is "No"
  • Guys_Dad wrote: »
    There are so many threads on the same subject. Worth searching.

    Answer is "No"

    Apologies... I think the forums here are difficult to navigate so it was the quickest option.

    But thanks for your reply
  • NFH
    NFH Posts: 4,413 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Rossy10 wrote: »
    I've had a letter today from Tesco Mobile saying they're adding the extra 2.5% to my contract as of 28th Feb 2011.

    Now, I know this is an insignificant amount of money, but I HATE this network and have had nothing but trouble and so would do anything to get out of the contract.
    Complain to your MP, not to Tesco Mobile. The Government sets VAT rates, not Tesco.
  • Fifer
    Fifer Posts: 59,413 Forumite
    10,000 Posts Combo Breaker
    Tesco have not increased VAT. It's a tax on your purchase they are obliged to collect on behalf of the government. However, Tesco may be in breach of their contract if they are not providing you with the service you are paying for. That would be a more promising avenue to explore.
    There's love in this world for everyone. Every rascal and son of a gun.
    It's for the many and not the few. Be sure it's out there looking for you.
    In every town, in every state. In every house and every gate.
    Wth every precious smile you make. And every act of kindness.
    Micheal Marra, 1952 - 2012
  • Mihangel
    Mihangel Posts: 533 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    would the following not be grounds to cancel

    call charges to 01 02 and 03 are going up from 20p to 21p
    international calls for zone 1 are going up from 20p to 25p

    thanks
    mike
  • Mihangel wrote: »
    would the following not be grounds to cancel

    call charges to 01 02 and 03 are going up from 20p to 21p
    international calls for zone 1 are going up from 20p to 25p

    thanks
    mike

    The 20p to 21p will be due to rounding and VAT, not so sure about the 20p to 25p though.
  • Rossy10 wrote: »
    Just out of curiosity...

    I've had a letter today from Tesco Mobile saying they're adding the extra 2.5% to my contract as of 28th Feb 2011.

    Now, I know this is an insignificant amount of money, but I HATE this network and have had nothing but trouble and so would do anything to get out of the contract.

    I used to work for o2 as a student and I remember when they increased some monthly prices this meant that it was technically a breach of contract on the networks' part, meaning the consumer could get out of it without cancellation fees.

    So is this a 'change'/ breach of contract on their part meaning I can get out of it without paying fees; or is that generally allowed and not a breach of the contract?

    Thanks in advance...

    :money:

    Hi,

    Ive had the same letter and was wondering exactly the same thing. The increase in call charges doesnt seem to be because of VAT.

    In the contract it states, We can change this service agreement (including call charges) at any time. We will notify you..... if you continue to use your tesco mobilw monthly service after the date on which the change comes into effect, your use of the tesco mobile pay monthly service indicates you agree to the changed service agreement and will be bound by it.

    So i am unsure as to what that means. It says they can change it, but its only if you keep using it that you are bound by it.

    Any help would be appreciated?
  • Snakeeyes21
    Snakeeyes21 Posts: 2,527 Forumite
    Guys_Dad wrote: »
    There are so many threads on the same subject. Worth searching.

    Answer is "No"

    Surely its not as clear cut as that, it would depend on whether the contract stated the price plan is inclusive or exclusive of vat, if the former and they decide to increase the contract by 2.5% saying its because of vat then it would be grounds to cancel :)
  • Guys_Dad
    Guys_Dad Posts: 11,025 Forumite
    10,000 Posts Combo Breaker
    Surely its not as clear cut as that, it would depend on whether the contract stated the price plan is inclusive or exclusive of vat, if the former and they decide to increase the contract by 2.5% saying its because of vat then it would be grounds to cancel :)

    If it did, and there were no t&c to state otherwise and networks didn't employ expensive law firms to ensure that people couldn't wriggle out of contracts on similar loopholes, you would be right.

    But since the above doesn't apply, the answer is still "No".
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