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02 9 month contract downgrade issues

Purchased an Iphone 4 a while back and the terms and conditions state that after 9 months I can downgrade 1 level per month for the remainder of the tariff until I reach the lowest tariff.

I called to downgrade today and was told that by downgrading from £50 to £45 I would have to meet the 'new' terms and conditions which state I am only allowed to downgrade a further once for the remainder of the contract, hence a £40 minimum per month. I was expecting to get to £30 based on my pervious terms.

I went on to have a paddy, threaten to cancel and threatened legal action which they stated would get me nowhere and they stood firm to the change in terms! Does anyone know if this is legally right for them to do, yes im asking to change my tariff but the contract I signed states I can and do it as many times as I like without penalty, no o2 are looking to penalise me for them losing money on iphones (the lady said as much).

As of yet I have decided to to downgrade and sign up to the new terms!

Anyone any ideas as to where I should go from here to fight this? Or if I should even bother and just accept their unfair demands and leave in 9 months time?
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Comments

  • zppp
    zppp Posts: 2,476 Forumite
    Purchased an Iphone 4 a while back and the terms and conditions state that after 9 months I can downgrade 1 level per month for the remainder of the tariff until I reach the lowest tariff.

    I called to downgrade today and was told that by downgrading from £50 to £45 I would have to meet the 'new' terms and conditions which state I am only allowed to downgrade a further once for the remainder of the contract, hence a £40 minimum per month. I was expecting to get to £30 based on my pervious terms.

    I went on to have a paddy, threaten to cancel and threatened legal action which they stated would get me nowhere and they stood firm to the change in terms! Does anyone know if this is legally right for them to do, yes im asking to change my tariff but the contract I signed states I can and do it as many times as I like without penalty, no o2 are looking to penalise me for them losing money on iphones (the lady said as much).

    As of yet I have decided to to downgrade and sign up to the new terms!

    Anyone any ideas as to where I should go from here to fight this? Or if I should even bother and just accept their unfair demands and leave in 9 months time?

    Where does it state that, as I have never noticed this as a condition in my iPhone contract direct with o2?
    Best Regards

    zppp :)

  • Its quite clearly written in the small print 5.16 of the contract

    Its written as this

    'If you are a consumer customer who has selected a tariff with a minimum period, you may not move to a tariff which offers a lower rate monthly subscription for the first 9 months of your minimum period. After 9 months, you may only move down one tariff, per month, to the next lower priced tariff'
  • Sazzarella
    Sazzarella Posts: 403 Forumite
    Part of the Furniture Combo Breaker
    edited 1 March 2011 at 10:49PM
    o2 changed their Downgrading Terms last year. Works out that you can only downgrade twice. Once to accept the new terms and then once as per the new terms.



    Save for certain SIM Only tariffs, O2 Pay Monthly is subject to status, credit-check, payment by direct debit and the terms of an 18 or 24 month minimum term O2 contract. After connecting or upgrading to a minimum term contract, you can only move to the next available lower priced tariff with a lower rate monthly subscription once during your minimum term and only after you are more than halfway through your minimum term. When you tell us you want to move to the next lower tariff, unless we tell you otherwise, the new tariff will start at the start of your next billing cycle. If you move from a tariff which is not currently available you will not be able to change back to your previous tariff. (this may differ for iPhone customers depending on when you connected, please check the terms stated in your iPhone contract).

    The new terms can be viewed here under Consumer Pay Monthly Tariff Terms after 24 June 2010.
    Married 30/08/14 :heartpuls
  • Techhead_2
    Techhead_2 Posts: 1,769 Forumite
    You had a paddy and threatened legal action BEFORE you checked out the situation. Possibly not the cleverest of moves.
    If you move tariff then you have to move to that tariff in its entirety. You cannot have just part of the tariff, there are terms and conditions attached to the tariff as there were with your original. You cannot just pay less and not accept the terms that attach to the new tariff. You can't mix and match the price/minutes of the new tariff with the terms and conditions of the old one.
    Neither can you move to an older tariff with different terms because they no longer exist.
  • That does not make sense to me or anybody else for that matter, its a legal way of 02 ripping people off.

    I sign a contract which states I can downgrade to a lower tariff after 9 months on a monthly basis, I therefore assume as everyone else in the world would that my terms and conditions would follow onto the new tariff only the price and the usage limits would change. The tariffs that were available when my contract was originally taken out should still be valid for existing customers.

    I felt and still feel that I have every right to have a paddy, I advised I would seek legal advice (which she said was pointless) I have to agree its not a legal issue its an issue of being fair to your consumers and accepting their valid assumptions.

    I signed up the £50 a month deal as over the 18th months it worked out the cheapest, this only works based on the downgrades my contract and also the shop assistants made clear I was able to make!

    I must admit im disappointed in your response if you feel 02 are acting in a fair way, its just a disgraceful way to treat your customers and I will never be signing another contract with them again.
  • BRSurvivor
    BRSurvivor Posts: 135 Forumite
    Try 8.4 (c) with them which states that you can end the agreement giving them written notice if they change the agreement to your significant disadvantage.

    The O2 sales guy told you that you could downgrade tariff to the lowest tariff, by £5 a month after 9 months of your contract had gone. The T&Cs also said that. By changing the T&Cs (albeit only when you sign up to new conditions when you first downgrade), they are materially altering the agreement to your significant disadvantage.

    Month 10 you'd save £5.
    Month 11 you'd save £10.
    Month 12 you'd save £15.
    Month 13 onwards you'd save £20 (£140). Total £170.

    Now

    Month 10 you'd save £5.
    Month 11 onwards you'd save £10. (£80). Total £85.

    So, is costing you an extra £85 to your significant disadvantage? I think so. BUT, you will almost certainly have to send your iPhone 4 back.
  • MissKeith
    MissKeith Posts: 751 Forumite
    They haven't changed the terms and conditions on his old tariff though so 8.4c wouldn't apply here. They've changed the terms and conditions on the NEW tariffs, one of which you want to move to. You can't move onto an old tariff, they just don't exist anymore.
    Have I helped? Feel free to click the 'Thanks' button. I like to feel useful (and smug). ;)
  • Techhead_2
    Techhead_2 Posts: 1,769 Forumite
    O2 haven't breached your contract, its you that wants to alter the contract by changing to a newer tariff. If you want to to do this then you have two options, you either accept the new terms or start the formal complaints process.
  • Yes im asking to change from one tariff to another but my contract states that im allowed to do it, it does not state I ahve to meet with any new terms and conditions of that tariff?
  • Guys_Dad
    Guys_Dad Posts: 11,025 Forumite
    10,000 Posts Combo Breaker
    I can see your point. You signed to a contract that had specific clauses in it that induced you to take out the contract. Now you find that they are trying to apply retrospectively current rules about downgrading. I tend to agree, therefore, with you.

    However, it doesn't matter a fig what I think. I would go through the complaints procedure, highlighting the offer that they made at the time and the fact you accepted those terms that they now wish to apply.

    Then ask if they will honour them or would they prefer to end the contract, otherwise a dispute will arise.

    Ultimately, you may have to consider SCC.
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