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Orange Moving Abroad Cancellation Contract

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lisa_x33
lisa_x33 Posts: 1 Newbie
edited 24 August 2011 at 11:22PM in Mobiles
So I signed a 24 month contract at phones4u for an orange htc desire z in Dec 2010 at £30. What I did not know was that VAT was not included in the monthly price (They did not tell me!!!) so in total I'm actually paying £36 per month. As a student I cannot afford this. I understand I cannot cancel the contract without a cancellation fee or downgrade it until halfway through the contract.

Also I lost the phone within 3 months of opening the contract and did not have insurance. I could not do anything but use the contract as a sim free on an old phone.

I know for definate that I will be moving abroad next summer 2012. By then I would have been on the contract for 18 months. Would orange let me cancel the contract with no charges or would I have to pay the cancellation fee for the months up until the contract ends?
OR
Would it be cheaper to cancel it in total now? I would save from the VAT costs. But also bearing in mind I can downgrade it halfway through contract.

The contract offers me way more than what I use.

Comments

  • grumbler
    grumbler Posts: 58,629 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 24 August 2011 at 11:44PM
    lisa_x33 wrote: »
    So I signed a 24 month contract at phones4u for an orange htc desire z in Dec 2010 at £30. What I did not know was that VAT was not included in the monthly price (They did not tell me!!!) so in total I'm actually paying £36 per month.
    What does the contract say that you signed? For non-business contracts VAT is always included.
    As a student I cannot afford this.
    £6 or £36? I don't think that £6 p.m. make a big difference even to a student.
    I understand I cannot cancel the contract without a cancellation fee or downgrade it until halfway through the contract.
    I can be wrong, but I think you cannot downgrade even after halfway through.
    Also I lost the phone within 3 months of opening the contract and did not have insurance. I could not do anything but use the contract as a sim free on an old phone.

    I know for definate that I will be moving abroad next summer 2012. By then I would had been on the contract for 18 months. Would orange let me cancel the contract with no charges or would I have to pay the cancellation fee for the months up until the contract ends?
    The latter is more likely.
    OR
    Would it be cheaper to cancel it in total now? Bearing in mind that I can downgrade it halfway through contract.
    Am not sure about downgrading, but apparently you can save VAT if you cancel early: A very quick question re; VAT and termination

    Check about downgrading and VAT and do your maths. Don't forget that if you cancel early it will cost you extra to keep using the mobile.

    You can try appealing to Orange's goodwill and ask for downgrading first, then cancel a little later.
  • Hammyman
    Hammyman Posts: 9,913 Forumite
    lisa_x33 wrote: »
    I know for definate that I will be moving abroad next summer 2012. By then I would have been on the contract for 18 months. Would orange let me cancel the contract with no charges or would I have to pay the cancellation fee for the months up until the contract ends?
    OR
    Would it be cheaper to cancel it in total now? I would save from the VAT costs. But also bearing in mind I can downgrade it halfway through contract.

    The contract offers me way more than what I use.

    You would have to pay any remaining months in the contract. If you end it now, you would still have to pay but there would not be VAT added so you would save £6 multiplied by however many months are remaining.
  • spart73
    spart73 Posts: 22 Forumite
    you can downgrade 9 months after you start the contract.

    Orange cancellation fee is simply your monthly line rental untill your cntract is due to end so its not a good idea.
  • kai666
    kai666 Posts: 1,431 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    spart73 wrote: »
    you can downgrade 9 months after you start the contract.

    Nope, after 12 months on a 24 month contract
  • grumbler
    grumbler Posts: 58,629 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    grumbler wrote: »
    I can be wrong, but I think you cannot downgrade even after halfway through.
    For a contract taken in September downgrading is possible:
    ... You can ...change to a lower plan once you are in the second half of your agreement term....
    I think it was the same in December. Beware, it's downgrading to the next tariff only.
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