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MSE News: Orange to raise monthly mobile costs

edited 28 November 2011 at 9:23PM in Mobiles
1.1K replies 156.2K views
ach5ach5 Forumite
33 posts
edited 28 November 2011 at 9:23PM in Mobiles
MSE News: Orange to raise monthly mobile costs
This is the discussion thread for the following MSE News Story:

"The mobile giant will hike the cost of monthly plans from 8 January, blaming 20-year high inflation ..."

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Just had a text off Orange to say that the cost of my contract with them is about to increase.

I haven't changed anything.

Just curious as to where this leaves me, legally.

If they are changing their end of the contract, does this mean it can be broken?

Thanks.
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Replies

  • SystemSystem
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    ach5 wrote: »
    Just had a text off Orange to say that the cost of my contract with them is about to increase.

    I haven't changed anything.

    Just curious as to where this leaves me, legally.

    If they are changing their end of the contract, does this mean it can be broken?

    Thanks.
    No it is within their T&Cs that they can increase charges within the RPI. The increase falls within that.
  • latecomerlatecomer Forumite
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    whats the details of your contract? And whats the price increase?

    Normally if you have agreed to a fixed price contract then they cant change it in such a way as it costs you more although I'm sure there are some exclusions to this.
  • BuzbyBuzby Forumite
    8.3K posts
    A contract has nothing to do with the tariff charged for a service. You'll see (if you reasd the contract) that there are no figures quoted, this is to ensure these issues do not arise. Neither to contracts lock-in a particular price charged unless it is explicitly mentioned.

    What you describe is simply a standard price increase (which is allowed). The issue that will affect you is if the increase in more than 10%, if so, then you should be given an opportunity to terminate. This isn't enshined in law, but is usually stiplulated to ensure fairness.

    So, if the increase being advised in not 10% of the total standard cost of the contract over a year, then there is no issue.
  • Anyone else had the Txt this morning from orange to advise that they are increasing Plan Tarrifs? Includes the link:-

    www.orange.co.uk/planupdate

    Apparently its in the T&C's which means i assume there is nothing we can do about it.

    Just another nail in Orange's coffin from me, rubbish signal, local mast always seems to be "Getting Repaired" according to customer services, and Orange no-longer honouring the 12m manufacturer warranty on phones anymore.
  • ach5ach5 Forumite
    33 posts
    They can put anything in the T&Cs, and there;s not much the consumer can do (come on, 99.9% of us never read them!!)

    It's a bit like those "End User Agreements" on software - has anyone ever read it?

    lol - thanks for the advice. I am happy with my contract, but just wondered what the law was.
  • edited 28 November 2011 at 12:01PM
    grumblergrumbler Forumite
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    edited 28 November 2011 at 12:01PM
    Buzby wrote: »
    ... The issue that will affect you is if the increase in more than 10%, if so, then you should be given an opportunity to terminate. This isn't enshined in law, but is usually stiplulated to ensure fairness.

    So, if the increase being advised in not 10% of the total standard cost of the contract over a year, then there is no issue.
    I am pretty sure these 10% is an urban myth. AFAIK only Vodafone have this figure stipulated in the contract.

    What Orange's T&C say actually is:
    You may ...terminate your Contract if ... we have increased the Charges by an amount equal to or less than the percentage increase in the All Items Index of Retail Prices published by the Central Statistical Office in the Monthly Digest of Statistics in any 12 month period;
    Nothing about any 10%.
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  • riteshritesh Forumite
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    Interesting. I have received the text from Orange today as well. What if, as a result of the price increase, you are no longer able to sustain the payments. Just for arguments sake say you have already made allowances for variability of payments each month (say 10%) and with the introduction of the price increase means you are no longer able to afford the plan. Where do you stand?
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  • edited 28 November 2011 at 11:56AM
    shellsuitshellsuit Forumite
    24.8K posts
    edited 28 November 2011 at 11:56AM
    I've just received a text from them about this.

    I'm in a contract to pay £X amount a month, so how can they get away with raising that amount?!


    Right, just found this :

    As you probably know, inflation is at a 20 year high, which is having a significant impact on businesses and households alike.
    Unfortunately, we've had to re-evaluate our prices for the first time and are sorry to say that there will be a 4.34% increase in our monthly plan prices from 8 January 2012. This is lower than the Retail Price Index measure of inflation, which currently stands at 5.4%. Out of plan charges, such as calls, texts and data will not be changing.

    [URL="javascript:void(0);"]Can I cancel my contract because you're increasing my monthly service charge?[/URL]
    No, our Pay Monthly terms and conditions allow us to increase charges by up to the RPI figure in any 12 month period. The increase in the price plan charges is less than the 5.4% rate of inflation as measured by the Retail Price Index (RPI) in October 2011.
    We can increase prices at any time on giving proper notice. In this case, the increase is less than the current rate of inflation and our terms and conditions state that we can do this without giving you the right to cancel your contract without paying the disconnection fee.

    http://link.orangeworld.co.uk/studio/paymchanges/planupdate/
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  • Just got the text as well, I'm assuming it will go to all Orange customers.

    Pretty sure that the contract term they quote could be construed as unfair (unequal bargaining power). For instance, what if a term of the contract was that they could increase prices above inflation? Is this still binding? If so they could pretty much put it up to whatever they want, whenever they want.
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