MSE News: Orange to raise monthly mobile costs

OnTheUp_2-2

ERRRR...

My contract was only taken out 10 days ago and yet ive still received a letter saying mine is going up!!

Also it states 5.4 % increase...


On the MSE article is says those who signed up after 1st sep will not be affected and those that are by 4.34% ??

olip74

I renewed in September and was offered to keep my previous deal, Dolphin 30 with a £10/mnth discount, and got a free Desire S. For some reason the monthly bill increased slightly from £20 to £20.64 (a 3.25% increase) but I was happy enough. However I got the text from Orange today saying my bill would go up by 4.34% but, due to renewing recently, this will only apply from June next year.

However, assuming my tariff is £30.64 with a £10 discount then applied I believe that the tariff will rise to £31.97 but the £10 discount won't change, meaning my monthly bill will be £21.97. This would be an increase of £1.33 but, significantly, it is a 6.4% increase in my actual bill. Although Orange are entitled to raise the tariff by RPI can I claim this is a 'material detriment' and cancel my contract?

raider

If I had to guess, I would say Orange are testing the water to see what they can get away with here.

If too many people kick off about it, then they may just halt the rise, people happy again, no more future “in contract” rises.

On the other hand, if there is not to much collateral damage, they leave the increase as is, other mobile operators follow suit, and you get rises now year after year.

Although this does not affect me, as I'm Orange PAYG, I have a friend affected by this (he's fuming) and will switch out of protest myself.

robbies_gal

olip74 wrote: »

I renewed in September and was offered to keep my previous deal, Dolphin 30 with a £10/mnth discount, and got a free Desire S. For some reason the monthly bill increased slightly from £20 to £20.64 (a 3.25% increase) but I was happy enough. However I got the text from Orange today saying my bill would go up by 4.34% but, due to renewing recently, this will only apply from June next year.

However, assuming my tariff is £30.64 with a £10 discount then applied I believe that the tariff will rise to £31.97 but the £10 discount won't change, meaning my monthly bill will be £21.97. This would be an increase of £1.33 but, significantly, it is a 6.4% increase in my actual bill. Although Orange are entitled to raise the tariff by RPI can I claim this is a 'material detriment' and cancel my contract?

i'd be interested to know what happens with you as my husband is in the same boat and dont know if the increase applies before or after the discount

Miles16v

Has anyone managed to cancel their contract because of this?

I cant see that they'd let you, given that you affectively pay for your handset over the length of the contract.

I'm about 6 months into an 18 month contract, so if they will let me then I'd be quids in as I can then get a new contract and have an extra phone 12 months ahead of time.

Its annoying and they should have budgeted for it when setting tariffs, but with most contracts being 18 or 24 months now that must be getting harder, but if the T&Cs say they can then there is not much to be done about it.

I have to say its a bit of a marketing blunder.

thischris1991

Miles16v wrote: »

Has anyone managed to cancel their contract because of this?

I cant see that they'd let you, given that you affectively pay for your handset over the length of the contract.

I'm about 6 months into an 18 month contract, so if they will let me then I'd be quids in as I can then get a new contract and have an extra phone 12 months ahead of time.

Its annoying and they should have budgeted for it when setting tariffs, but with most contracts being 18 or 24 months now that must be getting harder, but if the T&Cs say they can then there is not much to be done about it.

I have to say its a bit of a marketing blunder.

Not without paying the buy out charge. I said to the bloke on the end of the phone who told me the price to cancel and I told him bluntly that Im not paying the £480 that he quoted to end the contract. He then informed me that it would go to the debt collectors. I then said fine y me if it does then fine they can come round for all I care but at the end of the day I said to him that OFCOM have stated to me that I am allowed as a consumer to exit from my contract penalty free and your failing to allow me to.

SellyOakBlade

Miles16v wrote: »

I cant see that they'd let you, given that you affectively pay for your handset over the length of the contract.

You may effectively pay for it over the length of your contract, but legally the handset is yours once you take out the contract.

OFCOM rules are quite clear:

Is it a metrial detriment - yes
Should they let you leave without penalty - yes
Should they inform you of this right - yes

Are they going to do either of the last 2, probably not.

greenyone

I couldn't care if it was only a 1p rise and when I move to another supplier I have to pay an extra £10 a month it's the principal. I have just emailed the forms to CISAS. I can't believe the S***e I was given over the phone either. It swang from the government imposing this to you signed the agreement. Yes I did but I signed it knowing my rights were covered. I was then told it wasn't detrimental to me, I asked for the operators bank details as if it wasn't detrimental they obviously wouldn't mind paying the extra every month.

tdsmithj

To be honest, its an issue with all services. its terrible. They bring in these rules and regulations, OFCOM and other consumer services try and battle it with rules and regulations but sometimes the answer is not only obvious but completely simple.

The rules should be that once your in a contract you should stay at that price once the contract ends. But! if you want to end that contract you pay a fine. This makes sure when you take their service out you have to make sure you can afford it under any circumstances. Once the contract is up then if you decide to stay with them you have to agree with the higher price. This way its fair to the consumer and to the company.

None of this rubbish if it goes up under a certain percentage. What happens if for example raised the price by 4% and in 4 months time raised it again by 4% in 4 months time?

My sky has rocketed up 6 pound a month due to the increase and thats a lot over a 24 months contract. The whole system is messed up. The consumer should not use the service if they can't afford it at that price but the price should stick over their contract.

The person mentioning above about spending on booze and macdonalds, this is a choice we are not contracted to. We have a choice over

Sorry to rant but everything just annoys me. The economy, goverment, banks and energy. It could be so much simpler.

JoshuaUK

Wish my salary had gone up with inflation, then this increase wouldn't be so bad. But like most people mine's been frozen for the past couple of years and thanks to our government is now limited to 1% for the next two. So any increase in costs is bad for me.