MSE News: Orange to raise monthly mobile costs

Guys_Dad

kittyfantastico wrote: »

Well off the top of my head I can think of the following - some of whom have allowed early release from any contract others haven't:
- my bank decreasing interest on savings or increasing interest on overdrafts etc
- energy companies
- broadband providers/tv service providers
- gym membership

I get a great service from Orange - reception in my area is really good - I get great customer service from the people I speak to on the phone - and what I pay each month (even including the new increase) is a lot less than Id get elsewhere - so why would I want to move?

At the end of my 24 month contract period (October 2012) I'll haggle with Orange to see what I can get - and then if I cant get better elsewhere - will sign up with them again.

Careful. You are in great danger of bringing factual enlightenment to this emotional rant thread! :rotfl::rotfl::rotfl:

St_Marco

daleski75 wrote: »

I totally agree with everything you have stated here and to me it really looks like everyone is basically trying to push their luck and use this to get out of a contract early and go elsewhere.

But what happens if everyone wins they are happy and they all go off on their merry way to another provider and they then get hit with the same thing but worse will they then scream detriment, illegal practices and open yet another thread on MSE?

It's not as if Orange have doubled the price of their contracts most of them will go up by around £1.50 not £10.50 which it would seem like the way everyone here is carrying on.

If a £2 increase is going to break your budget or cripple your finances then get a pay and go cheap !!! mobile phone and quit complaining.

Yes it's a bit of a kick in the teeth for existing and some what new customers but come on get over it everyone here probably wastes more than the increase on booze, fags or mcdonalds.

Sorry but i just don't get people like this.

So what your saying is that you agree companies should be able to put prices up while your in a locked contract? Because reading this thread it seems to me that is the issue people have a problem with. It isn't the money it is that they can change it when they want.

And what should it matter what people spend their money on? Are you implying they should stop spending money they earned on things they like and instead give it to the companies who you have contracts with? You make it sound like these companies are struggling, they made £300m profit last quarter.

It really saddens me to see people who think you should just bend over and take it and say things like "it is only £2, stop eating burgers" etc when really it should be aimed at the companies who keep taking advantage of people. But accepting it and moving on as if there is nothing you can do seems to be the British way these days....

yeribe

Does this also mean that if the RPI were to fall significantly they would lower the bills for us monthly payers? I think we know the answer to that. All mobile phone service providers have pushed for us to take longer contracts with them, perhaps this is why. I will be cancelling my contract with Orange when it finishes in March. Rubbish signal in so many places and never any information on investments to improve signal. I have never really noticed any change in signal as a result of combining with T Mobile either.

sithwad

Orange CSRs were extremely rude, they told me that their lawyers have stated that they do not have to allow anyone to cancel without penalty. When asked why their lawyers believe that they do not have to comply with Comms Act 9.6 they said because its in their t&c's.

It was then explained to them that their t&c's state they have the right to put the price up, which they have done, no one disputes that, but the Comms Act 2003 says if you do put the price up then we have the right to cancel which you are illegally denying. They simply said their lawyers have stated etc and round in circles we go. It was like talking to spoilt child who insists his new brown shoes are green.

I have rang Ofcom and CICAS both of which stated Orange were wrong. They both stated that we can cancel without penalty, any price rise is of material detriment even if it is 1p there is no upper or lower limit for it to be materially detriment and it doesn't matter if you can afford it or not. Oranges t&c's allow them to raise prices but it does not allow them to ignore comms act. No t&c's can do that even if it they say it it can.

I think even Orange know they are wrong but are hoping they can fob people off for the next 30 days. Way to go Orange, how to lose friends and alienate people!!!

To anyone who thinks it is over a few penc, it is about Orange thinking they are above the law. Why should they be allowed to pick and choose what laws they want to adhere to and ones they don't.

Mhadf

There are a surprising number of unfair contract terms that the OFT have had deleted over the years.
On the OFT's website > OFT's Work > Publications > Publications categories > Guidance on legislation > Unfair terms in consumer contracts. (Sorry no links allowed by me yet, Mods feel free to edit them in)

I recommend Bulletin 17, case 26, original term 9. Phone company not giving due prominence to terms making them unfair. as a quick example of small print naughtyness

OFT v Ashbourne is an interesting read on UTCCR in relation to gym membership, section 123 - 126 lay out clearly what would be classed as an unfair term.


And to the person that said all this complaining and no court. You have to go through the companies complaints procedure (no matter how dire) before moving on to court. Courts WILL send things back for arbitration and resolution if both sides haven't even tried to sort it out first.

I just can't seem to find a definitive answer on which court to apply to to challenge unfair terms. Fairly sure it's small claims but any help would be gratefully received.

As an aside, surely this price rise should have been under 8.3 Service plan instead of under 4.3 Termination of contract?

premierfella

kittyfantastico wrote: »

Well off the top of my head I can think of the following - some of whom have allowed early release from any contract others haven't:
- my bank decreasing interest on savings or increasing interest on overdrafts etc
- energy companies
- broadband providers/tv service providers
- gym membership

I get a great service from Orange - reception in my area is really good - I get great customer service from the people I speak to on the phone - and what I pay each month (even including the new increase) is a lot less than Id get elsewhere - so why would I want to move?

At the end of my 24 month contract period (October 2012) I'll haggle with Orange to see what I can get - and then if I cant get better elsewhere - will sign up with them again.

Congratulations - you must be one of the exclusive group of people who get a BETTER deal from staying with their existing mobile network rather than switching (which as far as I'm aware usually only applies to customers spending a lot more than just their line rental every month, as the existing customer deals are mostly easily beaten by switching to a new customer deal, even after haggling).

On the list provided, I am happy to admit that your response answered my direct question. However, none of those have a history of never having changed their core "prices", so none of their customers in contracts would be at all surprised when a price increase came through the door. For banks, you are made aware up front in the headline rate that the rate is variable.

I don't expect Orange to change their position. I do expect them to regret it when customers start telling them where to put their loyalty deals when their contracts expire, and in the meantime warn all their friends and family that Orange contract prices cannot be relied upon for the duration of the contract.

Shiggaddi

I've just read briefly the last few lines, but this is my situation.

If I argue with Orange and can leave, I am in a cashback situation with E2save, where I signed up to a 24 month contract back in April, and they pay cashback to me in equal installments at 6, 9, 12, 15, and 18 months. I claimed my first casbback payment with the September bill, and will be claiming when the bill for this month arrives via e-mail.

However, if I argue with Orange and can cancel, then I will lose my entitlement to cashback for the remainder of the term. I know we're only talking about a quid or so a month for my £26 a month contract, but this contract is now going to cost about £15 more than I had signed up for over the term, simply because Orange can put up it's prices mid contract.

Oh, it's nice to know that my call and text charges won't change. Really handy, since I have inclusive minutes and texts, and don't ever go above the limit.

I just hope Orange get enough negative publicity over this, that they lose the goodwill from customers. I shall certainly be mentioning this to the retentions team when I cancel at the end. Pity the cashback situation means I'd be far worse off cancelling now.

kelvin46

Hi

I received my text today to say about the price rise in January.

Does anyone know the address to send a letter requesting release from my contract because of this and what do I need to make sure is in the letter?

My contract runs out in June 2012 and I'd understand the price rise when i renew but while I'm on a fixed price contract I feel the price should stay the same until the end! I think it's worse the fact that orange are making good profits each quarter as well.

Regards
Kelvin

Shiggaddi

Another point that may have been missed, it that telecoms services are getting cheaper to provide as time goes by. Back in the 80s, and 90s, you would get a monthly contract and pay more for the privilege of slightly cheaper calls, with no inclusive minutes or texts. Then came inclusive minutes, but only for landlines and same network. Nowadays, you're getting more inclusive minutes for your money, and unlimited texts or 1000 texts a month seem to be commonplace, and the inclusive minutes are for any network.

So, with the cost of telecoms going down all the time, Orange are only putting up the prices, because they believe they can. When did they adjust their prices when inflation was heading down, er, I don't think they did, did they?

The main principle is that we agreed to a contract paying an agreed amount for an agreed length. If I were to ask Orange to adjust the terms to my advantage, they would say no, so why should they be allowed.

snigehere

So Orange claim that the issue is because the RPI is high ... its currently 5.6% ... when I took my two contracts out in June and August this year it was 5.0% and 5.3% ..... so its gone up by 0.6% and 0.3% - 4.3% is way more that so this to me seems to be "an excessive amount" as defined in the contract terms and conditions. I will press this point ans see where it goes.