MSE News: Orange to raise monthly mobile costs

edited 28 November 2011 at 9:23PM in Mobiles
1.1K replies 156.4K views
134689108

Replies

  • Scotty1.7 wrote: »
    There comments are disgusting

    It stinks of we can do what we want to do and stuff you for being loyal!!

    Surely it can't be legal to raise monthly prices and tell people they are locked in with no other options and there statortoy rights to leave when we make any changes are not allowed to be used!


    Please read your contract, no doubt it will have a clause that says they can
    raise prices inline with inflation, just like three done last year..

    One wonders why the MSE team has done an article about orange doing this.
    Yet didn't bat an eyelid when three done a similar thing last year ;)
  • edited 28 November 2011 at 2:15PM
    tagq2tagq2 Forumite
    382 Posts
    edited 28 November 2011 at 2:15PM
    As far as I can tell, the T&C don't give Orange the right to increase prices within RPI at all. The closest is:
    Orange wrote:
    You may also terminate your Contract if we vary its terms, resulting in an excessive increase in the Charges or changes that alter your rights under this Contract to your detriment. In such cases you would need to give us at least 14 days written notice prior to your Billing Date (and within one month of us telling you about the changes). However this option does not apply if:

    4.3.1 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; or

    This merely says "we'll let you out of the contract if we change our terms in the following ways". That's all very nice of them (especially when your statutory rights would probably let you out anyway) but it doesn't give them permission to make any changes exempted or not enumerated while maintaining your remaining obligations.

    What Orange would have needed is a term specifying in very clear and specific terms when and how they are entitled to increase prices during the contract. See, for example this case - and that's before we even consider extra law relevant to consumer contracts.
  • Just seen this thread and looks like mine will increase from £46 to £47.98 so just under £2 more a month over 18 months...

    *Edit*

    I think I should be ok as I have only just taken out the contract in October as per Orange's note below.

    Why are customers who are on the latest price plans introduced in September and October 2011 not impacted?
    These price plans have already taken into account the recent rises in inflation.
  • jb66jb66 Forumite
    1.7K Posts
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    ✭✭✭
    Can we downgrade a tarrif?
  • NFHNFH Forumite
    4.4K Posts
    Part of the Furniture 1,000 Posts Combo Breaker
    ✭✭✭✭
    Does this also apply to Orange's business customers (including those with a personal tariff on a business account)?
  • I have been with Orange since 1995 in the original Hans Snook Era, il be off in September when my contract is up after the last 17 years, they are not competetive on price as it is anymore, and the retentions team have found themselves a backbone over the last few years!
  • NFHNFH Forumite
    4.4K Posts
    Part of the Furniture 1,000 Posts Combo Breaker
    ✭✭✭✭
    NFH wrote: »
    Does this also apply to Orange's business customers (including those with a personal tariff on a business account)?
    I've found the answer to my own question. The FAQs state "Business customers with personal animal talk plans will be affected by this price increase". As I'm on a personal iPhone tariff, I shouldn't be affected.

    I do wonder whether Orange's contractual term allowing them to do this is in breach of the Unfair Terms in Consumer Contracts Regulations 1999, which state "A contractual term which has not been individually negotiated shall be regarded as unfair if, contrary to the requirement of good faith, it causes a significant imbalance in the parties' rights and obligations arising under the contract, to the detriment of the consumer". The fact that Orange can increase the price without any right of the consumer to cancel the contract does appear to be a significant imbalance.

    I also wonder whether the reason that Orange are doing this is because they've taken on too many customers and the network can't cope - slow data speeds etc. Shedding customers and increasing the charges to those who stay seems like a wise move for a company with an overloaded network.
  • edited 28 November 2011 at 3:26PM
    Human_WritesHuman_Writes Forumite
    48 Posts
    edited 28 November 2011 at 3:26PM
    tagq2 wrote: »
    As far as I can tell, the T&C don't give Orange the right to increase prices within RPI at all. The closest is:

    You read the wrong section of the contract, it should be read in conjunction with section 15.

    15. changes to your Contract

    we reserve the right to make changes to your Contract


    15.1 (a) When you Register you are asked to choose a Service Plan and to indicate which Orange Additional Services you require. You may switch to a higher Service Plan at any time. You may switch once only to the next lowest Service Plan after one half of your Minimum Term has expired, unless otherwise stated. You may switch to an equivalent Service Plan at any time after one half of your Minimum Term has expired, unless otherwise stated. You must read the rules of your chosen Service Plan as they may restrict your right to change Service Plans during your Minimum Term. In the event you do switch Service Plan and add to or cancel Orange Additional Services you must give us not less than 10 days notice before your Billing Date (subject to the terms of any promotional offers you have accepted). We do, however, reserve the right to vary the terms of this Contract from time to time and to make changes to your Service Plan.

    15.1 (b) We acknowledge that if we do increase the Charges, withdraw Orange Additional Services or introduce new mandatory Charges - or if your contractual rights are affected to your detriment - you may terminate your Contract in accordance with Condition 4.3. If you do not give notice within one month of our notifying you of any change(s), you will be taken to have accepted the change(s).

    http://link.orangeworld.co.uk/studio/paymchanges/planupdate/

    Can I cancel my contract because you're increasing my monthly service charge?

    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.


    You'll find the details in section 4.3 and 15.1

    http://link.orangeworld.co.uk/studio/paymchanges/terms/index.html
  • ACGACG Forumite
    21.5K Posts
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    ✭✭✭✭✭
    Just because they have a clause in their contract doesnt mean its legal. Its good to see MSE looking into this. Its hardly an increase that will break the bank, but it seems unfair that they can change it when they like yet if i try to decrease my contract it cant be done...only increases!

    The frustrating thing is, that at the end of my contract if i call to cancel, they will offer me discounts anyway - so it seems pointless.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • tagq2tagq2 Forumite
    382 Posts
    You read the wrong section of the contract, it should be read in conjunction with section 15.
    This term doesn't appear to state in any sort of clear and specific language when and how Orange may change its pricing, only to offer you some remedy if it does. In 15.1(a) Orange gives itself the right to "vary the terms of this Contract from time to time, to restrict your right to cancel a change of Service Plan and to make changes to your Service Plan." That's vague as hell.
    Orange wrote:
    Can I cancel my contract because you're increasing my monthly service charge?

    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.
    I wouldn't regard that as a correct interpretation of what they've written in the contract, let alone assume that such an interpretation would be enforceable.
This discussion has been closed.
Latest MSE News and Guides

Energy price cap could be extended beyond 2023

New plans have just been announced by the Government

MSE News

Cheap contents insurance for tenants

DON'T assume your landlord covers you

MSE Guides

Summer sizzlers round-up

Incl £2ish sun cream & £1.50 disposable BBQs

MSE Deals