Avoid the Orange Price Increase

andi1872

Got the text last night and im confused on where i stand because i never signed a contract.

I got my phone in April 2010 from my local orange shop and the only thing i signed, which i have in front of me is called "Online Registration System - Customer Information Form" which i've read through and found nothing.

Ive just called Orange and explained that i've never signed a contract, only the above form and was told it was my responsibility to go home and check the T&C's online and cancel within 7 days if i wasn't happy. So i told him while i could understand that if i'd purchased my phone online but i didn't and as such surely you cannot expect a customer who may or may not have internet access to commit to something they may not even be able to access for which he had no reply.

I also pointed out that this is now the 3rd time i've been let down with Orange. The first being that i was told by the sales person in store that on the then new 24 month contracts i could upgrade my phone after the 1st year but when i tried i was told that wasn't true.
The second being that i was also told by the sales guy that my account usage would be monitored and every 6 months i would be contacted to discuss up or downgrading but when i called CS after 12 months they said it didn't apply to my package.

Needless to say i'm not very happy. My contract runs out in 3 months and i certainly won't be going back! I asked to speak to a manager to which he first refused, stating managers were not speaking to customers regarding the price increase to which i replied; "I don't think you can refuse my request to speak to a manager" so he said he'd ask one to call me back within 24 hours. I won't hold my breath!!

simax

Daft_Punk wrote: »

Orange have told their staff that previously Vodafone have increased their prices more than Orange. I don't know if O2 and BT have increased their prices but maybe the advisor you spoke to was told this by someone they knew and is also using that reason to explain to why the prices are going up.

Vodafone have. Have a look at the O2 and Voda websites. The plans used to be 15/20/25/30/35 quid a month etc. Now they are 16/21/26/31/36 etc, so they've gone up a quid.

My Voda plan was 45 quid. It's now 46 quid. And my call charges out of bundle with Vodafone went up from 20p/min to 35p/min. Not that I've ever gone over my allowances, but hey...

olip74

I think the issue here is with the regulators and the law. It seems that Orange are acting within the terms and conditions they have laid out (and they know that sane people don't read the small print for each and every service they sign up to). This has happened to me before with Virgin Media, who regularly increase their charges (e.g. line rental) half way through a contract.

To my mind this kind of product has to be regulated better. For example, if you take out a financial product like a fixed rate mortgage or a multi-year savings bond, the rate cannot change. If inflation goes up or down the interest due remains the same. When banks offer these products they have to factor in anticipated future economic conditions. I don't see why fixed term contracts for services should be any different.

When I signed up for my Orange contract it was sold to me, verbally, as "£20.64 per month over 24 months". Once again I find that false advertising is being allowed to go unchecked by our regulators. There have been a steady stream of issues like travel insurance, bank charges, online behavioural advertising, ISP/phone contracts, etc where our regulators have failed us or where the law has been shown to be inadequate. We deserve better!

Del_Astra

I did as the OP suggested, don't know if I got the lady at the wrong moment or what but the only option I was given when I explained I was not happy with the price increase was to buy out the reminder of the contract. Up until now I have had no issues with Orange. I don't see any point in buying it out, as you might as well just stick with it and use the service you are paying for.

I will probably just suck it up until renewal, at which point I will consider my options, where I can get the best deal. I was thinking of trying a monthly rolling contract. I don't need a fancy phone, I just call and text, and take photos when I don't have a camera to hand.

I saw further up someone said it was the service providers that were tying people into longer contracts, its really because the free handset you now have is likely to cost more than previously, the smartphones do cost more to produce so you would probably be paying much more per month so they could re-coup the cost if it was only 12 months.

Goat-in-glasses

This is about several principles, all of which show a disdain by Orange for their consumer base. Let me explain my thinking:

- Am I bothered about £1 a month increase. Not particularly. Am I bothered about £1 a month x XXmillion customer revenue increase that Orange will pocket by exploiting an unfair contract term. Yes. That is what is worth objecting to at a time of hardship for the majority.
- Why is it an unfair contract term? This is a grey area legally and one for court interpretation but my argument is that under the Unfair Contract Terms Act (UCTA) 1977 and Unfair Terms in Consumer Contracts Regulations 1999 that Orange have a case to answer about consumer abuse. These pieces of legislation mean we can gain protection from unfair terms even if they were added into the terms we were provided with (in my case after the point of sale given it was a telephone renewal of contract).
- What consumer abuse? The majority of the public have a reasonable expectation (built both by historical experience and the network sales process) that they are entering in a 12/18/24 month contract for which there is an agreed and fixed price per month. If Orange wish to rely on this clause they need to make it significantly more apparent in the sale process, not buried as Clause 4.3 in a set of terms they know few will read. There is an inbalance of power against the consumer in that clause (making it unfair) because they suggest they have the right to change price at any time with 1 months notice up to RPI whereas the consumer can only upgrade their contract in the first 12 months and downgrade or upgrade their service in the remaining 12 months. The balance of power is unfair via that clause given the consumer has very limited options available.
- 4.34% fair? It seems odd to pick this number and deploy this clause just at a time when RPI is high. Opportuninism to hit someone's short term budget within Orange? Possibly, I can't comment on their motives. The others will follow if Orange get away with this. That is a principle worth objecting to.
- I am just 7 months into my 24 month contract. Why is a 12 month RPI measure reasonable? If they want me in a 24 month contract (for their commercial benefit) then frankly they can price it correctly for the period they want me to sign up to. Review it it at the end of that period and we have a mutual choice to continue business together or not. That is competition Orange. That is being fair to your customers.
- Never introduced a price increase in their trading history? Why would they need to, consumer contracts are renewed every 12/18/24 months onto new terms. They can effectively have a rolling book of business which refreshes prices every 2 years and they will find their own place in the market based on the deals they are willing to offer.

It's not about my £1 a month. It is about £1 x XX million customers and a principle of fairness. I would welcome Martin referring this one to Ofcom on the above grounds.

allybee13

Goat - I agree wholeheartedly with your post.

This is not about the £1 or so per month on each of my contracts. It's going to cost me just under £30 over the term of the 3 contracts I have with them at a rate of £3.25/month, dropping off as the contracts expire. I can afford that but the principle of this disgusts me. This is about Orange exploiting existing customers who are tied into contracts with them rather than just re-pricing their tariffs for new customers signing up from Jan 12 onwards. If the RPI drops again will we see a reduction? I think not.

I will be voting with my feet when each of my contracts is up for renewal, but I also feel that Orange is setting an unfortunate precedent here and if they get away with it other mobile phone providers will follow suit.

I, too, would welcome Martin raising this with Ofcom with a view to having this clause removed from future contracts.

A big thumbs down for Orange.

Goat-in-glasses

Thank allybee. Appreciated. Agreed remove it from future contracts but also it is unenforceable in the current contracts as against UCTA.

The country needs you Martin!

gizzi.n.lemon

If you are in the 2nd half of the contract it is worth bearing in mind that, with a price increase which could range from .50 to 1.50, the maximum you will end up paying more on your contract is gonna be between around 7 - 15 quid. Hardly a massive strain. It makes sense to call and see what options you have to change tariff to avoid the increase. Personally I would prefer they used this to recoup their losses with inflation than by targeting those who are potentially struggling further on pay as you go.

gsax

gizzi.n.lemon wrote: »

If you are in the 2nd half of the contract it is worth bearing in mind that, with a price increase which could range from .50 to 1.50, the maximum you will end up paying more on your contract is gonna be between around 7 - 15 quid. Hardly a massive strain. It makes sense to call and see what options you have to change tariff to avoid the increase. Personally I would prefer they used this to recoup their losses with inflation than by targeting those who are potentially struggling further on pay as you go.

I think the problem is they will tie you up in knots for changing your contract.
"not a massive strain" - :eek: if your fixed rate mortgage company did that..
If you have Orange shares - time to sell - that company's CS just made the stupidest mistake ever. I hope O2, BT, three berate them with an advertising campaign "we won't increase your contract price". :T

I like the comments of referring to ofcom. I suggest that ofcom should make orange sales rep and cfw and Phones4u etc to read every single team and condition over the phone.

A_Flock_Of_Sheep

Shame you can't ditch Orange and move to GiffGaff. I am with them having moved from Vodafone and would never leave them.

I just upgrade my handset privately so I am not in "contract" with a -- cough cough "free" handset.