MSE News: T-Mobile to hit pay monthly users with price hikes

Topcat_2

new_ashburnian wrote: »

Just had a similarly confused look at the letter.
......

What I can't understand, if they were going to pull a fast one like this, is why they didn't make it worth their while and say that the charge of £15.32 was after a £1000 discount - so the bill would increase by £370. Or am I just being silly?

Exactly my point. Is this fair / legal??

since2005

Topcat wrote: »

Thanks Squiff33,
Unfortunately the lady I spoke to was not very helpful, and I will call and go for a different department.

I have tried the price calculator, but again this only shows the price before loyalty discount. To me, this is a 13% increase, not 3.7%, on the "amount I pay each month" as below from the FAQs on the T-mobile site.
My plan is still very low for the allowance, so in two minds what to do TBH.

Any the wording is very ambiguous in my view.



"What are the changes and who will be impacted?

From 9 May 2012 we’re changing some of our prices. This means that if you joined or renewed on one of our pay monthly price plans before 1 February 2012, your monthly charge will increase by 3.7%. We know that price rises are never great news, but we’re still committed to giving you the best service and network possible.

The price rise will only affect the amount you pay each month for your plan. All other charges, such as call costs, texts and Boosters that aren’t included in your allowance will stay the same."

Hi there,

It turns out that the increase is based on your tariff before discount but your discounts are unaffected. My £5.00 discount is still on my account but wasn't mentioned on the letter.

I guess that as discounts don't usually last for the life of the contract I guess that's why they haven't been mentioned.

candy786

Topcat wrote: »

Exactly my point. Is this fair / legal??

top cat if your on £15 contract it will be £12.77 plus 3.7%-discount plus 20% tax....from how i read it.

Topcat_2

candy786 wrote: »

top cat if your on £15 contract it will be £12.77 plus 3.7%-discount plus 20% tax....from how i read it.

Hi,

This is how it was described when I rang, all figures including 20% vat.
Current:
current plan (inc 20% vat): 20.42
take off discount (inc vat): 12.50
leaves 7.66 (price I pay, inc vat)

New:
current plan + 3.7% (inc 20% vat): 21.17
take off discount (inc vat): 12.50
leaves 8.67 (NEW price I pay, inc vat)

ACTUAL Increase of £1.01, 13%
Increase in letter: £0.75, 3.75%

T-Mobile wording refers to the "price of your monthly plan", and also the "price you pay". a lot of ambiguity, and as previously mentioned the discounts could in theory be 1000%, which would be a very unjust situation.
To me - its the principle that matters here.

candy786

Topcat wrote: »

Hi,

This is how it was described when I rang, all figures including 20% vat.
Current:
current plan (inc 20% vat): 20.42
take off discount (inc vat): 12.50
leaves 7.66 (price I pay, inc vat)

New:
current plan + 3.7% (inc 20% vat): 21.17
take off discount (inc vat): 12.50
leaves 8.67 (NEW price I pay, inc vat)

ACTUAL Increase of £1.01, 13%
Increase in letter: £0.75, 3.75%

T-Mobile wording refers to the "price of your monthly plan", and also the "price you pay". a lot of ambiguity, and as previously mentioned the discounts could in theory be 1000%, which would be a very unjust situation.
To me - its the principle that matters here.

i agree with you; wot they done is put 3.7% on whole price and not considering discount .....mine works out 7.5% rise from wot im paying now to new rate.

thegoodman

You cannot work out the increase without taking the VAT off.
For example:
Current plan: £20 inc VAT (£16.67 + VAT)
Discount: £5 inc VAT (£4.17 + VAT)
Total to pay £25 a month inc VAT

3.7% increase
Current plan: 16.67 + 3.7% increase of £0.62 or 62P
Current plan Total £20.74 inc VAT (£17.29 + VAT (16.67+0.62))
Discount: £5 inc VAT (£4.17 + VAT)
Total cost per month = £15.74 (£20.74-£5)
In this case the true increase for a customer would be 5% (£15 old price and add 5% will give you £15.74) until the discount is valid after that it would be back to 3.7%

newbutold

I get a 25% go direct lifetime discount. So presumably the discount will be off the new increased monthly charge, giving a slight increase to the discount?

thegoodman

newbutold wrote: »

I get a 25% go direct lifetime discount. So presumably the discount will be off the new increased monthly charge, giving a slight increase to the discount?

if you get % discount than the increase will be 3.7 as the discount will also increase. The fix price discount, for example £5.00 off, will see more increase than 3.7%

newbutold

So I am confused now;


Your monthly plan charges
Flext 35 (18) £29.79
Internet Included Free
25% Go Direct Discount for 20/2/12 to 19/3/12 - £7.45
Monthly charge total £22.34
Plus vat. £4.47
Total payable £26.81

My letter says My new price will be £37.06 an increase of £1.31 - this appears
correct if they are ignoring discounts as other posts suggest.

Anyway what is confusing me is that my sums are making my new bill less that what it is now, albeit by pennies! Someone show me where I am going wrong.

New bill £37.06
Minus vat @20%. - £7.41
Gives £29.65
Less 25% disc - £7.41
New net amount £22.24
Plus vat @20% £4.45
Equals new monthly bill £26.69

So my new bill will be 12p cheaper?????

thegoodman

Sorry done it wrong:
New bill £37.06
Minus vat @20%. - £7.41 VAT = £6.17, to take VAT you will need to do £37.06/1.2 = £30.87, you cannot take 20% of £37.06, otherwise you are taking VAT off VAT
Gives £29.65 = £30.88
Less 25% disc - £7.41 £7.72
New net amount £22.24 £23.16
Plus vat @20% £4.45 £4.63
Equals new monthly bill £26.69 £27.79

So my new bill will be 12p cheaper?????