Is this logical? (handset/contract question)

edifyingDiscourse

Three UK have allowed me to cancel my contract without penalty due to a change in their All-You-Can-Eat data service however they want me to return the handset.

I explained that I had already paid £68 for the handset and that was the end of the matter as far as the contract was concerned. The man told me that the line rental includes the cost of the phone in it. I replied that if that were the case I had not signed a mobile phone contract but a credit agreement in which case different rules would apply.

He panicked at this point and told me a manager would get in touch with me in 48 hours.

Is my position correct? If the handset were part of the contract it would be a hire purchase and thus a credit agreement. I looked through Three's Ts&Cs but I can't see anything mentioning the return of the handset.

Thanks for any help!

EDIT:

Just saw this in another thread:

section 2.3
This agreement does
not cover:
(a) any products or services you buy while using Three Services; or
(b) the supply of your Phone or Dongle. The manufacturers of Phones or Dongles are not related to us. Any terms relating to Phones or Dongles will be given to you separately.

Source

Does that mean that I'm in the right after all?

grumbler

IMO you position is correct.

Only if the contract gets cancelled because of their goodwill (e.g. if their signal is poor in your area) they are in a position to demand the handset back.

edifyingDiscourse

I hope so. I'll keep people updated and hopefully we can all show these corporations they can't get away with flagrant abuses.

esuhl

It sounds like returning the phone would be a "penalty", so if you are permitted to cancel the contract "without penalty" due to the terms of the contract then, in my opinion, you should definitely not return the phone.

Sometimes network operators just lie to you in the hope that you don't know any better. When they do this, I find it best to conduct all correspondence by recorded delivery letter. They seem less inclined to lie when they are going to be providing you with their reply in printed black-and-white...