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O2 contract customers face 3.2% price hike from February

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  • I want to get onto O2 as soon as they bring in the Tu Go app to fix signal problems... I won't give a fig about paying an extra quid if it means i can use my mobile at home for once
  • silvercar
    silvercar Posts: 49,574 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    I've now got my phone so I'll stick with O2. They managed to sort the setup problem for me with one call, so get my vote.

    Also O2 are the only major network that provide visual voicemail.

    Plus O2 priority moments will save me more than the increase.
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  • romeroe
    romeroe Posts: 37 Forumite
    What annoys me is that in a few months time O2 will re-jig all their contracts to nice round amounts again. There is no way they are going to advertise 22.xx tariffs etc... Probably the lowest tariff will go back down in price with less minutes not ultd txts etc who knows.

    This is a shady move too to trap all those in contract rather than just adjust prices for new customers. This isn't their first price increase either that is just a plain lie. I signed up 8 months ago to 100mins units texts @ £20.50 a month via a 3rd party. When my contract pack arrived even tho my paperwork was correct my O2 contract was now £21 per month. They had increased the price of my tariff in transit! Naturally I got a discount applied to my account or I was cancelling out of principle, but what I am saying is that the mobile companies adjust their pricing all the time - this course of action is bang out of line and I hope ofcom outlaw it soon.

    Also note those people that are half way into their contract can lower their tariff down 1 level each month if they are not at the lowest level already. At such a time that O2 change all their contracts those will be selectable at that time. For example an old contract i had was 100 mins 500 texts and I was able to switch to 100 mins unlimited texts for the exact same price...go figure.

    Shame on you O2 - your customers will not forget this.

    Rom
  • Seems they have this pretty much watertight. Here is the relevant section from their Pay Monthly Ts&Cs:

    5. Charges for our Services
    5.1 Detailed charging information can be found on our Website and in our Tariff Terms.

    5.2 We may increase or decrease our Charges from time to time. If we increase our Charges (apart from for Additional Services), we’ll let you know at least 30 days before the Charges are due to go up and you’ll have the rights explained in paragraphs 5.3 and 5.4. We won’t increase your Monthly Subscription Charges more than once in any 12 month period.

    5.3 You can end this Agreement without having to pay the Monthly Subscription Charges up to the end of any Minimum Period you have left, if:
    (a) we increase your Monthly Subscription Charges by more than the Retail Price Index (RPI) annual inflation rate at the date we notify you of the applicable price increase; or
    (b) we increase any of our Charges (apart from for Additional Services) in such a way that would have increased your total bill for the immediately previous month by more than 10% (if the increase(s) had applied for the whole of that month).

    5.4 If you want to end the Agreement because of one of the circumstances in paragraph 5.3 you must give us Notice that you want to within 30 days of when we tell you about the relevant price increase(s). If you don’t give us Notice within 30 days, you accept the new Charges and the Agreement will continue with the new Charges.

    Thanks, Gordon. I'm annoyed: I started a 2-year contract on November 30th.

    They didn't notify me about this increase until yesterday (21/12/2012).

    Hang on a minute... according to the Office for National Statistics (www dot ons dot gov dot uk) Retail Prices Index (RPI) annual inflation stands at 3.0 per cent today. It was3.2% last month, but it went down to 3% on 18th December 2012, three days before O2 notified me that they were increasing my Monthly Subscription Charges. O2 are therefore increasing the Charges by more than the RPI annual inflation rate at the date they notified me of the increase.

    This appears to mean that I can end my Agreement under paragraph 5.3(a).

    Does the mean that anyone first notified of the increase on or after 18th December 2012 can cancel their contract and owe nothing?

    John
  • Best to ask them.

    I got my email on the 12th, so I'm stuck now anyway.
  • JG3
    JG3 Posts: 6 Forumite
    I challenged O2 on their price increase and requested they terminate my contract. I received a txt yesterday saying sorry you are leaving us on the 15th Feb if you would like to change your mind please get in touch.... I had another year left on my 24 month contract. Amazed it worked! This is what I said:


    I am writing to you today regarding the planned 3.2% price increase from the 28th February 2013. When I entered into my contract with O2 I was told that there would be no increase throughout my contract. This must have been down to an inadequately trained member of staff as I have since read the contract and see that O2 are able to increase the price providing they give me 30 days notice. However, as this price increase comes at a disadvantage to myself, and I deem it to be of material detriment, therefore I would like to terminate my contract with O2 from the 15th of February. I would like to take this opportunity to remind you of the relevant points in my contract with O2, particularly 8.4 (c) which allows me to end the agreement, with notice, if O2 have increased the price of the contract and I am at a disadvantage.


    8.3 if this Agreement is ended during the minimum period, you must pay the monthly subscription charges up to the end of the minimum period. This does not apply if you end the Agreement for the reason in paragraph 8.4.

8.4 You may end this agreement at any time by giving us notice:
(a) N/A
(b) N/A
(c) we increase any of the charges for the elements of the Service you are using or change this Agreement to your disadvantage. In this situation paragraph 8.3 will not apply.
    Please note the following guidance on the from Ofcom regarding this matter:
    Under General Condition 9.3, communications providers must provide customers for whom a change is likely to be of material detriment with one month’s notice of the change.

    Customers must also be informed that they are entitled to terminate their contract without penalty if the change is not acceptable to them.

    I look forward to your conformation that my contract with O2 will be terminated on the above date as I do not accept the price increase.

    END_____

    So I contacted an O2 rep on webchat just to check what my final bill would include. They confirmed that it would just include:

    Credit for the line rental you've paid in advance
    Charges for your usage (if any) until account disconnection date

    I think that is the end of the matter. I hope this helps anyone who is trying to terminate their contract as a result of the price increase.
  • Gordon_Hose
    Gordon_Hose Posts: 6,259 Forumite
    Debt-free and Proud!
    Did you write to them? I was under the impression we only had 10 days in which to reject the price rise?
  • JG3
    JG3 Posts: 6 Forumite
    Yes I wrote to them at the start of Jan.
  • Gordon_Hose
    Gordon_Hose Posts: 6,259 Forumite
    Debt-free and Proud!
    Which address did you write to?
  • JG3
    JG3 Posts: 6 Forumite
    Telef!nica UK Limited

    Correspondence Department

    PO Box 202
    
Houghton Regis

    LU6 9AG
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