o2 price rise - more than rpi. cancel contract!

Ultrasonic

DUTR wrote: »

As 1p is the smallest currency coin at present then you can see why 49.6p becomes 50p and not 49p.

But in this case rounding up makes the increase greater than the rpi inflation figure. I have no idea what a court would make of the OP's case, but as far as I can see he is completely correct to note that the increase is larger than allowed for in the agreed contract.

That said, if this was pursued with O2 then presumably they could just decide to apply a 49p increase instead and then the OP would still be stuck with the contract, and there would have been a lot of hassle over what would be at most 24p.

Is it really that terrible that this increase is being made? I took out an O2 contract at the end of November knowing full well that they could and most likely would increase the price over the term of the contract, as the other mobile phone companies have.

DUTR

Ultrasonic wrote: »

But in this case rounding up makes the increase greater than the rpi inflation figure. I have no idea what a court would make of the OP's case, but as far as I can see he is completely correct to note that the increase is larger than allowed for in the agreed contract.

That said, if this was pursued with O2 then presumably they could just decide to apply a 49p increase instead and then the OP would still be stuck with the contract, and there would have been a lot of hassle over what would be at most 24p.

Is it really that terrible that this increase is being made? I took out an O2 contract at the end of November knowing full well that they could and most likely would increase the price over the term of the contract, as the other mobile phone companies have.

I do recall on some of my bills especially when the VAT was reduced that some months the bill was 1 penny different , so perhaps they do adjust for the decimal difference.

collywollys

just signed up with O2 on 8th Jan, £26 a month tariff. Just had welcome letter letting me know tariff will increase in Feb, haha !!

thatsean

OP, surely a one time credit of 24p will set you right then? :-)

jb66

thatsean wrote: »

OP, surely a one time credit of 24p will set you right then? :-)

no thanks I will just take the option of cancelling thanks

jnm21

thatsean wrote: »

OP, surely a one time credit of 24p will set you right then? :-)

Nice try - they would then breach the contract in month 25!

esuhl

Well... I did the same thing when T-Mobile introduced a charge for paper-billing, which increased my bills above the RPI. T-Mobile were rude and obnoxious but I threatened court action and they very quickly relented and offered to either cancel my contract or reduce my line rental. I offered to continue the contract for less than it was originally and they accepted (they thought it better to get a few quid from me rather than have me cancel).

I don't know what the T&Cs of your contract say, particularly to do with rounding, but 49.6p is less than 50.0p no matter how you look at it. If you're entitled to cancel your contract, it's not a "small thing" that a payment of 24p could fix -- you're going to save £15.50 a month for the months that you would have had to pay if O2 had not given you the option to cancel (assuming they have).

jnm21

DUTR wrote: »

Why should I stop, when the 'offended' continue to campaign?
People have a right to the alternative opinion.
You know deep down in your heart what you agreed to, why not join with the OP and take the networks to court, do you honestly belive you have a case that the Judges will agree to?

Quite simply the offended continue to complain because they are offended - big companies have got away with bully boy tactics for too long. They either have your money or your bank details & take the stance that we will do what we like as a) you will be afraid to go to court and b) we can afford a loss or two, but one bad loss will crush you, adding weigh to a).

If a contract says that it must not increase by more, then they should have specified the exact term (i.e. clarified the rounding) or stick to what they specified - what happens next year when the value is 50.4p & they want to up it by 50.2p after VAT? Will the goal posts move again (after all it doesn't say it rounds down in the contract)?

DUTR

jnm21 wrote: »

Quite simply the offended continue to complain because they are offended - big companies have got away with bully boy tactics for too long. They either have your money or your bank details & take the stance that we will do what we like as a) you will be afraid to go to court and b) we can afford a loss or two, but one bad loss will crush you, adding weigh to a).

If a contract says that it must not increase by more, then they should have specified the exact term (i.e. clarified the rounding) or stick to what they specified - what happens next year when the value is 50.4p & they want to up it by 50.2p after VAT? Will the goal posts move again (after all it doesn't say it rounds down in the contract)?

Nope the OP later posted he is simply looking for an excuse to terminate the contract.
Nowt bully boy about it, nobody had a gun at their head and was forced to agree to the 24 months.

Like you or another poster mentioned the company could simply add a goodwill gesture of a few pence.
Perhaps the increase does not allow for the VAT?
But sensibly you know that is not a get out as the OP wishes, it's not about being scared to take them to court, I cannot see a judge ruling in favour of the plaintiff. (and to be honest neither can you)

markavo1

I, on the other hand, think I do have a good case to get out of my contract because of the increase. I only took my contract out on 8th January 2013, at a cost of £31 a month and including the iphone 5 handset. I have today had an email telling me that on 28th February, my cost will be increasing by 3.2%. However, RPI as of 18th December is 3.0%.

Think I'm going to have a go at playing O2 against their own contract, because by reading it, as soon as I get my handset, I own it, because normally, your 24 month contract would reimburse them for the phone. But, as they are trying to give me a price increase that is higher than RPI on the date they notified me of the increase, I think I am entitled to cancel my contract, then will have a brand new iphone 5 for just 30 days cost of contract