o2 price rise - more than rpi. cancel contract!

gjchester

markavo1 wrote: »

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%.

The amount of RPI was the one in (I think) October which was the RPI in force when they first announced the price rise.

markavo1 wrote: »

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

With the exception of the new vodafone leased handset plans you have always owned the phone from when you get it. Yes the 24 month's payments pay back the subsidy but the phone is still yours from day one.

The RPI is from the date they announced the prioces not the date you were notified, with millions of customers saying it's the RPI on the day you are notified would be a nightmare to process, hnce the set date of the announcement.

markavo1

gjchester wrote: »

The amount of RPI was the one in (I think) October which was the RPI in force when they first announced the price rise.




With the exception of the new vodafone leased handset plans you have always owned the phone from when you get it. Yes the 24 month's payments pay back the subsidy but the phone is still yours from day one.

The RPI is from the date they announced the prioces not the date you were notified, with millions of customers saying it's the RPI on the day you are notified would be a nightmare to process, hnce the set date of the announcement.

not according to their terms. Their contract specifically says:

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



Seems quite clear that its the date they notify you and not the day they announce it. They notified me of it by email today, when rpi is running at 3%

gjchester

markavo1 wrote: »

Seems quite clear that its the date they notify you and not the day they announce it. They notified me of it by email today, when rpi is running at 3%

Possibly, but other posts on the forum have suggested O2 treat the date you were notified as to the date they announced it to the world.

Good luck however it may be an uphill struggle.

redux

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.

The inflation figure is itself rounded to one decimal place

Would anyone take a bet of potentially hundreds of pounds of legal fees against this alleged overcharge of 4.8 pence a year that if RPI was specified to more significant figures it would definitely be below 3.225806% ?

Guys_Dad

gjchester wrote: »

Possibly, but other posts on the forum have suggested O2 treat the date you were notified as to the date they announced it to the world.

Good luck however it may be an uphill struggle.

What it seems, however, in this specific case they knew of an impending price increase and did not notify Markavo1 at time of purchase. Now that is clearly contrary to contract law.

As to their contract term
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;

That is so badly worded as, standing alone, that gives them the right to increase monthly subscriptions more than once per year and each time at the annual rate of inflation at the time they notify you.

I think Markavo1 might be on some sort of winner here, but my view is that the most likely outcome is the increase would be put aside.

Doctor-John

It's good to know I'm not the only one in this situation. I was notified of the price increase on 21st December 2012, 3 days after RPI inflation fell from 3.2 to 3%. Under paragraph 5.3 of the contract, I have the right to terminate without charge. O2 disagree, but they don't give a cogent reason.

People may think I'm being petty, but I think that unless people like us terminate our contracts when we have a contractual right to do so, phone companies will think they can get away with unfair price increases. The small print gives them a right to increase prices without limit; it is only our right to terminate which puts a cap on their price rises. So I think it's arguably our duty to exercise that right if we can. That's just my personal opinion.

Unfortunately the ombudsman service has decreed that they will accept no complaints at all arising from the o2 price increase. It worries me greatly that they don't seem to think it important to help consumers when a phone company is potentially breaching its own contract.

How do you complain about the ombudsman? Is there an ombudsman ombudsman?

DUTR

Doctor-John wrote: »

It's good to know I'm not the only one in this situation. I was notified of the price increase on 21st December 2012, 3 days after RPI inflation fell from 3.2 to 3%. Under paragraph 5.3 of the contract, I have the right to terminate without charge. O2 disagree, but they don't give a cogent reason.

People may think I'm being petty, but I think that unless people like us terminate our contracts when we have a contractual right to do so, phone companies will think they can get away with unfair price increases. The small print gives them a right to increase prices without limit; it is only our right to terminate which puts a cap on their price rises. So I think it's arguably our duty to exercise that right if we can. That's just my personal opinion.

Unfortunately the ombudsman service has decreed that they will accept no complaints at all arising from the o2 price increase. It worries me greatly that they don't seem to think it important to help consumers when a phone company is potentially breaching its own contract.

How do you complain about the ombudsman? Is there an ombudsman ombudsman?

I wonder why there was only one monopolies and mergers comission :eek:

redux

What do these people want to do after they've cancelled their contracts?

Their next contract will be at the new rate anyway

Unless they want to step down to a more modest tariff, in which case the reason given to cancel might be a little disingenuous.

jb66

redux wrote: »

What do these people want to do after they've cancelled their contracts?

Their next contract will be at the new rate anyway

Unless they want to step down to a more modest tariff, in which case the reason given to cancel might be a little disingenuous.

get another contract with a free phone