MSE News: Orange and T-Mobile customers face yet more price hikes

sshariff

Those who joined Orange in October 2012 or before have every right to cancel their contracts without penalty. Orange have blatantly changed their exit clause on the terms and conditions on their website without informing the customer. The following is the actual exit clause for such contracts:

4.3 You may also terminate your Contract if we vary its terms, resulting in an excessive increase in the Charges or changes that alter your rights under this Contract to your detriment. In such cases you would need to give us at least 14 days written notice prior to your Billing Date (and within one month of us telling you about the changes). However this option does not apply if:
4.3.1 we have increased the Charges by an amount equal to or less than the percentage increase in the All Items Index of Retail Prices published by the Central Statistical Office in the Monthly Digest of Statistics in any 12 month period;

Details regarding this can be found on tomforth dot co dot uk slash orange.

Orange have already looked into this and cancelled contracts for customers who have fought. The case is pretty straight forward. Orange are deceiving the customers by cheekily changing the exit clause on their website hoping that the customers will not notice. In the new terms and conditions on their website it states:

4.3.1 we give you written notice to increase the Charges (as a percentage) by an amount equal to or less than the percentage increase in the All Items Index of Retail Prices or any other statistical measure of inflation published by any government body authorised to publish measures of inflation from time to time, and published on a date as close as reasonably possible before the date on which we send you written notice;

Please note that there is no mention of RPI or inflation in the terms and conditions signed for on/before October 2012. Moreover the Central Statistical Office closed down in 1996! The legal team at Orange have already accepted this and if you push then you will definitely get your contract cancelled as with the case on the website link that I posted.

NorthernOne

Got my letter today about the price rise.......but I transferred from tmobile to EE 4G 2 months ago.......what a bunch of clowns

sshariff

Here is the thing. Based on my previous post I contacted Orange again and then got through to disconnections. I explained the way Orange were trying to manipulate the terms and conditions and I then read out the termination clause 4.3.1 that I actually signed up for (my contract started in the end of Sept 2012). Now the voice changed and the representative started explaining that the letter they sent out for the price increase provides an option (last page) to upgrade to another contract without any detriment (even though it does not explicitly state that)! He stated that this has been their policy (their legal team have provided them new advice in order to prevent losses from people leaving them and they are going to use this option in court where they gave people an alternative to avoid the price rise)!

So they changed my tariff to their works 36 one (unlimited minutes, unlimited texts, 1GB data) with a £7.5 discount which means a monthly charge of £28.50.

Everyone who signed before Nov 2012 can get their contracts amended if they call customer service retention's and quote the terms and conditions that I mentioned!

lukat

Hi everyone,

I came to the same conclusion tonight by looking at the RPI Percentage change over 12 months that was applied to my tariff and found this thread mentioning the RPI and the success of MSE forum user "sshariff".

I calculated my T-Mobile contract increase: £41 to £42.34.
That is equivalent to the 3.3% increase.

Here is the thing:

The old terms of T-Mobile for customers before 30 October 2012 clearly states the following:

2.11.2. If You are a Consumer and the change is of material detriment to You, We will send You Written Notice 30 days before the terms and conditions are due to change. The
new terms and conditions will apply to You once that
notice has run out, unless You terminate Your Agreement with Us within that notice period. If You do this You won’t have to pay any Cancellation Charge that would otherwise apply, see point 7.2.3.2.

7.2. Your termination rights
7.2.1. You can give Us notice to terminate this Agreement, to
take effect on or after the end of the Minimum Term.
However (except as set out in point 7.2.3) if, in our total
discretion, We accept notice from You to terminate this
Agreement within the Minimum Term, You will have to pay
Us a Cancellation Charge. You can terminate this
Agreement without having to pay Us a Cancellation
Charge after the Minimum Term has ended.
7.2.2. You can only give Us notice to terminate this Agreement
by calling customer services. Your Agreement will
terminate 30 days from when We receive Your call,
although You are free to change Your mind and call Us to withdraw Your notice of termination at any time during that
period. You will be responsible for all Charges up to and
including the date that this Agreement terminates.
7.2.3. A Cancellation Charge won’t apply if You are within the Minimum Term and:
7.2.3.1. Our entitlement to operate the Network ends at
any time; or
7.2.3.2. You are a Consumer and the change that We
gave You Written Notice of in point 2.11.2 or 7.1.4
above is of material detriment to You and
You give Us notice to immediately cancel this
Agreement before the change takes effect; or
7.2.3.3. The change that We gave You Written Notice of in
point 7.1.4 is an increase in Your Price Plan
Charge (as a percentage) higher than any
increase in the Retail Price Index (also calculated
as a percentage) for the 12 months before the
month in which We send You Written Notice and
You give Us notice to immediately cancel this
Agreement before the change takes effect.

I received the notice in April, so the RPI that last reflects on 12 months, before the Notice I was sent by T-Mobile, was published in February 2013:

12 months RPI til January 2013: 3.3%
12 months RPI til February 2013: 3.2% Percentage change over 12 months

So my plan charge has been increased to be higher than the RPI for the 12 months before the month in which T-Mobile sent me the written notice.

T-Mobile has since then modified its term for new customers and this potential "mistake" seem to not apply.

But could that mean the possibility to cancel a T-Mobile monthly plan without termination fees for anyone who received a price increase written notice in April and for whom the increase is 3.3% and above, meaning it is of material detriment to the Consumer as it is above the RPI "for the 12 months before the
month in which T-Mobile sent the Written Notice"? (Quoting T-Mobile's terms again here!!)


Let's look at it again:

They say we can terminate the contract without a termination fee if:

The change that We gave You Written Notice of in
point 7.1.4 is:

an increase in Your Price Plan Charge (as a percentage): YES

higher than: YES --> 3.3% instead of 3.2%

any increase in the Retail Price Index (also calculated as a percentage) for the 12 months: YES -->notice they don't say any increaseS in any of the Retail Price IndexeS during or throughout those 12 months which would then include the January 3.3% increase! They say any increase (if any) in the RPI for the 12 months...

...for the 12 months (not during the 12 months) before the month in which We send You Written Notice: -->--> YES, they are saying we can cancel our contract without termination fees if the RPI for the 12 months, one month before the price increase notification, is lower than the price increase. And it is the case here!

I know it is subtle and some people will say it should mean that they can use any RPI published monthly during those 12 months prior to the notification letter, but that's not what my contract says! T-Mobile's terms mean nothing else but that my increase should not have been higher than the increase (if any) in RPI for the 12 months prior to March 2013 (month before I was sent the price notification letter). And that RPI is the February 2013 12 months RPI of 3.2%.



Sorry if some of you feel like I have been repeating myself throughout this post, but I strongly believe T-Mobile have opened the door for some customers to terminate their contracts without a termination fee!

Thoughts anyone? Should I go ahead and call them (requirement for termination) and also write a letter directly to let them know as per their terms, I am in my right to terminate my contract without a fee?

Lifes_Grand_Plan

Go for it mate, nothing at all to lose. I doubt they will rollover and let you leave without charge but that doesn't mean they are correct.

Would love to get my wife out of her T-Mobile contract but her increase is only 3.17%....

timbouk

Lukat, I too received a letter this morning, and have just come to the same conclusion. Came on here whilst I'm on hold to disconnections now.

Have you got anywhere yet?

powerful_Rogue

lukat, keep us all updated on what you do and how far you get.

boatman

Has anybody found any loopholes with Tmobile yet? I have 2 contracts, one of which i took out 2 months before the previous price rises, I was not amused!!
Some one commented with regard to 'its in the t&c's' and 'didn't you read it', but given that its probably been there for 15 years and yet no company sunk so low as to implement it until last year, i think it only fair for most people to assume when they sign up to a 2 year contract that it would remain the same. It is the companies that have forced 2 year contracts on people and that being the case need to anticipate some degree of change during that time, if they feel they cannot do this make the contracts shorter. Why do these companies expect to be able to make a price increase when many people have not received a pay increase? They really are playing in to the hands of Tesco who say they will not increase prices during the contract.

gjchester

boatman wrote: »

It is the companies that have forced 2 year contracts on people

No-one is "forced" into a contract we all enter them by choice, an expensive smart phone mobile is luxury item not a basic need.

You can get a PAYG from £10 if you have a desperate need for a mobile phone,

boatman wrote: »

They really are playing in to the hands of Tesco who say they will not increase prices during the contract.

It's more the other way around, Tesco are using this as a marketing ploy, if Tesco through they could get away with it they would do the same, but they prefer to try and grow market share through this.

custardy

boatman wrote: »

Has anybody found any loopholes with Tmobile yet? I have 2 contracts, one of which i took out 2 months before the previous price rises, I was not amused!!
Some one commented with regard to 'its in the t&c's' and 'didn't you read it', but given that its probably been there for 15 years and yet no company sunk so low as to implement it until last year, i think it only fair for most people to assume when they sign up to a 2 year contract that it would remain the same. It is the companies that have forced 2 year contracts on people and that being the case need to anticipate some degree of change during that time, if they feel they cannot do this make the contracts shorter. Why do these companies expect to be able to make a price increase when many people have not received a pay increase? They really are playing in to the hands of Tesco who say they will not increase prices during the contract.

pay for your handset and go PAYG or pay monthly sim only
no contracts 'forced' on you