MSE News: Phone firm hiking prices? You'll soon be able to dump it, penalty-free

anna2007

robbies_gal wrote: »

so its only for new customers?

The regulations (General Condition 9.6) already allow customers to exit their contracts penalty-free if any modifications, such as price increases, are of "material detriment". The problem has always been that it was unclear what was meant by material detriment - now that Ofcom have stated that any increase in the "core subscription price" is materially detrimental, existing customers should be able to use this to to cancel without penalty, if hit with a price increase.

The GC itself isn't being changed, Ofcom are instead issuing guidance on the GC in 3 months' time, which will then automatically apply to all new contracts. For existing contracts, Ofcom have stated:

"GC9.6 will continue to apply as it does now. Any question regarding whether a price increase meets the material detriment requirement will be considered on a case by case basis".

I suppose the provider could still refuse to let existing customers cancel, but in light of Ofcom's definition of material detriment, and the requirements of GC9.6, they'd be on dodgy ground if they did. Ofcom's closing comment in their statement is that they will be monitoring providers' compliance with the GC in all cases, i.e. for both new and existing customers.

Earthworm

@NFH: I do agree with your points and some of the stories on this forum are clear examples of why this would be great I just prefer to gain my handsets on 24/18 month terms and this method is one of the most common methods of payment.

My payments are secure as is my job but I'll admit I pay over the odds for what I get.

I cant see such a radical change happening overnight though given the demand of higher costing phones and the reliance on networks to provide the handsets themselves rather than the manufacturer.

A step in the right direction would be to sell 24 month terms with a clear indication of the phone value and the total 24 month cost (handset and airtime) at the point it is purchased.

Promoting lower monthly tariffs with increased up-front costs which lower the total contract cost would be a good step between the current market and the setup you would like to see. Too many look for the price that gets them their phone for "free" and removing that free price-point would;

- Change the way people look at contract costs and could start up questions on if the phone they want is really something they can afford.

- Helps to reduce impulsive "buy now think later" decisions.

- Lowers the average monthly bill people pay.

It puzzles me how the same people who wouldn't go into BrightHouse to take out a rip off loan will happily walk into Phones4U and take a £46 iPhone contract. If the lowest up-front cost on contract for an iPhone 5S was £150 a large percentage of buyers would re-evaluate their finances, purchase outright, or choose a phone more catered to their budget and needs.

forgotmyname

I wonder if the packages will just get dearer with less offers?

The price increases are naughty in my eyes. I agree a price take a "free" phone and contract for 2 years.. Why should they be able to increase the price when they feel like it.
I am with Vodafone and i don't think they let you drop the price during the contract. So why should they be able to increase it?

It will save me having to drop the price to what i paid originally also. Although im now paying £1 less than i did when i took out my previous contract.

So thats a couple of price rises taken into account. One where they bump it up a few p then the next one where they round it up to the nearest 50p or £ to make the bills easier.

NAUGHTY.....

What would i do without it? Get more sleep probably.

I just got a Galaxy S4. Not because i need or wanted one. Because it was there and cheaper than i paid for my S2.

anna2007

shaggy wrote: »

Vodafone are increasing their standard call prices from 1 Dec:

http://www.vodafone.co.uk/campaigns/price-changes/pricing-changes-21/index.htm?cid=rdr-13144-02

Im desperately trying to get rid of them as their data and voice reception is rubbish whereever I go.

Any pointers on what arguments I should use?

How far into your 12 month contract are you? If it's fairly new, or you've recently moved home for example, you would have a case to cancel due to the rubbish reception.

Unfortunately, the new Ofcom guidance won't help with the proposed Vodafone increase, as it relates to charges outwith your allowance - the Ofcom guidelines only cover your monthly plan charge, or any reduction in your allowance.

Kite2010

boatman wrote: »

So the companies will take this as a green light to hike existing contracts to the extreme in the next few weeks, great! Shame MSE didnt wade in when we needed them to months ago with T-Mobile, in my own case I did everything correctly to cancel my contract, went through CISAS and now feel it was a complete waste of time as I did not get back my line rental that I was forced to pay even when I won my case against T-mobile, the words horse, stable door and bolted spring to mind!

Wouldn't it be limited to hiking the price to whatever the current RPI is?

UsetheFORCE

O2 will probably get round this now that Refresh splits the phone and plan contracts into 2 seperate entities...