When do you officially own the phone in a contract?

aaronjunited

As the title suggests, I would like to find out how long you have to go in a contract before you legally or technically own it.

My worry is, I'm asking to downgrade to the cheapest possible tariff and I know it will take ages to do get it sorted. I can't afford to pay the monthly bill, I have moved from home into my own place for the first time and need to cut my bills down.

So if Phones 4U / O2 don't let me downgrade to what I can afford, I will be telling them I can't afford to pay monthly any more, So I will offer them an amount I can afford each month till its paid or until my situation gets better money wise.

I need to know when DO you officially own the phone. If it goes to me not paying anything or them agreeing to my offer, will they bar my IMEI number and I will be without a working phone on PAYG.

Any help would be greatly appreciated.

Aaron.

Tyler_Du

Afaik, the phone and the contract are 2 separate things, it's unlikely they'll allow you to downgrade to a cheaper tariff as it's the expensive tariff that gets you the decent phone in the first place. I believe you might be able sell the phone to pay the contract.

The problem is that you agreed to a given contract at x pounds pm for y months.

robbies_gal

the phone is yours now be aware though it might be ocked to the network if u want to sell it

aaronjunited

Thanks for the advice. I wont be able to sell it anyway, there is a slight crack on the glass. I still want to use the phone on pay as you go.

But worried they will bar the phone, not block. A Barred phone is useless no matter what sim is in it. It's IMEI number is blacklisted.

So what will happen is the question I know is hard to answer lol.

keith1950

The phone is yours from the moment you get it.

They will not let you reduce the tariff so if you don't pay the monthly rental they will eventually sell the debt to a debt recovery company and your credit file will be trashed.

You are much better off trying whatever you can to keep up the payments or pay off the contract...don't make a hasty decision now as your situation may improve in the near future.

I can't comment on the bar/block issue in your case , the only experience I have had was with a relative who had a contract in my name and wouldn't pay.
When I rang the network to explain they barred the phone.

Herongull

Unless they agree to move you onto a cheaper tariff (which is unlikely), then if you don't pay the contracted amount then you are in default (in the same way as if you defaulted on a debt).

This means that it will be difficult for you to get credit (loans, credit card or mortgage or possibly even rental agreements). Defaulting on a phone contract or debt should be a last resort.

My understanding is that once you are in default you will stop getting your monthly allowance of minutes, texts and data, but you will still have to pay the contracted amount until the backlog is cleared (plus any additional charges for being in default).

Yes, I have heard of phones being blocked as well when someone defaults, but I don't know how commonly this happens.

Your only choice is to try to sell the phone and use the proceeds to try to buy yourself out of the contract and then buy a cheap phone and go PAYG.

Never take out a phone contract - always buy the phone outright and go PAYG and you avoid all the stress and hassle of a contract.

robbies_gal

Could you not sell it to a friend for a reduced amount maybe

aaronjunited

Thanks for all the advice once again.

I'm thinking of seeing the Citizens Advice Bureau, they can help in extreme situations. I am on job seekers, I have no job at the minute and I took the contract when I was in employment.

I will do what my budget allows of course. I appreciate the very good advice too.

grumbler

aaronjunited wrote: »

I'm thinking of seeing the Citizens Advice Bureau, they can help in extreme situations.

How can they help? Certainly they will not be able to help with reducing the cost of the contract or with avoiding a default if you can't keep paying. I think you'll be wasting your and their time if it's only the mobile contract that you want to seek their help with.

I am on job seekers, I have no job at the minute and I took the contract when I was in employment.

Well, possibly a default in your credit history will be a good thing then. It will stop you from getting unaffordable phone contracts and other mainstream credit in the next 6-7 years.

Silk

aaronjunited wrote: »

I'm thinking of seeing the Citizens Advice Bureau, they can help in extreme situations. I am on job seekers, I have no job at the minute and I took the contract when I was in employment.

Fully agree with grumbler on this the CAB are not going to be able to help other than advise you on your situation ...apart from the fact that not being able to pay a phone bill is hardly an "extreme situation"

The people you need to be talking to is O2 to see if they can offer help in any way to reduce or extend your credit situation.