Mobile Phone Contract - Price Rise Refunds

edited 14 May 2014 at 10:18PM in Mobiles
1.6K replies 135.2K views


  • Dear Customer Services Representative,

    Re: Mobile PhoneNumber 07xxxxxxxxx

    I am writing to you to request that you reverse all price rises applied to my fixed term contract and credit my account so that any future payment is also in line with our original agreement. (if your account is closed replace this with a request for a cheque to refund the sums taken)

    On review of the Unfair Terms in Consumer Contract Regulations 1999 (UTCCRs) and the Office of Fair Trading (OFT) general guidance on the UTCCRs I believe that the price variation clause in our contract is in breach of the UTCCRS and therefore unenforceable by I]Company name[/I as it breaches the following sections of the UTCCRs:

    1. The price variation clause was not clearly and adequately drawn to my attention during the sales process
    a. Schedule 2 Paragraph 1 (i) & (L) and OFT Group 9 guidelines especially Paragraphs 9.2 and 9.4 and Group 12 especially 12.4

    Without prejudice to the above
    2. The price variation is discretionary (capped by RPI, but not linked to anything at all)
    a. Schedule 2 Paragraph 1 (J) and OFT Group 10 guidelines especially Paragraphs 10.2 and 10.3b

    Without prejudice to the above
    3. You can not Implement a price rise clause other than for the purpose stated in the contract (there is no purpose stated in the contract– hence why it is discretionary).
    a. Schedule 2 Paragraph 1 (L) and OFT Group 12 guidelines especially Paragraphs 12.1, 12.2 and 12.3

    Without prejudice to the above
    4. You can not pass risks to me that I]Company name[/I is better able to control or anticipate
    a. Group18b of the OFT Guidelines especially paragraphs 18.2.1, 18.2.3 and 18.2.5

    Under UTCCRs Schedule 2 Paragraph 1 (Q) the burden of proof does not lie with the consumer, therefore I put I]Company name[/I to strict proof that:

    5. That the price variation is not discretionary

    Without prejudice to the above
    6. The price increase applied to my contract is an accurate reflection of cost increases incurred in operating my contract –over and above those already factored into the initial contract price;

    Without prejudice to the above
    7. That the initial price of the contract had not already factored in any anticipated cost increases associated with the operation of a [24] month contract

    Without prejudice to the above
    8. The price variation clause was clearly and adequately bought to my attention at point of sale

    After considering the contents of this email I trust that sufficient credit will be placed on my account in the next billing cycle such that I am only ever charged the originally agreed contract price for the entire duration of the contract, [if your contract has ended then ask for a cheque to the value of the sums taken over and above the originally agreed contract price]. Should I]Company name[/I be of the opinion that a full refund is not due then in your response to the points above please provide the name and contact details of the adjudication scheme to which you belong.

    For the avoidance of doubt:
    9. I am not seeking a standard letter informing me that you have complied with GC 9.6. Any such response will be considered a lack of a duty of care in responding to my request;
    10. I am not seeking to challenge I]Company name[/I business decision to raise its prices (that is a decision for I]Company name[/I to make) I am challenging whether the contract clause is enforceable under the UTCCRs 1999 for the reasons stated above (Paragraphs 1 to 4).

  • Paragraph 1 of the letter

    If you can supply some evidence for Paragraph 1 that would be useful (an "order summary" or "welcome letter").

    The document should state:
    1. The Monthly price
    2. The length of the contract, and
    3. Details of the inclusive allowances
    What it won't state is that the price is variable and by law it needs to!

    I do have some examples in jpg format, but don't know how to upload them - any ideas?

    It was the Welcome letter that I received from Orange that was of value in my case as it was so misleading I was awarded £50 compensation as Orange had breached its duty of care (see later)
  • Paragraphs 2, 2 and 4 of the letter

    These work together to "trap" your provider.

    1. They have allowed for inflation in the initial contract price
      1. In which case they have no reason to quote inflation in your price rise letter OR
    2. They have not included inflation.
      1. which is a breach of their duty care and a transfer of a risk that they (in a short duration contract) are better control/anticipate
    Either way they have acted outside of the UTCCRs!

    Some background (from my last letter to Ofcom) -Techhead - the importance of the contract being 24 months or less:

    1. The background to the UK Mobile market is:
    a. The UK Mobile market is a mature market (20+ years);
    b. The players within the market have considerable experience of the market;
    c. Contracts are short term (24 month) contracts; and
    d. The UK economy has been stable over the last few years (no hyper or unexpected inflation).

    2. In ashort 24 month contract either:

    e. The Communications Provider HAS factored anticipated inflationary pressures into their initial price – in which case the price variation clause is not being used for the purpose stated (OFT 10.3b) and is being manipulated to suit the interests of the provider (OFT 10.3 (b), or is discretionary and is therefore unenforceable.


    f. The Communications Provider HAS NOT factored in potential cost pressures when he is best placed to control and anticipate them- thereby demonstrating that he has not taken reasonable care when setting the initial contract price (OFT 18.2.2) and is attempting to transfer an inappropriate risk to the consumer (OFT 18(b) 18.2.1 and 12.3). So again the clause becomes unenforceable.

    3. Regardless of whether a Communications Provider has or has not factored in costs pressures into the initial contract price in a short term contact in a mature market with experienced players and a stable environment any price rise variation clause which is invoked (when compared to the UTCCRs) is plainly unfair and unenforceable.
  • Paragraph 9

    If you need to go the adjudicator (i.e they won't make the refund) then in addition to claiming a refund you can also claim compensation if you can prove certain things.

    One of the things you can be awarded compensation for is the provider breaching its "duty of care". Basically in they have to act reasonably and professionally. If they do respond to your initial letter with a standard response about GC 9.6 and you have expressly stated that you would not find that acceptable, then you are on the way to building a case for compensation (£25-£50)
  • Paragraph 10.

    This one is vital.

    One of the tricks that T-Mobile tried to use to prevent customers taking their complaints to the adjudicator was that the complaint was about T-Mobiles business decision to raise prices - and the adjudicator can not adjudicate on business decisions. Initially case were being turned down by the adjudicator until Ofcom stepped in and we change the tactic to clearly express that T-Mobile can do as it pleases with its prices, but it has to be compliant with the law.

    And that is it until you start to receive responses - or if you have any questions.
    (taken out on are after 31st October 2012).

    I have been misled by Ofcom and have to correct post#2 on this forum as per below.:mad:

    Apparently the 3.3% price rise will not be cancelled - it will be reduced to 3.2% - which was the RPI applicable at the time.

    There will be some posts going on the T-Mobile Price rise forum shortly which show how you may be able to TERMINATE YOUR CONTRACT PENALTY FREE.
    Please use that forum rather than this one - and don't send the email as above (yet) as you may have a bigger win waiting for you.

    I always thought Ofcom were working in collusion with the industry - but their latest ruling is just plan CORRUPT!-
  • edited 16 November 2013 at 12:23PM
    RandomCurveRandomCurve Forumite
    1.6K Posts
    edited 16 November 2013 at 12:23PM
    T-MOBILE CUSTOMERS ON V59 of the contract

    Please see post #2162 on the T-Mobile price rise forum - Ofcom's corrupt actions with T-Mobile have opened an opportunity for a PENALTY FREE CANCELLATION if you act IMMEDIATELY

    Please facebook/tweet a link
  • Hi, I've just been reviewing my sisters contract as she wants out of her current 'deal' with orange and there's plenty of information that looks necessary to fulfill the contract missing;

    Seemingly most imoportantly the 'I agree to the Declaration overleaf' where you need to select a tickbox yes or no has not been selected. Could this be used as a tool for saying she does not agree with the contract?

    also there is no information filled in underneath that in the 'accepted by orange' section whereby i imagine an orange employee is supposed to fill in the account number/their name signature and the date

    The 'registered', 'MKT', 'CMR' and 'HSI' fields are also blank.

    Any help would be massively appreciated, I've called up about cancelling the contract early and been quoted over £500 which she can't afford at all.
  • Also, how do i go about checking the most recent version of the orange terms and conditions to see if they are the same as the ones given when the contract was taken out? I'm clueless
  • Hellfc wrote: »
    Also, how do i go about checking the most recent version of the orange terms and conditions to see if they are the same as the ones given when the contract was taken out? I'm clueless

    When did she take the contract? And has she used the phone?
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