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Mobile Phone Contract - Price Rise Refunds

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  • narika
    narika Posts: 208 Forumite
    Just received email asking me to go to CISAS.
  • Good Evening

    I have also had the same response from EE after copying in ofcom.

    I will wait for tge next step fron RC

    Thanks
  • RandomCurve
    RandomCurve Posts: 1,637 Forumite
    PeteM1967 wrote: »
    I've been reading this thread with interest over the last few weeks being EE customer (T-Mobile) on a 24 month contract dating from 8th July 2012.

    Basically I will be leaving when my contract expires so was wondering if there is anything from me to gain from attempting the CISAS cancellation route being discussed. EE will be fleecing me for approximately 6 weeks until I can escape.

    I tried contacting them on Saturday to explain that I would leave on 8th July if my contract price increased. This simply resulted in me being shunted off to some Indian call center with a representative who was completely useless. I was told to leave when the contract expired so I guess that must be official EE policy regarding existing customers coming to the end of contract!


    Depends on your view point. You could just sit it out for 6 weeks or you could request the penalty free cancellation knowing it will cost EE £300 for putting in a sneaky price rise!! (I know which I would do). Also your contract has the highest chance of winning this case and you may get some compensation as well.
  • RandomCurve
    RandomCurve Posts: 1,637 Forumite
    Below is the "Summary" part of the CISAS case. I am still working on some of the finer points t try the best approach to gain some compensation in addition to a penalty free cancellation (but there is no tight timescales here - and if you win the cancellation will be back dated).
    I've published this part just to give you some time to be thinking about which parts apply to you and how much compensation to claim as it will depend on which emails EE have sent you. I have used a standard £25 per item for compensation, but you can use whatever figure you want (but if you go too high CISAS will say it is not proportionate to the loss and you won't get it), An alternative amount to use if your monthly contract price is higher then £25 is to use the monthly contract price for each of the items listed and state that is what you have used.






    Summary





    My claim is not in regards to EE/Orange/T-Mobiles’ (referred to as EE throughout the remainder of this claim) business decision to increase prices, as a business EE is free to make whatever business decisions it chooses. My claim is that the price rise notified to me is of material detriment as per the Ofcom definition of Material Detriment under GC 9.6, and therefore under GC 9.6 I am entitled to a penalty free cancellation.





    Without Prejudice (only use this if the your payment has increased above 2.7% e.g. Original payment £25.00 plus 2.7% (£25.00*2.7/100= £0.675p) so maximum new price = £20.67p)


    The price rise applied to my account means that the actual net monthly core subscription price that I am paying to EE reflects an increase higher than the February RPI rate allowed under the contract, and as per our contract I am entitled to a penalty free cancellation





    Without Prejudice (Only use this argument if you are a T-Mobile customer and took out your contract BEFORE 30th October 2012 OR if you had a 3.3% price rise applied last year and never had that reduced to 3.2% in October/November 2013 – you would have received a text advising you of a 0.1% reduction).


    As EE applied an annual inflation rate to my account in 2013 referencing the March 2013 RPI rate (published in April) then by applying an annual inflation rate in 2014 that references the February 2014 RPI rate EE have applied a 12 month inflation rate to an 11 month period. This is in breach of our contract as it is implied that price rises (by virtue of the contract allowing reference to the annual RPI) can only be applied annually, if this were not the case then EE could apply the annual RPI to my account every month if they so choose, and this could not never have been the intent of EE when drafting the contract.






    Adjust the figures below and remove the points that do NOT apply to you – some will have all there others just 2 and some only the first point.


    Further I request that I be awarded £75 compensation (£25 for each) of the following:



      [*]EEs breach of GC 9.6 – not informed of my rights to cancel the contract penalty free should I consider the increase to be of Material Detriment, (£25)
      [*]EEs initial lack of response to my email of DATE – taking X days and X follow-up emails until a response was received (£25)
      [*]EE falling to address the points raised in my original email even though I had made it clear that a response that did not address each point would not be an acceptable response (£25).


      Details are at appendix 1
      Correspondence is at Appendix 2 to
      X

    • RandomCurve
      RandomCurve Posts: 1,637 Forumite
      Ha! Bang on RC! I had a reply this morning saying I can go to CISAS!

      No reply to my daughter (August 2013 contract).

      So, shall I send an email to CISAS immediately, or wait for you to draft a response?


      I've been dealing with this Beast for the last year - I think I know what they are going to do before they do!!!


      Wait for the template for CISAS - and keep your daughters claim totally separate.
    • RandomCurve
      RandomCurve Posts: 1,637 Forumite
      Marshall93 wrote: »
      It mentions clauses 15.1 and 7.1, but my email from them mentions clause 3.7 only, should I just change the email to say 3.7 or use one of the options from the template email?
      Thanks so much for this,


      Always use the clause that applies to YOUR contract (the ones EE have quoted).
    • RandomCurve
      RandomCurve Posts: 1,637 Forumite
      goggster wrote: »
      Hey RC

      Ive now had the email from tmobile telling me that if im not happy i need to contact CISAS

      My contract runs out 20th Jun 2014 so that means i need to notify tmobile on the 20th May. Do i have enough time to go down the cisas route?

      ive read about the hassles of cancelling a contract and using a PAC so want to avoid going down this route if possible.


      You can go down the CISS route even if your contract ends while the case is progressing, so you can do both, and have the satisfaction of knowing you have cost EE around £300 for their disgraceful behaviour!!


      As regards the PAC code on cancellation request it about 3 weeks before your contract ends and use it (actually GIVE IT to your new provider) about a week before the contract end date.
    • margarino
      margarino Posts: 33 Forumite
      Hi RC,
      I received a written letter in the post in response to my email on 16/04/14, it said:

      21 April 2014

      Mrs A Name
      Address
      Address
      Address
      Address

      Dear Mrs Name

      T-Mobile Account Number: XXXXXXX

      Thank you for your email, received in the Executive Office, I have been asked to respond on behalf of EE.

      I am sorry you are unhappy with the recent increase to our prices and some of our services. As a company we are committed to investing significantly in our network and work hard to give the best value for our service, we have in this instance tried to keep these increases to a minimum. However due to rising business costs linked to inflation we have had to revaluate our pricing structure.

      In this instance, the increase to price plans is in line with RPI at 2.7 percent and compliant with the Terms and Conditions of your contract. Our Terms and Conditions give us the right to increase the cost of our services and this change does not give you a right to terminate your contract. Please refer to clause 7.1 in your Terms and Conditions.

      Whilst I understand this is not the outcome you were looking for, I trust I have clarified EE's position regarding this matter.

      Yours sincerely

      Victoria Hunt
      Executive Office, EE

      Do i need to do this through CISAS or can i go straight to small claims? Happy to pay £30 to speed this up.
      Thanks so much for all the help you are providing!
    • onecoolpenguin
      onecoolpenguin Posts: 2 Newbie
      edited 29 April 2014 at 10:11PM
      Always use the clause that applies to YOUR contract (the ones EE have quoted).

      Hi i received this email,
      'Thank you for your email dated 8 April 2014, received in the Executive Office, I have been asked to respond on behalf of EE.

      I am sorry you are unhappy with the recent increase to our prices and some of our services. As a company we are committed to investing significantly in our network and work hard to give the best value for our service, we have in this instance tried to keep these increases to a minimum. However due to rising business costs linked to inflation we have had to revaluate our pricing structure.

      In this instance, the increase to price plans is in line with RPI at 2.7% and compliant with the Terms and Conditions of your contract. Our Terms and Conditions give us the right to increase the cost of our services and this change does not give you a right to terminate your contract. Please refer to clause 3.7 in your Terms and Conditions.

      Whilst I understand this is not the outcome you were looking for, I trust I have clarified EE's position regarding this matter.'

      and want to send the #175 reply but am a bit confused about the clause 3.7 (highlighted in red) stated in the email as i am an orange customer so not sure whether should quote 15.1 in my reply or 3.7? Sorry if this a stupid question and thank you so much for your help random curve!


      suspension of orange additional services
      3.7: we reserve the right to change, suspend, increase the price of or withdraw part or all of any orange additional service on giving reasonable notice
    • Martinmal1
      Martinmal1 Posts: 38 Forumite
      Hi random curve

      Have tweaked a bit for cisas what you think?
      Summary


      My claim is not in regards to EEbusiness decision to increase prices, as a business EE is free to make whatever business decisions it chooses. My claim is that the price rise notified to me is of material detriment as per the Ofcom definition of Material Detriment under GC 9.6, and therefore under GC 9.6 I am entitled to a penalty free cancellation.





      Without Prejudice

      The price rise applied to my account means that the actual net monthly core subscription price that I am paying to EE reflects an increase higher than the February RPI rate allowed under the contract, and as per our contract I am entitled to a penalty free cancellation.! My contract commenced on the 16th!January 2014 and when the price rise begins on the 28th!May this will be an increase of around 7.12% over the 135 days the contract will have been active, far higher than the 2.7% quoted as it has not had a full 365 days for EE’s costs to increase this much over this period, so this is putting me in material detriment.! Had I have known the contract would have been increased so quickly I would not have renewed with EE at the time and shopped around for possibly a better deal.



      Without Prejudice

      EE are also arguing the RPI is a measure of inflation, whilst this is correct it is not the official UK inflation statistic, the main measure of UK inflation is CPI which was 1.7% for the. RPI does not reflect a business costs as it takes into account costs that a business does not have such as council tax and mortgage payments. Again this is putting me in material detriment and is far higher than the official level of UK inflation.

      !

      Without Prejudice

      When the price increase commences on the 28th!May, my wage will still be at the same basic level of XXXXX which it was on the 16th!January when my contract commenced.! The result of EE increasing my contract means I have less money left over from my monthly wage so is causing me material detriment.







      Adjust the figures below and remove the points that do NOT apply to you – some will have all there others just 2 and some only the first point.


      Further I request that I be awarded £64.46!compensation (£32.23!for each, worked out as the cost of my contract per month) of the following:


      EEs breach of GC 9.6 – not informed of my rights to cancel the contract penalty free should I consider the increase to be of Material Detriment, (£32.23)
      EE falling to address the points raised in my original email even though I had made it clear that a response that did not address each point would not be an acceptable response (£32.23).

      Details are at appendix 1
      Correspondence is at Appendix 2 to X

      !
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