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Mobile Phone Contract - Price Rise Refunds

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  • RandomCurve
    RandomCurve Posts: 1,637 Forumite
    skuk21 wrote: »
    Just received an email from OFCOM.

    OCCtelecoms <OCCtelecoms@ofcom.org.uk>
    3:57 PM (1 minute ago)
    Reply
    to me
    Ofcom reference:

    08 May 2014

    Dear Sir/Madam

    Thank you for your email regarding the price increase to your EE contract.

    .....
    In line with new Guidance issued by Ofcom, a subscription price increase on contracts taken out after 23 January 2014 is likely to constitute material detriment to consumers. If it is, we would expect providers to notify all affected customers of such price increases and of their right to withdraw from the contract without penalty.

    Our Guidance does not apply to contracts taken out before 23 January 2014. However, for such contracts, providers have to notify affected customers of any changes that are likely to constitute material detriment.

    Ofcom’s position is that where the provider’s terms and conditions allow for a core subscription price increase up to the Retail Price Index, we are unlikely to treat such an increase as materially detrimental. However, individual customers affected by these sorts of price increases might consider that the increase is to their material detriment. If this is so, they should complain to EE and supply evidence to support their position.
    Consumer Contact Team

    Typical Ofcom response.
    They have not addressed the fact as EE changed the price variation clause AFTER 23rd January 2014 (Change effective 26th March 2014) then it must be subject to the Material definition that Ofcom clarified in January - Ofcom can not have it both ways - They clearly stated that the new definition would not be retrospectively applied to pre 23rd January contracts, they can't also claim that it does not apply to new T&Cs after 23rd January.

    As for Ofcom considering RPI to be acceptable - that is pants. Ofcom considered the EE change in T&Cs was not material as it referenced RPI, whereas the previous term allowed the use of CPI - and Ofcom have been proved wrong on that score as most people are winning cases at CISAS.

    Other things Ofcom have got wrong in relation to EE (makes you wonder if Ofcom is just another EE brand):

    Ofcom shared the view of EE that the change to T&Cs was not likely to be of Material Detriment - most people are winning cases at CISAS

    Ofcoms comments in May 2013 when T-Mobile applied an incorrect RPI rate to its contracts: “that they [EE] had acted reasonably”, after examining T-Mobile contracts, yet in 95% of cases CISAS ruled that EE had not acted reasonably

    Ofcom confirmed that in Ofcoms opinion T-Mobiles v59 contracts were compliant with UTCCRs regulations, when asked to review these, now in the recent cases concerning the change of T&Cs EEs own legal department acknowledge the failings that those clause have under the UTCCRs

    I actually find it to our advantage that Ofcom are on EEs side as when they were in the last 3 instances they were proved wrong!! My only fear in this instance is that CISAS may be scared to go against what Ofcom have said (although to be fair they have done so before) which is why I think we may need to take this to the SCC - let's see.:)
















  • zcakg26
    zcakg26 Posts: 17 Forumite
    Just sent in the 2nd email, we'll see what they say. Hopefully we see successes all round
  • Is this way of leaving a current contract possible? I joined T-Mobile in February 2013 (2 year contract with phone). I've had a price rise last year around October 2013 and this new price rise is effective on 10 May 2014. Can I have some help please? Would really appreciate it.

    Do I just send that template off to their email? I have contacted them saying the RPI for this month is 2.5% but the price increase is 2.7%, meaning I can leave the contract because their rising more than the current RPI. They literally told me to !!!!!! off....

    P.S I posted in the other thread too but then noticed no one has posted into it for a month... Sorry for the double post!
  • RandomCurve
    RandomCurve Posts: 1,637 Forumite
    Is this way of leaving a current contract possible? I joined T-Mobile in February 2013 (2 year contract with phone). I've had a price rise last year around October 2013 and this new price rise is effective on 10 May 2014. Can I have some help please? Would really appreciate it.

    Do I just send that template off to their email? I have contacted them saying the RPI for this month is 2.5% but the price increase is 2.7%, meaning I can leave the contract because their rising more than the current RPI. They literally told me to !!!!!! off....

    P.S I posted in the other thread too but then noticed no one has posted into it for a month... Sorry for the double post!


    Depends if we can put a strong enough case that an increase above CPI is a real terms increase and is therefore of Material Detriment. OR if CISAS agree that the revised T&C implemented on 26th March 2014 is subject to the Ofcom rule that ANY price rise is of Material Detriment in contracts entered into after 23rd Jan 2014.


    I think the answer to both is YES.
  • Depends if we can put a strong enough case that an increase above CPI is a real terms increase and is therefore of Material Detriment. OR if CISAS agree that the revised T&C implemented on 26th March 2014 is subject to the Ofcom rule that ANY price rise is of Material Detriment in contracts entered into after 23rd Jan 2014.


    I think the answer to both is YES.

    I sent off the Template you have posted... Now I just got to wait for a reply? Or do I apply with CISAS now? I've never done this before.. Sorry for being a pain!

    Thank you for all the help! Well appreciated!
  • Martinmal1
    Martinmal1 Posts: 38 Forumite
    Cisas application all done. Fingers crossed that ee have not stitched this one up. Although they have already lost my broadband and home phone service and these contracts will be my last with ee until they change there ways
  • skuk21
    skuk21 Posts: 42 Forumite
    I sent off the Template you have posted... Now I just got to wait for a reply? Or do I apply with CISAS now? I've never done this before.. Sorry for being a pain!

    Thank you for all the help! Well appreciated!

    you have to wait for a reply from EE, they should refer you to CISAS a which point you put in your claim.

    Has anyone received a reply from CISAS yet? They indicated a lead time of 5 days
  • ulaggy
    ulaggy Posts: 201 Forumite
    _1_zpsec6db161.jpg

    Your move, EE/T-Mobile.



    Excuse the mess, not at home with a computer so had to edit and upload and everything using phone!
  • muse213
    muse213 Posts: 54 Forumite
    Sixth Anniversary 10 Posts Combo Breaker
    Yep, just had that email too ulaggy! Same date aswell for when they have to reply! Lets do this!
  • Shaunyboy
    Shaunyboy Posts: 58 Forumite
    CISAS claim just gone in.
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