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Mobile Phone Contract - Price Rise Refunds

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  • pau1200
    pau1200 Posts: 49 Forumite
    Ok I think im going to need some help with my defense. Ive spent sone time comparing word for word my response with others there are subtle differences and they have been smarter with the wordings. Im not sure if the defense template fits as they have rewordered there points.

    Any help will be great.
    pau1200 wrote: »
    Ive had my defence from EE, and it all looks similar but i have 40 points where the others i have looked at only have 38 but i cant see what extra they have added, can anyone spot anything different or should i use the standard defence response.
    EE defence below:

    1. The Respondent submits that the issue at the heart of the Claimant’s Claim
    relates to a business decision taken by the Respondent to increase its prices.
    2. Rule 2(g) of the CISAS Scheme Rules (“the Rules”) provides that the
    CISAS Scheme (“the Scheme”) can be used to settle disputes about (i) bills
    and/or; (ii) communication services provided to the Respondent’s
    customers.
    3. The Respondent submits that the cause of action pleaded by the Claimant is
    neither directly related to bills or communication services and therefore
    represents a dispute which falls outside the remit of Rule 2(g) and therefore
    is a matter which is not within the jurisdiction of the Scheme.
    4. The Respondent submits that the cause of action pleaded by the Claimant is
    neither directly related to bills or communication services and therefore
    represents a dispute which falls outside the remit of Rule 2(g) and therefore
    is a matter which is not within the jurisdiction of the Scheme
    5. Therefore, the Respondent respectfully submits that the Claimant’s claim as
    pleaded cannot be dealt with under the Scheme and that pursuant to the
    Rules an adjudicator is not therefore able to consider the Claimant’s claim.
    6. The remainder of this Defence is pleaded without prejudice to the above.
    RESPONDENT’S DEFENCE
    7. The Respondent denies that it is liable to the Claimant as pleaded or at all.
    8. The Respondent is a mobile telecommunications network operator that
    enters into service agreements with its customers to enable its customers to
    access the services. The Claimant is one such customer of the Respondent.
    9. Access to the Respondent’s network is granted to the customer by way of
    the issuance to the customer of SIM card which is issued subject to the
    Respondent’s then applicable conditions for telephone service.
    10. The Claimant has been a customer with the Respondent since 17 April 2009
    in respect to account number *********. The Claimant has one mobile
    number being ********* (“the Mobile Number”).
    11. On 03 October 2012, the Claimant entered into a Service Upgrade
    Agreement (“the Agreement”) in respect to the Mobile Number. The
    Claimant would have been provided with the terms and conditions
    applicable at the point of entering into the Agreement. The applicable terms
    and conditions subject to the Agreement were available to the Claimant at
    that time via the Respondent’s website or by contacting the Respondent’s
    customer services at any time.
    12. The Respondent submits that this dispute, as per the Claimant’s application,
    arises from the notification of the increase in prices effective from 28 May
    2014.
    13. The Claimant seeks termination of the Agreement without termination and
    to transfer the Mobile Numbers to another network service provider and for
    the cancellation to be back dated to the date of his request for termination.
    In addition the Claimant also seeks an unlock code for an unspecified
    handset, but presumably the handset associated with the Mobile Number on
    the Claimant’s account.
    14. The Respondent confirms that prior to the 26 March 2014 the Agreement
    between the parties was subject to the terms and conditions CVN59. From
    29 January 2014 to 14 February 2014 the Respondent provided the Claimant
    with notice, pursuant to the Agreement at the time, that the Respondent’s
    terms and conditions would be updated and the new terms effective as of the
    26 March 2014. Therefore, the Respondent submits that as from the 26
    March 2014 the terms and conditions applicable to the Agreement between
    the parties and so governing the Claimant, is CVN59A.
    15. Save that the Respondent denies that the change in terms effective 26 March
    2014 gave the Claimant the right to terminate his Agreement without charge
    the Respondent submits that in any event the Claimant was required to give
    notice to terminate prior to the increase in charges taking effect on 26
    March 2014. The Respondent submits that the Claimant failed to give notice
    to terminate the Agreement prior to 26 March 2014 and therefore is bound
    by the terms of the Agreement effective 26 March 2014.
    16. At Schedule 1 attached hereto is a copy of the terms and conditions being
    Conditions Version Number 59A (CVN59A) applicable to the Agreement
    entered into between the Claimant and the Respondent. The terms and
    conditions governing the Agreement contains amongst other things the
    following;-
    2.5.1 Unless We agree otherwise, a new Minimum Term will apply.
    Once that Minimum Term is over this Agreement will continue until
    terminated;
    7.1.4. We can increase any Price Plan Charge. We will give You
    Written Notice 30 days before We do so. The change will then apply to
    You once that notice has run out;
    7.2.2. You can only give Us notice to terminate this Agreement by
    calling customer services. Your Agreement will terminate 30 days from
    when We receive Your call, although You are free to change Your mind
    and call Us to withdraw Your notice of termination at any time during
    that period. You will be responsible for all Charges up to and including
    the date that this Agreement terminates;
    7.2.3 A Cancellation Charge won’t apply if You are within the
    Minimum Term and:
    7.2.3.3 We have given You Written Notice of an increase in a Price
    Plan Charge under point 7.1.4 and (i) the increase in Your Price Plan
    Charge (as a percentage) is higher than the annual percentage
    increase in the Retail Price Index (RPI) published by the Office for
    National Statistics (calculated using the most recently published RPI
    figure before we give you Written Notice under 7.1.4); and (ii) You give
    Us notice to immediately cancel this Agreement before the change takes
    effect.
    17. Pursuant to Clause 7.1.4 between the 5-15 April 2014 the Respondent
    issued to the Claimant (together with all of its pay monthly customers)
    written notice (“the Written Notice”) advising of a 2.7% increase in price
    plan monthly charges that would take effect as from 28 May 2014.
    18. As Written Notice was given between the 5-15 April 2014 the Respondent
    was required, for the purposes of Clause 7.2.2.3 to use the most recently
    published RPI figure before we give you Written Notice under 7.1.4.
    Therefore the correct RPI figure to use was the RPI figure for February
    2014 which was published on 25 March 2014, being the most recently
    published RPI figure before Written Notice of the increase was given.
    19. The RPI figure published as at the time the Written Notice was issued
    (being 5-14 March 2014) was the RPI figure for month of February 2014
    which was published on 25 March 2014 which was 2.7%.
    The RPI 12-month rate for February 2014 stood at 2.7% 1
    20. The Respondent denies that the price increase of 2.7% is an increase above
    the RPI as provided for by way of Clause 4.3.1.
    21. The Respondent submits that the previous increase of charges in March
    2013 does not prevent the increase in charges in May 2014. The
    Respondent submits that, in accordance with the terms of the Agreement
    that it can increase its charges providing that notice of such increase of
    charges is given to the Claimant. The Respondent submits that due notice
    was correctly given to the Claimant.
    1.
    1.
    1
    http://www.ons.gov.uk/ons/rel/cpi/consumer-price-indices/february-
    2014/stb---consumer-price-indices---january-2014.html
    22. The Respondent further denies that such increase in charges is an increase
    which entitles the Claimant to terminate the Agreement without paying a
    cancellation charge as provided for by way of Clause 7.2.3 or indeed that
    such is a material detriment that entitles the Claimant to treat the Agreement
    as terminated without paying a cancellation charge.
    23. As the increase in charges of 2.7% set out within the Written Notice is not
    higher than the RPI for February 2014 of 2.7% the Claimant is not entitled
    pursuant to Clause 7.2.3 of the Agreement or otherwise to cancel the
    Agreement without paying a cancellation charge.
    24. The Respondent submits, if such is alleged, that it is not obligated to use
    any other method to calculate the price increase, such as the use of
    Consumer Price Index (“CPI”). The Respondent submits that the clause
    specifically refers to the use of RPI as a measure of calculation and
    therefore the use of any other measure, whether such be higher or lower,
    would not be in accordance with the terms of the Agreement. The
    Respondent has given certainty to the Agreement to specify RPI as the
    measure that it would use for the purpose of any increase and accordingly it
    is the RPI measure that must be used and not any measure, such as CPI.
    25. The Respondent denies that, if such is alleged, that it mis-sold the terms of
    the price plan to the Claimant. At the time of entering into the Agreement
    the Respondent did not have plans to increase its prices and that therefore
    the price quoted to the Claimant was the correct price at that time. The
    Respondent submits that it did not mis-sell or mis-lead the Claimant in
    respect to such charges. The Respondent submits that it was not a ‘fixed
    term contract’ and that the Respondent could increase its charges, as
    provided for by way of the Agreement. The Respondent has exercised its
    contractual right to increase charges and the Claimant is not entitled to the
    remedy sought.
    26. The Respondent further refers General Condition 9.6 (“GC 9.6”), imposed
    by Ofcom on Communications Providers under s.45 of the Communications
    Act 2003, which provides for Communications Providers to give subscribers
    one month’s notice of “any modifications likely to be of material detriment”
    and to allow subscribers to withdraw from the Agreement without penalty.
    The Respondent submits that he increase in charges at the rate of RPI is not
    of material detriment to the customer and the customer is hereby put to strict
    proof thereof.
    27. Further or alternatively, the material detriment issue constitutes a
    complicated issue of law for the purpose of Rule 2(j) of the Scheme.
    28. The Material Detriment Issue does not relate to any of the matters set out in
    Rule 2a.
    Bills: It does not relate to any bill issued by the Respondent to the Claimant.
    Customer Service: It does not relate to the quality of customer service
    provided by the Respondent to the Claimant.
    Communications Services: For the reasons further set out below, the
    reference in Rule 2a to “Communications services provided to customers”
    relates to the physical provision of electronic communications services
    and/or does not relate to regulatory issues such as the Material Detriment
    Issue. Rule 2a is intended to implement General Condition 14.5 (“GC 14.5”)
    which requires the Respondent to “implement and comply with a Dispute
    Resolution Scheme, … for the resolution of disputes …in relation to the
    provision of Public Electronic Communications Services.” Electronic
    Communications Services are defined in s.32 of the Communications Act
    2003 to mean “a service consisting in, or having as its principal feature, the
    conveyance by means of an electronic communications network of signals”.
    That indicates that the focus of the dispute resolution scheme is on the
    service actually provided to customers.
    29. A proper resolution of the case would require CISAS to consider the proper
    construction of the term “material detriment” and the increase in charges is
    of material detriment.
    30. Further, the meaning of material detriment needs to be established both as a
    matter of contractual construction and by reference to the regulatory
    context. The term is not defined explicitly in the Agreement or in GC 9.6
    The fact that Ofcom has recently published guidance on the issue of
    material detriment in respect of price change clauses indicates that absent
    such guidance, the issue of material detriment is unclear; and that the
    considerations applicable to determining material detriment can be
    complicated.
    31. The application of the material detriment test to the change of terms is
    doubly complex. It is not sufficient simply that it is theoretically possible
    that the change could be of some detriment to the Claimant. Rather it is
    necessary that the Claimant establish that that increase is of material
    detriment.
    32. For the reasons stated above the Respondent denies that the Claimant as at
    all entitled, whether contractually or otherwise, to terminate his Agreement
    without charge, either for the reasons as indicated within his application or
    any other such reason. Therefore, the Respondent submits that the Claimant
    is subject to the standard contractual termination clauses as per the
    applicable terms and conditions.
    33. The Respondent denies that it has breached its Agreement and/or breached
    its duty of care to the Claimant. The Respondent remains of the view that
    the decision to increase its prices is a business decision and falls outside the
    remit of the Scheme. Accordingly, as the subject-matter of the complaint
    falls outside the remit of the Scheme the Respondent did not issue the
    Claimant with a deadlock letter. However, as above, the Respondent
    remains of the view that the decision to increase its prices is outside the
    remit of the Scheme.
    34. The Respondent submits that the Claimant is free to cancel the Mobile
    Number by giving notice to cancel at any time. However, as the Claimant is
    within the minimum term period in respect to the Mobile Number he would
    be liable for a cancellation charge in the sum of £126.08 (reducing on a
    daily basis) should he terminate the Mobile Number within the minimum
    term period.
    35. The increase in charges did not take effect until 28 May 2014 and therefore
    as at the date of the Claimant’s application and the Defence the Claimant
    has not been charged any additional charges and therefore a refund is not
    applicable, such being denied that the Claimant is entitled to such refund in
    any event.
    36. The Respondent denies that it has breached its Agreement and/or breached
    its duty of care to the Claimant. As provided for by way of Annex 4 to
    General Condition 14, the Respondent is not required to issue a written
    deadlock letter when requested by a complainant where the subject matter
    of the complaint is outside the jurisdiction of the Respondent’s Alternative
    Dispute Resolution scheme. The Respondent remains of the view, and as
    previously stated by CISAS, that the decision to increase its prices is a
    business decision and falls outside the remit of the Scheme. Accordingly,
    as the subject-matter of the complaint falls outside the remit of the Scheme
    the Respondent did not issue the Claimant with a deadlock letter.
    37. The Respondent has provided a response to the Claimant in a timely fashion
    and that such response has been consistent. Whilst the Claimant’s appears to
    dislike the content of such response it does not follow that the Respondent
    has breached its duty of care to the Claimant. The Respondent denies that it
    has failed to address each aspect of the Claimant’s claim and that in any
    event the Respondent submits that its position remains unaltered and that it
    does not accept the Claimant’s arguments that such response entitles them
    termination without charge and/or compensation it the sum of £50.00.
    38. The Claimant has enclosed within his supporting documents an extract of
    the Respondent’s defence in respect to the CISAS case reference
    ??????????. The Respondent notes that such a case relates to a completely
    separate matter which the Claimant was not a party to. Such being a
    confidential document in any event. The Respondent fails to see the
    relevance of this document to the Claimant’s application and furthermore
    the Claimant has not provided an explanation for the same. The Claimant is
    hereby put to strict proof thereof.
    39. Save as is denied in any event, the Respondent submits that the Claimant’s
    only recourse should the increase be in excess of RPI is to termination of the
    Agreement without paying a cancellation charge. The Respondent submits
    that the Claimant is not entitled to seek an unlock code for any handset
    associated with the Agreement and such is not a remedy as provided for by
    way of the Agreement. The Respondent denies that it is liable to the
    Claimant with regards the facilitation of an unlock code for the handset,
    either as free of charge or chargeable. There is no contractual obligation to
    unlock a handset at any stage before, during or after termination of the
    Agreement and the Claimant is hereby put to strict proof thereof.
    40. The Respondent denies liability to the Claimant as pleaded or at all, either
    contractually or otherwise.
    The Respondent believes that the facts stated in this form are true. I am duly
    authorised by the Respondent to sign this statement
  • Mikmonken
    Mikmonken Posts: 374 Forumite
    Tenth Anniversary
    I'ev had a quick look through your defence, and apart from the following paragraphs it's identical to the one i had and several others on the forum, the template from - http://fightmobileincreases.com/fight-ee/fight-the-march-2014-price-rise/ which will be your best bet in getting the right response.

    for info the following paras are different, but i'm not sure whether they hold any relevance

    38. The Claimant has enclosed within his supporting documents an extract of the Respondent’s defence in respect to the CISAS case reference ??????????. The Respondent notes that such a case relates to a completely separate matter which the Claimant was not a party to. Such being a confidential document in any event. The Respondent fails to see the relevance of this document to the Claimant’s application and furthermore the Claimant has not provided an explanation for the same. The Claimant is hereby put to strict proof thereof.

    If you didn't submit a defence which related to someone else's CISAS case reference, you need to be certain though as if you just cut and paste the info into the CISAS claim and emails to EE and did not make the relevant changes as per RandomCurves notes then you may well have done, you they're suggesting i'd be drawing attention to the adjudicator along the lines of:

    Yet further evidence of the lack of care EE have applied in servicing my contract and indeed this case, why this has been a stressful and frustrating experience. My claim has not referenced any other CISAS cases and I in fact would suggest the EE are using other CISAS cases to draw their defence without showing due diligence.

    21. The Respondent submits that the previous increase of charges in March 2013 does not prevent the increase in charges in May 2014. The Respondent submits that, in accordance with the terms of the Agreement that it can increase its charges providing that notice of such increase of charges is given to the Claimant. The Respondent submits that due notice was correctly given to the Claimant.

    Don't know how to respond to this one.

    hope this helps
  • delboy9
    delboy9 Posts: 14 Forumite
    Hi, just checking in mostly for the benefit of RandomCurve. Im still waiting for a reply/decision after EE changed their defence. This was a couple of weeks ago. Will post back as soon as I hear anything.........
  • pau1200
    pau1200 Posts: 49 Forumite
    I did reference another case, the ?????? I put in before posting the response on here. They have been smarter with there wordings.


    In the standard response it makes a point of referencing paragraphs 5,30,and 33 which is all about EE claiming that this is a complex issue of law, they have removed all such references in my defense.


    Other parts of there defense have been reworded also, Ill go through it again trying to pick what has changed



    Mikmonken wrote: »
    I'ev had a quick look through your defence, and apart from the following paragraphs it's identical to the one i had and several others on the forum, the template from - http://fightmobileincreases.com/fight-ee/fight-the-march-2014-price-rise/ which will be your best bet in getting the right response.

    for info the following paras are different, but i'm not sure whether they hold any relevance

    38. The Claimant has enclosed within his supporting documents an extract of the Respondent’s defence in respect to the CISAS case reference ??????????. The Respondent notes that such a case relates to a completely separate matter which the Claimant was not a party to. Such being a confidential document in any event. The Respondent fails to see the relevance of this document to the Claimant’s application and furthermore the Claimant has not provided an explanation for the same. The Claimant is hereby put to strict proof thereof.

    If you didn't submit a defence which related to someone else's CISAS case reference, you need to be certain though as if you just cut and paste the info into the CISAS claim and emails to EE and did not make the relevant changes as per RandomCurves notes then you may well have done, you they're suggesting i'd be drawing attention to the adjudicator along the lines of:

    Yet further evidence of the lack of care EE have applied in servicing my contract and indeed this case, why this has been a stressful and frustrating experience. My claim has not referenced any other CISAS cases and I in fact would suggest the EE are using other CISAS cases to draw their defence without showing due diligence.

    21. The Respondent submits that the previous increase of charges in March 2013 does not prevent the increase in charges in May 2014. The Respondent submits that, in accordance with the terms of the Agreement that it can increase its charges providing that notice of such increase of charges is given to the Claimant. The Respondent submits that due notice was correctly given to the Claimant.

    Don't know how to respond to this one.

    hope this helps
  • Mikmonken
    Mikmonken Posts: 374 Forumite
    Tenth Anniversary
    it's different the T-Mobile request but not particularly the EE response,

    see post #603 https://forums.moneysavingexpert.com/discussion/4818999

    you'll have to double check the paragraph numbers though as you have 2 extra paragraphs so anything referenced as being after Para 21 will be out of sync, i.e if you run a search for para complex and complicated and they will through up the paras that the original defence referenced as 5,30 and 33.

    Good luck
  • Have followed each step and now have an adjudicator of Clive Sanders. Waiting for 3 weeks with my fingers and toes crossed. Thank you so so much to all the help so far RandomCurve !
  • Troy_Tempest
    Troy_Tempest Posts: 24 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Ok, got my response from EE.

    As fas as I can see it's the same as Mikmonken and Doug85's (post #603) but with the subtle paragraph changes (para 10 merged with para 11) and the dates about the "written notice" Para 18 and 19 merged, (Mikmonken's post #657).

    So use the EE response template with adjustment for para numbers and add in the written notice detail?

    Adjudicator is Jean-Marie Sadio

    Thanks guys!

    DEFENCE
    1. The Respondent submits that the issue at the heart of the Claimant’s Claim
    relates to a business decision taken by the Respondent to increase its prices.

    2. Rule 2(g) of the CISAS Scheme Rules (“the Rules”) provides that the
    CISAS Scheme (“the Scheme”) can be used to settle disputes about (i) bills
    and/or; (ii) communication services provided to the Respondent’s
    customers.

    3. The Respondent submits that the cause of action pleaded by the Claimant is
    neither directly related to bills or communication services and therefore
    represents a dispute which falls outside the remit of Rule 2(g) and therefore
    is a matter which is not within the jurisdiction of the Scheme.

    4. The Respondent submits that the cause of action pleaded by the Claimant is
    neither directly related to bills or communication services and therefore
    represents a dispute which falls outside the remit of Rule 2(g) and therefore
    is a matter which is not within the jurisdiction of the Scheme

    5. Therefore, the Respondent respectfully submits that the Claimant’s claim as
    pleaded cannot be dealt with under the Scheme and that pursuant to the
    Rules an adjudicator is not therefore able to consider the Claimant’s claim.

    6. The remainder of this Defence is pleaded without prejudice to the above.

    RESPONDENT’S DEFENCE
    7. The Respondent denies that it is liable to the Claimant as pleaded or at all.

    8. The Respondent is a mobile telecommunications network operator that
    enters into service agreements with its customers to enable its customers to
    access the services. The Claimant is one such customer of the Respondent.

    9. Access to the Respondent’s network is granted to the customer by way of
    the issuance to the customer of SIM card which is issued subject to the
    Respondent’s then applicable conditions for telephone service.

    10. The Claimant has been a customer with the Respondent since 3 December
    2007 in respect to account number XXXXXXXX. The Claimant has one mobile
    number being XXXXX XXXXXX (“the Mobile Number”).
    Upon entering into a Service Upgrade Agreement (“the Agreement”) in
    respect to the Mobile Number on 10 August 2012 via the Respondent’s
    telephone sales department, the Claimant was made aware that the
    Agreement was subject to terms and conditions which were offered to the
    Claimant prior to entering into the Agreement and were available for
    viewing on the Respondent’s website. A copy of the terms and conditions
    were subsequently despatched to the Claimant.

    11. The Respondent submits that this dispute, as per the Claimant’s application,
    arises from the notification of the increase in prices effective from 28 May
    2014.

    12. The Claimant seeks termination of the Agreement without termination and
    to transfer the Mobile Numbers to another network service provider and for
    the cancellation to be back dated to the date of his request for termination.
    In addition the Claimant also seeks an unlock code for an unspecified
    handset, but presumably the handset associated with the Mobile Number on
    the Claimant’s account.

    13. The Respondent confirms that prior to the 26 March 2014 the Agreement
    between the parties was subject to the terms and conditions CVN58. From
    29 January 2014 to 14 February 2014 the Respondent provided the Claimant
    with notice, pursuant to the Agreement at the time, that the Respondent’s
    terms and conditions would be updated and the new terms effective as of the
    26 March 2014. Therefore, the Respondent submits that as from the 26
    March 2014 the terms and conditions applicable to the Agreement between
    the parties and so governing the Claimant, is CVN58C.

    14. Save that the Respondent denies that the change in terms effective 26 March
    2014 gave the Claimant the right to terminate his Agreement without charge
    the Respondent submits that in any event the Claimant was required to give
    notice to terminate prior to the increase in charges taking effect on 26
    March 2014. The Respondent submits that the Claimant failed to give notice
    to terminate the Agreement prior to 26 March 2014 and therefore is bound
    by the terms of the Agreement effective 26 March 2014.

    15. At Schedule 1 attached hereto is a copy of the terms and conditions being
    Conditions Version Number 58C (CVN58C) applicable to the Agreement
    entered into between the Claimant and the Respondent. The terms and
    conditions governing the Agreement contains amongst other things the
    following;-
    2.5.1 Unless We agree otherwise, a new Minimum Term will apply.
    Once that Minimum Term is over this Agreement will continue until
    terminated;
    7.1.4. We can increase any Price Plan Charge. We will give You
    Written Notice 30 days before We do so. The change will then apply to
    You once that notice has run out;
    7.2.2. You can only give Us notice to terminate this Agreement by
    calling customer services. Your Agreement will terminate 30 days from
    when We receive Your call, although You are free to change Your mind
    and call Us to withdraw Your notice of termination at any time during
    that period. You will be responsible for all Charges up to and including
    the date that this Agreement terminates;
    7.2.3 A Cancellation Charge won’t apply if You are within the
    Minimum Term and:
    7.2.3.3 We have given You Written Notice of an increase in a Price
    Plan Charge under point 7.1.4 and (i) the increase in Your Price Plan
    Charge (as a percentage) is higher than the annual percentage
    increase in the Retail Price Index (RPI) published by the Office for
    National Statistics (calculated using the most recently published RPI
    figure before we give you Written Notice under 7.1.4); and (ii) You give
    Us notice to immediately cancel this Agreement before the change takes
    effect.

    16. Pursuant to Clause 7.1.4 between the 5-15 April 2014 the Respondent
    issued to the Claimant (together with all of its pay monthly customers)
    written notice (“the Written Notice”) advising of a 2.7% increase in price
    plan monthly charges that would take effect as from 28 May 2014.

    17. As Written Notice was given between the 5-15 April 2014 the Respondent
    was required, for the purposes of Clause 7.2.2.3 to use the most recently
    published RPI figure before we give you Written Notice under 7.1.4.
    Therefore the correct RPI figure to use was the RPI figure for February
    2014 which was published on 25 March 2014, being the most recently
    published RPI figure before Written Notice of the increase was given.

    18. The RPI figure published as at the time the Written Notice was issued
    (being 5-14 March 2014) was the RPI figure for month of February 2014
    which was published on 25 March 2014 which was 2.7%.
    The RPI 12-month rate for February 2014 stood at 2.7%1

    19. The Respondent denies that the price increase of 2.7% is an increase above
    the RPI as provided for by way of Clause 4.3.1.

    20. The Respondent submits that the previous increase of charges in March
    2013 does not prevent the increase in charges in May 2014. The
    Respondent submits that, in accordance with the terms of the Agreement
    that it can increase its charges providing that notice of such increase of
    charges is given to the Claimant. The Respondent submits that due notice
    was correctly given to the Claimant.
    1.
    1http://www.ons.gov.uk/ons/rel/cpi/consumer-price-indices/february-2014/stb---consumer-priceindices---
    january-2014.html#tab-Retail-Prices-Index--RPI--and-RPIJ21.
    The Respondent further denies that such increase in charges is an increase
    which entitles the Claimant to terminate the Agreement without paying a
    cancellation charge as provided for by way of Clause 7.2.3 or indeed that
    such is a material detriment that entitles the Claimant to treat the Agreement
    as terminated without paying a cancellation charge.

    22. As the increase in charges of 2.7% set out within the Written Notice is not
    higher than the RPI for February 2014 of 2.7% the Claimant is not entitled
    pursuant to Clause 7.2.3 of the Agreement or otherwise to cancel the
    Agreement without paying a cancellation charge.

    23. The Respondent submits, if such is alleged, that it is not obligated to use
    any other method to calculate the price increase, such as the use of
    Consumer Price Index (“CPI”). The Respondent submits that the clause
    specifically refers to the use of RPI as a measure of calculation and
    therefore the use of any other measure, whether such be higher or lower,
    would not be in accordance with the terms of the Agreement. The
    Respondent has given certainty to the Agreement to specify RPI as the
    measure that it would use for the purpose of any increase and accordingly it
    is the RPI measure that must be used and not any measure, such as CPI.

    24. The Respondent denies that, if such is alleged, that it mis-sold the terms of
    the price plan to the Claimant. At the time of entering into the Agreement
    the Respondent did not have plans to increase its prices and that therefore
    the price quoted to the Claimant was the correct price at that time. The
    Respondent submits that it did not mis-sell or mis-lead the Claimant in
    respect to such charges. The Respondent submits that it was not a ‘fixed
    term contract’ and that the Respondent could increase its charges, as
    provided for by way of the Agreement. The Respondent has exercised its
    contractual right to increase charges and the Claimant is not entitled to the
    remedy sought.

    25. The Respondent further refers General Condition 9.6 (“GC 9.6”), imposed
    by Ofcom on Communications Providers under s.45 of the Communications
    Act 2003, which provides for Communications Providers to give subscribers
    one month’s notice of “any modifications likely to be of material detriment”
    and to allow subscribers to withdraw from the Agreement without penalty.
    The Respondent submits that he increase in charges at the rate of RPI is not
    of material detriment to the customer and the customer is hereby put to strict
    proof thereof.

    26. Further or alternatively, the material detriment issue constitutes a
    complicated issue of law for the purpose of Rule 2(j) of the Scheme.

    27. The Material Detriment Issue does not relate to any of the matters set out in
    Rule 2a.
    Bills: It does not relate to any bill issued by the Respondent to the Claimant.
    Customer Service: It does not relate to the quality of customer service
    provided by the Respondent to the Claimant.
    Communications Services: For the reasons further set out below, the
    reference in Rule 2a to “Communications services provided to customers”
    relates to the physical provision of electronic communications services
    and/or does not relate to regulatory issues such as the Material Detriment
    Issue. Rule 2a is intended to implement General Condition 14.5 (“GC 14.5”)
    which requires the Respondent to “implement and comply with a Dispute
    Resolution Scheme, … for the resolution of disputes …in relation to the
    provision of Public Electronic Communications Services.” Electronic
    Communications Services are defined in s.32 of the Communications Act
    2003 to mean “a service consisting in, or having as its principal feature, the
    conveyance by means of an electronic communications network of signals”.
    That indicates that the focus of the dispute resolution scheme is on the
    service actually provided to customers.

    28. A proper resolution of the case would require CISAS to consider the proper
    construction of the term “material detriment” and the increase in charges is
    of material detriment.

    29. Further, the meaning of material detriment needs to be established both as a
    matter of contractual construction and by reference to the regulatory
    context. The term is not defined explicitly in the Agreement or in GC 9.6
    The fact that Ofcom has recently published guidance on the issue of
    material detriment in respect of price change clauses indicates that absent
    such guidance, the issue of material detriment is unclear; and that the
    considerations applicable to determining material detriment can be
    complicated.

    30. The application of the material detriment test to the change of terms is
    doubly complex. It is not sufficient simply that it is theoretically possible
    that the change could be of some detriment to the Claimant. Rather it is
    necessary that the Claimant establish that that increase is of material
    detriment.

    31. For the reasons stated above the Respondent denies that the Claimant as at
    all entitled, whether contractually or otherwise, to terminate his Agreement
    without charge, either for the reasons as indicated within his application or
    any other such reason. Therefore, the Respondent submits that the Claimant
    is subject to the standard contractual termination clauses as per the
    applicable terms and conditions.

    32. The Respondent denies that it has breached its Agreement and/or breached
    its duty of care to the Claimant. The Respondent remains of the view that
    the decision to increase its prices is a business decision and falls outside the
    remit of the Scheme. Accordingly, as the subject-matter of the complaint
    falls outside the remit of the Scheme the Respondent did not issue the
    Claimant with a deadlock letter. However, as above, the Respondent
    remains of the view that the decision to increase its prices is outside the
    remit of the Scheme.

    33. The Respondent submits that the Claimant is free to cancel the Mobile
    Number by giving notice to cancel at any time. However, as the Claimant is
    within the minimum term period in respect to the Mobile Number he would
    be liable for a cancellation charge in the sum of £31.88 (reducing on a daily
    basis) should he terminate the Mobile Number within the minimum term
    period.

    34. The increase in charges does not take effect until 28 May 2014 and
    therefore as at the date of the Claimant’s application and 28 May 2014 the
    Claimant has not been charged any additional charges and therefore a
    refund is not applicable, such being denied that the Claimant is entitled to
    such refund in any event.

    35. The Respondent denies that it has breached its Agreement and/or breached
    its duty of care to the Claimant. As provided for by way of Annex 4 to
    General Condition 14, the Respondent is not required to issue a written
    deadlock letter when requested by a complainant where the subject matter
    of the complaint is outside the jurisdiction of the Respondent’s Alternative
    Dispute Resolution scheme. The Respondent remains of the view, and as
    previously stated by CISAS, that the decision to increase its prices is a
    business decision and falls outside the remit of the Scheme. Accordingly,
    as the subject-matter of the complaint falls outside the remit of the Scheme
    the Respondent did not issue the Claimant with a deadlock letter.

    36. The Respondent has provided a response to the Claimant in a timely fashion
    and that such response has been consistent. Whilst the Claimant’s appears to
    dislike the content of such response it does not follow that the Respondent
    has breached its duty of care to the Claimant. The Respondent denies that it
    has failed to address each aspect of the Claimant’s claim and that in any
    event the Respondent submits that its position remains unaltered and that it
    does not accept the Claimant’s arguments that such response entitles them
    termination without charge, a refund of any backdated charges and/or
    compensation it the sum of £XX.XX.

    37. Save as is denied in any event, the Respondent submits that the Claimant’s
    only recourse should the increase be in excess of RPI is to termination of the
    Agreement without paying a cancellation charge. The Respondent submits
    that the Claimant is not entitled to seek an unlock code for any handset
    associated with the Agreement and such is not a remedy as provided for by
    way of the Agreement. The Respondent denies that it is liable to the
    Claimant with regards the facilitation of an unlock code for the handset,
    either as free of charge or chargeable. There is no contractual obligation to
    unlock a handset at any stage before, during or after termination of the
    Agreement and the Claimant is hereby put to strict proof thereof.

    38. The Respondent denies liability to the Claimant as pleaded or at all, either
    contractually or otherwise.
    The Respondent believes that the facts stated in this form are true. I am duly
    authorised by the Respondent to sign this statement.
    Dated the 30th May 2014
    Helen Young
    Legal Assistant
  • EFC_1878
    EFC_1878 Posts: 14 Forumite
    Hi!

    I have been with EE since February 2013, and I have been through at least two price changes - both increases, funnily enough.

    When I took out the contract at a stupid £56 per month, I was working full-time, but I then started university the following August. Because I was leaving my job to become a student, I contacted EE to see if there was anything they could do to help me out and reduce the price of my contract, which they didn't, aside from offering me the chance to buy out my contract, which at the sum of £800, or somewhere in that region, I didn't want to do. I didn't really expect EE to do anything, but I'd heard of a couple of other phone companies helping out their customers, so it was at least worth a try.

    If it wasn't for my phone contract, I doubt I would be as much into my student overdraft as I am. Having seen this thread, I was wondering if there is any way I could cancel my contract with EE. From what I can see, I may be a little late to the party. But if there is anyone who has, and can explain a solution to me, then that would be great!
  • Had my reply from CISAS. Adjudicator is Miss Justine Mensa-Bonsu
  • RandomCurve
    RandomCurve Posts: 1,637 Forumite
    EFC_1878 wrote: »
    Hi!

    I have been with EE since February 2013, and I have been through at least two price changes - both increases, funnily enough.

    When I took out the contract at a stupid £56 per month, I was working full-time, but I then started university the following August. Because I was leaving my job to become a student, I contacted EE to see if there was anything they could do to help me out and reduce the price of my contract, which they didn't, aside from offering me the chance to buy out my contract, which at the sum of £800, or somewhere in that region, I didn't want to do. I didn't really expect EE to do anything, but I'd heard of a couple of other phone companies helping out their customers, so it was at least worth a try.

    If it wasn't for my phone contract, I doubt I would be as much into my student overdraft as I am. Having seen this thread, I was wondering if there is any way I could cancel my contract with EE. From what I can see, I may be a little late to the party. But if there is anyone who has, and can explain a solution to me, then that would be great!


    Can probably get your price rises refunded, but officially you have missed the boat on the cancellation. If you can hold off for a couple of weeks until the adjudicators decisions start to come in we may be able to find grounds to reopen the case for cancellation for those who have yet to claim.
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