MSE News: O2 to hike its prices by 2.7% - can you leave your contract penalty-free?

Silk

There was an article on 5 Live earlier about it on the Shelagh Fogarty show...a woman from OFCOM and Martin Lewis.
Couldn't listen to all of it.

Worth listning to on a pod cast later when it comes available

daleski75

billykeats wrote: »

How will this affect the likes of Tesco Mobile and GiffGaff that use O2's network?

I don't think it will have any effect.

starsailor123uk

Lifes_Grand_Plan wrote: »

"But Ofcom's new rules....."

Correct me if I am wrong but I seem to remember Ofcom clearly stating that they had NOT introduced any "new rules", merely clarified the old rules...

And IIRC they basically said that any price increase within the contract term would be considered "material detriment"...... therefore I can't see how the clarification only applies from a certain date and before that the clarification doesn't somehow apply?

Therefore if I was on O2 the I would follow the CISAS complaints procedure on that basis for penalty free termination of my contract. Look how many people did similar with the EE

I would do the same and go down the CISAS Route. I expect that O2 and other companies will expect some challenge and will likely hold the line.... right up to the point when it goes to CISAS and the ombudsman .

As stated earlier the ombudsman has stated on more than one occasion that he has not issued new rules but merely clarified them and made them transparent

I suspect at that stage or just before it O2 will probably cut you loose if you're near the end of the contract or give you a deal to maintain the current price ( which is exactly what orange/EE did with me last year when I wouldn't leave it alone ) which removes your need to seek arbitration

02 and others will not lose £30 per month revenues for the sake of 60p but wont do anything without being pushed

As for O2 new policy of explicitly stating that prices will rise that could be interesting

a) If you have an alternative which has a true fix and a get out clause if needed I'd go for that so would rule out O2

b) If the advice is given in person or in telephone sales it's hard to prove that RPI rises were informed and becomes a you said/ i said. The only true way of doing it is in terms and conditions you explicitly sign on the same page.

nsabournemouth

Lifes_Grand_Plan wrote: »

"But Ofcom's new rules....."

Correct me if I am wrong but I seem to remember Ofcom clearly stating that they had NOT introduced any "new rules", merely clarified the old rules...

And IIRC they basically said that any price increase within the contract term would be considered "material detriment"...... therefore I can't see how the clarification only applies from a certain date and before that the clarification doesn't somehow apply?

Therefore if I was on O2 the I would follow the CISAS complaints procedure on that basis for penalty free termination of my contract. Look how many people did similar with the EE

Yes, Ofcom are just making clear the rules as sat out below

http://stakeholders.ofcom.org.uk/consultations/price-rises-fixed-contracts/statement

! 1.8 Amongst other things, Article 20(2) of the USD sets out, in relation to the provision of telecommunications services, that subscribers (including consumers and small business customers) to such services have a right to withdraw from their contract without penalty where providers modify the contractual conditions. In the UK, this is reflected in GC 9.6.

Here's the USD they refer to that is GC9.6

Directive 2002/22/EC
Of the European Parliament and of the Council
7thMarch 2002
Chapter IV – End User Agreements

Article 20 – Contracts

Paragraph 4


4. Subscribers shall have a right to withdraw from their contracts without penalty upon notice of proposed modifications in the contractual conditions. Subscribers shall be given adequate notice, not shorter than one month, ahead of any such modifications and shall be informed at the same time of their right to withdraw, without penalty, from such contracts, if they do not accept the new conditions.

Earthworm

ZhugeEX wrote: »

O2 are not allowing customers to leave their contract free of charge.

Their new T&C dated January 23rd state that a price increase (or decrease) by RPI is mandatory once every 12 months starting March 2014.

This is also to be communicated at point of sale across Online, retail and telesales.

Therefore O2 are actually selling contracts which explicitly state a price increase. Therefore no one can cancel.

So far O2 are the only network to assume this new position and introduce price increases for all customers as a standard thing. It's a loophole to get around Ofcom's new guidelines introduced today.

Vodafone and Three have stated they will not increase prices for consumers from January 23rd, if they do then customers will be free to leave as per Ofcom guidelines.

EE have yet to announce their plans. I fear O2 will have some backlash (rightly so) and if EE follow then I expect them to lose over 1 million customers this year like they did before with the previous price increases.

So are O2 basically saying they are telling us about it in advance therefore they are allowed to do it? Just because they tell us I don't see how they can do it. What if they start telling us in advance they will charge 50p to receive a text abroad. It doesn't make the charge lawful.

ZhugeEX

Earthworm wrote: »

So are O2 basically saying they are telling us about it in advance therefore they are allowed to do it?

Yup...

Basically you're not signing up to a normal phone contract.

You're agreeing to sign up to a contract where inflation takes place every 12 months. Basically you're agreeing to it before taking the phone/sim.

sam_in_leeds

Hope Tesco Mobile promise to honour their promise not to raise prices mid-contract (It's O2 white-labelled isn't it?)

DUTR

Oh no! My 30 day rolling contract is going to increase by 57p a month.

OldGreyFox

billykeats wrote: »

How will this affect the likes of Tesco Mobile and GiffGaff that use O2's network?

Tesco Mobile have a price promise.

"Tesco Mobile has announced a promise to fix customers’ contract tariff costs.

Its Tariff Promise is a commitment never to raise its customers’ core tariff prices mid-contract, the first move of its kind amongst network providers in the UK."

http://www.tescomobile.com/about-us/news/Tesco-Mobile-Tariff-Promise?year=&show=5

and Giffgaff is a Payg Service, so is not affected by contract price rises.

TwistedAngel

Whilst I am not happy about the price rise this year (and next year by the sounds of it), I am less happy that I found out about this increase via an article on MSE and not through an email or communication from O2. I only upgraded last August (after much deliberation about other networks) but can't see me staying with O2 one this contract is up