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

Thomas65

Would I also be able to send that email given my situation?

RandomCurve

Thomas65 wrote: »

Would I also be able to send that email given my situation?

When did you take out your contract? if it was before 23rd Jan - then yes you can send the email. If it was after 23rd Jan then it will be difficult to prove you were not made aware, but their other avenues to explore

Thomas65

RandomCurve wrote: »

When did you take out your contract? if it was before 23rd Jan - then yes you can send the email. If it was after 23rd Jan then it will be difficult to prove you were not made aware, but their other avenues to explore

Hi mate,
I took it out on the 2nd February. The price was £27 but it never said anything about a price increase so soon?

ChilliP2012

Hi RC,

As discussed via PM.

I originally mentioned to both O2 & the ombudsmen about the way they have calculated the rise using RPI is incorrect and also about the international calls would be of material detriment. I would of also used the international calls as my parents have just moved to Canada, even though I haven't used international calls before. So it is those 2 points that I have sought to have my contract cancelled.

Not only that, but when I upgraded my contract with O2 in December 2012 via mobiles.co.uk, nothing was mentioned about price rises and that price rises may happen at any time in the future. I have also not received ANY form of communication from O2 about the latest increase and I only found out about it via this site.

So, what's the best laws/conditions to submit in my claim?

Thanks again :T

-Edit-

Just a point to note, that it will actually be the sheriff court here in Scotland that I will be using. O2 have a registered office in Glasgow so I will send the court summons there.

Earthworm

Thomas65 wrote: »

Hi mate,
I took it out on the 2nd February. The price was £27 but it never said anything about a price increase so soon?

How did you buy? Was it in a store, over the phone or online? Did you go direct with O2 or through another company like Carphone Warehouse?

ChilliP2012

I've just noticed something. The response that O2 are giving people here are exactly the same response they gave people last time they hiked their prices back in 2012.

Thomas65

Earthworm wrote: »

How did you buy? Was it in a store, over the phone or online? Did you go direct with O2 or through another company like Carphone Warehouse?

It was through mobiles.co.uk

RandomCurve

ChilliP2012 wrote: »

Hi RC,

As discussed via PM.

I originally mentioned to both O2 & the ombudsmen about the way they have calculated the rise using RPI is incorrect and also about the international calls would be of material detriment. I would of also used the international calls as my parents have just moved to Canada, even though I haven't used international calls before. So it is those 2 points that I have sought to have my contract cancelled.

Not only that, but when I upgraded my contract with O2 in December 2012 via mobiles.co.uk, nothing was mentioned about price rises and that price rises may happen at any time in the future. I have also not received ANY form of communication from O2 about the latest increase and I only found out about it via this site.

So, what's the best laws/conditions to submit in my claim?

Thanks again :T

-Edit-

Just a point to note, that it will actually be the sheriff court here in Scotland that I will be using. O2 have a registered office in Glasgow so I will send the court summons there.

The post at #315 could help you avoid the price rise, but not exit your contract.


To exit the contract I think you could use the arguments at #315, but turn it slightly as follows:


Whilst Ofcom has not given firm guidance on what material Detriment means in GC 9.6 (other than what applies post 23 Jan 2014) it is widely held that any increase in line with RPI would not be of Material detriment as RPI is the official inflation rate for the UK and therefore only increase in excess of RPI would be a real terms increase, and therefore Material detriment only occurs if the increase is an increase in real terms.
If we accept the premises that Under GC 9.6 Material detriment means a "real terms price rise" then the O2 increase of RPI is of material detriment to me (and therefore under GC 9.6 I am entitled to a penalty free cancellation of my contract) as follows:
In March 2013 (X months BEFORE O2 announced their price increase) the Office of National Statistics (ONS) published a report on Statistical measures of Inflation which clearly states that RPI is no longer a National Statistic as its calculation methodologies do not meet international standards:


http://www.ons.gov.uk/ons/rel/cpi/consumer-price-indices/march-2013/stb---consumer-price-indices---march-2013.html#tab-Retail-Prices-Index--RPI--and-RPIJ-


"In accordance with the Statistics and Registration Service Act 2007, the Retail Prices Index and its derivatives have been assessed against the Code of Practice for Official Statistics and found not to meet the required standard for designation as National Statistics. The full assessment report can be found on the UK Statistics Authority website."

So RPI has been replaced with CPI as THE official measure of UK inflation and CPI is the measure recognised a THE National statistic for the UK inflation AND is used throughout Government. As the CPI rate is generally lower then RPI (for Month X RPI was X.X% whilst CPI was only Y.Y%), then the increase applied to my account must be a real terms increase and therefore under GC 9.6 triggers my right to a penalty free cancelation.

RandomCurve

Another tactic could be the 50% increase in overseas calls - are overseas calls part of the contract or an "additional service"?


There is also a clause in the contract about if the increase causes the bill to be more than 10% higher than the pervious bill you can cancel. If you can show that the 50% increase in overseas calls cost puts your "like for like" bill in excess of 10% you should be able to cancel.


5.3 You can end this Agreement without having to pay the Monthly Subscription Charges up to the end of any Minimum Period you have left, if: (a) we notify you of an increase to your Monthly Subscription Charges by more than the published Retail Price Index (RPI) annual inflation rate at the date we announce the applicable price increase; or (b) we increase any of our Charges (apart from for Additional Services) in a way that such increase would have increased your total bill for the immediately previous month by more than 10% (if the increase(s) had applied for the whole of that month).

RandomCurve

The only other option would be to try and get the 50% increase in overseas call cost ruled void under the unfair Terms in Consumer Contracts regulations (UTCCRS), but that won't let you out of the contract, just keep prices as originally agreed.