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

blinko

I have a question.

Who is in charge of the airwaves in the UK is it Ofcom or is it corporate companies?

It appears unique to the UK that companies are able to come here and tell us how things are run. I only hope that Ofcom are dismantled and re-branded with a lot more power.

I am all for companies coming here and making a profit, nothing wrong with that. But how you sign a contract for X amount a month and then half way through change that, inconceivable in countries like the US or Russia etc

Kennya

I took out my phone contract in October 2012, at the time it was £36.00. I have always understood that part of this cost was for the phone and the remainder was for the Tarrif. e.g Fixed contract of 24 months at £36.00 per mth £20.00 PM for the phone. £20.00 x 24 = £480.00 for the phone and £16.00 for the Airtime. Since I took out my contract I was hit with a 3.7% increase in Feb 13 and now this new 2.7% increase so my bill has gone from £36.00 to £38.15. Given that the first £20 was the price of the phone for which I was paying £480 I calculate that I will now pay £498 for my phone an increase of £18.00 on a phone that is decreasing in value. Surely there is some legislation out there against increasing a finance agreement which is effectively what is happening. I for one will not renew my contract with o2 and I hope that they will end up paying for their crass decisions.

streather

After reading this thread a couple of times over I'm still not sure where I stand, I signed a 24 month contract with o2 in december 2012, I'm sure my contract has increased in price at least twice in that time already, but as far as I can make out I'm stuck paying this increase as well?

ZhugeEX

streather wrote: »

After reading this thread a couple of times over I'm still not sure where I stand, I signed a 24 month contract with o2 in december 2012, I'm sure my contract has increased in price at least twice in that time already, but as far as I can make out I'm stuck paying this increase as well?

They can increase it once ever 12 months.

So once in Feb 2013.
Second time is March 2014. More than 12 months have passed so its ok for them to do this.

sdduk

If I went and got some thing on HP they would tell me how much I had to pay over say 2 years but they wouldn't increase the amount I would pay one year after if I had been paying on time

So why is it OK for mobile phone operators to increase your bill half way though a contract? it shouldn't be aloud

Do HP company's not get inflation? Yes and they take that into consideration when they load the money to you.

GolfBravo

CED wrote: »

Since when did an increase from 40p to 60p for a European call constitute "In line with the RPI".

This is just and excuse to go back to charging higher prices for foreign calls.:mad:

Yes! Thank you pointing this out!

I never ever go near my monthly "allowance", but I do occasionally use the phone overseas and call overseas numbers. BTW, my contract (£47 per month) runs out in September 2014. I'd love to switch to Tesco sim only to save £££.

Can I cancel online though their website? Anyone tried this before?

freccle

So who's going to challenge this? The other increases are waaay over the RPI. We all need to quote the same regs

PurpleSeeingEye

If O2 are increasing our prices by officially recognised figures, then the way that the ONS used to create the RPI figure (which would make it 2.7%) is no longer valid. The ONS have said that the way it previously came up with the RPI did not meet international standards and is no longer an official statistic; as per the accompanying document released on 14 January 2014 with the figures.

The RPIJ - which replaces the RPI as an official figure is 2.0% not 2.7% which O2 are going to charge their customers.

O2 imply and accept that they are using the official statistics published by the UK government. That figure is 2.0% as the ONS don't recognise the old 'way' any more as a national statistic.

So, surely, O2 are now in breach of contract and I (and thousands of others) are within our rights to terminate our contract without fees?

GolfBravo

Transcript of my chat with O2 10 minutes ago, re: early contract termination due to out of bundle calls price increase above RPI.

O2: Hello, it's O2 here. What can I do for you?
Me: Hi. I received your email re: price increase. What is the best email address to cancel my monthly contract due to the price increase being above the RPI?
O2: Let me check
O2: If you cancel the contract early then you'll be charge early termination fee.
Me: No sorry, no early termination fee applies here. O2 is increasing the prices by more than RPI (inflation rate), and according to Ofcom rules I can terminate early without any penalties.
O2: We are not increasing more. It's RPI decision 2.7%
Me: Your revised price list: International calls Europe, NOW 40p per minute, from 28th Feb it is 60p per minute. Correct me if I'm wrong, increase of 50% > 2.7%
Me: How do I cancel early? What is your procedure?
O2: Can you tell me the 1st & 3rd characters of your security answer?
O2: And your full name?
...................
O2: Thanks for the information. Please give me a few minutes while I check this for you.
Me: Thank you.
O2: Hi
O2: Thanks for waiting
Me: Hi
O2: You'll be charge around £278.58
Me: Why?
O2: Early termination fee
Me: You are increasing your fees by more than 2.7%?
O2: No.. No.. 2.7% <--- Love this bit :rotfl:
Me: Out of bundle calls are going up by 50%, please do your maths.
O2: Do you know your monthly line rental?
Me: Going up from £47.47 to £48.75. Out of bundle calls are up by 50%.
Me: This is of "material detriment" under Ofcom's rules = no early termination fee.
O2: It's Ofcom decision. You'll be charge early termination fee. I'll help you with the link you can check it.
Me: What is the best email address to argue my case before I take it to Ofcom?
O2: click here
Me: That's right. International calls: Europe, was 40p, is 60p. 50% increase. Not 2.7%
O2: You only been charge 2.7% on your monthly line rental i'e now 47.47
Me: Yes, I understand that bit. But I also use my phone for international calls, and I expect to use it heavily for international calls in March and April. This is of "material detriment"
O2: You're not getting what I'm trying to say you.
Me: Because you're not telling me the whole story.
Me: The link above lists the 50% increase.
Me: Please check yourself.
Me: Clearly we're not getting anywhere here. What is the best contact email address, preferably your department manager's?
O2: There is nor email address. I've already checked with my manager
Me: Your manager says there is no email address at O2? What is the Complaints Department email address then?
O2: I'll help you with it.
Me: Thank you.
O2: click here
Me: Thank you. Bye.


So, I'm writing to them tomorrow. Will keep you updated if/when O2 reply.

neo1607

Had a go at live chat support, they weren't very helpful.

Currently speaking to a very nice guy on the phone about it, more about how Im having signal issues and now this RPI increase is a joke because Im already not getting what Im paying for, So he is away to speak to his line manager to get me a discount