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

DUTR

PurpleSeeingEye wrote: »

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by officially recognised figures, then the way that the ONS used to create the RPI figure (which would make it 2.7%) is no longer valid.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?

How come so many come on the thread as a newbie and then start posting tripe? It was the same on the Orange price increase thread. You only have to look in your shopping basket to easily learn what real inflation is, put it like this TUC crackers have gone up 9%, are you lot going to threaten not to eat anymore of those delicious savoury biscuits?

It's all good and well being keyboard warriors, fact of the matter come March you will all be agreeing to the increase by continuing with your agreement.

neo1607

I got a £5 discount on my monthly bill because I was moaning about signal issues and then then 2.7% increase, so really I've managed to beat the increase

parrysite

I specifically asked the sales rep if my contract was fixed price, to which he said all of the contracts were fixed price. The non-chalant way in which he said it made me think I was being stupid and so I didn't check the small print.

Have I scuppered my chances of getting my contract cancelled? I've also recently realised I will never be able to get 4g on my phone despite being promised it "would be turned on soon and will be available on your handset"- (an iPhone 5) I've now been told that it's not comptaible with o2 4G and that I will not be able to get o2 4G without upgrading my handset.

I realise now that I should have researched all of this myself (:mad:) beforehand- but I didn't think it would be lied to directly like that!

DUTR

parrysite wrote: »

I specifically asked the sales rep if my contract was fixed price, to which he said all of the contracts were fixed price. The non-chalant way in which he said it made me think I was being stupid and so I didn't check the small print.

Have I scuppered my chances of getting my contract cancelled? I've also recently realised I will never be able to get 4g on my phone despite being promised it "would be turned on soon and will be available on your handset"- (an iPhone 5) I've now been told that it's not comptaible with o2 4G and that I will not be able to get o2 4G without upgrading my handset.

I realise now that I should have researched all of this myself (:mad:) beforehand- but I didn't think it would be lied to directly like that!

Everybody knew the iphone 5 would not support 'proper' 4g even before it was released , there was enough talk of it all over the internet.

PurpleSeeingEye

DUTR wrote: »

How come so many come on the thread as a newbie and then start posting tripe? It was the same on the Orange price increase thread. You only have to look in your shopping basket to easily learn what real inflation is, put it like this TUC crackers have gone up 9%, are you lot going to threaten not to eat anymore of those delicious savoury biscuits?

It's all good and well being keyboard warriors, fact of the matter come March you will all be agreeing to the increase by continuing with your agreement.

Posting 'tripe'? Why, thank you very much. I was raising what I thought was a valid point. Not quite sure why you have to be so rude. As for the TUC crackers analogy, pretty poor. And wrong.

What is wrong in questioning the figure which O2 are using to justify the amount of their increases? I take offense to the fact you seem to think I am looking for some get out clause from my contract and imply I'll be renewing it anyway! Untrue. I am merely questioning the contract to which I signed and expect it to be complied with by O2 as well.

'Real' inflation is calculated in a number of ways and the ONS accept that RPI is not a correct figure, any longer, thus their change to RPIJ. My point is valid and not 'tripe'. If you feel being 'exact' about legal terminology is wrong, should I presume you would happily accept a company telling you they're putting prices up by about 3%? I suspect not. O2 say they use 'official' figures. RPI is no longer official. Fact. Try Googling 'Official RPI' and you will see links to a number of articles about this.

Silk

I thought the 2% was CPI. and the 2.7% was RPI ...so what's RPIJ?

PurpleSeeingEye

Silk wrote: »

I thought the 2% was CPI. and the 2.7% was RPI ...so what's RPIJ?

It is the new and accepted way of calculating the retail price index. In the introduction to the ONS figures for December (released on the ONS website on 14 January), there is an explanation as to why this has happened.

parrysite

DUTR wrote: »

Everybody knew the iphone 5 would not support 'proper' 4g even before it was released , there was enough talk of it all over the internet.

Clearly myself AND the O2 salesman missed this.

More to the point- the fact that information is freely available on the internet does not excuse someone appointed by O2 to serve customers and inform them as an 'expert' to blatantly lie about it. It was not unreasonable for me to assume the latest iPhone would be able to receive 4G signal and so I didn't even think to research it other than to ask the customer advisor.

Silk

PurpleSeeingEye wrote: »

It is the new and accepted way of calculating the retail price index. In the introduction to the ONS figures for December (released on the ONS website on 14 January), there is an explanation as to why this has happened.

Have a read of this .... http://www.telegraph.co.uk/finance/economics/9792480/Inflation-RPI-CPI-and-RPIJ-explained.html

Britain's National Statistician, Jill Matheson, has recognised that part of calculating RPI is "flawed". Bank of England governor, Sir Mervyn King, described RPI as "outdated" in November and in recent years, the discrepancy with CPI has grown.
The ONS has therefore proposed a new inflation index known as RPIJ to address an issue with how clothing prices are measured in RPI.
The new index, which will start in March, will replace the current formula for calculating RPI - known as 'Carli' - with a different formula called Jevons. It will therefore use the same methods as CPI for calculating average prices. However, it is not obvious that RPIJ will be used for anything.
It is envisaged that the new index will run alongside the existing RPI, which will still be used for index-linked gilts and bonds.

mrackliff

I think we may have an O2 employee on here lol!
Really no need to be so rude.