New O2 contract - scam?

SarahSarah_2

Hello,

Went to look at new phones recently, went to O2 in my local town, whilst chatting to the assistant about phones and changing network, the assistant made a comment not to give my notice on my current contract as I may have issues getting a contract with them.

I went to get a contract with O2 at the weekend and my application came back asking for a deposit, a deposit of £475, the deposit is taken and held for 3 months, I then continue to pay for the phone as part of the contract, the option was this or to sign up to sim only and see if they will let me have a phone in 3-6 months.

I took sim only, and could have got the phone I wanted in the shop for £380.

Can someone please tell me if mobile providers have got stricter these days or does this seem dodgy? I've checked my credit report today and all is ok.

mije1983

Not dodgy or a scam, but something most (all?) networks do if they think you may be a risk to them.

From the O2 website:

5.19 We may require a deposit before we'll give you access to the Service or before we'll continue to provide the Service to you. We may hold this deposit until you've paid all sums that you owe us under this Agreement. If you owe us money, we may use the deposit to settle or part-settle what you owe us. We'll refund any deposit we're still holding (if you ask) on termination of this Agreement or, if you ask, after three months of continuous on-time bill payments. If you don't ask for the deposit back, it will be added as a credit to your account. We won't pay any interest on any deposit we hold.

SarahSarah_2

It just seems a con, I understand in today's world how careful they have to be but the value of the phone.

It has concerned me to the point of cancelling

mije1983

It's not just the value of the phone, but the entire contract cost. If you have poor/little credit history then they have no way of knowing if you are likely to fulfil the contract or run up big bills and not pay them.

macman

The handset cost is the least of their concerns. A mobile contract offers potentially unlimited airtime credit.

Nodding_Donkey

But if someone can afford to pay a deposit then they can afford to buy a handset and get a one month sim deal. If more people were on shorter deals then the phone companies don't have the scope to take the mickey with !!!! poor customer service, shutting down masts etc. (are you listening EE?). Getting a 'free' phone is probably the most expensive way of owning a mobile.

macman

Unfortunately. years of supplier advertising has led people to believe that the handsets are still 'free': even when they cost £500+ SIM-free.