Mobile Contract

ashalee1990

Hi everyone,

Not sure if this is in the right thread, sorry if not!

Basically I took out a new contract with Tesco Mobile in circa May this year, I got quite an expensive handset, iPhone 5s 32G, the cost of which was £25 pcm towards the handset and £25pcm for my plan totalling £50 pcm which was fine.

Back in August, I was admitted into hospital and my job, as I was only on a temporary contract through an agency, I found another job fairly quickly, but the start date was not until 10th November, meaning I have had no wages (as I was previously paid weekly) from August through to December 21st, when my first monthly wage is paid.

I'm in receipt of working tax credits, as I have a 3 year old, but between having to pay the childminder a couple of days per week to keep my daughters place and living while I was not working these were vastly swallowed up - my mobile, landline, and broadband are all cut off.

I received a letter from Tesco Mobile on 11th November, advising me the account was being terminated due to non payment of bills in September and October, I had not previously contacted them, as I physically did not have a way to with no phone, or internet. I prefer emails anyway as they cannot go back on what they have said then! Anyway, I emailed Tesco, who told me there was nothing they could do, the account was terminated. I explained the situation, still they said there is nothing they can do, EXCEPT I could pay the total balance of the last contract and handsent (totalling £1040!!) and take out a new contract with them, a statement which I found completely ridiculous?

Various emails have went back and forward in the meantime, they have told me again there is nothing they can do, the account was 'cut off' permanently on 23rd of November, they say they physically cannot re-activate it, but again I can take another contract out if I like (which of course I'm not going to do). They have advised they have contacted me several times via email (which is completely untrue, I have received none) and text message, but I would not have received the text messages as the actual handset is broken, therefore it hasn't been switched on since just before the first bill was missed. The only thing I got was the letter on 11th.

Can anyone help out with what my rights are here? I find it astounding their answer is to take a new contract out, whilst point blank refusing to re-connect the other if I pay the o/s bills, its like they are trying to lure me into being further into debt!

Additionally, I notice the final bill is £1040, which includes the price of the handset, but the handset has been barred by Tesco, rendering it unusable even if I were to have it fixed, so how are they able to charge me for a phone which I would be unable to use? I would rather return the handset to them.

Any help would be gladly received!

Ashley

MrSilk

Hi Ashley,

There is no way to sugar coat this I'm afraid. It's a case of 'you signed up to the contract, you need to honor it'.

The £1040 charge shall result in a default if you cannot or wont pay it, and could possibly result in a CCJ, which will make obtaining credit impossible for the next 6 years.

Just because the handset is broken doesn't mean you should not pay what you owe, under contract. You pay for the phone over the course of the 24 months. Whether it's locked or working, you are still required to pay the £1040.

You live and learn. Maybe next time, in 6 years; try not to commit to anything when your employment isn't permanent/stable.

teffers

Hi Ashaleeeee,

MrSilk has said it as nicely as possible.

As for advice on what rights you have, in relation to what ?

You took a contract mobile out, you didn't pay the bill, you didn't talk to them, they cut your phone off.

I would suggest that even if you do pay the money off immediately you most probably won't get another contract via the same supplier, they just want you to pay them.

Hope everything works out.

ashalee1990

Hi there,

Thanks for the responses. I just thought this process was a little hasty, albeit in a short period of time I never missed a bill or even paid late, and the circumstances were exceptional, I have offered to pay them the £140 (which is the outstanding bills up to now) and continue the direct debit (as it hasn't been cancelled and they still attempted to take it last month, not sure if they will this month or not yet), they haven't actually even passed the account on to a DCA yet or generated a final bill as on my online account it just reads 'you have an overdue balance of £140 click here to pay this now' and they still say no-can-do, I thought they would be a bit more reluctant to pass it to debt collectors due to the large amount and my last contract was with EE, and during the 24 months there was a time where I was in a similiar situation and they didn't even speak of passing the account to DCA as long as they got caught up, but I guess some must be much stricter than others!

Thank you anyway

MrSilk

Communication companies are unfortunately more quicker to place an account in default then say a credit card company. For every customer they lose, another 20 new customers join.

The best you can do is speak to them over the phone and set up a payment plan. If the default has already been processed, it shall say on your file for 6 years, until 2020.

If you do not set up a payment plan with either Tesco or a DCA, they may proceed with court action, which could result in bailiffs, or an attachment of earnings, once you start your new job.

My advise would be to pay it and take it as a lesson learned.

meer53

If you find yourself in this situation again, don't ignore them. If you had contacted them when you first realised you wouldn't be able to pay then they might have been a bit more sympathetic. Saying you couldn't contact them is a bit of a lame excuse really. You managed to email them when you had been cut off, telling them that you couldn't contact them before then wouldn't have helped you. What happened between the letter on the 11th and when you were cut off on the 23rd ?

PaulW922

Tesco will not have blocked the phone itself - just the SIM (though it may be locked to the Tesco network). So the phone is not unusable, and if it really has 'broken' after only a few months it will be under guarantee. What is actually up with it?

I do not think they re trying to get you into more debt, but trying to get the current debt paid. I would think any new contract would be 'SIM only' as you would already have the phone.

Sometimes I think it helps if, just for a moment, you put yourself in the position of Tesco mobile and think would you would do if you were them - that might help you get a better perspective on your problem and find a way through. For example, your home phone and broadband may have been cut off but that is hardly the fault of Tesco. Remember also that they gave you a very expensive phone handset on the basis you would be paying £50pm.

I wonder if you could enter into a payment plan for the o/s debt and start a new SIM only contract at the same time? Whatever you decide I would recommend you try to resolve the issue with Tesco and not let it get to a debt collector

Heffi1

ashalee1990 wrote: »

Hi there,

the circumstances were exceptional,


my last contract was with EE, and during the 24 months there was a time where I was in a similiar situation and they didn't even speak of passing the account to DCA as long as they got caught up, but I guess some must be much stricter than others!

So is this the second time that you have found yourself in difficulties with your mobile, what did you learn from the first time it happened, it would seem not a lot really.

You need to pay what you owe and then maybe consider whether you can actually afford an expensive handset and contract.

£10 pay as you go, would seem like a better option.

Unless of course you HAVE to have a fancy handset (which you broke)

Your choice of course, but is it really worth all this hassle for a shiny new toy.