MSE News: EE and O2 mobile customers to be hit with 1.1% price rise

RandomCurve

DUTR wrote: »

It's based on the RPI rate on a certain date, as you say it's written into the contracts (as it always was) so hopefully we won't have a painfully long whining thread like we did last year.

But last year 95% of customers who followed the advice on that thread escaped their contracts penalty free, and most got £50-£100 compensation on top!


Just because it is written into the contract and Ofcom have said it is okay - does not mean it is legal.


There is a 50/50 chance of getting out of the contract penalty free, as because they have used RPI and not CPI you can claim it is of material detriment under the contract (rather than Ofcom rules).


There is a 90%+ chance of having the price rise declared unenforceable under the Unfair Terms in Consumer Contracts Regulations (UTCCRs) because:
1. In a fixed term contract a price rise clause is only fair if the inflation rate applied is a suitable rate (RPI is not even a National Statistic - CPI is) AND
2. If it can be shown that it is not a true reflection of EEs cost increases - think about it - they have inflated the cost of your handset and the network licence fee they paid the Government both of which are already paid for, so could not possibly be subject to a price increase; AND
3. The term is unfair as you have no way of knowing if the price rise is a true reflection of EEs cost increases, but EE have told Ofcom they can estimate some inflation in advance - so how do you know they have not "double counted" inflation on some aspects of your contract; AND
4. EE owe you a duty of care when putting the contract together and can not pass risks (the risk of inflation) to you the consumer.


The above applies REGARDLESS of what the contract or Ofcom my say!

RandomCurve

VT82 wrote: »

I fail to see what RPI has got to do with their prices. Increases in the cost of mobile phone bills should be CONTRIBUTING to the calculation of the index, NOT BEING BASED UPON IT. Circular reference much?

They should be basing increases on their own rising costs, and should not be able to change them during a contract. They're big enough and clever enough to hedge their costs in advance if they really believe there is inflation risk. But no, they are purely doing this as a money-making exercise.

And there is certainly absolutely no reason why they should be able to increase costs based on some mythical RPI number that really has zero relevance to do with anything.

Spot on!

RandomCurve

Netwizard wrote: »

This bit got me from o2:

UK voice calls: Will rise to 45p/minute from 1 April, up from 40p/minute.
International calls: Will rise to £1/minute to call Europe, USA, Alaska and Canada, up from 60p/minute and to call Eastern Europe and worldwide, it will also cost £1/minute, up from 80/minute.


45p a min to UK and £1 a min to Europe?! that's crazy pricing when you can call spain on giffgaff (o2) at 2p a min and 10p a min UK out of allowance!

Those increases are of Material Detriment and you have 95% chance of exiting the contract penalty free.


Ofcom have

d123

molerat wrote: »

Something to do with Orange being part of the EE network maybe. From the article

Except for billing purposes it's nothing to do with Orange being owned by EE.

EE is the parent company of 3 networks, Orange, T-Mobile and EE. They are all billed separately and still have separate T&C's and charges.

People seem to get confused too easily, just because the phone screen says EE, they think they are on the EE network and everything to do with EE applies to them when it doesn't.

mobilejunkie

RandomCurve wrote: »

But last year 95% of customers escaped their contracts penalty free, and most got £50-£100 compensation on top!

That's clearly utter nonsense. More like 95% didn't want or try to and since the network is still up and running the 5% (according to you) you say stayed would be paying millions of pounds each for their contracts.

Yuff

I took an O2 contract out in sep 13, via carphone warehouse, including the purchase of an iPhone 5s for 2 years.
Part of the attraction was calls to Guernsey and jersey were included in the free mins.
In December 2013, they started charging for calls to those areas, without informing me and £20 in extra call charges.
Now this, not sure where I stand though, as I got a handset via the contract. I'd like to get out if it, but who else provides texts, to Guernsey, in their inclusive text bundke( calls as well would be even better)

hammersfaniow

mobilejunkie wrote: »

That's clearly utter nonsense. More like 95% didn't want or try to and since the network is still up and running the 5% (according to you) you say stayed would be paying millions of pounds each for their contracts.

I think RandomCurve (who was exceptional with the advice he gave last year) may have meant 95% of people on here that sought advice, as he was responding about a thread on here possibly.

mobilejunkie

Then he should define who he's referring to as opposed to all customers.

molerat

d123 wrote: »

Except for billing purposes it's nothing to do with Orange being owned by EE.

EE is the parent company of 3 networks, Orange, T-Mobile and EE. They are all billed separately and still have separate T&C's and charges.

People seem to get confused too easily, just because the phone screen says EE, they think they are on the EE network and everything to do with EE applies to them when it doesn't.

The article reads

Here's what you need to know if you're an EE (which includes Orange and T-Mobile) or O2 mobile customer

which to me says that MSE believe the price rises apply to EE and all its subsidiary networks. I was simply stating that I have not been informed of any so either the article is incorrect or my network provider has failed to inform me of any rise. The last rise I had was March 13 delayed until Nov 13 under their no increase on new contracts for 6 months rule.

d123

molerat wrote: »

The article reads which to me says that MSE believe the price rises apply to EE and all its subsidiary networks. I was simply stating that I have not been informed of any so either the article is incorrect or my network provider has failed to inform me of any rise. The last rise I had was March 13 delayed until Nov 13 under their no increase on new contracts for 6 months rule.

Ah, I see your confusion, you should probably not believe everything written here, especially since Martin sold to MoneySupermarket the accuracy and quality of writing seems to have gone downhill.

The actual EE statement says nothing about Orange.

EE price plans What the 2015 EE price changes mean for you

You will see a 1.1% increase to your monthly price plan on any bills you receive from the 26th March 2015, if you joined or upgraded to a Pay Monthly plan, SIM Only plan, 4GEE Wifi / mobile broadband or Business contract between 26th March 2014 and the 10th February 2015 (new EE business plans released on the 28th January are exempt from this increase).

This increase is in line with the Retail Price Index published by the Office for National Statistics on the 17th February 2015 and as specified in clause 7.1.4 of your Terms and Conditions.

To view your terms and conditions, click here or if you are business customer click here.

http://terms.ee.co.uk/ee-price-changes-information.html

If you follow the link backwards you will see it only applies to EE, not Orange or T-Mobile.

They also say:

How do I know if my price is increasing?

All customers who are impacted by the price increase will be contacted. You will receive a minimum of 30 days written notice (letter or SMS) notifying you before the increase takes place.

Why are some customers affected and not others?

Contracts entered since 26th March 2014 are subject to terms and conditions stating that their monthly price plan will be increased once a year, in March, by the most recently published RPI. Customers who joined or upgraded on or after the 11th February 2015 will not be impacted this year, but will get their first increase in March 2016.

http://terms.ee.co.uk/ee-price-changes-information.html under the FAQ tab.

So chances are, you will be notified when it's your turn .