O2 refresh contract/credit agreement clause?

tim1980

Hi,
I after some advice and wondered if anyone could help.

I have a refresh contract with O2, which has a separate airtime contract and a separate credit agreement for the actual phone/device, I currently have a credit agreement running at £20/month with 12 months Left.

I’m looking to cancel my airtime contract as I am moving house from south east England to North Wales, where O2 only have 2G coverage(whereas I need a data service 3G/4G which they cannot supply but other phone operators can), however O2 say I must pay off my device credit agreement (which is separate bill/direct debit to airtime contract) which is £240.00, as they will not allow me to continue my credit agreement if I do not have a phone contract with them.

I have no problem paying for my credit agreement on the phone in line with the terms but with moving costs etc I don’t really want to have to pay out £240.00 in one go, just so I can change my airtime provider to a company that has mobile signal at my new address.

They are refusing to let me cancel my airtime whilst continuing with my device credit agreement, basically saying its all or nothing, however on looking at the T&C’s on the credit agreement it states I need an airtime contract to start a credit agreement on the device:

3.2 In order to obtain the credit, you must also enter into a Pay Monthly Mobile Agreement
(including the Equipment Agreement) which covers the terms and conditions relating to the
provision of airtime services (including, for example, the costs of your calls / texts / data on the
O2 Network) and other related services in connection with Device (“Airtime Services”). We
will provide the credit stated in this Credit Agreement by applying the total amount of credit
in payment or partial payment of the cash price of Device shown below. We will do so once
you have (a) signed the Credit Agreement and the Pay Monthly Mobile Agreement (including
the Equipment Agreement); or (b) (if later) such time as Device is supplied to you by us or the
supplier (as applicable).

But it also then states this:

13.2 Your obligation to make Repayments under this Credit Agreement is not contingent on
us providing any good or service other than the Device listed in this Credit Agreement.

Am I misunderstanding it, or does this imply I don’t need any other service from O2 to continue with my credit agreement, does ‘not contingent’ mean I don’t have to have another O2 service to continue with this credit agreement?

The full t&c’s (sorry can't post links) can be found if you google "o2 phone plan credit agreement CCA"

Can anyone help, am I wasting my time arguing with O2 or do I have a valid point with them, being the device is on a regulated credit agreement, and having an airtime contract is irrelevant once the CCA is in place?


Ultimately I just want to cancel my airtime with O2 so I can move to another operator, but keep/continue to pay for my phone via the credit agreement.

Thanks

Tony5101

In a nutshell - you can't.
You can pay off the handset cost, and that will end the airtime agreement. You can't do it the other way around though and effectively keep the handset on finance. This was always the point of the Refresh contract, to enable you to change a handset as frequently as you would like to (or could afford to).

SeduLOUs

When you sign up to a refresh contract you are agreeing to a 24 month term for the airtime and device plan.

They allow you to leave the airtime bit early without termination fees if and only if the device plan is paid in full.

1.3 O2 Refresh

(a) If you're an O2 Refresh customer you will get a Pay Monthly tariff that combines a 24-month Airtime Plan on a Pay Monthly Mobile Agreement and one or more Device Plans that allow you to pay for your equipment either upfront (the Cash Price) or by paying monthly instalments on a Consumer Credit Agreement. O2 Refresh is a tariff which is only sold in conjunction with equipment. Selected combinations of Device Plans and Airtime Plans with selected devices/bundles will include an up-front payment.

(b) If you've paid off your O2 Refresh Device Plan(s) (after 24 months or earlier if you choose to pay off early before the end of the 24 month term), you can either:

Decide to continue with your original Airtime Plan. In these circumstances, the combined Pay Monthly tariff will automatically reduce to reflect just the Airtime Plan tariff, until it is terminated on 30 days' notice in accordance with our Pay Monthly Mobile Agreement; or

Take a new O2 Refresh deal. If you're paying off a Device Plan early we waive the remaining months of your linked Airtime Plan that you haven't used, allowing you to upgrade; or

Terminate your Airtime Plan and Pay Monthly Mobile Agreement. We'll waive the remaining months of your linked Airtime Plan that you haven't used (as required by the Consumer Credit Act 1974), entitling you to terminate so that in these circumstances, your Airtime Plan will be treated as not having any remaining Minimum Period for the purposes of paragraph 8.3 of the Pay Monthly Mobile Agreement.

For the avoidance of doubt, in paragraphs (ii) and (iii) above, Charges (including for Additional Services) not included in your monthly Airtime Plan, or Charges arising prior to full repayment of the balance of a Device Plan, will not be waived and will be billed as normal. You will not be entitled to a refund of Charges already paid when paying off a Device Plan.

From http://www.o2.co.uk/termsandconditions/mobile/our-latest-pay-monthly-tariff-terms

tim1980

Thanks, yes I know this but on reading the terms of the credit agreement clause 13.2 states differently
13.2 Your obligation to make Repayments under this Credit Agreement is not contingent on
us providing any good or service other than the Device listed in this Credit Agreement.


Not trying to be under handed or anything with them, if the data service was there, I'd never had looked at changing as I've been with O2 for 15 years, but the above implies I can continue the credit agreement without having another service from O2, does it not?

SeduLOUs

tim1980 wrote: »

Not trying to be under handed or anything with them, if the data service was there, I'd never had looked at changing as I've been with O2 for 15 years, but the above implies I can continue the credit agreement without having another service from O2, does it not?

Possibly, but that's only one half of the agreement you signed up to.

The wording you have quoted is probably intended to cover their own backs should they have valid reason to have to terminate your airtime plan but that still allows them to recover anything outstanding on the device plan. e.g. if you request a PAC that they have to supply, and then move your number, the airtime plan would be terminated, so you would have a active device plan only with no other active service. The difference in this scenario is that they would be allowed to then charge airtime termination fees as per the airtime agreement.

On what basis are you arguing your way out of the airtime terms that you agreed to for a minimum of either 24 months or until the device plan is paid?

tim1980

Thanks SeduLOUs, I don't have a minimum term on my airtime contract as I was an existing customer and it was allowed to roll over from old contract, so just the device plan/credit agreement with 12 months to run.


Think ultimately I'm just going to have to swap the sim to another carrier and carry on paying the airtime/device plans

SeduLOUs

tim1980 wrote: »

Thanks SeduLOUs, I don't have a minimum term on my airtime contract as I was an existing customer and it was allowed to roll over from old contract, so just the device plan/credit agreement with 12 months to run.

I would have thought that when you signed up to the refresh plan you signed up to a new minimum term for the airtime, as would be the norm for any sort of upgrade with any mobile network.

Tony5101

SeduLOUs wrote: »

I would have thought that when you signed up to the refresh plan you signed up to a new minimum term for the airtime, as would be the norm for any sort of upgrade with any mobile network.

Exactly right - all "refresh" contracts are written up as 24 month contracts - whether done as an upgrade or from new. The only way to cancel the airtime penalty free, is to pay the handset side of the contract off in full.

tim1980

Thanks, but as above, I haven't got a min term on the airtime, I've confirmed this with O2, its just the credit agreement holding me back on cancelling the airtime contract as this would effectively close my account with O2, I think ultimately O2 aren't setup to handle a CCA without a airtime contract in place as I would no longer have an active customer account on their system.

tim1980

Thanks for your replies, I've managed to sort out a satisfactory ending.

blondie21

So reading the above am I right in thinking you can upgrade on refresh and when you get the airtime and device you can cancel the airtime contract and just pay off the phone in full ???? ( it's just really a phone I'm after as I'm on a very good sim only deal .........