Termination fee?

neeneep

Sorry if this has been asked before.
I have a Vodafone SIM only deal, which expires on 21 March so I have already paid my last line rental. I am moving to a new deal with a different provider, so requested a PAC code...and they told me that if I used it before 21 March I would be charged a termination fee. Is this right? It doesn't sound ethical to me as they have had the full value of the contract.

If it is right, how is the fee calculated?

Many thanks

Jon_01

The contract doesn't expire on 21st of March, it's reaches the end of it's minimum term. At that point it switches to a 30 day rolling contract (like 99% of all mobile contracts) and you have to give 30 days notice to end it.

grumbler

PAC [STRIKE]code[/STRIKE]

Generally, 'charged' is just the way of calculating what is due and doesn't mean that you actually have to pay it.
Normally, if your last month was paid in advance, you shouldn't pay anything extra. However, a billing month can be not the same as the last month of your minimum term.

Jon_01 wrote: »

At that point it switches to a 30 day rolling contract (like 99% of all mobile contracts) and you have to give 30 days notice to end it.

The OP has got a PAC, hence no notice is needed.
And, without PAC, a notice can be given earlier, not "at this point".

neeneep

Thank you for the correction, although it is rather moot as I am moving anyway before 21 March. I am still struggling to see what the termination fee is for as I have paid the full period, so no further money is due at the time I go.

neeneep

Thank you grumbler....but how can I calculate what this 'fee' might be.

mobilejunkie

Note that if you fail to use the PAC within 30 days of receiving it the contract will continue as if you'd never asked for one.

SuperAllyB

With EE I moved away 21 days into my 30 day notice period. I was refunded any line rental paid in advance for the period after I moved. I was then charged a "termination fee" roughly equivalent to the 9 days up to the end of my notice period. Must be some accounting reason for doing it that way.

grumbler

neeneep wrote: »

Thank you grumbler....but how can I calculate what this 'fee' might be.

Normally it's either the next 30 days or the remainder of the minimum term whichever is longer.

However, IIRC, Vodafone are unique in charging for remaining days only if the number is ported out within the minimum term or for the actual number of days until porting out outside of the minimum term.

It's not uncommon that a customer is even owed some money after terminating a contract: Phone bills: reclaim unused credit

Kim_13

It seems to be impossible to get out of a contract paying exactly the monthly payments you signed up to (minimum term) and no more. I also ended up with some extra when I left O2.

mobilejunkie

I have never overpaid and I lots of contracts. I never port the number and then insist it ends on the exact last day of the minimum term.

Jon_01

What MJ says, it just needs an amount of forward planning and all you pay is the minimum term.