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Beware O2 free incentives

Hi,
In 2005 I took a 12 month contract with O2, when the 12 month was up I rang and asked to cancel my contract and could I do this over the phone?. Their response was to offer me a £100 credit on my account to use when and how I wanted if I stayed with them. Never one to look a gift horse in the mouth, I did. When I estimated I had used the £100 I rang to cancel as this is what I had been told to do, only to be informed my contract had another 2 months to run and to ring back then.
Next I start getting stupid, extortianate bills in from O2, threatening letters informing me I had cancelled direct debits, they were reffering my debt to debt collection agencies, I would be liable for extra and reconnection fees and so on and so on.
Ive rung them to try to explain .
1. I havent cancelled the direct debits-they have-in January(if you dont mind.January!!!)
2. Theyre saying they have sent loads of reminders. I havent received them!
3. Tried to explain I havent even had their sim in my phone since June, yet they insist I have made £70 ish calls in JUly
They now say when I accepted their gift of £100 thats was classed as an upgrade, which means I became committed for another 12 months.
No-one said that at the time.
Signing up for another 12 months or the term upgrade was never mentioned.
According to phone staff at the time, this was a gift for being a good customer.
Ive seen others posting here advising to ring their present company to try to blag a good deal out of them so they dont swap companies when the contracts up.
Has anyone else suffered at the hands of O2 as I am doing at the moment.
Lets know your experience X
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