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MSE News: EE to hike out-of-bundle mobile charges by up to 60%

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  • Hi Guys,

    So I've too received this E-Mail, quite frankly its the last straw.
    At the time of Purchase I was happy with the contract - personal work circumstances changed which requires me to travel abroad to the USA/Canada. at my last stint overseas, I had Family trauma at home which resulted in me having to maintain frequent contact with home.

    I feel like this 60% hike is definitely going to negatively impact me in the coming weeks months ahead as I prepare for another trip out there.

    I've attached a copy of my last bill from when I was out there (shocking I know) Feel Free to jest at it. (Sadly I can't attach links yet but total bill with OOB charges was £710)

    Now I'm looking for some help in being able to piece together a formal cancellation request on the grounds of these price hikes,

    I know they are out of bundle charges but surely they come under the bracket of services sold along side the contract and material detriment applies?

    Any help would be massively appreciated on this guys.


    Best,

    John Bremner
  • Does this mean we van cancel the contract because they have changed the t&c's
  • boatman
    boatman Posts: 4,700 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Heng_Leng wrote: »
    You are looking at this from the wrong perpective.

    Within the contract duration, increase of any service you are likely to use is of material detriment (to you). A court would look on the balance of probabilities - proof of future events is often unattainable.

    EE are effectively proposing to modify the contract and will take the lack of objection as acceptance.
    I think we are saying the same thing. From OFCOM's point of view they have used the word 'likely' to cause material detriment. Where as the networks would appear to use your previous usage as their way of deciding, which obviously is of limited use to your future use. I'm not sure how good the courts crystal balls are!?
    To my mind, if you tell the network you would like to leave because of these changes, I think you should be allowed to leave, you shouldn't need to prove anything..
  • boatman
    boatman Posts: 4,700 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 26 August 2016 at 9:25AM
    JetStream wrote: »
    From reading the article on Vodafone http://www.moneysavingexpert.com/news/phones/2016/06/vodafone-to-increase-out-of-allowance-costs-next-month---but-you-may-be-able-to-dodge-the-hikes - and factoring in the fact EE increased the price plan by 1.3% already, technically if you've sent one picture message or gone over your call limit by one minute, it's exceeded 1.3%, even if it's by 0.01%...?
    The line rental is classed as the 'core' agreement and is limited to RPI, if they go above that you can leave.

    The out of bundle charges come under 'material detriment', not any RPI limit. In theory its simple, but its a bit vague when it come to the detail.

    But as you say, EE have already used up their 'increases' with the contract RPI increase, so yes, I would agree. Its almost impossible to go through a whole contract without at some stage being charged for at least one of the out of bundle services.
    Seems a reasonable way to argue a way out!

    The RPI increase came about because the providers wanted some safeguard against economic changes which they could not foresee. As the out of bundle charges do not form the core of the contract they should not affect their overall profit margin, so should not need to be changed over the course of a maximum 2 year contract.

    Its not like they can argue that by not increasing out of bundles prices it will bankrupt them, they are already expensive. If they can offer 500mins for £5, why do they need to charge 50p for 1 minute?

    They can increase the prices as much as they like but need to accept that people should be allowed to leave if they do not accept the changes. Unfortunately the providers don't like the latter bit and do what they can to cause problems in people trying to leave.
  • boatman
    boatman Posts: 4,700 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 26 August 2016 at 2:14PM
    Looks like EE have shot themselves in the foot!!

    In their response to the OFCOM consultation(page 8) on 'Price rises in fixed term contracts' 2013 they stated, and i quote:

    "EE would argue that our price rise clause is fair as customers are
    able to leave without penalty where an increase is greater than RPI. An RPI
    increase is proportionate as the basket of goods and services to which it
    relates is of general application and unlikely to generate consumer harm."

    The price goes above RPI with a single use of an out of bundle service within the contract, you would suffer material detriment, then EE agree, you can leave!! Well done EE..
  • boatman
    boatman Posts: 4,700 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 26 August 2016 at 3:16PM
    Atasas wrote: »

    So where is the required detail, the right to leave if you do not accept?
    How about the way you contact them if you do want to leave because of this.
  • Called today - The advisor couldn't put me through to cancellations because I didnt agree to the cancellation fee - despite it written in contract 8.4.3 / 12.4.2/3 that I'm not required to if Material Detriment occurs.

    I believe EE admitted Material Detriment due to the fact they offered me various add-ons that would 'alleviate' situation but still cost extra per month.
    Disagreed with this on the basis that no option provided by EE would incur no extra cost to me.

    Reached a Manager who discussed discounts for calling abroad none of which I agreed to me - that as somebody who frequently travels I will be at the peril of these increases.

    ]Came off the phone to find the Calling Abroad Add-on had been added to my account despite not explicitly agreeing to this - it does incur a monthly cost to use this add on. Why Was this added??

    EE stated that they believe no material impact was placed upon me due to it being my choice to use the, - I stated that it was unavoidable as I had not only signed up to the EE Core Subscription and its RPI increases but also to the EE Eco System and service - of a locked phone - and that because of these Material Detriment occurs through any price increase over and above the agreed RPI increases that occurred in March 2016.

    I opened a complaint with the manager and was told there was no complaints department - and stated I would be issuing a complaint in writing and passing on this complaint to Ofcom.



    Next Steps? on wording the Email? or should it be a letter? I need out of this contract. I cant afford to be at any more financial peril. due to price increases.
  • System
    System Posts: 178,333 Community Admin
    10,000 Posts Photogenic Name Dropper
    The network's decision making method isn't legally binding on you.

    YOU need to assert YOUR position and be prepared to pursue it via the ombudsman / Small Claims routes

    They will have factored in a percentage of cancellations due to new tariff structure.
    boatman wrote: »
    I think we are saying the same thing. From OFCOM's point of view they have used the word 'likely' to cause material detriment. Where as the networks would appear to use your previous usage as their way of deciding, which obviously is of limited use to your future use. I'm not sure how good the courts crystal balls are!?
    To my mind, if you tell the network you would like to leave because of these changes, I think you should be allowed to leave, you shouldn't need to prove anything..
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • boatman
    boatman Posts: 4,700 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 28 August 2016 at 11:49PM
    Heng_Leng wrote: »
    The network's decision making method isn't legally binding on you.

    YOU need to assert YOUR position.
    No it's not, but it would be much better if the rules set by OFCOM made for clear cut decisions that didn't need to go to CISAS or small claims. They managed it with line renta(>rpi you can leave) so why not other contract prices. It's a 2 year contract at most, they already get an rpi correction after a year, there is no reason to increase prices except a vat/regulation change. It's just greed.

    Is there any other service with a contract which seems to think it's ok to change contracts when they feel like? I don't see water or electric doing the same.
  • Well after me contacting them I've had a phone call back to say that all they are willing to do is to add on a picture message add on and a 08 number add on which are both pointless so I suppose the next step i's a formal complaint!
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