Cancelling Three contract early, VAT charge on remaining months

Tyler_Du

I might be calling Three to cancel a contract that has a few months left to run, anyone have any experience as to whether they discount those remaining months or take the VAT element off when working out the cancellation charges ?

d123

Three still charge vat, they have been in he press for doing so and claim they are entitled to.

The great mobile scam: How Three Mobile rips off customers if they end their contract early by pocketing VAT

Customers in one or two-year contracts are being over charged by up to £230
Ofcom has launched an investigation after Money Mail handed over its findings
Some customers have to pay the remainder of the contract if they leave early
Three is keeping hold of the VAT for customers ending their contracts early
By Louise Eccles For Money Mail
10:16, 4 January 2017

Mobile phone giant Three is ripping off customers who cancel their contracts early, Money Mail can reveal.
Customers locked into one or two-year contracts are being over-charged by up to £230 if they leave before the end of their agreement, an investigation has found.
Three, which has six million customers, is accused of pocketing millions of pounds in unfair termination charges because of a loophole in contracts.

This is because you will no longer be receiving a service, so therefore you shouldn’t be paying sales tax on it.

Most phone companies, including O2, EE and Vodafone, automatically deduct the VAT from the monthly price. That means someone on a £45-a-month contract would be charged only £37.50 for every month left on their contract — leaving a bill of £225 for cancelling six months early.

Full article:
http://www.thisismoney.co.uk/money/news/article-4085830/The-great-mobile-scam-Three-rips-customers-end-contract.html

Tyler_Du

Thanks, I had read that (or a similar article) wonder what they'll say when I ring them.

Tyler_Du

Well, I rang Three today to find out how much they'd charge be if I cancelled, they offered a 10% discount off the remaining months.

boatman

You could always pay what you think you owe, it's then up to 3 to take you to court .

d123

boatman wrote: »

You could always pay what you think you owe, it's then up to 3 to take you to court .

Or as they more usually do, they just add a default and trash your credit file and send your account to the debt collectors...

Sounds like a marvellous suggestion over what is probably a small amount of money.

Russell_F_Martinez

Tyler_Du wrote: »

Well, I rang Three today to find out how much they'd charge be if I cancelled, they offered a 10% discount off the remaining months.

Was this your first contract you cancelled with them? I read online that longer you are with the company, the larger the discount...am I wrong?

mije1983

Russell_F_Martinez wrote: »

Was this your first contract you cancelled with them? I read online that longer you are with the company, the larger the discount...am I wrong?

It's more likely to be the more profitable you are for them, the more they want to keep you, therefore the more the discount.


In effect, the more you pay them each month, the 'better' a customer you are for them.

djconns

Hi, I wonder if anyone can help me.
I suffer from mental health problems and back in June I had my Samsung s8 stolen, it was replaced through a 3rd party insurance company after I paid the excess. I am with 3. While reporting it to three I was talked into taking out a contract on a s9 plus for 24 months. I was confused at the time but just needed a phone asap. So I have ended up with two contracts now with 3 totalling about £100 pounds per month. I obviously don't need 2 phones so my question is. Would there be any way for myself to just have the contract on my s9+ with three as they are both not due to run out until 2020 and I am on benefits and live alone. I am 39 years old. Thanks in advance, Ryan