Cancelling contract

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Ok, so I've decided I want to terminate my contract with 3 5 months early ....it's a sim only contract. I can afford to do so and really just want to go to a different provider. Am I able to cancel early and anyone any idea of the penalties? Any advice very much appreciated

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  • eDicky
    eDicky Posts: 6,591 Forumite
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    It's usually the remaining months' payments minus tax, Three can tell you.
    Evolution, not revolution
  • d123
    d123 Posts: 8,631 Forumite
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    It's the remaining months x the line rental (sometimes with a small percentage discount offered), there was a recent article about how Three are the only network not to remove vat iirc.
    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.

    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.

    But we discovered Three was not passing on this saving and is instead shaving as little as 3 per cent off people’s bills.

    Normally, your bill shows a set monthly amount for your contract plus a separate charge to the government for VAT. For example, it might show £37.50 for the contract plus a separate £7.50 charge for VAT. These are usually shown as a single price on adverts for mobile phone deals.

    However, Three bundles these two costs into a single charge on the bill. That means the customer is contractually obliged to pay £45 a month for the entire length of their deal.

    Typically, the contracts state: ‘Charges on your bill are shown inclusive of VAT (where appropriate), unless you’re a business customer.’
    So the charge for cancelling early would be calculated at the full £45 a month.

    Three says it gives customers who leave their contract early a discount of between 3 per cent and 10 per cent. But this still leaves people worse off than if the VAT charge was removed.


    Read more: http://www.thisismoney.co.uk/money/news/article-4085830/The-great-mobile-scam-Three-rips-customers-end-contract.html#ixzz4j3rpt05q
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  • custardy
    custardy Posts: 38,365 Forumite
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    andros1963 wrote: »
    Ok, so I've decided I want to terminate my contract with 3 5 months early ....it's a sim only contract. I can afford to do so and really just want to go to a different provider. Am I able to cancel early and anyone any idea of the penalties? Any advice very much appreciated

    You dont even tell us what network at the very least.....
  • d123
    d123 Posts: 8,631 Forumite
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    custardy wrote: »
    You dont even tell us what network at the very least.....

    Its 3, in the first line ;)
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  • custardy
    custardy Posts: 38,365 Forumite
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    d123 wrote: »
    Its 3, in the first line ;)

    Lol too many numbers for my old brain :D
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