MSE News: Warning: New and renewing O2 customers to be hit with inflation-busting price hikes

MSE_Helen_K

Mobile users who sign up to a pay-monthly or Sim-only contract with O2 from 25 March, including existing customers who renew their contracts after this date, will be hit with price hikes of at least 3.9% from April 2022. It comes as the provider shakes up its terms and conditions...

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'Warning: New and renewing O2 customers to be hit with inflation-busting price hikes'

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liggerz87

The first link it says you can't leave penalty free from o2 you can as the contracts are o2 refresh you just pay off the phone part of it and then free to leave 

j1m5ane

Joined O2 on the 30th March through a third party, have just received an email about these changes that states this -

Because of these changes you have the right to end your tariff without having to pay an Early Termination Charge. Should you decide to end your contract, you must give us notice within 30 days of the date of receiving this communication as set out in your contract.

There will still be charges to pay for the handset, though - that with a Sim only deal might not be a bad idea. Does anyone know how i would find out the handset monthly charge?.

EvilGazebo

j1m5ane said:

Joined O2 on the 30th March through a third party, have just received an email about these changes that states this -

Because of these changes you have the right to end your tariff without having to pay an Early Termination Charge. Should you decide to end your contract, you must give us notice within 30 days of the date of receiving this communication as set out in your contract.

There will still be charges to pay for the handset, though - that with a Sim only deal might not be a bad idea. Does anyone know how i would find out the handset monthly charge?.

So I'm in a similar situation. I think it's unlikely that there are separate charges for handset and contract (like O2 Refresh) as I think that is only sold direct. Mine certainly isn't like that - all one lump per month.

The issue for you (and me) is more likely to be the T&Cs of the original sale from the third party. Mine says that if It cancel the contract early and the network claw back the commission paid to the third party, then they will charge my credit card for the full cost of the handset as if it was a SiM Free sale (i e quite a lot)

Question is:

a) would O2 claw it back from the third party when it is them breaking the contract with me?

b) if they did, would the third party be able to enforce that condition especially given the terms of the contract I signed have been broken by the network

c) are we prepared to risk it? My contracts (X2) only have 8 months to run.

I'm pondering....

j1m5ane

I'm thinking, a) If i'm paying the full monthly charge to O2?  then how much can they claim back from the third party seller. Plus - as you say it's O2 breaking the contract.

Like you i have 2 contracts, though mine have 21 months to run. Think i'll give O2 a ring.

Frozen_up_north

O2 are suffering from FOMO (fear of missing out). Other operators already charge annual increases of around 3.9% + cpi, which is a huge price increase.

I guess their reason is to encourage customers to take out a new 12/24 month contract, rather than continue with their old one on a 30 day rolling basis.

If ever there was a reason to ditch and switch, this annual price rip off is it.

j1m5ane

Spoke to O2 and they say i can leave, free and clear with no penalty. I already have my two PACs, so going for a 2 sim only deals. Monthly bill down to £20, for a similar tariff that was costing £70.

jnm21

EvilGazebo said:

So I'm in a similar situation. I think it's unlikely that there are separate charges for handset and contract (like O2 Refresh) as I think that is only sold direct. Mine certainly isn't like that - all one lump per month.

The issue for you (and me) is more likely to be the T&Cs of the original sale from the third party. Mine says that if It cancel the contract early and the network claw back the commission paid to the third party, then they will charge my credit card for the full cost of the handset as if it was a SiM Free sale (i e quite a lot)

Question is:

a) would O2 claw it back from the third party when it is them breaking the contract with me?

b) if they did, would the third party be able to enforce that condition especially given the terms of the contract I signed have been broken by the network

c) are we prepared to risk it? My contracts (X2) only have 8 months to run.

I'm pondering....

Question c is wise, question b is moot - you signed 2 contracts - one with the retailer (which is still valid) & one with the network (which is being ended early, not broken).

Question d is how can you prove whether the network claws back money?  Question e, if the retailer does not sell sim free, how can you even estimate how much the charge would be?

Shame really as this used to be a great opportunity to save a lot of money.  Now it is too big a risk! 

Anon

Did anyone find out the answer if you sign up through a third party, can you leave penalty free (as the email states) and keep the handset?  You can't see how O2 can claw back from the supplier as they are the ones telling you that you can leave penalty free due to their changing your contract. There must be a lot of customers in this situation that MSE could clarify. 

Many thanks 

jnm21

Anon said:

Did anyone find out the answer if you sign up through a third party, can you leave penalty free (as the email states) and keep the handset?  You can't see how O2 can claw back from the supplier as they are the ones telling you that you can leave penalty free due to their changing your contract. There must be a lot of customers in this situation that MSE could clarify. 

Many thanks 

Just had a look & it seems that CPW have a specific clause that they could apply.  My reading: return the phone at your expense in 14 days or pay a price we set (which excludes any amount already paid through inflated line rental), AKA over a barrel. Sorry. 

"Promotional Items" means any goods/ gift cards/ vouchers/ subscription services or similar received for free or at a discount when you have entered into a Services Contract; and "Services Contract" means a Network Contract or contract for Subscription Services.
6.1.1. Where you have received your Promotional Item(s) and: (i) it has not been possible to fully provision you with your Network Services or Subscription Services, for whatever reason, within 60 days of you placing your order; (ii) your Services Contract is terminated as a result of you being in breach of its terms (including but not limited to where you have failed to fulfil your payment obligations during the Minimum Period); or (iii) you move onto a lower rate monthly subscription or you end the Services Contract for any reason within your Minimum Period you must: a. return the Promotional Items to us upon ending your Services Contract or within 14 days of our request for you to do so by sending it to the address of which we notify you (here, we recommend that you use special delivery); or b. keep the Promotional Items, in which case you agree to pay us the amount of the discount being the stand-alone retail price of the Promotional Items (i.e. the price you would have paid had you purchased the Promotional Items without entering into the Services Contract) less any amount paid by you at the time of purchase for the Promotional Items (the "Outstanding Amount").

j1m5ane

Hi, confirmed with O2, that, even though i'm only 3 or 4 months into 2 x 24 month contracts signed with MobilePhones (part of AO) I can leave without penalty.

Specifically asked if i needed to return the handsets, they said no it was O2 that were changing the terms of my contracts, switching me to new tariffs, so i could keep the handsets. They gave me the PACs so that i could switch to a new network on SIM only.