Sole trader - cancel O2 mobile business contract

Richiered

Hi All,

My wife is a sole trader who's business launched 6 weeks prior to Covid restrictions being imposed last year at the first lock down.

At the beginning of lockdown O2 paused her contract payments for the line rental and she continued to pay the finance back for the purchase of the handset. 

Her business never really took off since (she is a nail technician) and she has tried several times to cancel the contract but to no avail. It is clear to O2 that the phone is not receiving or making calls but she has been refused request to cancel the contract and return the handset.

Her personal mobile is also with O2 and her contract is up for renewal, we've asked if they would cancel her business contract and take back the handset, if they agreed to this she will stay with O2 but if not she will leave.

Does anyone have any tips? Any standard templates for emails/letters to write to their complaints department as one last ditch attempt to get out of the contract? 

Sandtree

Problem with being a sole trader is that you and your business is legally the same entity so she still exists and isnt bankrupt so doesnt have any get out for the contract.

Any reason why not to just end the personal contract and just keep using the other one? She can port the number across. Almost all sole traders will just get a personal contract for their business as there are no need for the few benefits that business contracts come with.

Richiered

The only reason being it is an older phone and those available to her now are much more capable, particularly given what she's looking to do. 

The business phone was bought to avoid being disturbed during non-working hours. 

Hindsight is a wonderful thing, she will never get a separate business phone again being a sole trader.

Sandtree

So basically what you really want is a new phone on credit? There are other routes to that than via a phone operator. 

Sims can be transferred so that bit isnt a problem. 

Richiered

We want to cancel the phone contract (air time) that is not required and keep the personal number. 

I understand that we would be liable for a credit agreement to pay the cost of the handset, but surely O2 can sympathize? Paying for airtime on a business that no longer operates is unfair in this current climate.

y3sitsm3

Richiered said:

We want to cancel the phone contract (air time) that is not required and keep the personal number. 

I understand that we would be liable for a credit agreement to pay the cost of the handset, but surely O2 can sympathize? Paying for airtime on a business that no longer operates is unfair in this current climate.

No, it's not. That's the way business works.  She isn't insolvent, so she needs to pay the bill.

The only reason being it is an older phone and those available to her now are much more capable, particularly given what she's looking to do. 

This sounds like some new venture, so she's essentially trying to just jettison her old responsibilities and get a fancy new phone for her fancy new business?  Why is it fair for o2 to foot the bill for her failed business, rather than her?

Sandtree

Richiered said:

We want to cancel the phone contract (air time) that is not required and keep the personal number. 

I understand that we would be liable for a credit agreement to pay the cost of the handset, but surely O2 can sympathize? Paying for airtime on a business that no longer operates is unfair in this current climate.

But you say you are out of contract on the personal phone so terminate that one and port the number to her other contract and then get credit for a new phone elsewhere.

When the business contract comes to an end then you can cancel it for free and go back to a personal contract... for some networks there is no difference between a sole trader and personal contract anyway.

MattMattMattUK

Richiered said:

We want to cancel the phone contract (air time) that is not required and keep the personal number. 

I understand that we would be liable for a credit agreement to pay the cost of the handset, but surely O2 can sympathize? Paying for airtime on a business that no longer operates is unfair in this current climate.

The legal position is you signed a contract and are still solvent, so are required to pay, otherwise they will take legal action to enforce the debt.

You are liable for the credit agreement for the phone and for the contract. Paying for airtime for a business that no longer operates is not unfair, it is the nature of the situation, but as you signed a contract, you choosing to breach that contract would be unfair.

Sell the phone you no longer need, continue to pay the contract you no longer need whilst it runs down and cancel it when the agreement ends. 

Mistral001

If the OP's wife had a Ltd company, would she be able to cancel the contract?  If not then the fact that she is a sole trader is irrelevant.

MattMattMattUK

Mistral001 said:

If the OP's wife had a Ltd company, would she be able to cancel the contract?  If not then the fact that she is a sole trader is irrelevant.

Not cancel no. In theory if the contract was with the Ltd rather than the individual and the company was would up then the company would cease, as would the contract, but that might present other issues. I also don't know if the contract would contain director guarantees (which are becoming much more common for small Ltds now).

Sandtree

Mistral001 said:

If the OP's wife had a Ltd company, would she be able to cancel the contract?  If not then the fact that she is a sole trader is irrelevant.

Cancel no but if the company has ceased trading and is insolvent then the telephone company is just an unsecured debtor of the defunct company. 

As 3xMatt says though, there is a possibility of directors guarantees having been put in place as organisations are too aware of the credit risk with a brand new Ltd company in which case the debt flows to the OP anyway in the event of insolvency.

All hypothetical though given the OP stated it was a sole trader setup