Cancelling EE Mobile contract due to losing job

sadie222

I'm useless at things like this please help, I lost my job and need to desperately reduce all my bills, I live alone. I have a mobile contract with EE , I didn't even need a new phone but I stupidly went ahead I pay £33 a month, started contract back in November last year for 24 months, I have now lost my job and desperately just want to give phone back and use my other mobile and buy sim only, , I called EE and the lady said just cancel your direct debit and a team will call me and sort payments out with me, Has anyone else been in this situation ? how much do they reduce your bills to or what happens ?  thank you in advance 

GrumpyDil

Unfortunately you have entered into a 24 month contract with the company to purchase a phone and provide a phone service to you for 24 months.

So I'd be very careful about following that advice as if you cancel your direct debit the first contact you are likely to hear us from their collections dept. 

Do you have friend/family who might take on the contract?

Failing that could you sell the phone and buy a cheaper model or even do you have an old phone you can use?

You could then use the money from selling the phone to help cover the remaining contract cost. 

sadie222

Thank you, I don't have a family member but I'll look into selling the phone

Olinda99

ypu could try stepchange you might find their help useful. Better to go.now tthan later on when you are really in debt.

you will also.find help on the debt forum here i recommend you post there

https://forums.moneysavingexpert.com/categories/debt-free-wannabe

eDicky

sadie222 said:

I called EE and the lady said just cancel your direct debit and a team will call me and sort payments out with me,

That's the worst advice, cancelling the direct debit will trash your credit files with the default on your next payment due.

If you've paid for seven months your remaining contract will cost about £560, so the cancellation fee will be this minus VAT. You need to find out what it will be and whether they can discount your plan a little if you stay. Compare options, if any.

Meanwhile try to sell your new handset as mentioned, putting the SIM in your old phone if you don't cancel the contract, no need to start another contract in that case.

simax

I believe VAT is no longer deducted from Early Temination fees…. Happy to be corrected….

Neil_Jones

simax said:

I believe VAT is no longer deducted from Early Temination fees…. Happy to be corrected….

Yes it is in certain circumstances.

https://www.gov.uk/government/publications/revenue-and-customs-brief-2-2022-vat-early-termination-fees-and-compensation-payments/revenue-and-customs-brief-2-2022-vat-early-termination-fees-and-compensation-payments - The main impact of the revised policy is that fees charged when customers terminate a contract early will be regarded as further consideration for the contracted supply. For example, if a customer is charged a fee for exiting a mobile phone contract early, or if they terminate a car hire contract early, it will be liable for VAT.