Help with o2 trying to rip me off

Bettycheese

I had an o2 contract via a third party (Mobile Phones Direct). My contract ran it's course in October 2024, and I upgraded to a new handset and contract. I wasn't happy with the phone so returned it within the 14 day cooling off period. MPD emailed confirmation that the return was complete and the new contract was cancelled. I logged into my o2 account a little while after and the contract was still showing as active. I called to query it and they assured me that I was out of contract, and free to leave whenever I wanted to, and also sent me a PAC code. I then didn't do anything until a couple of weeks ago Feb 2025) when I requested a new PAC code and moved to a SIM only contract with another provider. I have now received a final bll from o2 for £410. I called to query this and after a protracted conversation they say that Mobile Phones Direct have charged this amount and they have paid it on my behalf and are now recouping that, and that I should query it with MPD. MPD told me that this was incorrect/untrue and it is o2 charging me. MPD say that they will 'try' to ask o2 to waive the fee. Having dealt with both of these companies I don't feel confident it will be sorted. Nobody is able to tell me what I am even being charged for. They surely can't charge me early termination of a contract that I haven't taken out or agreed to? I have cancelled my direct debit to try and prevent them from taking this amount, but I know this isn't a permanent resolution as I'm sure they won't simply let it drop. Does anyone have suggestions of what I should do next if they don't resolve it? Thanks.

PHK

This doesn’t sound like early termination. 

When you take out a contract with MPD they get a subsidy and their terms say they will recoup the subsidy if you stop paying the contract. 

It looks like what happened was you contacted O2 before MPD had processed the cancellation with them. 

We had a similar case recently with Three and another third party. That was resolved. 

So what you need to do is complain to both O2 and MPD. Keep it’s simple though. Just say you returned the phone and cancelled in the cooling off period so you shouldn’t be charged a fee. 

Bettycheese

Thank you. I know that I will just need to persist, but feeling very anxious as it's a large sum.