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O2 mid contract price rise and plan termination

Hope someone can help. I changed my data plan with 02 on Friday. Unbeknown to me my device plan for my phone and watch were terminated. To cut a long story short I have now been sent an Enforcement and Termination letter giving me 14 days to settle the bill or face legal action. 
I have spoken to someone on Monday who advised that when my bill is raised on the 15th they will set up a monthly payment plan as before. Today I have been told this is no longer an option - pay up or send devices back. At my wits end as to what to do now. 
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