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  • FIRST POST
    • Former MSE Helen
    • By Former MSE Helen 23rd Jan 14, 11:24 AM
    • 2,324Posts
    • 971Thanks
    Former MSE Helen
    MSE News: O2 to hike its prices by 2.7% - can you leave your contract penalty-free?
    • #1
    • 23rd Jan 14, 11:24 AM
    MSE News: O2 to hike its prices by 2.7% - can you leave your contract penalty-free? 23rd Jan 14 at 11:24 AM
    "O2's eight million pay monthly customers will be hit by a price rise of 2.7% from March..."

    Read the full story:

    O2 to hike its prices by 2.7% - can you leave your contract penalty-free?




    Click reply below to discuss. If you havenít already, join the forum to reply. If you arenít sure how it all works, read our New to Forum? Intro Guide.

Page 1
    • ZhugeEX
    • By ZhugeEX 23rd Jan 14, 11:28 AM
    • 1,154 Posts
    • 461 Thanks
    ZhugeEX
    • #2
    • 23rd Jan 14, 11:28 AM
    • #2
    • 23rd Jan 14, 11:28 AM
    O2 are not allowing customers to leave their contract free of charge.

    Their new T&C dated January 23rd state that a price increase (or decrease) by RPI is mandatory once every 12 months starting March 2014.

    This is also to be communicated at point of sale across Online, retail and telesales.

    Therefore O2 are actually selling contracts which explicitly state a price increase. Therefore no one can cancel.

    So far O2 are the only network to assume this new position and introduce price increases for all customers as a standard thing. It's a loophole to get around Ofcom's new guidelines introduced today.

    Vodafone and Three have stated they will not increase prices for consumers from January 23rd, if they do then customers will be free to leave as per Ofcom guidelines.

    EE have yet to announce their plans. I fear O2 will have some backlash (rightly so) and if EE follow then I expect them to lose over 1 million customers this year like they did before with the previous price increases.
    Last edited by ZhugeEX; 23-01-2014 at 11:32 AM.
    • daleski75
    • By daleski75 23rd Jan 14, 11:29 AM
    • 356 Posts
    • 88 Thanks
    daleski75
    • #3
    • 23rd Jan 14, 11:29 AM
    • #3
    • 23rd Jan 14, 11:29 AM
    Extract from http://www.o2.co.uk/desktop/prices

    Can I cancel my contract because of this?
    An increase of this kind does not entitle you to end your agreement mid-contract. As set out above, our terms for customers signing up both pre- and post- 23rd January allow us to apply a price increase to reflect RPI.
  • WTFH
    • #4
    • 23rd Jan 14, 11:33 AM
    • #4
    • 23rd Jan 14, 11:33 AM
    MSE Helen, when does a price rise become a "Hike"?

    It seems that if something goes up by any level at all, it's a "Hike". Surely it's just a rise, or do you use the scary word "hike" in a hope to drive people to fear and worry that their choice is between feeding the children or paying the phone bill?
    After all, a 2.7% hike on a £40 bill would be £1.08 - the price of a cheap burger.
    1. Have you tried to Google the answer?
    2. If you were in the other person's shoes, how would you react?
    3. Do you want a quick answer or better understanding?
    • ZhugeEX
    • By ZhugeEX 23rd Jan 14, 11:35 AM
    • 1,154 Posts
    • 461 Thanks
    ZhugeEX
    • #5
    • 23rd Jan 14, 11:35 AM
    • #5
    • 23rd Jan 14, 11:35 AM
    MSE Helen, when does a price rise become a "Hike"?

    It seems that if something goes up by any level at all, it's a "Hike". Surely it's just a rise, or do you use the scary word "hike" in a hope to drive people to fear and worry that their choice is between feeding the children or paying the phone bill?
    After all, a 2.7% hike on a £40 bill would be £1.08 - the price of a cheap burger.
    Originally posted by WTFH
    So you advocate networks being able to increase prices when they like?

    Some people just want to watch the world burn
  • WTFH
    • #6
    • 23rd Jan 14, 11:37 AM
    • #6
    • 23rd Jan 14, 11:37 AM
    So you advocate networks being able to increase prices when they like?

    Some people just want to watch the world burn
    Originally posted by ZhugeEX
    No, I advocate sensible reporting. It's the constant use of the word "Hike" on here, implying a massive rise. That's my issue.

    I'm not talking about the rights and wrongs of what O2 have done. I'm not interested in watching the world burn.
    1. Have you tried to Google the answer?
    2. If you were in the other person's shoes, how would you react?
    3. Do you want a quick answer or better understanding?
    • ZhugeEX
    • By ZhugeEX 23rd Jan 14, 11:46 AM
    • 1,154 Posts
    • 461 Thanks
    ZhugeEX
    • #7
    • 23rd Jan 14, 11:46 AM
    • #7
    • 23rd Jan 14, 11:46 AM
    No, I advocate sensible reporting.
    Originally posted by WTFH
    No worries haha.

    As long as MSE don't go down the daily mail route with their headlines i'm sure it'll be ok.
    • Lifes Grand Plan
    • By Lifes Grand Plan 23rd Jan 14, 11:56 AM
    • 1,038 Posts
    • 992 Thanks
    Lifes Grand Plan
    • #8
    • 23rd Jan 14, 11:56 AM
    • #8
    • 23rd Jan 14, 11:56 AM
    "But Ofcom's new rules....."

    Correct me if I am wrong but I seem to remember Ofcom clearly stating that they had NOT introduced any "new rules", merely clarified the old rules...

    And IIRC they basically said that any price increase within the contract term would be considered "material detriment"...... therefore I can't see how the clarification only applies from a certain date and before that the clarification doesn't somehow apply?

    Therefore if I was on O2 the I would follow the CISAS complaints procedure on that basis for penalty free termination of my contract. Look how many people did similar with the EE
    A big believer in karma, you get what you give

    If you find my posts useful, "pay it forward" and help someone else out, that's how places like MSE can be so successful.
    • ZhugeEX
    • By ZhugeEX 23rd Jan 14, 12:06 PM
    • 1,154 Posts
    • 461 Thanks
    ZhugeEX
    • #9
    • 23rd Jan 14, 12:06 PM
    • #9
    • 23rd Jan 14, 12:06 PM
    Look how many people did similar with the EE
    Originally posted by Lifes Grand Plan
    I think the correct thing to say is look how many people didnt.

    Why do networks feel they're above everyone.
  • billykeats
    How will this affect the likes of Tesco Mobile and GiffGaff that use O2's network?
    • minislim
    • By minislim 23rd Jan 14, 12:36 PM
    • 330 Posts
    • 197 Thanks
    minislim
    i suspected at least one of the main networks was going to do this.

    and no suprise it was o2.

    glad i left when i did!
    • Silk
    • By Silk 23rd Jan 14, 12:37 PM
    • 4,730 Posts
    • 3,107 Thanks
    Silk
    There was an article on 5 Live earlier about it on the Shelagh Fogarty show...a woman from OFCOM and Martin Lewis.
    Couldn't listen to all of it.

    Worth listning to on a pod cast later when it comes available
    It's not just about the money
    • daleski75
    • By daleski75 23rd Jan 14, 12:44 PM
    • 356 Posts
    • 88 Thanks
    daleski75
    How will this affect the likes of Tesco Mobile and GiffGaff that use O2's network?
    Originally posted by billykeats
    I don't think it will have any effect.
    • starsailor123uk
    • By starsailor123uk 23rd Jan 14, 1:38 PM
    • 74 Posts
    • 38 Thanks
    starsailor123uk
    "But Ofcom's new rules....."

    Correct me if I am wrong but I seem to remember Ofcom clearly stating that they had NOT introduced any "new rules", merely clarified the old rules...

    And IIRC they basically said that any price increase within the contract term would be considered "material detriment"...... therefore I can't see how the clarification only applies from a certain date and before that the clarification doesn't somehow apply?

    Therefore if I was on O2 the I would follow the CISAS complaints procedure on that basis for penalty free termination of my contract. Look how many people did similar with the EE
    Originally posted by Lifes Grand Plan
    I would do the same and go down the CISAS Route. I expect that O2 and other companies will expect some challenge and will likely hold the line.... right up to the point when it goes to CISAS and the ombudsman .

    As stated earlier the ombudsman has stated on more than one occasion that he has not issued new rules but merely clarified them and made them transparent

    I suspect at that stage or just before it O2 will probably cut you loose if you're near the end of the contract or give you a deal to maintain the current price ( which is exactly what orange/EE did with me last year when I wouldn't leave it alone ) which removes your need to seek arbitration

    02 and others will not lose £30 per month revenues for the sake of 60p but wont do anything without being pushed

    As for O2 new policy of explicitly stating that prices will rise that could be interesting

    a) If you have an alternative which has a true fix and a get out clause if needed I'd go for that so would rule out O2

    b) If the advice is given in person or in telephone sales it's hard to prove that RPI rises were informed and becomes a you said/ i said. The only true way of doing it is in terms and conditions you explicitly sign on the same page.
    • nsabournemouth
    • By nsabournemouth 23rd Jan 14, 2:24 PM
    • 1,877 Posts
    • 4,489 Thanks
    nsabournemouth
    "But Ofcom's new rules....."

    Correct me if I am wrong but I seem to remember Ofcom clearly stating that they had NOT introduced any "new rules", merely clarified the old rules...

    And IIRC they basically said that any price increase within the contract term would be considered "material detriment"...... therefore I can't see how the clarification only applies from a certain date and before that the clarification doesn't somehow apply?

    Therefore if I was on O2 the I would follow the CISAS complaints procedure on that basis for penalty free termination of my contract. Look how many people did similar with the EE
    Originally posted by Lifes Grand Plan

    Yes, Ofcom are just making clear the rules as sat out below

    http://stakeholders.ofcom.org.uk/consultations/price-rises-fixed-contracts/statement

    ! 1.8 Amongst other things, Article 20(2) of the USD sets out, in relation to the provision of telecommunications services, that subscribers (including consumers and small business customers) to such services have a right to withdraw from their contract without penalty where providers modify the contractual conditions. In the UK, this is reflected in GC 9.6.

    Here's the USD they refer to that is GC9.6

    Directive 2002/22/EC
    Of the European Parliament and of the Council
    7thMarch 2002
    Chapter IV Ė End User Agreements

    Article 20 Ė Contracts

    Paragraph 4


    4. Subscribers shall have a right to withdraw from their contracts without penalty upon notice of proposed modifications in the contractual conditions. Subscribers shall be given adequate notice, not shorter than one month, ahead of any such modifications and shall be informed at the same time of their right to withdraw, without penalty, from such contracts, if they do not accept the new conditions.
  • Earthworm
    O2 are not allowing customers to leave their contract free of charge.

    Their new T&C dated January 23rd state that a price increase (or decrease) by RPI is mandatory once every 12 months starting March 2014.

    This is also to be communicated at point of sale across Online, retail and telesales.

    Therefore O2 are actually selling contracts which explicitly state a price increase. Therefore no one can cancel.

    So far O2 are the only network to assume this new position and introduce price increases for all customers as a standard thing. It's a loophole to get around Ofcom's new guidelines introduced today.

    Vodafone and Three have stated they will not increase prices for consumers from January 23rd, if they do then customers will be free to leave as per Ofcom guidelines.

    EE have yet to announce their plans. I fear O2 will have some backlash (rightly so) and if EE follow then I expect them to lose over 1 million customers this year like they did before with the previous price increases.
    Originally posted by ZhugeEX
    So are O2 basically saying they are telling us about it in advance therefore they are allowed to do it? Just because they tell us I don't see how they can do it. What if they start telling us in advance they will charge 50p to receive a text abroad. It doesn't make the charge lawful.
    • ZhugeEX
    • By ZhugeEX 23rd Jan 14, 6:00 PM
    • 1,154 Posts
    • 461 Thanks
    ZhugeEX
    So are O2 basically saying they are telling us about it in advance therefore they are allowed to do it?
    Originally posted by Earthworm
    Yup...

    Basically you're not signing up to a normal phone contract.

    You're agreeing to sign up to a contract where inflation takes place every 12 months. Basically you're agreeing to it before taking the phone/sim.
  • sam_in_leeds
    Hope Tesco Mobile promise to honour their promise not to raise prices mid-contract (It's O2 white-labelled isn't it?)
    I spent 90% of my money on women, drink and fast cars. The rest I wasted. ...

    • DUTR
    • By DUTR 23rd Jan 14, 6:17 PM
    • 11,776 Posts
    • 6,711 Thanks
    DUTR
    Oh no! My 30 day rolling contract is going to increase by 57p a month.
    • OldGreyFox
    • By OldGreyFox 23rd Jan 14, 7:00 PM
    • 1,351 Posts
    • 642 Thanks
    OldGreyFox
    How will this affect the likes of Tesco Mobile and GiffGaff that use O2's network?
    Originally posted by billykeats
    Tesco Mobile have a price promise.

    "Tesco Mobile has announced a promise to fix customersí contract tariff costs.

    Its Tariff Promise is a commitment never to raise its customersí core tariff prices mid-contract, the first move of its kind amongst network providers in the UK."

    http://www.tescomobile.com/about-us/news/Tesco-Mobile-Tariff-Promise?year=&show=5

    and Giffgaff is a Payg Service, so is not affected by contract price rises.
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