More protection for mobile contracts from today.

[silverfox1961]

From today, consumers and small businesses taking out new landline, broadband or mobile contracts should be allowed to exit them without penalty if their provider increases the monthly subscription price agreed at the point of sale.

 

http://media.ofcom.org.uk/2014/01/22/protection-for-consumers-against-unexpected-mid-contract-price-rises/

 

and the full guidance.

 

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

[MaxxPower]

I've no doubt the operators are scrambling to find any loophole they can in this. Fortunately the new rules also make provisions for reductions in Minutes/Texts/Data whilst the price stays the same, so the most obvious loophole is already closed.

[Michael Browne]

Already O2 has announced changes to it's T&Cs for new subscribers:

 

O2 change T&Cs to dodge Ofcom’s new fixed contract rules

 

 

O2 changes its T&Cs to circumvent new Ofcom rules designed to combat mid-contract price hikes

 

 

[MaxxPower]

That was faster than I expected.

The rules should really have specified that the fixed monthly price has to remain the same throughout the minimum contract term, since most contracts are now 24 months.

 

If O2 get away with this you can guarantee the other operators will apply something almost identical.

[citizenB]

I guess the answer is for people considering entering into a contract with O2.. to go with another provider.

[MaxxPower]

I guess the answer is for people considering entering into a contract with O2.. to go with another provider.

A short term solution at best sadly. We can almost guarantee that other providers will implement identical or similar terms into their contracts.

 

You can bet the sales reps wont point it out though!

[Michael Browne]

Guess what? O2 have put their prices up

 

As we know, as soon as Ofcom announced new rights for mobile phone customers last week, saying that providers should include a ‘get out clause’ in contracts- O2 changed the wording in their contracts.

 

So what does O2 do this week? Bump up its prices by up to 25% for existing customers. Whaddya know?

 

The shady, underhand move comes into effect in March, and while the average tariff will only rise by 2.7% – from £37 to £38 a month – if you go over your text or call allowance, that’s when the charges can go up by almost a quarter.

 

O2 have obviously found a loophole in Ofcom’s new ruling, but obviously they’re not going to admit that.

 

Instead, their feeble excuse is similar to the one energy companies used when they shafted us last year – rising cost of infrastructure, upgrading network, yadda yadda. Yet they must have factored that in when they set the prices in the first place.

 

Sadly, there’s not much you can do about this. If you signed up before January 23rd the contract you signed states that prices can go up no more than RPI (retail price index) inflation, no more than once every 12 months. Which means that every year, prices will go up in line with inflation.

 

O2 had their answer ready: ‘Ofcom has confirmed that communications providers’ terms which explicitly provide for a customer’s monthly subscription to change each year in line with a specific percentage or index (like RPI) will not contravene its “fixed means fixed” guidance.’

 

So fixed means fixed, even though it isn’t.

http://www.bitterwallet.com/guess-what-o2-have-put-their-prices-up/71710

[schweppes31]

I was wondering about this actually... in my case I signed the contract for O2 not even a month ago and now get an email from them saying they are putting up the price in their annual price rise. I can understand the logic of putting up prices for those who have been with them for a year but my contract isn't even a month old!

 

I also note that O2 is required to notify you of the price increases. They have only mentioned in the email ONE price increase, not all the price increases. Does this give wriggle-room?

[morteee]

they have hit me twice with this since I took my contract out 16 months ago, thats more than once every 12 months and yes I am going to OFCOM