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Level 2: Apprentice
Payas
Posts: 11
Registered: ‎03-07-2010

Pay off contract fee

Hi i was told that if i pay off my contract early i would have to pay an early termination fee which was £190 which seems crazy as it would only cost me around £120 to pay off contract in the first place. Is this termination fee correct as i thought it was just your monthly cost times how long you had left to pay off contract.
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adamtemp64
Posts: 13,396
Topics: 222
Kudos: 951
Solutions: 1,018
Registered: ‎13-08-2008

Re: Pay off contract fee

[ Edited ]
http://www.o2.co.uk/termsandconditions/ ... eagreement explained here
2 iPhone 5s 32gb on 4g 8gb tariff 1 iPhone 4s 16gb sim only on business contract
iPad 3 wifi-3g 64gb
My first mobile was in 1995 a CM-R111 from sony on Cellnet.
Henstridge Rural South Somerset (still 2g only and it is 2014)
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Level 2: Apprentice
Payas
Posts: 11
Registered: ‎03-07-2010

Re: Pay off contract fee

Hi thanks for that. It says what i thought just pay number of months left on contract but i was told by o2 that i would have to pay another £190 on top to cancel
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adamtemp64
Posts: 13,396
Topics: 222
Kudos: 951
Solutions: 1,018
Registered: ‎13-08-2008

Re: Pay off contract fee

try ringing again and check, what tariff are you on and when did you start the contract?
2 iPhone 5s 32gb on 4g 8gb tariff 1 iPhone 4s 16gb sim only on business contract
iPad 3 wifi-3g 64gb
My first mobile was in 1995 a CM-R111 from sony on Cellnet.
Henstridge Rural South Somerset (still 2g only and it is 2014)
Please use plain text.
Level 2: Apprentice
Payas
Posts: 11
Registered: ‎03-07-2010

Re: Pay off contract fee

Im only on £10.50 a month contract.o2 50 plan. contract renew date is august 2013 so its not a fortune to pay off but that £190 termination fee seems harsh
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adamtemp64
Posts: 13,396
Topics: 222
Kudos: 951
Solutions: 1,018
Registered: ‎13-08-2008

Re: Pay off contract fee

so £10.50 x months left 18 months until aug 2013 = £189
2 iPhone 5s 32gb on 4g 8gb tariff 1 iPhone 4s 16gb sim only on business contract
iPad 3 wifi-3g 64gb
My first mobile was in 1995 a CM-R111 from sony on Cellnet.
Henstridge Rural South Somerset (still 2g only and it is 2014)
Please use plain text.
Level 2: Apprentice
Payas
Posts: 11
Registered: ‎03-07-2010

Re: Pay off contract fee

Yep thats what i worked it out at but then i was told i would have to pay an extra £190 on top for ending contract early which i thought sounded wrong
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adamtemp64
Posts: 13,396
Topics: 222
Kudos: 951
Solutions: 1,018
Registered: ‎13-08-2008

Re: Pay off contract fee

no only the calculated amount.
when you speak to o2 again point them to the t&c page
2 iPhone 5s 32gb on 4g 8gb tariff 1 iPhone 4s 16gb sim only on business contract
iPad 3 wifi-3g 64gb
My first mobile was in 1995 a CM-R111 from sony on Cellnet.
Henstridge Rural South Somerset (still 2g only and it is 2014)
Please use plain text.
Level 2: Apprentice
Payas
Posts: 11
Registered: ‎03-07-2010

Re: Pay off contract fee

Just been on live chat and this time they confirmed all i have to pay is £186.11 to end contract. :smileyhappy:
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Level 1: Joiner
SteveF112
Posts: 1
Registered: ‎16-04-2012

Re: Pay off contract fee

It is not as simple as £10.50 x the number of months that you have left to go.  VAT is included to this price.  No matter what O2 or any other company say, they cannot charge you VAT when you pay off a contract.

 

The VAT Act 1994 2 1(a) states that VAT is charged on the supply of the service. Therefore, as you are paying out a contract and therefore you will not get the service, VAT cannot be charged.

 

I bet O2 would not be transferring the VAT collected to HMRC therefore this would be fraud.

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