An attempt at understanding the Refresh Programme and the O2 Recycle program.

[Anonymous]

Ok, so as most people know, with refresh the contract is spread over 24months and in order to upgrade the phone, you need to pay off the device plan.

However I recently was asked by a friend who is with another network, whether recyling the phone (before contract end) would offset the device plan amount.

E.g. an iPhone 6 16GB with a total device plan of £480, (with £160 paid already, leaving £320), if the phone was recycled through o2's recycle program (current price for 16gb is £210), that would leave £110 left for the user to pay, instead of the initial amount.

Technically O2 don't lose out in any form as they would gain a device they can refurb and sell on, and they keep the customer by getting them to sign another contract etc.

In short, what I'm asking, is if a user chose to recyle the phone before contract end, would either of the following apply;

A) Would O2 allow this?

B) Would it offset the remaining device plan?

I've had a look around and cant seem to find any documentation to help me understand at the moment, but I figured it best to ask the community.

[MI5]

Yeah and I guess it might drop below £300 by then too?

[Deag]

Only time goods don't belong to you when bought in credit is when the agreement is Hire Purchase, these agreements allow you to hand back the goods with nothing more to pay if you have paid half the payments as you don't own them. O2 refresh is not hire purchase, they are just a loan for a handset, you own the handset immediately and have to pay off the whole amount.

As for recycling the phone it is only worth O2 taking the phone back in exchange for paying off the debt if they can sell the phone for more than the debt you owe them, that maybe the case for some iPhones but most other phones lose a huge amount of value when no longer new.