cancel
Showing results for 
Search instead for 
Did you mean: 

Early Termination Fee

Anonymous
Not applicable
Just for future reference,

To cancel a contract early, Vodafone make you pay your total remaining monthly tariff less VAT and then give you a further discount of 25% if you take out another contract with them on a different handset.

e.g.

To make it simple,

10 months left on contract at £10 per month = £100
Minus 15% VAT = £85
Minus 25% discount = Total early termination fee of £63.75

Do O2 offer anything similar?
Message 1 of 10
7,392 Views
9 REPLIES 9

Anonymous
Not applicable
No, o2 don't offer such early terminations as a rule.

I was done for iPhone 3G owners who wanted to upgrade to the 3GS (paid off remaining months, but with no discounts).

Also o2 can agree to let you pay off a contract early, if you're moving abroad, or really really want to move to another provider, but there's no hard and fast rule, it's down to the discretion of the CS.

SV
Message 2 of 10
7,392 Views

Anonymous
Not applicable
Shame. Thanks for the reply though!
Message 3 of 10
7,392 Views

Anonymous
Not applicable
I found this on the Vodafone forum (posted by a VF Moderator), is it true about the OFCOM ruling? If so why doesn't it apply to O2?


As this thread is getting very long and starting to get confusing due to some information from other members and Moderators, I'd like to clear this up once and for all.
If you cancel your contract early, for any reason, you will receive a discount of 25% on the final line rental bill.
This applies regardless of handset, tariff, contract length or customer, and you'll still get the discount on your line rental even if you request a PAC code.
OFCOM have made this ruling, and there are no exceptions - you will get your discounts.
Line rental termination fees as advised by agents may not always include the discount, but once your final bill is generated, the discount will be applied (the only time this may not be the case is if you pay your line rental off before your account cancels - you'd have to work out the discount yourself)
Now that this is settled, I'm going to close this thread and tidy it up a little.
Paul
eForum Team
Message 4 of 10
7,392 Views

Anonymous
Not applicable
I found this on the Vodafone forum (posted by a VF Moderator), is it true about the OFCOM ruling? If so why doesn't it apply to O2?


I think you'l find that the only mention of a 25% reduction on the final termination fee is on the Vodafone forum.

AFAIK there is no such Ofcom ruling. I've searched their site and all I can find is this bit of "guidance":

"Early termination charges should never be more than the remaining payments under the contract.
Early termination charges should be reduced below remaining payments where the supplier can save or mitigate their costs (for example, this includes wholesale charges and the costs of shared network assets). "


SV
Message 5 of 10
7,392 Views

Anonymous
Not applicable
There is something with regards to VAT on early terminations, but nothing to do with a 25% off.

Maybe its just a ruling for Voda, it mentions it on the wiki page http://en.wikipedia.org/wiki/Porting_Authorisation_Code
Message 6 of 10
7,392 Views

Anonymous
Not applicable
By the sounds of things the 25% off is referring to the "Early termination charges should be reduced below remaining payments where the supplier can save or mitigate their costs (for example, this includes wholesale charges and the costs of shared network assets). " clause - i.e. Voda's costs are 25% less by not having you on the network for that period of time.

The guidance would apply to O2 too, although the percentage would be different. However I wouldn't be surprised if you may need to complain to the regulator to get O2 to actually give you the discount.
Message 7 of 10
7,392 Views

Anonymous
Not applicable
Thanks for the replies.

I contacted Vodafone about this who said that the OFCOM ruling is that the early termination fee should be less than what is still owed (usually it's the total of the remaining months tariff minus VAT - as you shouldn't pay VAT on something you're not actually going to get). Voda said that the 25% discount they offer is just their policy and is not enforceable by OFCOM.
Message 8 of 10
7,392 Views

Anonymous
Not applicable

To make it simple,
10 months left on contract at £10 per month = £100
Minus 15% VAT = £85
Minus 25% discount = Total early termination fee of £63.75


Just a small point but removing VAT from £100 is £86.96.
Message 9 of 10
7,392 Views

Anonymous
Not applicable

To make it simple,
10 months left on contract at £10 per month = £100
Minus 15% VAT = £85
Minus 25% discount = Total early termination fee of £63.75

Just a small point but removing VAT from £100 is £86.96.


Is it? Sorry. You learn something new everyday! lol
Message 10 of 10
7,392 Views