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Handset paid in full vs. spread cost over agreement

Anonymous
Not applicable

Apart from "to make loads of money" does anyone know why O2 can charge more than the handset's actual value and then inform you of the real price once you have begun a new agreement?

 

Or, as a real example, I've just purchased a new handset and airtime agreement where the handset "full buy out" would be £240.00. This price is advertised throughout the online store and purchase process. It is only when the new agreement is signed for that one receives a summary of their new agreement to find the real value of the handset is £149.99.

 

Why is the customer misled (and overcharged) for a handset when the real value is then displayed after the agreement has been signed?

 

I was informed that I can pay the upfront cost (£240.00) at any time but this still doesn't make a difference when i already know that the device costs £149.99 as it says so on my account (my order summary after agreeing to the cotnract)...

Message 1 of 19
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MI5
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Which device are we talking about exactly?
I have no affiliation whatsoever with O2 or any subsidiary companies. Comments posted are entirely of my own opinion. This is not Customer Service so we are unable to help with account specific issues.

Currently using:
Pixel 7a (O2 & Lyca), One Plus 6 (Sfr), iPhone 12 Pro Max (Vodafone)
Message 2 of 19
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PhoneDoc
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Hi @Anonymous, welcome to the community!

What phone and tariff did you select? Was there an upfront payment?

There are several different values that will appear on your credit agreement; the agreement amount itself won't include any up front payments made, but these also contribute to the cost of the handset. 

Message 3 of 19
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Anonymous
Not applicable

As far as I know most refresh tariffs overall are at least £20 cheaper than outright on an o2 plan

Message 4 of 19
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Anonymous
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I have the 300MB/300Mins/Unlimited texts tariff and the Samsung Galaxy A3 handset.

I have done some further research and I have a couple of options but they all equate to paying £240 for the handset over the 24mth period.

1. I could pay £10 a month for 24mths = £240 (my current option)
2. I could buy the handset outright NOW for a one time payment of £240.
3. Another option I was offered (that I've forgotten the costs) but, ultimately, still worked out at £169.99 for the handset.

My issue is is that why, on all the online shop and purchase process, was the price of £240 advertised (even with a one-off, outright purchase) but once I'd completed the purchase (and thus the agreement) was it then revealed the price of the phone to be £149.99?

It's the same as going to a car dealer, buying a £10,000 car on finance and then, as you're walking out the door, the dealership telling you the car should have only cost £7,000 but there's nothing you can do about it because you're locked into paying the original £10,000.
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MI5
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I've never seen anything stated other than the cost of the handset and the credit amount.
How is it actually worded on the agreement?
I have no affiliation whatsoever with O2 or any subsidiary companies. Comments posted are entirely of my own opinion. This is not Customer Service so we are unable to help with account specific issues.

Currently using:
Pixel 7a (O2 & Lyca), One Plus 6 (Sfr), iPhone 12 Pro Max (Vodafone)
Message 6 of 19
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Anonymous
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The CCA says a loan of £240 but my o2 account (to check my order status, for example) says a phone item price of £149.99.
Message 7 of 19
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MI5
Level 94: Supreme
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That must be a mistake, surely?
The price is clearly £240 as stated on website and all paperwork.
I have no affiliation whatsoever with O2 or any subsidiary companies. Comments posted are entirely of my own opinion. This is not Customer Service so we are unable to help with account specific issues.

Currently using:
Pixel 7a (O2 & Lyca), One Plus 6 (Sfr), iPhone 12 Pro Max (Vodafone)
Message 8 of 19
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Anonymous
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And, also from a conversation with one of the online chat reps, and I remember now, they were offering £5 a month device tariff (same phone) with an upfront cost of £49.99. Total £169.99. The numbers just don't add up!
Message 9 of 19
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Anonymous
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@Anonymous I wouldn't believe anything live chat tells you as most of the time they are unreliable 

Message 10 of 19
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