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Paying Early Termination Fees

Anonymous
Not applicable
Just a quick question. I recently made a Pay Monthly Order. At some stage I would like to pay it all off in one go. Is there any advantages to do this?
For example, Vodafone would charge me my line rental x months remaining minus VAT.
Is this the case also with O2?
Regards,
Zak.
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sheepdog
Level 26: Upbeat
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I believe so. But to be honest, I can't understand why people would want to do this just to get a free phone (in most cases). You'd be effectively giving them free money and remember, you have no interest to pay on the contract so there is no real urgency to pay it off. Unless of course there are compelling reasons to do so e.g. leaving the country.
Otherwise, if the deal works out better in the long term then go for it.
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Anonymous
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Its a bit of an urban myth about the VAT. See the Ofcom site for the full details, but basically you will almost always pay remaining months x monthly amount. (In some cases its remaining months x original monthly charge)
Message 3 of 8
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Anonymous
Not applicable
With o2 it's number of months remaining multiplied by current monthly tariff. You don't get the VAT deducted.
So, if you had 12 months left and were on a £30 tariff it's 12x30=£360
Message 4 of 8
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Anonymous
Not applicable
Just for info, vodafone you do actually pay if off without the VAT for remaining period.
Message 5 of 8
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Anonymous
Not applicable
With o2 it's number of months remaining multiplied by current monthly tariff. You don't get the VAT deducted.
So, if you had 12 months left and were on a £30 tariff it's 12x30=£360

While this is what you get quoted, my experience is that it's not what you actually pay. I paid £125 over the phone which was my remaining months Inc VAT, but the charge applied was only £104 and the remaining credit was deducted from my next bill. This was in jan of this year.
Message 6 of 8
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Anonymous
Not applicable
With o2 it's number of months remaining multiplied by current monthly tariff. You don't get the VAT deducted.
So, if you had 12 months left and were on a £30 tariff it's 12x30=£360

While this is what you get quoted, my experience is that it's not what you actually pay. I paid £125 over the phone which was my remaining months Inc VAT, but the charge applied was only £104 and the remaining credit was deducted from my next bill. This was in jan of this year.

The person calculating how much you need to pay must not have taken into account the amount you'd have already paid for in advance on your last bill. On O2 there is no discount or similar on term fees. It's always the current tariff multiplied by time remaining.
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Anonymous
Not applicable
Yes, actually that makes perfect sense.
Message 8 of 8
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