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Paying to disconnect early. Can they do this?

Anonymous
Not applicable
I have a contract which ends in September. As it was a deal from retentions they gave me 18 months rental for £20p/m.

I now want an iphone on Vodafone as the 3G coverage is better where I live than what O2 can supply. However when I rang to pay my contract off instead of expecting to pay £180 to cancel (9 months @ £20) they have said that they wont apply the discount to the remaining period if I pay early.

When I have paid up a contract previously (with Vodafone) which had a discount, I paid it off at the reduced rate.

Can O2 do this? I ask as the agreement is for line rental at £20 not £35. I will be paying them what they would have got from me anyway just earlier.
Message 1 of 7
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Anonymous
Not applicable
I have a feeling that because O2 gave you a deal to stay with them, the deal will probably been along the lines of... you can have the package and only pay £20 per month.
However, because you are not going to be paying monthly it might make the deal null and void and so the regular £35 monthly costs may automaticly be re-instated.
I think this one would all come down to discussing it at a high level with them.
In my view you will need to have been seen to act fairly - as will O2. If you are offering to give them all the money they expected from you up until Sept - yet they dont have to use their service on you then that would be very reasonable and fair.
I would keep telling them that you do not want to walk away from a deal, but would like to honour prices quoted and pay it all off - but only at the agreed price.
Another option is just to let the contract run out I suppose but make sure you set yourself a reminder to ring them in October to cancel.
Message 2 of 7
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Anonymous
Not applicable
Dan,
This is in the terms and conditons.

8.2 This Agreement may be ended by either you giving at least 30 days’ notice in accordance with paragraph 7 of the General Terms. You must pay all Charges
incurred during the Agreement.

It does not read very well but it basicly says you need to pay all charges incurred during the agreement. Well, I would say that the agreement in this case was for £20 per month and so as long as you are paying that sum off then you are honouring clause 8.2
Message 3 of 7
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Anonymous
Not applicable
That is what I thought. I have been dealing with someone from the Chairman's office anyway (O2 broadband issues) so will ask them to look into it.

They aren't going to lose anything as I never go over the £20 anyway.
Message 4 of 7
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Anonymous
Not applicable
Take a look at this rather controversial thread:

viewtopic.php?t=32469

If you're trying to get out of your contract as cheaply as possible, it might be worth arguing some of the points in the thread and potentially getting Ofcom involved. Charging you £35/mo for an early termination when your contract is effectively £20 is clearly above and beyond what Ofcom's guidance suggests.

Also... where do you live? O2's CEO has publicly admitted that the network in London is over capacity, so you might be able to use this almost-admission of a failure to provide the paid-for service as a way to break the contract. http://www.reuters.com/article/idUSTRE5BS16J20091229
Message 5 of 7
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Anonymous
Not applicable
Well, I think mere numbers of connections means alot - so even if you pay up early - you are not connected and I doubt they want that.
The main thing though in all this is fairness. If you are trying to do a runner or are being an idiot about it all then you are onto a loser. But if you are being fair and offering to pay everything you will owe to them then that would be seen to be fair and nobody can ask anymore than that.
Message 6 of 7
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Anonymous
Not applicable
Live up north so cant use the London get out clause. I would stay and get an iphone with O2 but I can get 30% off rental through Vodafone as I have a family member who works for them.
Message 7 of 7
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