Early termination charge not including discount...

[donnyguy]

I re-graded yesterday onto a new SIM only deal with Vodafone after they agreed to discount the price plan.

So I got a message saying "You get unlimited minutes, unlimited texts and 40GB at a cost of £40 per month (I've added a xx% discount which makes it £xx per month).

Now it seems to be accepted here that should a customer decide to cancel early, they would lose the discount. But why is this the case and where is it written in the terms?

In my case, I feel I've been sold (and agreed to) a package at the discounted rate. I've agreed to pay that price for 12 months so should I decide to leave early, how is it acceptable to charge termination at the base rate?

Is this in the terms and conditions and should this be made clear when a customer signs up? From my personal point of view, I can't imagine wanting to leave as the deal I've got is very good but I need to understand where I stand just in case and it's good to ask now during my cooling off period as I did this re-grade yesterday over the phone.

Actually... one other question. I re-graded from my then current sim only onto this new one. The agent told me I have a 30 day cooling off period. Is this correct? I thought it was 14 but the agent was adamant it was 30.

[Becca_P]

@donnyguy

It's in our Terms and Conditions that the early termination fee is calculated from your monthly bundle charge. This is not calculated from the discounted rate.

Any discount that's added to our bundles is done so upon the agreement that the customer completes their full contract term. 

We provide our customers with a 30 day network satisfaction guarantee and if they are unhappy with any part of their Terms and Conditions, this will allow them to cancel their contract without charge.

[donnyguy]

Hi Becca, (PS: How do you tag?)

I appreciate the reply and I don't want you to think I'm being difficult but I still don't get how this is clear from the terms and conditions.

You say "Any discounts that are added are done so upon the agreement the customer completes their full term"

- Where is that implied? Any contract / agreement that is taken out is taken out on the agreement that the customer completes their full term - hence the early termination fee if they break that agreement. You're paying for 12 months whether you use it or not, sounds fair to me.

To me, my monthly bundle charge is the amount I've agreed to take the package for. So for me, my monthly bundle charge is the amount I pay for the service each month. 

I don't dispute the contract length here, I just don't see how it's clear that the discounted price you've agreed too will not be the one you pay should you decide to end the contract early.

Even if we agree to disagree here then really the terms and conditions need to make this clear and it should be pointed out to customers at point of sale. 

Thanks also for clarifying the 30 day cooling off period. Like I said in my original post, I don't think I'll have the need to leave but the reason why I'm concerned over the ETF is what happens if I do want to leave later in the year when the new iPhone becomes available. As I have a decent discount on my SIM only, it will make a big difference between the ETF I feel I should pay VS the ETF Vodafone feel I should pay. 

That's the thought process behind this thread.

[Becca_P · Accepted solution]

@donnyguy

You can tag people by typing the '@' symbol, this will bring up a list of all the people who have posted on the thread.

In regards to the early termination fee, the calculation for this can be seen in the Airtime Terms and Conditons described as the following;

"Early termination fee – a fee which represents the outstanding amount payable by you for the remainder of your minimum period at the time of termination (which may include outstanding charges) and any applicable administrative charges, less any discount we may apply. Further details on how to calculate early termination fees are set out in your charges guide."

As you're on a SIM only contract, after three months you're eligible to take out an upgrade. This can be for either another SIM only plan or a new Pay monthly phone contract.

This means when the new iPhone comes out later in the year, you won't need to worry about incurring any early termination fees.

I hope this information helps and please don't hesitate to let us know if you need anything else.

[donnyguy]

The tagging thing doesn't work for me when I hit the @ sign (oh well, worse things happen at sea and all that)

Firstly, thanks everyone for your input, what you all say does make sense from a logical point of view (rewarding loyalty etc.). I would still say the wording isn't great but that's just details.

So I called back into Vodafone this afternoon and cancelled my re-grade. I think if I'm feeling uneasy about it two days in then there's a possibility I've jumped the gun re-commiting myself.

Need to give this one a bit more thought.

[Getafix]

In the T&Cs it indicates the following as the calculation for Early Termination Fee.

Monthly line rental charge (exc. VAT) X remaining contract (months) X 98%

Monthly line rental charge (exc. VAT) is the the the First line of bill and that is before any discounts are applied.

[Getafix]

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@Becca_P wrote:

@donnyguy

You can tag people by typing the '@' symbol, this will bring up a list of all the people who have posted on the thread.

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@Tagging using @ is only available to either Vodafone Employee or Community Champions. :smileyvery-happy:

[NedFlanders1984]

Hey @donnyguy

The reason why you get discounts added its due to promotions etc, however if your looking to leave the network, you forfeit all discounts and offers. Every company does it, Vodafone like others rewards loyalty.

Plus you were saying about the T&C's should be pointed out, yeah I would agree, but if you think about it they couldn't possibly tell you every T&Cs you would be on the phone call for a week. When you take out a contract, you would have been texted and/or emailed about the package your own, there it states the cost and any discounts which has been applied. 

However, a small tip for you, I understand your on a Sim Only deal 12 month contract, when the new Iphone comes out and you fancy it, call the Upgrades team, they generally have more flexibility if you want to upgrade to a handset. Depends how longs left, but generally they can "clock the dates back" or give you credit to cover the remaining months, at the end of the day, Vodafone and the upgrades team would always want to accommodate a customer looking to upgrade to a handset, as this comes with a 2 year contract.

Also worth noting, you can upgrade 75 days before your contract ends.

Hope this helps

:0)