3 Mobile Price Rises

7
Found 19th Nov 2010
Ive just had a letter from 3 mobile advising of price rises due to the increase in VAT to 20% from 1st Jan which is fair enough

BUT

The letter also states they are putting the price up further to take into account the current rate of inflation, which also makes it a nice round number taking the VAT and Inflation together.........

Ive never seen a mobile company put prices up for inflation before so this must be them just attempting to slip the inflation thru whilst everyones bills are going up with the VAT

Not sure if they will try this with everyone or whether their terms and conditions state they can do it with inflation / vat when customers are in contract or not but might be worth people who use 3 checking.

It is a mobile broadband contract I have with them which has already expired so I feel a phone call looming.

7 Comments

There are no grounds for cancelling because of the vat raise, they have no control over that.
As for the inflation raise, depends on what items its being applied too? and if you use them or not.

If they add it to something you never use, then your not losing anything are you ?

You're monthly tariff shouldnt change though. It you signed up for a £15 a month tariff then it should just mean that the VAT element is 20% rather than 17.5%. I dont see how they can increase the overall cost?

If the overall cost has increased then it means that they have put up the price of the plan before VAT. Which is a breach of contract is it not?

Original Poster

StevenA2000_uk

You're monthly tariff shouldnt change though. It you signed up for a £15 … You're monthly tariff shouldnt change though. It you signed up for a £15 a month tariff then it should just mean that the VAT element is 20% rather than 17.5%. I dont see how they can increase the overall cost?If the overall cost has increased then it means that they have put up the price of the plan before VAT. Which is a breach of contract is it not?



Yep the letter shows a pricing grid where the cost of the tariff is going up from the elements of the VAT and the inflation rise, having never seen a mobile tariff rise with inflation before I think 3 are just trying it on.

Im not in contract so can easily leave 3 but wondering if people who are in contract are getting the same letter or not?

I had a letter dated 9th November, contacted customer services and they claimed I had no right to cancel as the price increase was due to VAT. Basically trying to mislead me into thinking that I couldn't cancel without paying cancellation fees.
After reading my contract I find that if they change the price plan (to my detriment) then I have a right to cancel without incurring any cancellation fee. To do this you need to write to customer services within 1 month of the notification.
Just finished writing the letter....

Banned

They haven't changed the price plan unfortunately, the 'government' have changed the vat.

"You can end the agreement for such
variations as explained in Section 10.
Subject to the above, you will not be
able to end the agreement if such
variation or increase:
(i) is due to changes to the law,
government regulation or licence
which affect us; or"


Edited by: "lumoruk" 26th Nov 2010

lumoruk

They haven't changed the price plan unfortunately, the 'government' have … They haven't changed the price plan unfortunately, the 'government' have changed the vat."You can end the agreement for suchvariations as explained in Section 10.Subject to the above, you will not beable to end the agreement if suchvariation or increase:(i) is due to changes to the law,government regulation or licencewhich affect us; or"



Really? The government are making them increase the price by 47p plus vat in addition to the increased VAT?

Thats a new one on me.

You my friend are talking out your arris

Banned

moneysaver9988

Really? The government are making them increase the price by 47p plus vat … Really? The government are making them increase the price by 47p plus vat in addition to the increased VAT?Thats a new one on me.You my friend are talking out your arris



nah I misread....they don't have to inform you of a price rise if it's below the retail price index (according to their T&Cs. On another note they haven't sent me this letter...yet.
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