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Is 3.3% greater than 3.2%?

It seems EE have made a total ****-up with the recent price increases on T-Mobile. They have sent letters to subscribers, dated April 2013, imposing a 3.3% price increase. In their terms and conditions it states that they can only increase prices by the RPI figure for the previous month. When they were drafting the letter, RPI was 3.3% (Feb '13 figure). By the time they got around to sending it, April had rolled round. As such, March's RPI figure should have been used - 3.2%.

By the terms laid out in the contract, all subscribers seeing a 3.3% increase have a right to cancel. Naturally, EE are kicking and screaming about this. The people forcing the issue are currently getting nowhere as EE and their legal department try to wriggle out of their own terms and conditions. The latest reply insisted that they are not in breach on contract as the increase is not above RPI.

Most Useful Answer quezi  Apr. 10, 2013 at 13:32

Taken from a comment on the Which? site, which gives the relevant T&Cs as:

“The change that We gave you Written Notice of in point 7.1.4 is an increase in Your Price Plan Charge (as a percentage) higher than any increase in the Retail Price Index (also calculated as a percentage) for the 12 months before the month in which We send You Written Notice and You give Us notice to immediately cancel this Agreement before the change takes effect. (7.2.3.3)”.

Surely there is no case here? They haven't increased it above any rate in the last 12 months, as it was at the same rate just 2 months prior.

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matt101101 / MOD  Apr. 10, 2013 at 13:15

I got that letter, I may well have to give T-Mobile a ring and try to get through to someone there who actually has a clue about contract law. Unfortunately, I don't have the letter with me at the moment, so I can't see its exact wording...

quezi  Apr. 10, 2013 at 13:32

Taken from a comment on the Which? site, which gives the relevant T&Cs as:

“The change that We gave you Written Notice of in point 7.1.4 is an increase in Your Price Plan Charge (as a percentage) higher than any increase in the Retail Price Index (also calculated as a percentage) for the 12 months before the month in which We send You Written Notice and You give Us notice to immediately cancel this Agreement before the change takes effect. (7.2.3.3)”.

Surely there is no case here? They haven't increased it above any rate in the last 12 months, as it was at the same rate just 2 months prior.

Xpress  Apr. 10, 2013 at 15:59

Taken from a comment on the Which? site, which gives the relevant T&Cs as:

“The change that We gave you Written Notice of in point 7.1.4 is an increase in Your Price Plan Charge (as a percentage) higher than any increase in the Retail Price Index (also calculated as a percentage) for the 12 months before the month in which We send You Written Notice and You give Us notice to immediately cancel this Agreement before the change takes effect. (7.2.3.3)”.

Surely there is no case here? They haven't increased it above any rate in the last 12 months, as it was at the same rate just 2 months prior.


quezi I think you have misunderstood the wording of the clause.

"...higher than any increase in the Retail Price Index..." means if there was any increase in the RPI.

The RPI is calculated by using the previous 12 months figures and the Office for National Statistics release the RPI as a percentage showing the increase from the previous 12 months. i.e. RPI in February was 3.2% although the figure was released on 19 March, it shows the increase over the previous 12 months and that is what is referred to in the clause above 7.2.3.3. It does not mean that you have to look at the RPI figure released in each of the previous 12 months and compare the increase to those figures. That would be a nonsense!

I expect in the coming days and weeks it will become clear that T-mobile have messed this one up and their customers who had received letters dated April 2013 informing them of an increase of 3.3% will indeed be able to cancel their contracts if they wish without paying any cancellation charges.

I would suggest you speak to T-mobile first and then write to their head office if the customer service rep refuses to cancel your contract without charge. According to their terms and conditions, you have to call them to cancel, so make sure you try this first and then write into them taking down details of the employee who refused to cancel your contract. Do this before 9 May 2013 or as soon as possible if you want to have a fighting chance of getting out of your contract with minimum costs!

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