Hi guys, hope you can help. I had an 18 month contract with Carephone Warehouse that was due to expire in April this year. At the end of last year I got an iPhone on O2. On January 11th, I called up to cancel my contract and paid off the balance of the contract over the phone. I orignially rang up purely for a cancellation, but they said it might be a good idea to get a PAC and port to a PAYG so I did. At the time they said that if I didn't use the PAC within 30 days it would expire. I never used the PAC, didn't see the need. In May this year I received a letter from CPW saying they couldn't take the money from my account due to insuffiecient funds. It turns out that what they meant by the 'it expires after 30 days', was that if I didn't use the PAC the PAC would expire and my contract would continue as normal. So the money I paid off up front paid for Jan, Feb, and March and then the contract rolled over in April. I rang them up to complain and they said that was how all the networks worked and that it was in my terms and conditions. I downloaded a copy of the T&C from the website and there is no reference to this, it just says call them if I wish to cancel early. I cancelled the account again at that point and I then got a bill for two months line rental of £40 which I still dispute. I spoke to them a couple of times and they refused to let me listen to the conversation I had from when I paid the contract off. If they had said to me at that time that I needed to use the PAC or the contract would roll over I would have obviously used it. I then wrote to them pointing out thier T&C and and requesting a deadlock letter so I could then refer the case to the ombudsman, I then got a reply from them saying that they disagreed with me and that was that. Since then I had a letter from Buchannen Clark & Wells debt collectors so the amount has now gone up to £65 because the debt collectors have now been involved. I know the amount was only £40 but it was the principle of the matter. Now the debt collectors are getting involved I'm getting a little nervous. Should I stand firm because it's the right thing or should I just pay up so it goes away? Cheers.