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O2 contract - termination charges


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Hi everybody

I have got an 18 months contract with O2, started in December 2007. A very good friend of mine asked me to help him out with having the contract under my name as O2 wasn't willing to give this contract to him due to his poor credit history.

He has had no profit from his business since June 2008 therefore he hasn't been able to pay the charges.

He let me know about his financial situation however the service didn't get terminated and both incoming and outgoing calls remained available till February 2009. Eventually he managed to reach £928 mobile phone bill debt.

I understand that I'm the responsible person for the contract and for the debt, however I would have expected O2 to cancel the outgoing calls at least after a certain amount of time.

In February they terminated all of the services and sent a bill of £1.120, where the £192 are termination charges as the contract is due to run out only in June 2009 only.

The questions are:

O2 should have terminated the services long time ago, so the debt wouldn't have reached over £900. Do you think that I could cancel the contract due to their mistake and not to pay for the termination charges?

I spoke to them earlier today. I offered them to settle the payment in 2 installments £500 today and £428 pound in 30 days time. They said that the £75 monthly Talk Unlimited service charge will still apply even though the phone can't be used during these days. In a nutshell I can choose to pay for the termination charges or the back dated monthly fees for the last 2 months and also for the following 3 months.

Thinking of it I do not want to have a contract with O2 at all anymore.

I have heard that due to amended terms and conditions there are certain telephone numbers were over charged by O2. Can you please explain this bit to me it could apply in my case too.

Thanks very much for reading and for possible answers.

Anita

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Afraid this gambit won't be of any assistance as the phone is now offline - it only works as a negotiating tool to arrange for service cancellation (under limited circumstances) and isn't a valid argument once service has been removed for non payment.

 

O2 owe no duty of care to restrict any credit limit to anyone but themselves. If on a business tariff, the amounts allowable are invariably much higher for business users - and for firms whose lifeblood can be their mobile, switching it off prematurely could bring them down, so giving the leeway they did should have been enough to allow any temporary hiccup to resolve itself, so I cannot see any wrongdoing for this either.

 

What does concern is the fact your credit file is going to be trashed despite not being responsible for the debt, and you've got your friend to thank for this. You really need to impress upon how this can affect YOUR future financial dealings and get him to cough up.

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