Why can mobile phone companies write to our credit files without a court order?

[2Grumpy]

I feel that their "service contracts" are in fact credit agreements. They actually say that their SIM only plans are cheaper because they don't need to recover the cost of the handset - and when you consider that a top of the range smartphone can now be worth £700 that is a lot. Their business model is to provide the item, then "rent to own" - like Brighthouse, and Brighthouse do need to be registered.

 

Any usage in excess of the monthly allowance is collected in arrears, and my first months charge was higher than normal, so I am assuming that the monthly payment is in advance.

 

I like the way that you are thinking - this would effectively bring some regulation to the mobile phone market - something that they will try hard to resist

 

Didn't some hack write about a rose by any other name ...

[2Grumpy]

I seem to remember that the phone is "free" - probably an attempt to avoid the CCA

 

The phone companies not charging interest would not preclude this really being a credit agreement - lots of companies offer interest free credit to shift their stock - hence the furniture & car ads on tv

[Human Writes]

I seem to remember that the phone is "free" - probably an attempt to avoid the CCA

 

The contracts are for supply of network service not a specific device, they are service agreements not credit agreements.

 

Your correct the phones are offered for free or at a fraction of the actual value of the device as inducement/incentive to enter into the contract, however, they do not form part of the contracts - usually the contracts specifically state this.

 

Whilst I wish the OP the best of luck I don't believe that they have any chance whatsoever of getting any sort of formal agreement from the OFT that a network service contract is subject to the consumer credit act, mobile phone contracts are simply not credit agreements.

[my-spirit-soars-free]

If they are not credit agreements, I look forward to car dealerships providing a "free" car with a monthly service contract.

 

Seriously, given that the companies themselves say that the reason why SIM only contracts are cheaper is that they "do not need to recover the cost of the handset"... sorry, but a contract that is recovering the cost of such an expensive item over months is, in my eyes, a credit contract.

 

I will probably fail in my attempt to get them regulated - but, eventually, there will be sufficient pressure generated that the OFT will have to look at the way they are operating.

[my-spirit-soars-free]

The office of fair trading have replied again, and told me that each contract needs to be looked at individually to determine whether it is a credit contract. They did not answer the question though, which was to ask who is responsible for checking that a company that needs to be registered, is registered.

 

I will have to try again, I am just wondering whether to complain at my MP as well.

 

I still don't believe I will get anywhere, but it is something that needs to be looked at.