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39 Comments
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Luke
I called Orange this morning and I am waiting for a call back to lodge an official complaint – not that it will do much good. The operator kept quoting ‘inflation’ as the reason for the price increase – but isn’t inflation just a measure of the increase in cost of goods & services? Seems strange to increase prices based on someone else measuring how much prices are increasing by. Kind of like like look at a thermometer noting that it is warmer than average and turning-up your central heating to match it..
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Matthew
RichardsonI have just received the test message from orange stating that the monthly charge for the last 6 months of my 24 month contract will be increasing.
I would have thought a term that a normal member of the public would never look out for or be advised to look out for by their mobile operator would be considered and unfair contractual term.
Surely this removes any cost stability for a customer when they will now be tied to an increased charge above what they reasonably believed they were signing up for.
If inflation were to decrease I do no believe that the contract works to the benefit of the customer and reduces the bills they are being charged.
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James
I have spoken with OfCom and Orange Mobile Executive Office this lunchtime.
In my phone call with them, OfCom were clear that Section 9.6 of the Telecoms Act 2003 is applicable to all charges and that a service provider must give the option to terminate. These are the customer’s rights in law, regardless of what Orange Terms and Conditions are. A price rise in materially detrimental and customers should have the option to terminate.
Orange Mobile Executive Office responded by claiming that that clause of the Act does not apply to monthly tariffs. They also said that their rise had been ‘run by’ OfCom. I put this point back to OfCom, who were clear that it does apply (it applies to all parts of a pricing structure) and that they had not been consulted.
I am awaiting the written reply from Orange before taking this up with the Communications and Internet Services Adjudication Scheme (CISAS), who would adjudicate on the matter, OfCom tell me.
Read it for yourself: Scroll to Section 9.6 of the Telecoms Act 2003 on OfCom website
http://stakeholders.ofcom.org.uk/binaries/telecoms/ga/general-conditions.pdf
Call OfCom – the more, the better 020 7981 3040.
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Diego
Hi James
could you please let us all know how it goes for you? So far it looks like you know what you are doing. I look forward for you progress in this matter with Orange and Ofcom.
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Beth
I have been told by an ORANGE operative that my monthly contract will not be increased.
I rang 150 free yesterday because I’d received an additional text asking me to check into my online account or lose it. (I don’t bother using it because it regularly states that the information is unavailable – try later.) I made repeated attempts including resetting my password to no avail. The ORANGE expert failed to gain me access. He closed my online account and I have to start as a new user and try again in 24 hours. He was able to tell me I was 43p over my monthly payment. He suggested texting USAGE to 150 for instant info. I did. I’m still waiting for a response!
I complained that ORANGE had locked me into a three year contract which I would have left immediately I discovered it was impossible to access up to the moment information on how many minutes I had left, but a contract is binding. Equally they were bound to keep to their terms or release me without cost to me. He said I would be charged if I wanted to leave. I declined. I said I will find a new provider the instant my contract is up in 6 months. I repeated that Orange must abide by the terms as I must and he said I would not have my £10 a month increased.
I do not have this in writing unfortunately.
Surely Orange’s increase is illegal?-
john
Orange have proves to be a bunch of f****** c*****
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If ORANGE can have an inflation related price increase, then can everyone have a wage/pension related increase to match?
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Grant
I can’t say I’m particularly bothered by this, and I’m most certainly not surprised. It just makes me look forward even more to leaving Orange for good when my contract is up. They’re very poor anyway, and this just makes me feel even more like an idiot for using them in the first place. Hopefully they’ll stop hounding me to use their appalling broadband; to log onto their rubbish website (“or else we’ll cut you off”); or to buy their hopeless insurance (have they ever paid out on this? To anyone? Ever)? I can’t even begin to imagine how they think it’s OK for them to increase their contract costs.
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steve
I am quite frankly disgusted by this price increase, fortunately 5 months after this my contract expires and I certainly won’t be renewing with Orange.Things should be more transparent but they are usually hidden in tiny print among pages and pages of dribble.
I was annoyed as soon as I signed up with Orange as before I had been with Virgin and the price they quoted “was the price you paid” but not with orange, they added vat after which put the price up immediately.
Anybody who has signed a contract for 1 or 2 years at a price should not have to pay for an increase during that time,I think Orange are doing a disservice to their customers and will lose a lot of customers because of this. -
Mark Tiddy
It’s unacceptable and shouldn’t be allowed.
I phoned up orange and they told me that all networks would be doing it and that it’s because the government won’t allow them to off-set inflation increases anymore but that they would be offering all customers effected a 6 month 5% discount which they would be sending out a letter next month (I had to threaten to leave to hear about the discount as the first advisor who worked in account basically said tough luck to the increase)
Why they’re letting customers be pee’d off for a month before revealing this publicly is beyond me and seems like silly business practice!
As my contract ends in February I ended up asking for a PAC code and negotiating a £15 less a month rolling sim only iPhone contract which will effectively end my contract in January if I desire but it took 2 phone calls and 3 different people to get there.
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Stu
Virgin broadband did the same to us, last year, i think its outrageous, I bet orange wouldnt take it if the owners of the properties they rent for their shops increased the rent by 5% before the end of the contract. Why can they do this to their customers, the law should be changed to prevent this, or to allow people to leave the contract if they force it upon you. I will certainly be canceling my contract when its time in march. Hope they lose enough customers to lose out overall out of this.
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SEAN
BEESTONI THINK ITS A LOAD OF CRAP MY SOLICITOR SAID IM IN MY RIGHT TO TERMINATE MY CONTRACT I HAVE 3 PHONES WITH THEM ….PAC CODE HERE I COME THERE LOSSSSSSSSSSSS
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Jason Down
Does anyone else think Orange have not considered the long term effects of this? O2 here I come!
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Louise
My price plan is also due to go up and on a £40 a month tariff this equates to around £1.40… surely not worth getting in a tizz over?
Unfortunately, inflation is a fact of life in the society that we live in and from the research that I have conducted, Orange could have enforced this price increase every single year, but have previously absorbed the costs, only passing them on now, surely a good deal for their customers?
It may be all well and good to call them up and “give them what for”, but surely it is better to remember that it is the company that has enforced this policy, not the human beings on the other end of the phone and whilst I am sure they are paid well enough to listen, there really is nothing they can do, so is there really any point in taking this out on them and potentially spoiling their day!
As for canceling the direct debit, the joke would be on you – the bills would keep coming, the phone would be cut off and eventually the account would default and be passed on to a debt collection agency, resulting in legal action. All in all you would have to pay the same amount, but without the use of the phone and even an excellent credit rating would be destroyed. As for triumphing over Orange in court – extremely unlikely as it is legal. It is there in black and white in the Ts and Cs, that you chose not to read the small print is entirely at your own discretion and therefore your own responsibility .
All in all, this seems like just another excuse for the Great British Public to have a good old moan, when they are bored of complaining about the weather. At the end of the day, the price increase amounts to less per month as a drink in the local pub, when faced with issues such as the Government’s deficit, famine in Africa and the British weather, surely it pales in comparison? Or perhaps it is just Orange’s way of getting us to cut down on that extra drink…
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Are you sure you don’t work for Orange??
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Patrick
SteenA quick update – we have forwarded this page with its comments to Ofcom’s Director of Consumer Policy to highlight the level of feeling around the price increases and the way in which they have been delivered. We have also outlined our belief that these changes should apply to new and renewing customers only and not to those who signed their contracts with the company before the middle of September. We’ll let you know how this goes. Thanks.
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Brian
KinderI beleive my contract ends in February i will get my PAC code now and find another Mobile company I have been with Orange for some years but I shall now go too TESCO and get points back on my payments + there HTC phones which i would like are CHEAPER !!!!!!
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ivesy
I am writing this still stunned by this hopeless company. I was promised a call back tonight which has not happened after a failed call back yesterday. This price rise is just the icing on the cake. As far as I’m concerned section 9.6 section c covers this and as far as I’m concerned it is NOT ACCEPTABLE. I am really annoyed, I’ve emailed them to say after Decembers payment I am cancelling the direct debit. They can whistle for it.
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There should be a class action against these f****** c****
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JamieQ
sweet. i got 2 contracts i could do without! its bad really, how does inflation make them need to put there prices up? will the contracts be able to be terminated now or have to wait until the price rise?
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alant
they just hung up when i started to talk to them.
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warren
this is absolutely ridiculous! I’m cancelling my direct debit at the end of the month and going to o2
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steveh
They never reduce the cost of contracts whllst they are in force despite regularly being able to improve the deal on renewal so why should they be able to increase the cost whilst the contract period is running? Its just like the oil companies, quick to pass on petrol increases but when the cost of crude falls the price at the pumps doesn’t reflect the change. If they were in financial difficulty I would understand it.
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Adew
Orange repeatedly state that the increase is small at 4.3% however it is still an increase that flys in the face of fairness honesty and good customer service. The crux of this argument is that orange market themselves as the supplier that is upfront and clear about it’s pricing structures. However the reality is that it sneeks a price raise through the backdoor using questionable reference to hidden t&c which appear to be at odds to the rules set out by the regulator . Orange posted profits of £500 million in 2010 doesn’t sound much like inflation is having a detrimental effect there. Their behaviour is uncannily similar to those exhibited by the banks unbelievable greed and contempt for their customer base. I like so many others will vote with my feet and look forward to seeing this bully of a company fail in the not too distant future.
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Amanda
Pavon-Lope
zI am on an Orange contract and this is the first I have heard of it. Where was it announced? I haven’t been sent any information. Luckily I have been resisting daily phone calls from people over the past 3 weeks asking me to upgrade my phone (and lock into another 2 years at the same time) – maybe this deluge of phone offers has been to get me to commit before finding out about the price rises?
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viffergb
I haven’t received anything either notifying me of an increase! Wonder if that’s because I’m on a ‘SIM only’ deal? I haven’t taken a look at their ‘T’s & C’s’ yet to check. If it does apply, at leats I only have to give a month’s notice to terminate. Really glad I decided to gor for a SIM only deal to cope with such things as this if I do decide to go elsewhere. However, I wouldn’t be at all surprised if all the other operators followed Orange’s lead on this.
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Eyelid
Yes, it’s quite wrong not to allow a customer to terminate a contract if conditions have been revised, but is 4.34 percent increase going to kill anyone? My monthly contract is £15 a month, and I don’t exceed my allowance, so this increase means about 65 pence a month. I can imagine people whining about this monumental increase and then consoling themselves with a pint of beer (£2.60 minimum?). Perhaps my case is an isolated one? Anyway, I live out in the sticks and Orange/Mobile-T is the only one that works……
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nick
if that’s the case why don’t you pay for everybody else
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I am furious with this treatment. I use my mobile and rack up hundreds of pounds a month. I said to them that if this appears on my monthly bill, I would switch my phone off and take another phone provider. I may be out of pocket by £35 a month, but they will be out of pocket by £!00′s
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And they had the cheek to explain to me about British Gas, BT, London Electric raising their prices. I think they are Moronic. I told him that with the other services we are not locked in for 2 years….I run a business and if I pulled a stroke like this, everybody would leave at the drop of a hat, the first time they had the chance..
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cymry
Sadly in the world of business I believe that the clause of increase in line with RPI is commonplace & perfectly legal. What is unacceptable about Orange is its service delivery; included in my iPhone contract is free wifi with BT Openzone which has never worked properly. Take a look at the feedback for Orange wifi app on the iTunes app store. The way to deal with this is vote with your feet; I for one will be changing provider at the end of my contract term.
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vignamic
I complained to both Offcom and Orange. Got normal response from both! Offcom has got influence with anyone, so why do we need them? But had a look at the Orange Shops around my area it looks like everyone is avoiding them. I think Orange will be the next company needing cash for a “Bail-out” or be sold for a £1. I think all should move away from Orange as soon as they can will save a lot of time and money in the furture.
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Milly
I have created a petition to try and stop this happening again. This is a complete disgrace and phone companies should not have the right to hide things like this in their contracts! Please sign and pass it on, especially if you’re affected by this http://epetitions.direct.gov.uk/petitions/24895
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ivesy
Has anyone who has emailed orange to say they are not happy and want the contract cancelled had a reply? I’ve sent 2 now and no reply. Has anyone been allowed to leave orange?
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Patrick
SteenHello everyone, as previously said, we have been in direct contact with Orange over this issue and made them aware of your comments. This is the statement they have provided us with:
‘Whilst customers will not be able to leave Orange without paying any cancellation charge as a result of the price changes, if they are still unhappy they should speak to us directly to ensure they are getting the most from their price plan. It might be that there is a better plan available from us that would better suit their needs and we would be happy to discuss this with them on an individual basis.’
Sorry if that’s not what you were hoping for. We may have come to a dead end with Orange, but we will continue to press the issue with Ofcom. Thanks.
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Thanks patrick, let’s see what ofcom say. E-petition signed!
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Patrick
SteenRight, we have written another Conversation about this Orange saga, with three points we’re concerned about:
How many were clearly told that their contract allows price rises?
Just what is the point of CISAS?
And Has Orange broken Ofcom’s rules or not?We’ve also added a poll asking ‘Before Orange’s prise rise, did you know mobile contracts weren’t at a fixed price?’ so please come and vote and comment: http://conversation.which.co.uk/consumer-rights/orange-price-rise-contract-ofcom-cisas-complain/
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Cat
So the futures not so bright then,no longer orange I see
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Anashkat
Words fail me! I have never – in 35 years – come across such a collection of supercillious, rude, ineffectual, condescending t***s! I haven’t been able to access my account for 4 months…been waiting since January for someone to give a shit and get back to me. Add to this the fact that they charged me £800 last year for data I did not use and then threatened my credit rating when I wrote a letter if dispute! To this day, they cannot provide me with a breakdown of the bill for this outlandish amount! My normal usage is £30 so you can imagine my shock. My contract is up in
August and I cannot wait to be free of these bloodsuckers.
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Orange hikes its pay monthly prices
Orange is raising the cost of its pay monthly plans for existing customers by 4.34% sparking angry responses from consumers.
Blaming 20 year high inflation, Orange says it has raised prices in line with its terms and conditions meaning customers will see their monthly bills go up and won’t be able to cancel their contracts.
According to Orange the rise is below the retail price index of inflation (currently measured at 5.4%) and its T&Cs give it the option to raise prices in line with inflation every 12 months.
A spokesperson for the network said, ‘Unfortunately, we’ve had to re-evaluate our prices for the first time and are sorry to say that there will be a 4.34% increase in our monthly plan prices from 8 January 2012.
‘Call, text and data rates will not be changing, and we are confident that we continue to offer our customers great value and rewarding deals.’
Orange has confirmed the price rises will affect the majority of contract customers and all those affected will be notified by 8 December.
[Update]
According to Ofcom customers are only allowed to cancel their contract if the changes cause ‘material detriment’.
In a statement the regulator said, ‘Ofcom is unable to say whether this price rise would constitute a “material detriment” in this case. However consumers are free to challenge the matter through the provider’s complaint process and, failing that, via Alternative Dispute Resolution.’
While Ofcom is unwilling to say whether the changes do allow you to get out of your contract, it does suggest complaining to Orange about the changes.
If you are a contract customer you can contact customer services by calling 150 from your mobile, emailing customer.services@orange.co.uk or writing to them at Orange Customer Services, PO Box 10, Patchway, Bristol, BS32 4BQ.
Their complaints code of practice can also be found here which sets out further steps if you are unsatisfied with Orange’s response and includes details of how to get in touch with independent adjudicator CISAS.
Our lawyers here at Which? point out that the rise is covered by section 4.3 in Orange’s T&Cs, and can stand unless it is successfully challenged as unfair.
The Unfair Terms in Consumer Contracts Regulations 1999 says a clause is likely to be unfair if it allows ‘a seller […] to increase their price without [...] giving the consumer the corresponding right to cancel the contract if the final price is too high in relation to the price agreed when the contract was concluded’.
Ultimately, the success of a challenge against Orange depends on whether the increase was considered to be significant or not.
[December 6 Update]
We have been in contact with Orange and presented them with your comments and unfortunately they aren’t willing to reverse their decision, but they did provide us with this statement:
‘Whilst customers will not be able to leave Orange without paying any cancellation charge as a result of the price changes, if they are still unhappy they should speak to us directly to ensure they are getting the most from their price plan. It might be that there is a better plan available from us that would better suit their needs and we would be happy to discuss this with them on an individual basis.’
Head over to Which? Conversation to let us know what you think of Orange’s price rises or leave a comment below.