Why Cancelling a Guaranteed Mobile Phone Contract Should Be Made Easier

When Which Consumer Rights recently carried the article on the difficulties of cancelling a mobile phone contract, the market was jolted into a rather unusual discussion; what do I do when I am getting a raw deal? Getting a phone contract is considered prestigious because people can afford the latest smartphones by paying only a few pounds on a monthly basis. However, many are those who rarely scrutinize the contract’s details and end up paying more for services they rarely need.

Getting into the wrong phone contract is very costly. However, opting out is even more expensive. In this post, we support the Which Consumer Rights assertion that cancelling a guaranteed mobile phone contract should be made easier. Here is an account of the key methods of getting your phone contract cancelled.

The clients’ right to cancel the contract is rarely made clear

While the main objective is switching to the cheapest provider, it is prudent to establish clients’ rights to cancel the contracts. When signing the contract, it is prudent to check the personal rights to cancel the contract. Like Which Consumer Rights puts it, most companies have this clause in their policies, but it is hidden deep in the rules so that clients do not ask many questions. Often, many companies do not object your transfer, but demand that you clear the cost of the handset and additional penalties.

The charges of opting out are very high

From the moment you sign the guaranteed mobile phone contract, the target of the phone company is not simply seeing you through, but reaping optimally from you. That is how they make profits. Therefore, they make the charges for opting out very high so that you can prefer staying. They know that when you walk away, the business goes to a competitor. For example, if you had taken a 24 months phone contract, the company might require fees equivalent to 22 months. Instead of paying this, the better option is staying and bitterly paying the remaining charges faithfully.

 

The only free period to cancel your phone contract is very short

According to the Which Consumer Rights, consumers only have a very short window of cancelling their contracts without incurring additional charges. Immediately after signing the contract, you have a window of 14 days to test and establish whether the services are okay. If you do not like them, you can cancel the contract according to Consumer Contracts Regulations. Once you cancel, another 14 days are allowed for you to ship the product back to the seller.

Three things to watch out during your contract

  • Price hikes by the phone company: If this goes against the signed agreement, your rights have been violated and should be remedied.
  • Your right to keep the mobile number: If you opt out of the phone contract but want to keep the phone number, ask the current provider to provide the Porting Authorization Code.

Conclusion

The guaranteed mobile phone contracts are very rigid and always play to the peril of the clients. It is prudent to make the process of exiting an on-going contract easy, faster, and less punitive. However, clients should carry due diligence on the contracts they are signing to ensure they get only what they need and enjoy higher value for money.

 

How to Avoid Paying More for a Guaranteed Mobile Phone Contract

Today, the easiest and most convenient method of getting the latest mobile phone is signing a contract with a phone provider. For many people in the UK, putting together over 900 dollars to purchase the latest Samsung Galaxy S8 could take a lot of time. However, entering into a contract with the phone provider allows people to get the phones of choice by making regular monthly payments for up to 24 months.

Despite the ease that comes with acquiring phone contracts, they are also very expensive. In many cases, the cost of a phone bought through contracts could surpass the cash tag with up to 70%. Despite this price being higher, many people end up paying even more and sinking into financial woes. In this post, we look at the main strategies that you can use to avoid paying more for a phone contract.

Do not cancel a guaranteed phone contract before it is over

After signing a phone contract and realizing that it is very expensive, some people opt out. However, opting out will be very expensive. Many phone companies use all ways to try and make the clients stick around. Often, cancelling a contract will attract a penalty that will almost match the remaining amount to clear the agreement. If you find that the phone company has hiked the calls, data, or SMS prices, the best thing is reaching the respective provider to have the issue rectified.

Only pick the phone with a contract matching personal needs

Picking a mobile phone contract in a hurry can be very expensive. Often, people end up in the wrong tariffs that raise the monthly cost with a huge margin. By carrying due diligence when searching for a phone contract, a buyer can get a perfect match so that he/she only pays for the required services. For example, if you call for 10 minutes, send several emails, and about 20 SMS per day, a good contract should have about 300 minutes, about 400mbs of data, and 600 SMS every month.

Negotiate the phone contract with the dealer

Often, some people argue that winning a phone contract is a great favour and rarely interrogate all the available options. Before signing that guaranteed mobile phone contract, it is prudent to compare what several dealers are offering. Then, negotiate for readjustment of the contract to have things working in your favour. For example, if you rarely text or use the internet but make a lot of calls, a good company will agree to allocate more talk time and fewer texts and data. This will be a great win for you.

Review the contract agreement to have punitive fees expunged

Often, many people end up paying a lot of money because the agreements come with hidden charges. Before you can sign that phone contract, make sure to review the terms and conditions carefully. Here, you should identify all the offensive clauses and ask the dealer to expunge them. For example, a clause that attaches a penalty for an early contract settlement, very high fees for late payment and cancellation should be removed or redone.

Five Mistakes That People Make When Selecting Guaranteed Mobile Phone Contract

Having the latest smartphone is considered prestigious. For many people, it is the sense of style and class that comes with owning the latest Sony Xperia, iPhone, or Samsung Galaxy that drives the desire to own them. The simplest way to get these top of range smartphones is entering into a contract with phone companies. The contracts involve committing to a monthly payment for 12-24 months when the debt is cleared completely.

Often, many people selecting guaranteed mobile phone contracts make mistakes that turn out to be very costly. In this post, we look at these mistakes so that you can avoid them at all cost.

Failing to take the phone contract as a conventional credit

For many people, a phone and conventional loan are two different things. However, it is this poor distinction that has made many err and fall into deeper financial troubles. After entering into an agreement with the respective phone company, the monthly repayment must be made faithfully. If you fail to remit within the agreed timeframe, a penalty is slapped on you, and a negative credit report goes to the reference agencies that further degrade your credit score.

Not comparing the contract with other offers

While it is true that a guaranteed mobile phone contract will help you own the best device out there, many rarely check on other options. Though you will get the latest iPhone, Samsung, or Sony Xperia, the main question is whether there is another option that can serve the same purpose at a lower cost. For example, if you can raise £400 as a deposit to get the latest Sony Xperia phone contract that will ultimately cost £1500, what are the available alternatives? Making sure to compare all the contracts guarantees you of getting better value for money.

Not interrogating the carrier carefully

Though the phone contract is handing you the handset of choice, it is important to understand that it is attached to a specific carrier. If you do not interrogate this carrier, the chances of working with a very expensive or poorly networked company are very high. Therefore, you should start by checking the best carriers and following the contracts offered by them.

Failing to assess the tariff you are jumping into

While smartphones are no doubt evolving rather fast, the baseline to phone contracts is the tariff that clients get into. If you jump into the wrong tariff, the chances are you will end up paying for services not utilized. For example, if your operations are mainly done online and text SMS, a tariff that offers a lot of talk time will be a waste of money. You must evaluate your communication needs and only go for the right tariff.

Not reading the end of contract terms and conditions

At the end of the contract, you should be able to shift carriers if the current one is undesirable. If you do not read the agreement carefully, the chances of getting stuck with an undesirable carrier will be very high. Check all the rules, regulations, and read through the company policy to know the requirements for shifting from one carrier to another.