How to get out of a phone contract
Finding the right contract is a daunting task. It’s all too easy to end up on the wrong plan, with the wrong provider – and once you’ve been ensnared, it tends to feel like there’s no way out. So we decided to create a neat guide, to act as the machete to the proverbial thicket that is the mobile phone marketplace.
Patience is obviously the simplest solution to your problems. Certain issues – the kind that would make you want to switch providers – are unfortunately not legal grounds for ending a contract early.
If you’re experiencing bad signal, for example, you’re out of luck: a few mobile providers offer an “acceptable network guarantee” for customers with poor reception, but otherwise you’ll have to just hold out until your contract ends.
But you’re obviously not here to be told just to wait until that rubbish contract ends. Here are a few ways to extricate yourself from an unwanted phone contract without changing your name and moving to Peru.
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How to get out of a phone contract
1. Find out where you stand
It’s important to know how far through the contract you are; at what point your “cooling-off” period ends; and whether your tariff has changed since you bought the phone.
All mobile providers are required to allow the customer a 14-day "cooling-off" period immediately after purchase, and some offer an extra few days on top, so the beginning of your contract is the best time to look for a quick getaway.
In addition, all mobile providers are required by law to warn customers when a tariff price is changing. If no warning is given, or if the price change exceeds the rate of inflation set by the Government, then you’re entitled to cancel your contract (within 30 days of receiving the warning) without incurring any fees.
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What’s the catch?
Mobile providers often add a clause to their terms and conditions that exempts them from providing warning when they change tariff prices. You’ll also find that the rules won’t apply if you’ve been swayed by an introductory rate or special offer.
That 14-day “cooling-off” period won’t apply under certain circumstances, either: if you bought your phone in-store, rather than online, the period is inapplicable.
What if you’re mid-way through your contract?
It’s possible to cancel your contract at any point. The catch is that you’ll have to pay off the remaining costs, which can be very expensive; you may be able to switch mid-contract to a cheaper plan, but this is not a guaranteed solution. If you do find that your contract has become too expensive, switching to a cheaper plan is still a good way to either reduce overall costs, or to lower the price of cancelling your contract.
Some providers, like O2 and Virgin mobile, offer 'split' tariffs - O2 calls them 'Refresh' tariffs, and Virgin Mobile calls them 'Freestyle' tariffs, but they're the same thing in principle. By dividing the cost of a contract into two parts - the price of the handset, and the price of your data allowance - these networks have made it easier to switch phones at any point. All you need to do is pay off the handset half of your contract, and you're free to upgrade.
If your phone is the reason you want to cancel your contract, consider checking to see if you're on one of these tariffs.
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2. Identify why you want to get out
You have to be unhappy with your current provider to want to end your contract before its time is up. But in some instances, your provider will be able to help.
This applies most strongly to cases where the phone itself isn’t functioning the way it should: if your phone is damaged, and it’s still covered by the warranty – and there will almost always be a warranty – then the best thing to do is to contact your provider and sort out a replacement or repair.
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3. Talk to your provider
If all else fails, you are within your rights to make a formal complaint. Your provider is required to make a record of every complaint they receive, and you can always elevate your complaint if you’re not happy with the response you get.
Talk to the Ombudsman responsible for your provider or, failing that, speak to Ofcom themselves, and you may find that you’ll be allowed to leave your contract without penalty.
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4. Hang on for another year
We’re due a sizeable change to the regulations that surround changing mobile provider. Under a proposed new system – slated for July 2019 – cancelling your contract will be as simple as sending a text to your provider. They’ll send a message back with outstanding fees and any other charges, and then you’ll be free.
You’ll be able to keep your old mobile number without any hassle, and the entire process should take no longer than 1 working day.