Cancelling SIM contract within 14 days when purchased from a shop

[Ahmed777]

Hi,

A friend of mine in his 50s asked me to help him purchase a phone as it had been having problems with its battery and recharging and he was going to visit his parents for a few days and he didn't want any problems with the phone whilst he was away. He has a Hawk EE from 2017 and pays 12.50 monthly for unlimited calls and texts and 2GB data. He also pays 62 pounds a month to Virgin Media for broadband he hardly uses - he watches a few videos on YouTube a month amounting to 3-4 hours, and logs into Universal Credit as he finds it easier on his computer than on his phone, so he probably uses about 7-8GB a month for broadband. We decided it would make more sense for him to cancel his broadband, increase his data on his mobile plan, and then he can use his phone as a hotspot to connect his laptop to the internet. Because he suffers from mental health problems and is currently signed off sick, he gets easily overwhelmed, and so he wanted to go to the shop to see someone in person to discuss that would make him feel more reassured than doing it online.

I went with him on Wednesday to the EE shop. There we were offered a Samsung A15 4G, with 25GB data, for 36 p/m, with the first 6 months being 22 p/m. The woman sent him the T&Cs on his phone and asked him to read it. Because of his mental health problems and him getting easily overwhelmed, he didn't really understand them. I have recently been having problems with my eyes, and been to hospital for this, and it was difficult for me to read the T&Cs on the Hawk EE, so I asked don't they have a paper copy of the T&Cs, and another woman who I think was the manager and sitting on the adjacent seat said the shop doesn't provide paper copies, and then made some jovial comment about the environment. So I then asked them if we place the order today, do we have the option to cancel within 14 days, and that manager said we do.

Yesterday, I spent more time looking at the deal, and wasn't happy with it. I told my friend we should cancel the contract, but keep the phone, as he needs a new handset urgently and the woman at the shop said that EE now bill the device and SIM differently and on the EE website it states we "have a 14-day 'Right to Withdraw' from your device credit agreement". So this is what we want to do - we want to withdraw from the device credit agreement and pay for the device fully now, and cancel the SIM agreement. Is this possible even though the order was placed in the shop? If it isn't possible then I shall be complaining to EE and Ofcome as the woman at the shop told us we can cancel within 14 days and we were therefore mis-sold the contract.

Thank you.

[Katie_B]

Good evening @Ahmed777. 

Thanks for coming here. 

I am sorry to hear about your recent experience at our EE Store, of course this is not the experience we want our customers to have. 

14 day cooling off period does not apply to phones purchased in store as this is not distant selling. If the account holder no longer wants this and wishes to make a complaint I would recommend going back to the EE Store and speaking with the store manager. 

Should you wish to purchase a device out right, this would need to be done after a return has been processed for the current contract. 

If the account holder wishes for store feedback to be sent in regard to this matter, our customer care team on 150 can help with this. 

Katie

[bristolian]

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@Ahmed777 wrote:

So I then asked them if we place the order today, do we have the option to cancel within 14 days, and that manager said we do.

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You have grounds for a complaint of mis-selling on the face of it. Your issue may be in proving your word against that of the staff, should they dispute your account.

You should seek independent legal advice as to what implication this statement may have on your contract, although I have my suspicions.

[Matt_124]

I believe this sounds like a Flex Pay agreement Katie, with digital documents and T&Cs on customer's device and two separate DDs, as such 14 days would apply as it is dispatched through a CS process and technically distantly sold (as well as the right for consideration that goes with a finance agreement).

[bristolian]

My understanding of what classes as distance selling, is where the contract is not "formed at the premises of the retailer". The process used by the retailer, I don't believe is relevant.

An example would be where "click & collect" style orders are classed as distant even though the goods are collected in person.

[Matt_124]

I think we're along the same lines here just in different ways. Regardless of semantics the 14 days does apply exclusively to Flex Pay finance agreements where the device and SIM/airtime is split on two separate direct debits, even when agreed instore. If it is a SIM Only contract alone, the 14 days does not apply.

With these the customer does not receive the device on the day it is agreed and it is dispatched to either their home address or the store for collection, similar to a telesales/digital order.

The 14 days comes from the finance I suspect, more than how it is sold. Typically a finance agreement will supersede the "distant" aspect whether it is arguably present or not.

[bristolian]

It's an interesting legal debate, I can't see any reference in the FlexPay device agreements that states "this is covered by the Consumer Credit Act" which I'd have thought would be required to invoke the statutory 14days on the device finance side.

I have no idea whether retail stores have the option of traditional plan cf FlexPay plan, or if either/or is compulsory.

[Matt_124]

They will definitely have the opportunity to withdraw from the Finance Agreement, but pretty sure they can also return everything and reset. The right to withdraw is publicly stated here: https://ee.co.uk/help/mobile/manage-use/pay-monthly/flex-pay

It is also stated in the T&Cs the customer receives digitally. 

It's relatively new for stores. They have the option of both subsidy 24m agreements and Flex Pay at the moment, but Flex Pay is the preferred option due to the fairness when it comes to impact of inflation and early upgrade fees etc.

If a customer doesn't want to wait for the device or doesn't qualify for Flex Pay they can take a device on the day from store through the bundled "Subsidy" 24 month agreements with one direct debit.