30-04-2019 01:21 PM - edited 30-04-2019 01:23 PM
I'm an Overseas MA student and expected to finish my course in September.
However, I was lucky enough to get a placement outside of the EU that begins in June. I will be leaving the EU on the 29th of May, and My contract ends on the 18th of September (last payment on the 28th of August). All the charges I am being quoted when I call in to give 30 days notice now cost more than if I were to keep my bill and pay month to month until August. ( around 135£ to cancel it would be 104 if I paid per usual). When I searched for cancellation fees on EE's website nothing could explain why it would cost more than my standard billing. The website seemed to imply it would be less. The Reps on the phone when I called just said that the computer automatically calculates it and couldn't explain to me the fees ( or maybe I just wasn't understanding).
I want to understand what's the best and cheapest way for me to move forward. I am concerned that if I wait to August 16th or 19th to cancel ( the 18th is a Sunday), I will run into more issues, that I won't be able to address as I will be making an expensive phone call from overseas. If something does go wrong, I won't know until my UK bank sends me a notice of being overdrawn or something.
30-04-2019 05:34 PM - edited 30-04-2019 06:44 PM
They told you wrong. Your Early Cancellation Fees, after the 30 days notice, will always be 20% less than had you stayed until the end of your contract term on 18 Sept.
EE don't charge VAT on Early Cancellation Fees, so that's 16.67% off. On top of that they take off anorher 4% for paying it promptly upfront, as you have to do.
In total you pay of your normal remaining contract fees: (1 - 16.67%) x (1 - 4%) = 0,8333 x 0.96 = 0.8 equivalent to 20% off.
For a full explanation see Early termination charges explained .
30-04-2019 06:27 PM - edited 30-04-2019 06:28 PM
Hi, @Christopher_G Chris, I am off to Bermuda 🙂
Yes, I have a trading discount on my phone. According to the bill. it is a 35£ pm contract that I pay 26£pm for based on what the bills say.
30-04-2019 06:35 PM
The article I linked you to does include & subtract any monthly recurring discounts in the calculation of the ETF.
30-04-2019 07:03 PM
Hi @Christopher_G Unfortunately not. The article @XRaySpeX linked is the one that I was referring to when I said I believed it would cost less. I am not sure what to do as when I call in that is not the information I get.
26*4 = 104 - vat (16.67%) = 86.62-4%= 83.19£ if I go based on the website. But that's not what I get when I call in
Even if I was to do 26*4.5 = 117 - 16.67% = 97.49-4%= 93.59£ - neither of those prices have been the prices I have been quoted when I call in nor has it been anything close, which is why I am confused. When I ask for them to explain the charges they say the computer calculates it automatically.
If it is going to cost more to cancel than to keep it, I would rather keep it. But I am not sure how to handle cancelling the contract from overseas so that I avoid unnecessary charges. I am not sure how to proceed.
30-04-2019 08:15 PM
They are telling you wrong. It is impossible to be more than if you didn't cancel considering the VAT is taken off as well as 4%. Personally I would go ahead & when I get the bill if it is more than what we discussed I would complain based on that published article as you have it in writing as it were.
Don't forget in your calculations to take account of the fact that you've already paid 1 month in advance in your 28 April bill (which about covers the 30 days notice not being reduced in these ways). So you will yet to have to pay 3 months 21 days less 20%.
30-04-2019 08:58 PM
@Tempy Do you have insurance or any other fixed add-ons ? If you do you need to remove them first then call and ask for the early termination fee.
If you have insurance or anything else added to your plan your being asked to pay these off also with the early termination fee.
01-05-2019 12:07 PM
Hi @Jon_K I don't have any add-ons or anything that would add charges. My bill is flat 25.94£ pm so unfortunately @Chris_B advice while really useful to know isn't suitable for my circumstances.
I am going to try calling again today, but I am not sure what to say as they keep telling me that the computer automatically calculates the pricing and that they can't give me a breakdown. I am not sure what to say to them. Or how to handle this.
01-05-2019 12:48 PM
Refer them to the article I linked & ask them to explain in detail why their figure does not agree with it. As the payer it is your right to know how their figure is arrived at.
01-05-2019 05:04 PM
Thanks, everyone for your help!
I just got off the phone with a rep, and I did as @XRaySpeX suggested and pushed for further explanation and it turns out they weren't applying my discount to the original quote. The gentleman I spoke to has put through my request for cancellation and has given me an estimate of 87.74£. Because the cancellation & billing will happen in June after my usual payment for May, he said it should work out to be less than that somewhere closer in the 70£ range. Either way, it has all been settled, for the most part, so now I have to wait to June to see what happens. But I am at the moment happy with the way it has worked out so far.
Thanks again for all the help, information and encouragement. I appreciate it.
01-05-2019 05:11 PM
Thanks! You're welcome 🙂 ! Glad I could be of assistance & it is now mostly sorted.