Contract cancellation but you still need to pay?

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My sister has the MTN 100 TopUp contract that she pays R99 for and got a "free" cellphone with. It's 3 months old now. She also (god knows why) has a TopUp 50.

Wanting to cancel the contract I expect to pay up for the phone, which is R1710 according to the rep we spoke with; and according to the rep we *still* need to pay the amount they WOULD HAVE received over the 24 months? Without receiving the equivalent airtime?!!

How the **** do you justify that?!

I can understand if I need to pay the R99x24 months upfront OR the price of the cellphone which was quoted as R1710, but not both since I know the price has the subsidized cellphone worked into it.

I'm glad the consumer protection act covers this ****. Come April I'm moving away from MTN. It's practices like these that will make me not spend a cent more with them. 12 years of being their clients and they're trying to rip us off like this... no mas
 
The CPA will only apply to contracts entered into after the 1st of April
 
Vodacom has the same policy. I had a Topup 315 contract that I wanted to cancel and they added up the 8 months I had left on the contract. When I queried as to if I will receive the airtime I am obviously paying for, I was told no, it's "cancellation penalty" fees.

Soon as this consumer act comes into play, I'm cancelling. They charge you for c.l.i.p on contract, but prepaid users get this for free?!?! It's only R 9.50 or something, but still, you pay for something they provide to others for free...

xrapidx said:
The CPA will only apply to contracts entered into after the 1st of April
Click to expand...

Well there goes my cancellation plans. :whistle:
 
I really want to study law - I just can't get round to it (no motivation) ... would love to screw with companies with policies like this, and find loop holes.
 
I have 2 lines (both with VODACOM), one came to end of contract last week 24/2/2011 and the ended today 1/3/2011. I phoned to cancel the contracts and was told that they will only be cancelled at the end of this month! So I am being screwed over for R185 x 2 :) Roll on the 1st April 2011 looking forward to findiong CPA loopholes, get my revenge!
 
It's this kind of policy that has prompted the creation of the CPA.
It can't come soon enough. In future, you will have 21 days to cancel any contract you entered into without any penalty, and if you cancel a cellphone contract they can't charge you more than 10% of the money they would have received as a cancellation fee.

Here's what you do with existing contracts that you don't want anymore: Give them away. Not really, you can't do that, but since you're going to have to pay the R50 or R100 or whatever for the next X amount of months anyway, don't let it go to waste. You can pay that money to cancel, and get nothing in return, or you can pay that money and still get to use the phone and get airtime etc. So find someone who needs a phone and/or airtime, and let them use your contract.

My hubby had to get a new contract last year when he started his new job. His old contract only expires sometime this year, so rather than throw all that money away in cancelling his contract, he handed his old contract sim over to me and now I use it. If we're going to pay R350pm for airtime, I might as well make use of it.
 
xrapidx said:
The CPA will only apply to contracts entered into after the 1st of April
Click to expand...

AFAIK the CPA says "any long term contract" with no date mentioned like you say it does. It would be sad if it does say that but let's see. It's suppose to protect the consumer, and it would suck if it only protects the consumer for whatever going forward from the 1st
 
AniV said:
It's this kind of policy that has prompted the creation of the CPA.
It can't come soon enough. In future, you will have 21 days to cancel any contract you entered into without any penalty, and if you cancel a cellphone contract they can't charge you more than 10% of the money they would have received as a cancellation fee.

Here's what you do with existing contracts that you don't want anymore: Give them away. Not really, you can't do that, but since you're going to have to pay the R50 or R100 or whatever for the next X amount of months anyway, don't let it go to waste. You can pay that money to cancel, and get nothing in return, or you can pay that money and still get to use the phone and get airtime etc. So find someone who needs a phone and/or airtime, and let them use your contract.

My hubby had to get a new contract last year when he started his new job. His old contract only expires sometime this year, so rather than throw all that money away in cancelling his contract, he handed his old contract sim over to me and now I use it. If we're going to pay R350pm for airtime, I might as well make use of it.
Click to expand...

It's fine if you can hand it over to a family member who won't screw you over. But people in general are *******s. Unfortunately I don't know any family member willing to take over 2 contracts or wants it. The ****ty thing is she only took out the 2nd contract for the phone because hers were stolen. Apparently she has a 3rd contract with some other place (also going through MTN) that gave her 2 cellphones. So her bill in a month is like R430... ffs... it would have been cheaper if she borrowed money to buy a cellphone cash.
 
AcidRaZor said:
AFAIK the CPA says "any long term contract" with no date mentioned like you say it does. It would be sad if it does say that but let's see. It's suppose to protect the consumer, and it would suck if it only protects the consumer for whatever going forward from the 1st
Click to expand...

There was something on TV about it only applying to new contracts, think carte blanche extra. And just this week I read another article on it on iol or news24, specificly about cellphone contracts, I'll see if I can find the links.
 
xrapidx said:
There was something on TV about it only applying to new contracts, think carte blanche extra. And just this week I read another article on it on iol or news24, specificly about cellphone contracts, I'll see if I can find the links.
Click to expand...

This is correct. It was said by contract lawyers on the radio a couple of times as well. It makes sense I guess, as the government can't exactly go and change the terms of the contract after it has been agreed upon.
 
I can confirm for you that the CPA will only apply to contracts/purchases entered into AFTER it comes into effect on 1 April.
You will not be able to use the CPA to get out of contracts that you are already in.
 
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