Consumer Protection Act and Contract cancellations

[KampfGherkin]

The Consumer Protection Act states for "Expiry and renewal of fixed term contracts" that the act now allows consumers to cancel any fixed term contract on any date earlier than the agreed expiry date on giving 20 days notice and against payment of a reasonable cancellation penalty.

That last part seems to be problematic since it does not exactly specify what a reasonable cancellation penalty is. Vodacom would charge me 75% in cancellation for the remainder of the contract period. This to me is not reasonable. But that's the problem, isn't it, since the CPA does not clearly define what is reasonable and what isn't.

Does anybody know of a precedent or has anyone had success getting out of a contract on the basis of what the CPA should allow for? Or is this a hopeless exercise and there's no way to get a cellular providers such as Vodacom et al to provide for reasonable cancellations?

Any input would be helpful, thanks.

 

[froot]

By rights there should be a cancellation penalty clause in your contract, but yes, 75% does sound about right. I know ADT security has a 70% cancellation penalty for 30 days notice, or alternatively they can let you off scott-free with a 90 days notice.

There's three ways of getting out of a contract:
Finishing the contract
Breach of contract by the other party (unlikely)
Buying out your contract as above.

 

[Pho3nix]

Think Ockie mentioned that turning off the CLIP and other weird things will help reduce the total cancellation price.

 

[hellfire]

I thought there weren't penalties?
One pays off the outstanding value of the phone (if applicable) and the notice period in terms of contract installment?

 

[Batista]

The Consumer Protection Act states for "Expiry and renewal of fixed term contracts" that the act now allows consumers to cancel any fixed term contract on any date earlier than the agreed expiry date on giving 20 days notice and against payment of a reasonable cancellation penalty.

That last part seems to be problematic since it does not exactly specify what a reasonable cancellation penalty is. Vodacom would charge me 75% in cancellation for the remainder of the contract period. This to me is not reasonable. But that's the problem, isn't it, since the CPA does not clearly define what is reasonable and what isn't.

Does anybody know of a precedent or has anyone had success getting out of a contract on the basis of what the CPA should allow for? Or is this a hopeless exercise and there's no way to get a cellular providers such as Vodacom et al to provide for reasonable cancellations?

Any input would be helpful, thanks.

Why is it not reasonable?U have to pay the remainder of your contract else i would be taking new contracts out everyday and cancelling them to keep the phones?
How mnay months left on contract?

 

[jd.vdm]

I'm on MTN and when I phoned in to cancel my contract, they only charge for the handset and not the outstanding monthly contract fee. But their handset fees are much more and are also the value from when the contract started.

 

[Batista]

I'm on MTN and when I phoned in to cancel my contract, they only charge for the handset and not the outstanding monthly contract fee. But their handset fees are much more and are also the value from when the contract started.

They WILL charge you whichever fee is the most offcourse lol , but to be honest i didnt know that they can charge handset fee instead of remaining contracts fee.