Telkom contract increase questions

[Currantly]

So Telkom decided to raise contract prices by varying amounts, across most of their offerings. The reason given for the price increases is apparently 'increased costs' in the 'service' part, as opposed to the 'device' part the total amount.

The way I see it, is that Telkom have violated my contract with them by firstly increasing the amount they debit from me, and, secondly, not giving me any opt-out options in case I didn't accept their price increase/s.

Now, you might say; 'but, it's written in your contract -you should have read the fine print!'...my response to which is: 'well, then what's the #$%^'en point of the contract then?' Isn't the point of signing a 24/36 month contract is that you've agreed to pay the advertised price for 24/36 months? If they didn't want the agreed amount for the fixed period, then why did they bother advertising it?

Surely there must be some kind of law restricting such increases? If there aren't any such regulations, then what's to stop any old geezer from offering a 'flagship device of your choice on a 24 month contract for only 53 ZAR/month', then increasing the amount charged to R5722/month from month 2 onwards?

If Telkom really insist on continuing to debit me the increase amount, then I will return the device to them after they've refunded me the device part of the months I've paid so far, and I'll thus consider the contract repudiated by them

 

[ronz91]

I have had a telkom contract that ended proly 5 to 6 years ago (I didnt cancel it but it dropped by the device amount) and there have been atleast 3 price increases in that time.

the contract is to protect the company lol

 

[Johnatan56]

There's a clause in your contract that they may increase it by a "reasonable" amount if costs rise. CellC/Vodacom started with it in 2015, everyone followed suit. You can technically cancel, issue is that the cancellation cost is too high since you still have device costs as well.

“Can Vodacom legally do this?” I’ve been asked repeatedly on Twitter and via email.

Well, the short answer is yes. It’s in the Vodacom contract, and there’s nothing in the Consumer Protection Act to stop them. A CPA regulation states that a company may alter the prices relating to a existing contract, provided the consumer has the right to cancel.

This is the bit of Vodacom’s contract which “allows” the company to hike tariffs on existing contracts: “The charges levied by Vodacom may vary from time to time and Vodacom shall provide you with at least 20 business days notice of such variations before they take effect.


“You shall be bound to pay such varied charges with effect from the date of publication thereof ... unless you exercise your right of termination as provided for in this agreement.”

Ah, so you can cancel. Here's what Vodacom’s contract says about that: “You may terminate this agreement … by giving Vodacom at least 20 business day’s notice in writing…subject to payment of a reasonable premature cancellation charge, determined by Vodacom.”

The Consumer Protection Act allows companies to decide what a “reasonable” cancellation charge is, and in Vodacom’s case, it’s up to 75% of the subscriptions for the remaining period of the contract.

Can Vodacom legally increase contract fees?

How dare they? That pretty much sums up the sentiment of Vodacom’s contact subscribers, on hearing that the network is to increase its tariffs on five of its plans - Vodacom Smart, uChoose Smart, uChoose Flexi, Top Up and Mobile Broadband packages - from May 1, on both new and existing...

www.timeslive.co.za

 

[Currantly]

There's a clause in your contract that they may increase it by a "reasonable" amount if costs rise. CellC/Vodacom started with it in 2015, everyone followed suit. You can technically cancel, issue is that the cancellation cost is too high since you still have device costs as well.

Thank you for replying.

So by cancelling the contract what happens? The way I see it; they refund me the device cost part of the contract for the months I've paid, and I return the device to them?

As far as I'm concerned, they're the ones who violated a fundamental term of the contract, so the resolution should therefore be to my satisfaction.

 

[Former member 61586]

Got no sympathy for people who still choose to sign mobile contracts

 

[ronz91]

Thank you for replying.

So by cancelling the contract what happens? The way I see it; they refund me the device cost part of the contract for the months I've paid, and I return the device to them?

As far as I'm concerned, they're the ones who violated a fundamental term of the contract, so the resolution should therefore be to my satisfaction.

If you are willing to get into a legal battle longer than Makate's