Orange Contract issue

[Little11]

Good Morning All.

Sorry for posting again but wondered if anyone had any advise on a business contract with Orange I'm struggling to pay.
I took out a redemption business contract (2yr) with Excel Communications about a year ago. Excel them went into administration (owned by a man who allegedly does this sort of thing quite often) which left millions in debt with high end contracts and of course the redemption cash back offers where not paid to customers.
Some, like us did manage to get all the cash back from the distributors of the handsets (x2) so that part is sorted.
We then contacted Orange and complained about the vetting process they administer for Orange dealers and they agreed to lower our contract from £60 a month per handset to £30 per month per handset. The deal with Excel was a £60 per month contract costing only £25 per month per handset.
The minutes etc are over and above our usage but was a good deal at the time.

Now because I am no longer a sole trader as the business ran into financial difficulties due to no work, we have phone contracts that are over and above our usage needs, we are unable to pay at the moment, they have suspended usage, and are wanting their money, obviously.

I have written to them with a offer of payment and requested they cancel our contract without penalty (or as they call it 'contractual charges). They of course replied with my offer is not enough and they will suspend useage soon if we do not clear the balance, errrr you suspended our service months ago...

I was wondering what the stance is regarding their 'contractual charges' nowadays.
We dont have a problem with clearing what we owe Orange providing it all fair.

Now I don't think I can go into detail regarding the issue with Excel Communications and Orange as there is currently a class action against Orange which we are NOT part of.

So we were wondering about the penalty charges, sorry 'contractual charges' that Orange want to charge when they completely disconnect us.

Many Thanks

[Hurricane Puffrose]

Re: Orange Contract issue

As far as I am aware, contractual costs and termination fees are the same thing. Basically a terminiation fee in about 90% of cases is the amount of your full line rental (the rental you first agreed to) until the end of your contract (eg you took out £60pm.. so if you had 4 months left is would be £240).
They will probably insist on you paying the full line rental as a term charge, this is unfortunatly a normal occurance and quite legal for them to do, however a quick call to their offices, and a caring advisor, can often change this, at the end of the day the advisors do have an amount of leeway although it will need to be cleared with management first.

If you have a complaint with them that has been going on for 6 weeks or over, i would suggest asking for a letter of stalemate and involving Ofcom. Sometimes an Ofcom reference number loosens the pursestrings a little.

Legally they do need to tell you the amount of charges you will be looking at, and they can't disconnect you in contract for asking, the can for non payment of billls however.