Overcharging

[oorya]

Hi there,

New to the forum.

Been looking on the internet and not seen anything definitive yet but was wondering if overcharging is grounds for cancelling a contract.

I recently negotiated a new contract with a broadband supplier which included supposedly better b/b speeds for an increase price but to actually reduce my total monthly spend I dropped a TV subscription which actually had I think 3 months to run but I got the chap on the help-line to cancel this without any penalty otherwise I wouldn't renew my contract with this supplier. This he agreed so I went ahead and renewed.

In the first month of the new contract I was charged some small adjusments to the TV service I cancelled which I expected as the contract ran from the 6th of the month but then I was also charged the full amount for the TV contract so I rang them up and threatened to cancel the whole contract unless they sort this out.

The second month I was charged again for the full month of the TV service so therefore I had another ranting phone call with them. They apologised yet again promising to sort it out and offered me £25.00 compensation. I think following this they arranged to collect the following monthly cost by direct debit less the £25.00.

The third month came along and they pointed out on the statement that I had underpaid the previous month by £25.00 so added this to the third month's bill but also included the £25.00 compensation which meant they gave it to me then took it back. They also included some credit adjustments for the TV service but not enough to clear the overcharging. This therefore meant another rant with the clowns on the help-line.

The fourth month is now due and the actual costs for the B/B service are now correct but the clowns have not refunded the overcharging and have actually added another £0.42 for the TV service.

I am getting fed up of this now and really want to know if I can now cancel or threaten to cancel the contract for the overcharging. I may possibly stay with this supplier if I can get some benefit out of them such as reducing the cost of my current contract.

Thanks

[R0b]

Short answer is yes, it is possible but you need to be careful and depends on the specific facts and circumstances of each case. The courts have acknowledged that a series of minor breaches of contract can be combined to create a more fundamental breach warranting termination of contract -Sometimes this has been determined as three months and in others six.

A person would likely have stronger grounds if (which in your case) they had to repeatedly contact the supplier to correct the errors on multiple occasions as opposed to somone who notices on one occasion that hey have been overcharged for the last 6 months and there has been no opportunity to remedy the problem.

If you are looking to cancel, then I would highly suggest you put it in writing, setting out the series of minor breaches and make it clear to the supplier that if the overcharging continues into month five, then you will terminate the contract for material breach on the basis that there have been a series of breaches over five months and you have repeatedly contacted them but they continue to overcharge you, which is not acceptable.

I suspect if you do terminate then it wouldn't surprise me that they would pursue you for the remainder of the contract so you could have that on your hands. So you need to be absolutely certain that you have the necessary evidence to back up your case e.g. letters, responses, telephone calls made on those dates (make a subject access request if you need to) etc.

If you get it wrong, it might be costly to you so think carefully how you go about this and don't rush it.

[oorya]

Thanks Rob for the quick reply, much appreciated.

I have asked for copies of the phone calls I have had with them so I think I will wait till I receive them and give them one more month to see if they make any further adjustment to my account by refunding the overcharge and the promised compensation.

Thanks again for your help.

[oorya]

Another update. Had an email this morning stating my complaint will be closed in 14 days as they tried to contact me with no success. So I telephoned them this evening and asked who called, when and on what number. I was told my case worker called this morning around 9am on my land-line.

This was a complete lie as I checked my phone and the last number dialled was on the 7th November.

Been promised another call but I wont hold my breath.