capquest sending noa themself from creditor

[Guest]

Re: capquest sending noa themself from creditor

From the horse's mouth and clear as mud!

The view the OFT has taken is that “line rental” (i.e., network access charges) as well as inclusive minutes, texts, data allowance, and so on are considered regulated credit if the consumer cannot terminate the contract early without paying the balance of recurring charges up the amount which would have been paid were the contract to run its usual course. For example, if your contract costs you £25 per month, and you have 10 months to run, and your operator tells you it will cost you £250 to terminate early, you effectively took out a loan without knowing it.
In terms of the SIM and handset, the OFT says:

The provision of the handset and SIM card […] may be considered to be regulated hire or hire purchase agreement under the CCA depending on whether they remain the property of the mobile phone provider or whether they transfer to the hirer (consumer).

The SIM itself usually has a notice printed on the full-sized card it snaps out of stating that it remains property of the operator, thus—unless I’m mistaken—the OFT considers it to be “hired”. The handset itself may vary: you’d have to check your contract.
The issue here is twofold:

• If the recurring charges on a mobile contract are partially repayments on a loan, hire, or hire-purchase agreement, what proportion of the charges relate to each?
• If there are loans, or similar, what’s the effective APR?

Were these normal loans, the companies would be obliged to hand over this information—not just hand over, in fact, but readily present it. If you have a mobile phone contract, do you know the answers? I bet you don’t.
Today I thanked the OFT for their most helpful response, and asked them whether mobile phone companies should be obliged to present this information to consumers, and whether we should be able to sign up for a mobile phone contract without any credit being involved (not that this would necessarily be cheaper, but we have no way of knowing at present). I am, as they say, eagerly awaiting their reply.

Hi
Yes the provision of the handset may be a hire purchase agreement, this is true. But the line rental is not covered under the act, generally the handsets are supplied free on accepatance of the line rental package or they were.

LIne rental is not covered by the act it is a service. Covered by the distance selling regulations.

Peter

[Guest]

Re: capquest sending noa themself from creditor

From the horse's mouth and clear as mud!

The view the OFT has taken is that “line rental” (i.e., network access charges) as well as inclusive minutes, texts, data allowance, and so on are considered regulated credit if the consumer cannot terminate the contract early without paying the balance of recurring charges up the amount which would have been paid were the contract to run its usual course. For example, if your contract costs you £25 per month, and you have 10 months to run, and your operator tells you it will cost you £250 to terminate early, you effectively took out a loan without knowing it.
.

HI
This would be very intersting if true i would certainly like to see the authority document.
It would mean my gas , electric landline were all credit agreements.

The requirement to pay the full amount under a terminated contract is not just a requirent of the consumer credit act, nor is it just a feature of credit agreements.

Peter
Peter