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Consistantly overcharged!!

William63
Newbie
Posts: 3
Registered: 24-05-2010

Consistantly overcharged!!

Since signing up to an 18 month contract with the first three months free and the rest at £5.99, i have found that after the free period i have been charged one month at £5.99, then all subsequent months have been at £11.99. This is way over the odds and just not worth it for the service i am receiving. Can this be rectified, or failing that can i pull the plug and claim beach of contract, with the overcharge refunded?
I am happy enough with a budget service for a budget price, but i'm being ripped off! My attention was brought to the offer by Martins Money saving program, which did a lot to promote the deal. I feel if this is not resolved to my satisfaction, i will have to use their media, to alert users of this happening to others.
7 REPLIES
pierre_pierre
Grafter
Posts: 19,757
Registered: 30-07-2007

Re: Consistantly overcharged!!

Welcome to the forum, are you in a market 3 area  see http://kitz.co.uk/adsl/adslchecker.php  as £5.99 is the price for Mk3 £11.99 for Mk1 &2.
Hopefully a member of staff will see this soon and either advise or organise a refund
Mand
Grafter
Posts: 5,560
Thanks: 1
Registered: 05-04-2007

Re: Consistantly overcharged!!

Hi there,
The ongoing price for our service depends on your market area (we pay lower supplier costs in market 3 areas so can afford to sell our products for less there), unfortunately you're in a market 1 area, which means you're ongoing price is £11.99.
FWIW, you're no longer on an 18 month contract (we scrapped these last year), and would just have to pay deferred charges if you wished to leave at any time in the first 12 months.
I hope it won't come to that though, £11.99 for 10GB is still a pretty good deal on a BT Wholesale service.
William63
Newbie
Posts: 3
Registered: 24-05-2010

Re: Consistantly overcharged!!

Thanks for the replys. i understand what you say about the different areas and the wholesale rates, Mand, you state that these contracts were scrapped last year, then why was i allowed to sign up to a contract, on the 27th October, which was activated on 3rd November last year, which clearly stated the pricing structure that i have already mentioned. Of importance also, is the fact that, i never received any communication, telling me that the pricing was to change or that the contract, i had signed up to, was to be terminated.
I feel that this is a breach of the original contract and that i have been treated with contempt by plusnet modifying my terms without telling me. I have a record of every email sent to me by plusnet, including the billing amounts. Is there a regulator for this industry, as i feel i would be jusified in making a complaint.
James
Grafter
Posts: 21,036
Registered: 04-04-2007

Re: Consistantly overcharged!!

Hi William,
When Mand says that the contracts were scrapped last year, she's not referring to the pricing structure.  What she is referring to is the contract term.  Previously, our products were available on an 18 month contract, however the notice term is now 10 days, with deferred activation and hardware contracts which are written off after 12 months.
Our pricing structure, with different market pricing and an introductory price before it increases (if you are not in a low cost market) have been in place since we offered our value family products in April 2008 (from memory?) and I can assure you that we haven't breached our contract to you.
If you would like me to give you a ring to have a quick chat, I'd be more than happy to do so.
William63
Newbie
Posts: 3
Registered: 24-05-2010

Re: Consistantly overcharged!!

Thanks for the information. At least, i have a better understanding with regards to the contract scrapping. Although, i think it would be prudent to honour existing contracts until they expire. This is a fairer way of doing things and is common practice in many situations, 'ringfencing' i believe it's called.
At the very least, as in my case, the customer should be notified of the changes to the term and pricing, then given the option there and then to close the contract with no penalty. As far as introductory offers being the norm, before the standard pricing kicks in, the deal i agreed to was an inroductory period of 3 months free, which i received, then a charge of £5.99 for the remainder of the contract. I was charged this for only one month, then the rest at £11.99.
I am now enlightened as to changes Plusnet have made. But i have a feeling of being duped by the changes and feel that i would have decided to drop the new agreement, had it been offered to me. I will return to the UK later this week and will contact you by landline. Mand stated that even at £11.99 the service is still good value. Maybe so, but not at the average speeds i receive. This would also have been a big factor in getting out, had i known! At the Original agreed £5.99, i was content to run with it.
pierre_pierre
Grafter
Posts: 19,757
Registered: 30-07-2007

Re: Consistantly overcharged!!

you would have had an e-mail detailing the changes last year, or have you decided in your profile that you dont want to be told?, Its surprising how many people do tick that box and then complain.
I have been on Value since it came out and dont think it has ever been that market 1 and 2 had more than the first three months at £5.99, then it went up to £11.99.
Ring fencing, yes PN have done this, your charges are protected for one year, new customers pay a higher rate, again this information was in a recent e-mail
Mand
Grafter
Posts: 5,560
Thanks: 1
Registered: 05-04-2007

Re: Consistantly overcharged!!

@William63, your price was £5.99 for 3 months (which coincided with the free 3 month offer), and then £11.99 after that.
There was an error in some welcome emails where some customers who took free for x months offers were emailed the wrong ongoing price, but the signup journey you went through (and the terms and conditions agreed within it) would have stated £11.99 as the ongoing price.
As pierre_pierre says, prices were increased back in April, but were frozen for existing customers for one year.
If you've got a speed problem we'd be happy to try and help.