Incorrect cancellation charges shown on account ?

[#1]

You could argue, though, that nobody is on a £2.50/month deal, they're on a £9.99/month deal with £7.49/month discount.
You could also argue that, because the £2.50/month discounted price is only available when you pay line rental of £15.95/month, the actual monthly price (even with the discount) is £18.45 so a termination charge of £4.30 is hardly unfair on that basis.

[#2]

Well the OFCOM guidance is pretty clear

Quote

A1.75 We consider that an ETC is likely to be fair where:  the terms providing for it are transparent at the point of sale with sufficient prominence that the consumer is fully aware of the consequences of terminating early, and what the level of the ETC would be (or the method by which this would be calculated e.g. the amount that would be charged for each outstanding month);  it is never greater than the amount of the (usually monthly) contractual retail payments remaining due at the date of termination; 

[#3]

Quote

because the £2.50/month discounted price is only available when you pay line rental of £15.95/month, the actual monthly price (even with the discount) is £18.45 so a termination charge of £4.30 is hardly unfair on that basis

but there is an early termination charge for line rental as well of £5.35 but if you have paid LRS then that doesn't apply of course.

[#4]

Quote from: MisterW

but there is an early termination charge for line rental as well of £5.35

I admit I hadn't noticed that 
Still, total termination of £9.65 for a £18.45/month discounted total isn't completely unreasonable.

[#5]

It IS if you are normally paying £2.50/month.
Whilst I'm here, in for a penny , in for a pound...
According to this http://www.plus.net/info2/legal/price_guide.html Table 2.6 there are different ETC amounts for line rental with different call plans. Surely the call plan is not contracted, it can be changed at any time. Therefore there should ONLY be a termination charge for the basic line rental i.e £5.35.
I think PN need to get their random number generator reprogrammed...

[#6]

But you are not paying £2.50; you are paying £9.99 with a discount of £7.49 applied. This is why it is shown separately on the bill. I would very much doubt there is any recourse to OFCOM; PlusNet’s legal team will have it covered in the T&Cs, which of course everyone takes time to read ;).
The phone termination charge is a strange one, the answer is to remove all calling plans before initating the cancellation if you decide to terminate early.

[#7]

Quote

But you are not paying £2.50; you are paying £9.99 with a discount of £7.49 applied

I don't agree, you are contracted to pay £2.50/month.
In reality, I have no intention of cancelling, I'm just playing devils advocate here and identifying the irregularities in PN's calculations in the hope that they will take some action and correct them.

[#8]

The strange cancellation fees shown on matl's account have been raised as an internal problem for investigation. The other points on this thread aren't something I'll be able to answer without getting some advice from those who set and handle the fees, I'm just about to get in touch and see if they can explain these questions.

[#9]

Quote from: MisterW

Quote But you are not paying £2.50; you are paying £9.99 with a discount of £7.49 applied I don't agree, you are contracted to pay £2.50/month.

That seems right if your discount runs the course of the contract but what about where the contract is 18 months but the discount is only for the first 12?

[#10]

But nobody is actually paying just £2.50 per month (or even £9.99/month less £7.49/month)
Even on the current offer @£1.50/month the minimum a customer can be paying is £17.45 if line rental is included (OK, £14.49 equivalent if using LRS but that changes the whole early termination perspective) or £12.49/month without line rental.
Trouble is, the whole thing is skewed by Plusnet (and most others) offering ridiculously low headline discounted broadband prices that can only actually be obtained by also paying inflated line rental charges.
Having said that, you are correct in saying that Plusnet really shouldn't be charging £4.30 ETC for the part of the service that they're nominally charging £2.50 (or even £15.0) for.
So, Plusnet, either stop cross-subsidising broadband prices for marketing purposes (not likely) or change the proportionate amounts of the ETCs!

[#11]

The anomaly that Jim identified with the phone ETC is also crazy. I have Anytime International 300 which means that I would have to pay an ETC of £9.30 pm (plus the broadband charge), but if I cancel AI300 (which is not contracted) immediately before I were to terminate I would only have to play £5.35pm (plus the broadband charge). 

[#12]

Quote

That seems right if your discount runs the course of the contract but what about where the contract is 18 months but the discount is only for the first 12?

It really doesn't matter, as far as I can see from OFCOM's guidance the ETC can NEVER be more than the remaining contractual payments, simples!

[#13]

On the account summary, the only cost for broadband that is shown is the full cost of the product that was agreed when the product was taken out. The discount is not shown. The amount you actually pay is not the same as the contracted cost.

[#14]

Quote

The anomaly that Jim identified with the phone ETC is also crazy

Yes, sorry Jim I hadn't twigged that you had effectively brought this up earlier when I posted http://community.plus.net/forum/index.php/topic,133728.msg1171751.html#msg1171751

[#15]

Quote

On the account summary, the only cost for broadband that is shown is the full cost of the product that was agreed when the product was taken out. The discount is not shown. The amount you actually pay is not the same as the contracted cost.

I think you'll find that the contracted cost is specified both in an email and a 'ticket' on your account when the agreement is made.