UPDATE 12/08: Orange has now scrapped the ToS change following consumer upset and cancellations. Read full update and official statement here.

UPDATE 08/08/09: Comments as of late Friday indicate Orange are now refusing to cancel contracts if you did not go over contract allowance in the last 3 months. We will be contacting Ofcom and taking legal advice Monday and will post a response. More here.

Cast your mind back to what happened when 3 announced they were cancelling their 3 Like Home service – it provided customers with a loophole to terminate their contract early. 3 weren’t entirely pleased about it for the most part, and their staff tried plenty of tricks to wear down those who called to cancel.

Now it’s the turn of Orange. They’re making substantial changes to their pricing policy – in particular there’ll be changes made to costs for web access form your mobile, and the cost of calls not included in your plan (the likes of 0870 numbers and calls made beyond your allowance) will rise from 5p to 14.7p a minute. Many customers have received a text from Orange to make them aware of the changes, which come into force from mid-September. As far as we can figure out, these changes are set to affect all customers.

[NOTE 28/7 - Bitterwallet reader Robert states has been told by Orange customer services the changes do not affect customers who signed up after June this year, so you may not be eligible to cancel]

Is this an opportunity to cancel your Orange contract? Absolutely. The terms and conditions set out by Orange are very specific:

“4.3 You may also terminate your Contract if we vary its terms, resulting in an excessive increase in the Charges or changes that alter your rights under this Contract to your detriment. In such cases you would need to give us at least 14 days written notice prior to your Billing Date (and within one month of us telling you about the changes). However this option does not apply if:

“4.3.1 we have increased the Charges by an amount equal to or less than the percentage increase in the All Items Index of Retail Prices published by the Central Statistical Office in the Monthly Digest of Statistics in any 12 month period.”

Of course, Orange isn’t making it easy for everyone. A common complaint in both the HotUKDeals forums and MSE is that customer services are turning down requests to cancel, because customers either don’t use web services on their mobile, or that they aren’t using their full allowance anyway. This is not a valid reason to refuse a request to cancel. The key is the passage in the terms and conditions that says:

“You may also terminate your Contract if we vary its terms, resulting in… changes that alter your rights under this Contract to your detriment”

Regardless of what customer services may say, your contract gives you the right to go over your call allowance, regardless of whether you do or not. If gives you the right to call 0870 numbers and the right to use web services, even if you have no need to. You have the right to do so at the price you originally agreed with Orange when you signed the contract. Your average monthly bill may not be affected by these changes, but the terms and conditions in this instance are concerned with your rights being affected; clearly, if you can’t go over your allocated minutes without paying three times the price you originally agreed when you signed the contract, then the proposed changes are detrimental to your right to do so.

Another trick being attempted by some customer service agents is to demand the return of the handset. However as the terms and conditions clearly state:

“14.1 your Device is not a part of your Contract – your Device and Accessories are acquired by you outside the terms of your Contract.”

If an Orange operator demands the return the handset is mandatory, politely ask them to read their own terms and conditions.

Finally, it seems some customer service agents are telling customers who didn’t receive the original text that they aren’t affected by the change. Again, your monthly usage isn’t the point here – it’s whether you have the right to exceed it and not be charged more than you originally agreed.

As is always the case in these instances, how successful you are will depend on the temperament of the individual operator taking your call, and how well informed they are. Be polite, but stick to your guns. Contracts are in place to protect you as well as the other party – brush up on the points above and let us know how you get on.

For the past fortnight we’ve been updating you with the latest concerning 3’s efforts to cancel their 3 Like Home service without too many customers noticing. 3 Like Home has been part and parcel of 3’s offering since January 2007 – it’s a service which allows you to make calls and use data in several foreign countries without additional roaming fees.

So far 3 have sent texts to some customers and letters to others, to notify them of the changes, all the while contradicting themselves as to why they’re scrapping 3 Like Home. Official excuses given so far include:

• an artificial increase in the strength of the Euro

• the charge levied by foreign networks, which is actually 3’s own foreign network

• it’s a helping hand to stop you accidentally using other foreign networks

• an inability to block your phone joining foreign networks, even though 3 handsets can be blocked from using other networks in the UK

• a favour to help you pay less, despite the fact that if you used 3 Like Home on a regular basis, you’ll pay far more

And so on. Another quirk discovered by Bitterwallet reader Paul, is that 3 in Ireland and Australia also offer 3 Like Home, except these services are not set to be cancelled.

Bitterwallet has also covered off some of the reasons as to why this can be considered a detrimental change to the terms of your 3 contract, and you’ve been letting us know how you’ve fared. The general consensus seems to be that as long as you stand your ground, you can get your 3 contract cancelled; in some cases, previous use of the 3 Like Home service isn’t required. So here is a selection of comments and advice from Bitterwallet readers; if you’re considering cancelling your 3 contract, have a read through before you dial:

I managed to cancel both my mobile phone contract which had 12 months left and my Mobile broadband contract that had 6 months left today by using this as an excuse. Took nearly an hour in total but was pretty straight forward.

I stated I had a holiday booked in July in Australia, and that this 3 Like Home was why I took both my phone and mobile internet contract out. They tried to fob me off with the usual; £10 gift, £20 gift, “you have to pay remaining to cancel”, “it was only a temporary offer” etc.

Remain strong and insist on canceling – I had never used either abroad and this did not matter. State the actual quote regarding detrimental changes in the terms and conditions which can be found above.

Also they will then put you through to cancellations, they will ask for your phone back, tell them you lost it ages ago without insurance so use an old phone. Then say you want your sim to change to PAYG, and as a result in a month you will be out of contract and keep your number. Simple. Try it. bmouthboyo (more…)

Barely a week ago, we reported that 3 are going to cancel 3 Like Home, a service which allows you to make calls and use data in several foreign countries without additional roaming fees. The reason given by 3 was it was due to the weak pound, which inflated 3’s costs from using foreign service providers. As we pointed out last week, their explanation made as much sense as a bearded horse – not only because 3’s maths didn’t add up, but as readers pointed out, the foreign service providers are actually part of 3’s sister network – a fact they failed to mention.

3 now are texting customers with a different explanation as to why the service is ending; included in the text is a web link. Here’s what my link said:

Firstly, we’re reviewing all our EU roaming rates. And by removing 3 Like Home, we’ll be able to offer more competitive prices in non-3 sister network countries.

Secondly, we know that many of our other customers roamed onto another network by mistake while in a 3 Like Home Country and built up a bigger bill then expected. Unfortunately, we’re unable to stop accidental roaming onto a non-3 sister network. But by making these changes, our prices will be more straight forward and even clearer. So you’ll always know what you’re paying for. Wherever you are.

I’ve just attempted to locate other networks manually on my phone, and as well as 3 I’ve found both Vodafone and T-Mobile. Unsurprisingly, I can access neither. So 3 can stop accidental use of a non-3 network in this country on a 3 handset, but not abroad. Worse than that, they’re trying to justify to customers who use 3 Like Home, that they’ll be better off by not having the service at all. Really?

So. Does this week’s explanation sound anything like last week’s?

3 are squirming, because for customers who joined 3 after January 2007, 3 Like Home has been an integral service, offered at no extra charge to the customer. It has never been considered or referred to as an additional service – this is important, because if 3 make changes that can be considered detrimental, customers can end their contract without paying a fee; the only exceptions to this are additional services. We discussed the reasons why 3 Like Home isn’t an additional service last week.

Reading through recent customers experiences on the HUKD forums, it seems 3 have sent two versions of the text out, depending on whether you have used the 3 Like Home service recently. If you have, there’s a note within the text saying you have a right to cancel. And it is possible; HUKD member helsbels cancelled their 3 contract this morning, as did Bitterwallet reader David Zdanowicz, who also offers some useful advice for those wanting to cancel a contract because of 3 Like Home.

One commonality amognst all those who have managed to cancel so far – it appears to be taking in excess of an hour for customer services to agree. Perhaps 3 are hoping that customers will become so frustrated by the experience that they give up trying. If you use 3 Like Home and are going to lose out, clear your diary and get stuck in.