Just thought I would share something I noticed with the recent RPI increase on mobile phone contracts.
So last month I negotiated a new Sim Only deal with EE. I was offered 10GB for £14.99 over a 12m contract. Worked for me as it included the BT Sport App, which is usually £5.
I received an email today about the RPI increase, which I was aware of. Annoying but a norm now unfortunately. Using their calculator, it would have resulted in an increase of 61p, so my new monthly payment would be £15.60.
Annoying, but expected.
However....
When I looked at my bill, I noticed that I am actually on a plan that costs £28.99 and I was given a loyalty discount of £14, making the cost the agreed £14.99. I wasn’t explained of this, and to be honest I wouldn’t have really cared if it was explained to me at the time.
But then I read one of the terms on the RPI increase. It applies to the full plan cost, and then discounts are applied after, which do not get an increase in line with RPI (obviously...).
So the RPI increase on a £28.99 results in a new cost of £30.18. Minus the £14 discount means my new monthly cost is now £16.18. That’s an increase of £1.19, double the increase I was expecting!!!
I rang and complained as I didn’t think this was fair. Theoretically they could put me on a plan costing £100 and give me a discount of £85 and I would be expected to pay an extra £4 due to RPI! Thankfully they applied a further £1.50 discount and I was happy with that as it means I don’t have to deal with any RPI increase (intact a slight discount), but thought I would share incase others have mobile deals of similar structure.
The cynic in me would think they set up deals like this on purpose, but perhaps it was honest mistake....perhaps....!
So last month I negotiated a new Sim Only deal with EE. I was offered 10GB for £14.99 over a 12m contract. Worked for me as it included the BT Sport App, which is usually £5.
I received an email today about the RPI increase, which I was aware of. Annoying but a norm now unfortunately. Using their calculator, it would have resulted in an increase of 61p, so my new monthly payment would be £15.60.
Annoying, but expected.
However....
When I looked at my bill, I noticed that I am actually on a plan that costs £28.99 and I was given a loyalty discount of £14, making the cost the agreed £14.99. I wasn’t explained of this, and to be honest I wouldn’t have really cared if it was explained to me at the time.
But then I read one of the terms on the RPI increase. It applies to the full plan cost, and then discounts are applied after, which do not get an increase in line with RPI (obviously...).
So the RPI increase on a £28.99 results in a new cost of £30.18. Minus the £14 discount means my new monthly cost is now £16.18. That’s an increase of £1.19, double the increase I was expecting!!!
I rang and complained as I didn’t think this was fair. Theoretically they could put me on a plan costing £100 and give me a discount of £85 and I would be expected to pay an extra £4 due to RPI! Thankfully they applied a further £1.50 discount and I was happy with that as it means I don’t have to deal with any RPI increase (intact a slight discount), but thought I would share incase others have mobile deals of similar structure.
The cynic in me would think they set up deals like this on purpose, but perhaps it was honest mistake....perhaps....!