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Standard User gonzavala
(newbie) Sat 17-Nov-07 01:16:38
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outrageous plusnet cancellation fee


[link to this post]
 
I asked for a MAC a couple of days ago and got this response:

..."There are some outstanding fees on your account:

Details:

- Deferred House Move: 47.00

- Subscription charge covering period between
next invoice and end of contract (347 days): 173.38

These fees may be:

- Deferred contract (house move, hardware or activation) charges.

- Any outstanding account balances.

- Any migration fees.

Total outstanding fees: 220.38"


I've been with them since mid 2005. How can anybody explain that I have still a full year left to pay? Was I in a 3-year contract? I moved a year ago so I could understand that for some reason they somehow got me into a 1-year contract (although as you see there, I have to pay for the deferred move anyhow so not sure why I would have agreed to a fixed contract), didn't get any new equipment either).

I hope anybody reading this will think twice before signing up with them. They are not running a serious business (needless to say, I've had several issues with them in the past, like unexplained failures and a badly botched move - for which I still have to pay!).

Gonzalo
Standard User deleted
(deleted) Sat 17-Nov-07 02:58:51
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Re: outrageous plusnet cancellation fee


[re: gonzavala] [link to this post]
 
Can you post a username or ticket number so a PN rep can identify you and investigate.

Are you on a home or business package? Business packages are usually 12 month contracts but I still think they revert to a 1 month contract after 12 months like the home packages, but I'm not sure. If they do (or you are on a home package) then you are on a 1 month contract.

If you house move completed more than 12 months ago then the house move deferred fee no longer applies.

Standard User gonzavala
(newbie) Sat 17-Nov-07 10:22:06
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Re: outrageous plusnet cancellation fee


[re: deleted] [link to this post]
 
I am a home user. I suspect now that whomever did the calculation at Plusnet counted the months in the inverse order. I think in the worst case scenario I have still a month before 12 months pass after my move and am being charged for 11 months. Not sure if we're allowed to publish personal info here, but the ticket is ID: 23352426. It'd be great if you can help. Thanks.

Gonzalo


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Standard User deleted
(deleted) Sat 17-Nov-07 12:21:49
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Re: outrageous plusnet cancellation fee


[re: gonzavala] [link to this post]
 
However much they may claim that you owe them, they are not allowed, by Ofcom, to hold your MAC key to ransom. If you don't get it within 5 days, dispute or not, let Ofcom know.

Simon
Standard User gonzavala
(newbie) Sat 17-Nov-07 12:27:08
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Re: outrageous plusnet cancellation fee


[re: deleted] [link to this post]
 
oh, but they sent the MAC, together with the no so friendly note:

- By the time you leave, the fees shown above will need to be settled on your account. Failure to pay these fees within 7 days of your move will result in a further penalty of 20% being added to your final balance, as mentioned in section 13.10 of our terms and conditions


I just don't think I should pay
Standard User wingco1
(eat-sleep-adslguide) Sat 17-Nov-07 12:59:09
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Re: outrageous plusnet cancellation fee


[re: gonzavala] [link to this post]
 
In reply to:

Failure to pay these fees within 7 days of your move will result in a further penalty of 20% being added to your final balance, as mentioned in section 13.10 of our terms and conditions



20% seems a tad excessive.


+++++++++++++++++++++++++++++++++++++++

"Nearly all men can stand adversity, but if you want to test a man's character, give him power."
Abraham Lincoln
16th president of US (1809 - 1865)
Moderator Sadoldman
(moderator) Sat 17-Nov-07 13:28:42
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Re: outrageous plusnet cancellation fee


[re: gonzavala] [link to this post]
 
>Total outstanding fees: 220.38

Wow! That's steep.

It was my understanding that monthly contracts were the norm nowadays, but caveats for any "free" options if taken such as activation charges, modems, can be charged for if the term of agreements are not met.

>- Subscription charge covering period between
>next invoice and end of contract (347 days): 173.38

That does not seem to make any sense to me but hopefully a member of staff can contact you as you have provided the ticket number and clarify the situation.

Sadoldman

Just a tad sad..a wee bit old...

[email protected]
The author of the above post is a thinkbroadband moderator but it does not constitute an official statement on behalf of thinkbroadband.
Standard User wingco1
(eat-sleep-adslguide) Sat 17-Nov-07 13:34:32
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Re: outrageous plusnet cancellation fee


[re: Sadoldman] [link to this post]
 
In reply to:

Wow! That's steep.



Stand by for the, "Are you a customer of Plusnet, how dare you make a negative post" question from the usual suspect.

I would have used a smiley as an indication of an attempted humourous post, but even that seems to annoy some people so I won't bother.


+++++++++++++++++++++++++++++++++++++++

"Nearly all men can stand adversity, but if you want to test a man's character, give him power."
Abraham Lincoln
16th president of US (1809 - 1865)
Standard User deleted
(deleted) Sat 17-Nov-07 13:35:03
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Re: outrageous plusnet cancellation fee


[re: gonzavala] [link to this post]
 
Standard User deleted
(deleted) Sat 17-Nov-07 13:35:53
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Re: outrageous plusnet cancellation fee


[re: wingco1] [link to this post]
 

Edited by deleted (Sat 17-Nov-07 13:36:15)

Standard User deleted
(deleted) Sat 17-Nov-07 13:53:32
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Re: outrageous plusnet cancellation fee


[re: gonzavala] [link to this post]
 
Hello there,

I'm very sorry about this. It looks like for some reason you appear to be on an auunal contract. If you give one of the CSC analysts a ring they should be able to sort this out really quickly for you.
Standard User deleted
(deleted) Sat 17-Nov-07 14:07:50
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Re: outrageous plusnet cancellation fee


[re: wingco1] [link to this post]
 
20% seems a tad excessive
-----
I wonder what rsharma would say? In any event, if the banks are now prohibited by law from profiteering on their charges, I'm sure that PlusNet can't arbitrarily add to the disputed bill any more than the going rate of interest - and, if eventually successfully recovered through the courts, an actual recovery or collection charge. I'm not aware of any law which allows them to add 20% to the amount claimed just because someone is 7 days late in paying or disputes the charge.

My advice to the OP would be to work out what he thinks he reasonably may owe PlusNet, if anything, and pay that amount - always bearing in mind that PlusNet may pursue him to court for the balance (unless of course they don't have a leg to stand on). But if they should succeed in getting a judgment then they will certainly then add on additional recovery and legal costs to the amount awarded.

Simon

Simon
Standard User deleted
(deleted) Sat 17-Nov-07 14:33:59
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Re: outrageous plusnet cancellation fee


[re: deleted] [link to this post]
 
Personally I think it's a scare tactic. Can't see it being legally enforceable.
Standard User deleted
(deleted) Sat 17-Nov-07 14:39:06
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Re: outrageous plusnet cancellation fee


[re: deleted] [link to this post]
 
Standard User deleted
(deleted) Sat 17-Nov-07 14:43:20
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Re: outrageous plusnet cancellation fee


[re: deleted] [link to this post]
 
So you think the 20% extra charge is a mistake?
Standard User deleted
(deleted) Sat 17-Nov-07 14:47:17
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Re: outrageous plusnet cancellation fee


[re: deleted] [link to this post]
 
Standard User wingco1
(eat-sleep-adslguide) Sat 17-Nov-07 14:51:22
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Re: outrageous plusnet cancellation fee


[re: deleted] [link to this post]
 
In reply to:

Can't see it being legally enforceable.



It doesn't need to be if people just pay it.


+++++++++++++++++++++++++++++++++++++++

"Nearly all men can stand adversity, but if you want to test a man's character, give him power."
Abraham Lincoln
16th president of US (1809 - 1865)
ISP Representative IanWild
(isp) Sat 17-Nov-07 15:39:50
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Re: outrageous plusnet cancellation fee


[re: wingco1] [link to this post]
 
The policy is that any remaining fees, if not collected at the time of the cancellation request, remain due. We will ultimately pursue unpaid debts via an external debt-collection agency, but we do call and write to the registered account address before doing this and obviously if a sum is in dispute we woulden't just pass it on to the debt collection agency without working with the customer to make sure the dispute had been addresed.

It is only when we pass on the debt that an additional administration fee is also applied to the outstanding sum, and currently 20% reflects that cost. I don't believe this is very unusual, but I agree that this should have been explained more politely and without it seeming automatic - we have no desire to make people's leaving experience bad. In plenty of cases customers are realising the grass is not greener and are coming back to us - we don't want to jeopardise that.

It sounds to me like there has been a misunderstanding here which if I was in work I would look to sort out myself now. If the OP can't resolve this with another call into the support team as James suggested, I will make sure this is properly addressed on Monday. Certainly the amount being asked for sounds like a disspointing mistake, which is precisely what we are working so hard at PlusNet at the moment to avoid doing.

Ian

Ian Wild
PlusNet Product Development Team

Community Site Forums
The UserGroup Forums
The above post has been made by an ISP REPRESENTATIVE (although not necessarily the ISP being discussed in the post).
Standard User wingco1
(eat-sleep-adslguide) Sat 17-Nov-07 16:04:59
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Re: outrageous plusnet cancellation fee


[re: IanWild] [link to this post]
 
In reply to:

The policy is that any remaining fees, if not collected at the time of the cancellation request, remain due.



I understand and have no problem with that.
In reply to:

We will ultimately pursue unpaid debts via an external debt-collection agency, but we do call and write to the registered account address before doing this and obviously if a sum is in dispute we woulden't just pass it on to the debt collection agency without working with the customer to make sure the dispute had been addresed.



The OP posted that he received an email saying pay within 7 days or the 20% will be added. That doesn't tie with what you are saying.
In reply to:

Certainly the amount being asked for sounds like a disspointing mistake,



Which is why I didn't comment on that specifically.
In reply to:

It is only when we pass on the debt that an additional administration fee is also applied to the outstanding sum, and currently 20% reflects that cost.



I still believe an Administration Feeof 20% is a tad steep. Can you give a breakdown why an Admin fee has to be a percentage, surely the same paperwork is involved for

+++++++++++++++++++++++++++++++++++++++

"Nearly all men can stand adversity, but if you want to test a man's character, give him power."
Abraham Lincoln
16th president of US (1809 - 1865)
Standard User deleted
(deleted) Sat 17-Nov-07 16:08:42
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Re: outrageous plusnet cancellation fee


[re: gonzavala] [link to this post]
 
"13.1 You must pay the Charges for the Service and/or Equipment at the price prevailing at the time of the Customer Order. The Charges form part of this Agreement. You will be responsible for the maintenance of your connection settings. You are responsible for checking your connection settings against the configurations which we stipulate on our website in the 'Your Account' section. We will not be liable for any Charges incurred where you have not followed our recommended connection settings. Any Charges incurred due to incorrect connection settings will be payable by you."

Nothing there about 20%

"13.5 You understand and agree that if you fail to make payments of Charges when they are due, we may suspend or cancel your Service, in part or in full, until payment is received in full. If we need to cease your Service because you have not paid and you then later decide to resume the Service, there may be a re-activation and administration charge where applicable, for which you will be liable."

Nothing here either - the word MAY does not mean will.... and why would an administration charge vary according to the amount outstanding? surely it should be a fixed cost!

13.9 Interest payable on demand shall accrue from day to day on overdue amounts at the rate of 2% above the base rate of National Westminster Bank Plc together with VAT if applicable.


13.10 We reserve the right to engage a third party debt collection agency in order to obtain any outstanding debt. Any additional charges generated as a result of this process will be payable by you

Nothing about a 20% charge here either


Might have been worth waiting a month...

Ian
will the

Edited by deleted (Sat 17-Nov-07 16:18:09)

Standard User wingco1
(eat-sleep-adslguide) Sat 17-Nov-07 16:14:49
Print Post

Re: outrageous plusnet cancellation fee


[re: deleted] [link to this post]
 
In reply to:

as mentioned in section 13.10 of our terms and conditions



Was does 13.10 say?

+++++++++++++++++++++++++++++++++++++++

"Nearly all men can stand adversity, but if you want to test a man's character, give him power."
Abraham Lincoln
16th president of US (1809 - 1865)
Standard User deleted
(deleted) Sat 17-Nov-07 16:18:48
Print Post

Re: outrageous plusnet cancellation fee


[re: wingco1] [link to this post]
 
apologies cant count... 13.1 is not 13.10 -- have edited post

Edited by deleted (Sat 17-Nov-07 16:19:04)

Standard User wingco1
(eat-sleep-adslguide) Sat 17-Nov-07 16:23:35
Print Post

Re: outrageous plusnet cancellation fee


[re: deleted] [link to this post]
 
In reply to:

13.10 We reserve the right to engage a third party debt collection agency in order to obtain any outstanding debt. Any additional charges generated as a result of this process will be payable by you

Nothing about a 20% charge here either




Do you think 20% is fair. Ian has said that is the current rate but it does seem a little OTT.


+++++++++++++++++++++++++++++++++++++++

"Nearly all men can stand adversity, but if you want to test a man's character, give him power."
Abraham Lincoln
16th president of US (1809 - 1865)
Standard User deleted
(deleted) Sat 17-Nov-07 16:27:47
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Re: outrageous plusnet cancellation fee


[re: wingco1] [link to this post]
 
To my mind a % is wrong.
To send a letter to a debtor will be standard amount.
to charge 20% on a debt of 220.38 would be 44 pounds.
But if 50 is owed then its 10 pounds. Can't be 34 pounds difference for the same course of action.
Standard User wingco1
(eat-sleep-adslguide) Sat 17-Nov-07 16:30:49
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Re: outrageous plusnet cancellation fee


[re: deleted] [link to this post]
 
I suppose it could be argued that if the 20% figure doesn't appear in the T&C's then the customer hasn't agreed to pay it. It would then be up to the ISP to pursue the matter through the courts.

+++++++++++++++++++++++++++++++++++++++

"Nearly all men can stand adversity, but if you want to test a man's character, give him power."
Abraham Lincoln
16th president of US (1809 - 1865)
Standard User deleted
(deleted) Sat 17-Nov-07 16:49:19
Print Post

Re: outrageous plusnet cancellation fee


[re: deleted] [link to this post]
 
it's called a mistake, they happen
Standard User deleted
(deleted) Sat 17-Nov-07 17:16:00
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Re: outrageous plusnet cancellation fee


[re: deleted] [link to this post]
 
Agreed.. hence my comment earlier...
Moderator Sadoldman
(moderator) Sat 17-Nov-07 17:20:34
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Re: outrageous plusnet cancellation fee


[re: deleted] [link to this post]
 
>My advice to the OP would be to work out what he thinks he reasonably may owe PlusNet..............

Far better for the OP to get clarification on what seems to me to have all the hallmarks of an error before taking any action.



Sadoldman

Just a tad sad..a wee bit old...

[email protected]
The author of the above post is a thinkbroadband moderator but it does not constitute an official statement on behalf of thinkbroadband.
Standard User deleted
(deleted) Sat 17-Nov-07 17:26:04
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Re: outrageous plusnet cancellation fee


[re: wingco1] [link to this post]
 
I'll comment later when the op has had resolution.
Standard User wingco1
(eat-sleep-adslguide) Sat 17-Nov-07 17:29:51
Print Post

Re: outrageous plusnet cancellation fee


[re: deleted] [link to this post]
 
Any opinion on this
http://bbs.adslguide.org.uk/showthreaded.php?Cat=&Board=plusnet&Number=3187070

+++++++++++++++++++++++++++++++++++++++

"Nearly all men can stand adversity, but if you want to test a man's character, give him power."
Abraham Lincoln
16th president of US (1809 - 1865)
ISP Representative IanWild
(isp) Sat 17-Nov-07 17:31:34
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Re: outrageous plusnet cancellation fee


[re: wingco1] [link to this post]
 
In terms of us not being able to recover a valid outstanding amount, the actual process is documented here. I would completely agree, as I said before, that the message given about this wasn't good enough and I'm going to make sure we improve that.

As I remember it, a percentage of the total amount is how the the debt collection agency charge us for collecting the debt. Someone else probably know more about the debt collection industry than me, but I think because our average debt is normally quite small, a percentage rather than a fixed cost gives better value (In in most cases it's lower than a fixed charge would be). Especially if you consider the extra work for us during this process, I don't believe this amount is out of kilter with the norm. [Edit to add - On that basis and given what I can see from a quick Google on this, yes I believe it's fair].

Ian

Ian Wild
PlusNet Product Development Team

Community Site Forums
The UserGroup Forums

Edited by IanWild (Sat 17-Nov-07 17:33:35)

The above post has been made by an ISP REPRESENTATIVE (although not necessarily the ISP being discussed in the post).
Standard User wingco1
(eat-sleep-adslguide) Sat 17-Nov-07 17:33:15
Print Post

Re: outrageous plusnet cancellation fee


[re: IanWild] [link to this post]
 
Fair comment.

+++++++++++++++++++++++++++++++++++++++

"Nearly all men can stand adversity, but if you want to test a man's character, give him power."
Abraham Lincoln
16th president of US (1809 - 1865)
Standard User deleted
(deleted) Sat 17-Nov-07 17:35:09
Print Post

Re: outrageous plusnet cancellation fee


[re: wingco1] [link to this post]
 
No it should be a "reasonable" fixed charge...

if the debt is
Standard User deleted
(deleted) Sat 17-Nov-07 17:36:57
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Re: outrageous plusnet cancellation fee


[re: wingco1] [link to this post]
 
I would just call Plusnet as suggested and take it from there.
Standard User deleted
(deleted) Sat 17-Nov-07 17:38:52
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Re: outrageous plusnet cancellation fee


[re: deleted] [link to this post]
 
the OP should be somewhat wiser come monday. perhaps he could report back on the outcome.
Standard User wingco1
(eat-sleep-adslguide) Sat 17-Nov-07 17:39:32
Print Post

Re: outrageous plusnet cancellation fee


[re: IanWild] [link to this post]
 
One further point Ian. Reading the letters PN send, letter 2 refers to a 20% admin charge as does letter 3, this suggests the charge is being made twice. Can you clarify please?

+++++++++++++++++++++++++++++++++++++++

"Nearly all men can stand adversity, but if you want to test a man's character, give him power."
Abraham Lincoln
16th president of US (1809 - 1865)
Standard User wingco1
(eat-sleep-adslguide) Sat 17-Nov-07 17:43:34
Print Post

Re: outrageous plusnet cancellation fee


[re: deleted] [link to this post]
 
In reply to:

I would just call Plusnet as suggested and take it from there.



I quite agree, it's obviously a genuine mistake which will be rectified, and I have no doubt Ian will sort out the wording of the email regarding the Admin Fee.

+++++++++++++++++++++++++++++++++++++++

"Nearly all men can stand adversity, but if you want to test a man's character, give him power."
Abraham Lincoln
16th president of US (1809 - 1865)
ISP Representative IanWild
(isp) Sat 17-Nov-07 17:54:22
Print Post

Re: outrageous plusnet cancellation fee


[re: wingco1] [link to this post]
 
There would only be one charge. I'll see if we can make that clearer too. It's pretty rare things get to this stage so I've not come across this one before.

Ian

Ian Wild
PlusNet Product Development Team

Community Site Forums
The UserGroup Forums
The above post has been made by an ISP REPRESENTATIVE (although not necessarily the ISP being discussed in the post).
Standard User wingco1
(eat-sleep-adslguide) Sat 17-Nov-07 18:01:38
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Re: outrageous plusnet cancellation fee


[re: IanWild] [link to this post]
 
A usefull excercise then

+++++++++++++++++++++++++++++++++++++++

"Nearly all men can stand adversity, but if you want to test a man's character, give him power."
Abraham Lincoln
16th president of US (1809 - 1865)
Standard User gonzavala
(newbie) Sat 17-Nov-07 20:16:52
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Re: outrageous plusnet cancellation fee


[re: deleted] [link to this post]
 
Hi, thanks for all the comments. I feel better now seeing that this is most likely a mistake. Will call plusnet on Monday and then post the outcome here. Fingers crossed.

Gonzalo
Standard User TLM
(eat-sleep-adslguide) Sat 17-Nov-07 20:50:13
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Re: outrageous plusnet cancellation fee


[re: deleted] [link to this post]
 
Something up with your maths. 20% of
Standard User deleted
(deleted) Sat 17-Nov-07 21:35:18
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Re: outrageous plusnet cancellation fee


[re: gonzavala] [link to this post]
 
I don't suppose that you took the Loyalty option recently (365 - 347 = 18 days ago)? This would have put you into a new 12 month contract which would explain the charges. It would not make much sense if you were thinking of leaving.
Standard User gonzavala
(newbie) Sat 17-Nov-07 22:43:51
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Re: outrageous plusnet cancellation fee


[re: deleted] [link to this post]
 
No, last time I contacted them was about a year ago when I moved. Now it's clear that this is most likely a mistake on their part as several people have suggested. We'll see soon.

Gonzalo
Standard User deleted
(deleted) Sat 17-Nov-07 23:32:43
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Re: outrageous plusnet cancellation fee


[re: TLM] [link to this post]
 
Not the first time a post from Paddy didn't add up
Standard User deleted
(deleted) Sat 17-Nov-07 23:33:59
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Re: outrageous plusnet cancellation fee


[re: gonzavala] [link to this post]
 
BTW why you leaving PN? who you moving too?
Standard User gonzavala
(newbie) Sun 18-Nov-07 01:12:57
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Re: outrageous plusnet cancellation fee


[re: deleted] [link to this post]
 
I'm switching to O2. Since I have a mobile with them, I get broadband for 7.50 per month, half of what I pay to Plusnet right now. In addition, I get a new wireless router, which comes handy since mine is past its best days, plus a free move. Since I know I'm going to move soon, that alone is a
Standard User gonzavala
(newbie) Sun 18-Nov-07 20:57:52
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Re: outrageous plusnet cancellation fee


[re: deleted] [link to this post]
 
Well, they solved it quite fast, although still a 47 charge that I don't like...probably if I stay a month longer that's going to disappear as well...

As per my message our apologies for the incorrect amount been sent.

There is �47 for the deferred hardware contract and then there is �14.99 which covers your 30 day notice period making it a total of �61.99.


Thanks everybody for their comments and support.

Gonzalo
Standard User deleted
(deleted) Sun 18-Nov-07 21:02:03
Print Post

Re: outrageous plusnet cancellation fee


[re: gonzavala] [link to this post]
 
why don't you stay a month longer to save the 47 pounds
Standard User gonzavala
(newbie) Sun 18-Nov-07 21:18:00
Print Post

Re: outrageous plusnet cancellation fee


[re: deleted] [link to this post]
 
Yes, that's my plan now.
Standard User rsharma
(knowledge is power) Wed 21-Nov-07 20:16:51
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Re: outrageous plusnet cancellation fee


[re: deleted] [link to this post]
 
Not only does the charge seem excessive but it sounds punitive. You can compare the similarities with the recent bank charges case.

A court would generally not accept such a high penalty. In addition, in court the maximum you normally are allowed to claim for interest is a statutory rate (I don't know what it is currently but it was around 8% (compound) last time I checked 6 months ago or so). A company could charge for administration of a bad debt but only a reasonable amount (IMO 20% is not). They would also not be allowed to pass it to a debt collection agency automatically, and if a dispute exists the debt would have to remain with the company for resolution.

More importantly, Wingco has shown that the contract terms don't include any such terms in any case. And if they did it would IMO be unenforceable because it would be a new term, one that wasn't included in their original Ts&Cs (the last time I checked was in Feb 07 and no notice has been given of any changes to them AFAIK) although admittedly I haven't followed PN news for a few months now.

-------------------------------------------------------
Plusnet: The Truth (Blog)
Formal Complaints Process
Testing Connection Speeds
Plusnet LLU and Your Rights
Standard User paul2002
(committed) Wed 21-Nov-07 23:11:53
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Re: outrageous plusnet cancellation fee


[re: rsharma] [link to this post]
 
Don't really see the similarities to the recent bank charges cases.
In reply to:

They would also not be allowed to pass it to a debt collection agency automatically, and if a dispute exists the debt would have to remain with the company for resolution




who or what stops them from doing this? Ian did say if there was dispute it would not be passed on to the agency

Ian said
In reply to:

We will ultimately pursue unpaid debts via an external debt-collection agency


and having some involvement (a long time ago) in using a debt agent 20% feels like a reasonable cost

Contract from August 2005 (same wording in the current T&Cs)
13.10 We reserve the right to engage a third party debt collection agency in order to obtain any outstanding debt. Any additional charges generated as a result of this process will be payable by you.


I wouldn't expected to see a specific fee or % given in such a clause as the charges can vary


Paul

Plus Net - maxDSL - premier....or whatever its called now
Draytek Vigor 280VG running 2.7_E38 firmware
Standard User deleted
(deleted) Thu 22-Nov-07 09:14:17
Print Post

Re: outrageous plusnet cancellation fee


[re: rsharma] [link to this post]
 
Rsharma,

I'm not sure if you missed my earlier post, but I stated earlier that it was a mistake. So I don't think that any concerns over court fees should be needed just yet
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