Be careful if you want to cancel or buyout your mobile phone contract early, it could result in you getting charged a hefty cancellation fee.
I want to cancel my mobile phone contract early

Check your right to cancel

Here at Which? we always recommend you switch to the cheapest provider where possible, but with mobile phone contracts our advice is to proceed with caution if you want to cancel or buyout your contract early.

Before you sign up with a new mobile service provider, check carefully whether you have the right to cancel your contract and if so, at what stage.

According to Ofcom rules firms must have ‘swift and hassle-free’ processes if you complain about poor service and make it easier for you to switch.

KEY INFORMATION

Mobile contract price hike?

If your mobile phone provider makes increases to your fixed monthly price by more than the Retail Price Index (RPI), you should be able to exit the contract if you’re still within your minimum term without incurring a penalty fee. Use our guide to your rights to cancel if the cost of your mobile phone contract has gone up.

Cancelling your phone contract early

Sanchia Pereira from Which? Legal says, if you are in the position where you are having to consider cancelling your phone contract early and have taken out your contract online, over the phone or away from phone provider’s usual place of business, it could be good news as you are afforded a cooling off period of 14 days under the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013.

This means that during the cooling period you can cancel the contract for a refund. If you have started to use the phone, a deduction could be taken from your refund for the service already received. The cooling off period could be extended, if your phone provider has not given you specified information, such as details of a right to cancel. Make sure to check your paperwork to see what has been sent by the company around the time of purchase.

Your paperwork should contain the terms of your contract in which you may have agreed to stay with your phone provider for a minimum period of time. If the minimum period has now passed, it should be free to leave that phone provider by giving any notice period in the terms. If you cancel your contract whilst you are still in the minimum time, you could owe the phone provider charges; including an early termination fee or payment to buy out of the remainder your contract.

However, if your phone provider increases the price of your fixed contract to a level that causes you economic hardship; there may be a right to cancellation without penalty by relying on Ofcom guidance and the requirement of terms to be fair under section 62 Consumer Rights Act 2015.

 

 

Fees for cancelling a contract

If you cancel before the minimum contract term is up, you’ll have to pay an early termination fee or buyout your contract.

In most cases these fees are very high. For instance, if you signed up to an 18-month contract and want to cancel in the second month, you might have to pay 16 months’ worth of fees.

In this case it might be worth staying with your provider until the minimum term is up and then calling them to renegotiate a cheaper deal or telling them you’re going to switch.

If you want to cancel your mobile phone contract after your initial contract term is up, you can do so at any time, although most companies require 30 days’ notice.

KEY INFORMATION

Top tips

To keep your existing mobile phone number you need to ask your existing provider for a Porting Authorisation Code (PAC).

If you ordered your phone online, you can cancel under the Consumer Contracts Regulations within 14 days.

How to cancel your mobile phone contract

  1. If you don’t want to keep your number, you just need to contact your provider and tell them you’re cancelling your contract.
  2. If you’re still within contract, you’ll need to give your provider 30 days’ notice and pay any exit fees before you can leave. If you’re out of contract, you can switch provider whenever you like.
  3. You can then start a new plan with your preferred new provider.

Keeping your mobile number

You normally have the right to keep the same mobile phone number when you switch mobile provider.

To do this, you need to ask your existing mobile provider for a Porting Authorisation Code (PAC).

You give this code to the new provider to make the switch but most companies require a month’s notice.

Changing your mind

If you entered into your mobile phone contract over the phone or online you have 14 days from entering into the contract to cancel, under the Consumer Contracts Regulations.

You don’t have to give a reason for cancelling the phone service and should be refunded. However, you must pay for the value of the service that is provided up to the point you cancel.

Cancelling a mobile order online

If you buy a mobile handset online, by mail order or over the phone, under the Consumer Contracts Regulations you have the right to cancel from the moment you place your order up to 14 days from the day you receive the phone.

This 14-day period is the time you have to decide whether to cancel, you then have a further 14 days to actually send the goods back.

You should get a refund within 14 days of either the retailer getting the goods back, or you providing evidence of having returned the goods (for example, a proof of postage receipt from the post office).

Returning a mobile phone

If you buy your mobile phone or enter into a phone contract in a high street shop, then you don’t automatically have any cancellation rights if there isn’t a problem with the handset or the service.

But, some mobile shops do have generous returns policies so read the shop’s policy before buying.