Bluegrass Lass

Ok, so here I thought it might be easier to cancel contracts for our mobile phone and car insurance than it would be in the US.

In the US, it's no biggie to change insurance carriers at any time, and I've never had to pay a termination fee at all. Here, the insurance policy fine print reads like a credit card contract, and they mention something about having to 40% to 80% of the policy, depending on how many months are left on the 1yr policy. Does that sound right? The policy is through Lloyds.

OH signed up for a Blackberry contract through O2 in June; it's a 24mo contract. They are saying we'd have to pay for all remaining months as an 'early termination fee'. (That's not the case in the US - you pay about $200/phone and that's it!) If we had to pay all remaining months that would be around £650! I don't want to pay close to $1000 just to cancel a bloody phone!

I haven't called Virgin Media yet about the home phone & internet. I'm almost afraid to, after finding out about these two issues.

It's not exactly kosher, but what's the worst case on the mobile phone if we simply walked away? Since it's a direct debit, can we simply cancel it through the bank, or would we need to actually shut down the bank account to keep them from taking the money out?

Karen68

Have you actually checked with Lloyds about the car insurance? Twice now I have had to cancel car insurance policies to move to the US and both times I have had the unused portion refunded to me (perhaps less a small admin charge? I can't really remember). I did however make it clear that I had to cancel the insurance because I was leaving the country when I spoke to them.

I suppose at the end of the day a contract is a contract and it's entirely up to the other party if they will release you from it and refund the unused balance. As Lloyds have just issued appalling results, they may feel the need to keep hold of as much money as they can!

Can't offer any help with the mobile phone as I only ever have pay as you go.

S_C_P

I'm in the same boat with a mobile contract from Three. I'm going to have to continue paying a monthly fee as they won't release me from the contract even if I leave the country. I've offered to give back the handset but they wont budge.
Let us know how you get on but after searching online I've only found more accounts of people complaining about being trapped in contracts. I've yet to see anyone happily saying they cancelled their contract and sailed away...

On the other hand, I've cancelled car insurance before and been sent a check in the post for the remaining amount.

GeoffM

Trouble is, you agreed to pay X for Y months with the phones. You're trying to break out of the contract so they have the upper hand. They ought to be able to negotiate a lower price than paying to the end of the contract but why would they want to?! Cut and run isn't a great idea if they choose to hassle you or any UK family, regardless of the legalities of doing so. Maybe try to speak to a supervisor with the threat of running but it doesn't look good!

Car insurance, on the other hand, is per month mostly, so you should be okay, minus a bit for admin.

GeoffM

Oh, and I have little faith in direct debits. They may be guaranteed but I've had enough hassle from HSBC applying new DDs to a closed account to have to break the chain and move my account elsewhere.

Bob

The car insurance, seems like it's the same as in the US....cancel early and there might be fees.

Can negotiate it and see what they say about you moving abroad.

The phone, best tactic is saying you are paying for service, if they can't offer you the service where you are moving to, then it's fair and square to cancel and obviously, they can't offer the service. It's worked for others, might work here. At the end of the day, you did sign the contract, so if they don't relent, you're kind up up the creek.

celticgrid

You could always offset a chunk of the phone termination fee by selling the phone?

Bluegrass Lass

Yeah, we'll sell the phone and the Playbook he got with it for free. Hopefully that will generate at least half of the funds necessary. In the meantime we'll just keep paying the monthly payment even though we'll be back in the US. I'm not one to cut and run, but I won't deny we are tempted in this situation since we'll be leaving the country.

S_C_P

Bit of a late update but it may be useful to others...
No luck canceling my phone contract but I was able to downgrade my monthly payments, albeit by only a small amount, and I did get them to unlock the handset so I can use it with a US sim card.
The other option is finding someone returning from the US and essentially 'swapping' contracts... we considered it but the contract only runs until Aug so we're just sucking it up instead.

Phoodilicious

We were in the same situation regarding cell phones when we came to the States in Feb last year and we have just continued to pay the DD for both phones to Orange in the UK, the contract ends at last this May! We did drop the monthly contract down to the minimum and we sold the phones to pay for the $400 deposit each cell (!!) and the $199 each to actually be handed the phones here with Verizon (because we had no credit history!)

tamms_1965

I know someone that had a similar situation although there was no contract involved....just the run around and trying to add extra fees, etc. He basically said I'll give you what I owe and you can take it as full payment or I give you nothing...I'm leaving the country. They decided what he offered (what he really owed) was better that nothing and account was marked "paid in full." Maybe you could "negotiate" a better monthly payment in a similar manner.

fatbrit

I doubt a consumer-type contract or debt is even enforceable if you're resident in the US. Certainly, the UK county court is out since they won't be able to establish jurisdiction once you've left.

Ja5on

Yes but it will be sent for debt collection.......in the UK anyway, if you don't care about your UK credit rating then just cancel all the payments. It will mess up your credit but if you don't need it then it doesn't matter.

Southy_SWFC

This' actully something I can help with as I worked for Vodafone before moving over here. Not that I have anything new to add thats already been covered.

As Geoff M rightly says you've agreed to pay X amount over Y months so there is no room for negotiation.
As Ja5on rightly says, your account would soon be passed to a debt management company and then to a debt collector if needs be. As he says if you don't care about your credit report in England then fair enough but it'll stay on your name for the next 6-7 years. Even then you could still be liable to pay it so its not really worth it IMO. Any failed payment for 3months effects your credit file automatically.

Ja5on

After 7 years of no contact/payment they can't still make you pay.