[payporanymn]

My Dad just forwarded on an email that he received from his ISP. IS this legal? Seems highly suspect to me.

In light of the recent reduction in VAT made by the government, we are writing to inform you of our response to the changes which will take effect as of the 1st December 2008.

The prices for our broadband packages have always been quoted to you inclusive of VAT. Passing on the VAT reduction would create a lot of costly and time-intensive administrative work, for both us and you, in terms of overhauling customer billing processes as well as amending direct debits and payment instructions.

After careful consideration of all the options, we've taken the decision to leave subscriptions at the current rate.

The financial saving each customer would have received - equating to approximately 32p a month, is far outweighed by the disruption and additional resource these changes would cause to our customer service and support, as well as to you, the customer, in changing your direct debit or WorldPay instructions.

This means your monthly subscription will remain unchanged. However, in order to ensure that overall amounts remain the same, we have to advise you that in effect, we have increased the price of our service by 2.1% - a change that will take effect from 1 December 2008, to the cessation of this temporary rate.

As per your Terms and Conditions http://www.ukonline.net/legal/produc..._broadband.php you do have the option to end your contract with us without being held to your minimum term before the 1st January.

Should you have any questions, please contact UK Online Customer Services on 0800 053 2222 or email us at: customer.services@ukonline.net

Yours sincerely,
UK Online Customer Services

[logpogingg]

So basically they are pocketing the 32p a month on EVERY customer - that will amount to a sizeable additional profit for them.

I think its disgusting. Especially trying to use the whole "oh it would be too complicated to change it" - like its the customers fault that their systems can't easily change the amount.

I bet if they decided to increase the cost of their service by 5 gbp a month their systems would bloody well cope with the change! [no]

[qd0vhq4f]

Companies can charge you whatever the hell they like, provided they give you a heads up and an option to cancel like they have (some contracts I think say have to give you 30 days notice but that depends on the company)

Its not very customer friendly but I don't think there is anything stopping them unfortunantly.


Edit -

As chris said, its very cheeky pulling the whole "Systems cant cope" cop-out, its not the customers fault its their's.

But on the other hand is anyone really going to make a fuss about a potential 32p saving

[JMLot]

Id leave if I had that email. The whole point of the tax reduction is to help people, not for companies to become greedy [thumbdown]

You could send an email to your local Councillor for the official advice though if they are allowed to do this, but considering they're specifically saying its only for the tax cut period, then I think they've caused a bit of a problem for themselves.

But on the other hand is anyone really going to make a fuss about a potential 32p saving

What a thing to say! Lets say that for everything that has the %age cut (as its only a few pence anyway).....get the point?

[payporanymn]

Companies can charge you whatever the hell they like, provided they give you a heads up and an option to cancel like they have (some contracts I think say have to give you 30 days notice but that depends on the company)

Its not very customer friendly but I don't think there is anything stopping them unfortunantly.


Edit -

As chris said, its very cheeky pulling the whole "Systems cant cope" cop-out, its not the customers fault its their's.

But on the other hand is anyone really going to make a fuss about a potential 32p saving

I know it's only 32p, but it's the sneaky underhand way that they've gone about it. I wonder how many other companies and retailers have done something similar in light of the recent change? Could prove to be a real money-making scheme.

That said, my Dad is generally happy with the price and level of service that he gets from them, so he will be staying with them Was just a little taken aback with their email.

[Ruiceara]

nothing you can do they are emailing to to tell you of a change in price of the service. you can accept it or leave.

i bet if the vat was increased it would not be too time consuming and costly to update bank details lol

[JMLot]

nothing you can do they are emailing to to tell you of a change in price of the service. you can accept it or leave.

Yes but to avoid the tax cut. I really dont know the complete ins and outs, but I can find out at work tomorrow. If its ok, then theres no stopping any company doing the same, which would make the tax cut (to help the public) a complete waste of time.

[mr.nemo]

Yes but to avoid the tax cut. I really dont know the complete ins and outs, but I can find out at work tomorrow. If its ok, then theres no stopping any company doing the same, which would make the tax cut (to help the public) a complete waste of time.

Aren't companies free to set their prices as they please? This was sleazy of them to do, but they are complying with the tax cut. Their service fee has risen so the customer doesn't notice the change. Sleazy, but seems legal enough to me. [surrender]

[apatteopipt]

Scum. Sub-human scum.

I'd tell him to leave on principal. O2 are offering current subscribers free home broadband for a year (BT line required), could be of use.

http://www.hotukdeals.com/item/28739...r-12-months-f/

[logpogingg]

Its legal (you notice the bit where they had to explain that in effect this means that the cost of the service has risen by 2.1%) - just not a very nice thing to do at all.

Its profiteering at its most blatant.

[qd0vhq4f]

What a thing to say! Lets say that for everything that has the %age cut (as its only a few pence anyway).....get the point?

Oh dont get me wrong I know exactly what you mean, its very underhand and adds up quickly.

If they have say 50,000 customers thats £16,000 extra a month they are making. Its just when it comes down to one person against the company, they are arguing for a 32p reduction, its generally going to cost them more to argue than they will save... which is exactly what makes it so underhand.

[arcalmanard]

I'd leave them for a competitor... assuming you have one where you live.

The purpose of the tax cut was for consumers to spend less. Them using it as an excuse to increase their profits is crap. Kick em where it hurts and drop the service.

[suiviouse]

Be* have reduced their prices by 50p on all of their packages, for my own package (£18pm) it should be £17.62 after VAT cuts, but instead Be* just decided to round it down to £17.50pm [thumbup]

saves £6 a year, not much but it all adds up.

[detskpit]

TBH this is a situation where it is not the amount of £££ being saved, but rather the principle and company ethics.

This proves thay don't give a sh!t about you.

So why give them your hard earned cash?

Go to another ISP.
Phone them up, ask for a MAC code, listen to them B$ about why they are great and you should stay.
Tell them with satisfaction, why you are moving on principle... unless they knock £10 off your monthly subscription lol! (never going to happen).

[Dodoerabe]

This is the very point opposition MP's were trying to make when the government announced the cut. The cost involved in companies re-pricing to pass on the cut would have meant they would need to increase their base price to compensate. A good example is catalogues - eg Argos - They would have to re-print their catalogue at massive expense where in some products the reduction would amount to less than 5p. On the other hand if you where to purchase a £20,000 car the saving would be £500.

This was nothing more than an attempt by the government to con the public into spending more and help them win votes. If they had wanted to make a real difference they would have been better taking a 1p of income tax - that way everyone would have benefitted.

[JMLot]

They dont have to do that at all. Some stores in town say that they are abiding by the new tax cut, but havent updated all their prices on the shelf/catalogues and its the same with superstores; when you go to the till, it shows the correct price.

[mr.nemo]

So are all prices over there displayed with taxes already added? Over here is it the exact opposite. Everything is listed pre-tax(save for some things like gas, some food stuffs and the like) so we all become quite good at decimal multiplication (price*1.13 in my case ).

[Yarmark]

Just got this from my ISP -

With the drop in VAT from 17.5% to 15% you may be wondering if there are any changes to your force9 services.

In short, the answer is yes. We've reduced the costs of your broadband and other services to match the changes in VAT. Broadband and Home Phone prices have been reduced across the board.



PlusNET/Force9

[Uplillacype]

So are all prices over there displayed with taxes already added? Over here is it the exact opposite. Everything is listed pre-tax(save for some things like gas, some food stuffs and the like) so we all become quite good at decimal multiplication (price*1.13 in my case ).

Taxes are always included in prices everywhere. Grocery stores, tech stores, bills from energy or telephone companies...

I found at always very confusing that you have to do the math on the tax yourself when you buy something in the US. I always thought "wow, thats so freakin cheap" and in the end I payed a price that I could have found here too.

[Sttim]

So are all prices over there displayed with taxes already added? Over here is it the exact opposite. Everything is listed pre-tax(save for some things like gas, some food stuffs and the like) so we all become quite good at decimal multiplication (price*1.13 in my case ).

I don't understand why in the US (and it seems Canada) prices don't include tax. It's stupid imho. The price you see should be the price you pay, not see one price then get up to the till and suddenly have to pay more.