DN
Deon N

1 reviews | Active since Mar 2009

22 Sept 2018, 15:11

Contravention of Consumer Protection ACT (and *********)

I have a sim-card only contract for R42.80 per month with Vodacom. There are 14 months remaining on the contract. When I enquired about cancellation of the contract I was told today that the cancellation cost is R42.80 for this month plus a cancellation fee of R625 totalling R667.80. My understanding of the Consumer Protection Act (CPA) is that the maximum that Vodacom may charge is the fee for this month plus a further 6 months’ worth of monthly fee which is R285.60 in total. Note that there is no handset which needs to be settled. Vodacom is therefore in contravention of the CPA.

0
Replies (3)
Vodacom
Vodacom's reply22 Sept 2018, 15:46
Official

Dear Customer,

Thank you for making us aware of your complaint.

Kindly be advised that a consultant will make contact with you in due course to assist with your query.

***Please note*** Beware of phishing ****s.

Vodacom will not contact you via Whatsapp to request your personal details

Regards,
Vodacom Consumer Website Team

Vodacom
Vodacom's reply22 Sept 2018, 16:00
Official

Dear Customer,

Thank you for the time and effort taken to voice your dissatisfaction with our office. It is with the cooperation and feedback from valued clients such as yourself that we are able to identify any areas of improvement within our organization.

After recent discussions, we now consider this matter closed.

Regards
Vodacom Consumer Website Team

DN
Deon N's update22 Sept 2018, 16:31
Reviewer Update
The Vodacom response was entirely inadequate. They refuse to budget on the cancellation amount and quoted the fixed contract term to validate their response. My research indicates that the maximum that they are allowed to charge is 20 days notice plus 10% of the remaining contract over the period. This would then amount to a maximum possible charge of only R98.44. Bear in mind that there is no cell phone handset applicable. Refer to the extract below: "20 days’ notice. Cell phone service providers are compelled under the rules of the CPA to allow customers to cancel their contracts early, just so long as 20 days’ notice is given. What’s more is you will not have to pay out your cell phone device. Under the CPA the contract providers will no longer be able to force customers to pay for the handsets that came with the contract (however should you not pay out for your cell phone your Service Provider will be allowed to take back the mobile phone). Grey areas The CPA states that there can be a "reasonable” charge for contract cancellation which is decided on after taking a number of points into consideration. A reasonable charge may not exceed 10% of the amount you would have had to pay over the fixed term." Therefor my original statement still stands and I did make my viewpoint clear to the agent who contacted me.