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New Contributor Eileva
New Contributor

Lease plan cancellation fees

Hello, I am after clarification on how cancellation fees are calculated.

 

I am on the $85 my plan flex. 10 months into the 24 month contract.

 

I am wanting to cancel the service for personal reasons. The phone is leased and according to Optus live chat the cost to cancel the contract is $1701 which is comprised of $595 early termination fee

$238 accessory payout

$868 handset fee

 

The contract states as follows

 

- If you cancel within the 24 month minimum term, you will be
charged a lease plan cancellation fee prorated monthly for your
remaining contract term, plus if the cancellation occurs:

 

- Within the first 12 months of your minimum term, you have
to keep the phone, and you will also have to pay out the
monthly lease charges (which will be increased by any monthly
handset credit that would have applied if you did not cancel)
for the remainder of the contract term.

 

I'm wondering if it is stated anywhere how the lease plan cancellation fee is calculated and what the monthly lease charges are?

 

I have spoken to more then one live chat representative and have been given different figures each time.

 

Thanks 

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11 Replies
Trusted Contributor
Trusted Contributor

Re: Lease plan cancellation fees

If you look for your plan here: https://www.optus.com.au/shop/cis/Mobile?subGroup=Post+Paid+Mobile

Its under: My Plan Flex - $45 / $65 / $85 / $105 / $125

 

This gives the information on how your plans termination fee is calculated.

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Esteemed Contributor
Esteemed Contributor

Re: Lease plan cancellation fees

Hi @Eileva ,

 

Unfortunately leasing an Optus phone is generally a pretty bad option all round. Although it saves about $10 each month the risks and costs the customer takes on, as well as being left with no phone at the end of the contract, far outway the small savings. You're probably thinking its cheaper to keep the phone than give it back at this stage. 

 

FWIW I also find Optus' inablility to give a complete accounting of your plan costs and benefits when you first join and also a straight forward cancellation costs accounting both bemusing and poor. As you'll find you can get a different payout figure each time you call - it can be a bit like winning the lotto, which is not how contracts are supposed to work. Optus seems to hide behind a veil of real or confected incompetence in not being able to supply these basic documents to customers. 

 

However its not all bad news. The main thing you will need to do is keep the phone for another two months so you pass the 12 month point in your lease. (Its possible Optus will even talk to you at the 11 month period but otherwise 12 months) Before this point you MUST buy the phone outright from Optus (they will tell you the cost, there's no negotiating on a lease). After this you get to IMO the best option:

 

1) You pay a $99 early handset return fee

2) The cancellation fee is pro-rated so 12/24 * $1020 = $510 cancellation fee,

 

That's it. So you should be looking at around $600 to end the contract and hand the phone back (in good condition).

 

You mention an accessory payout which is another thing store sales staff sometimes sneak onto your account. They talk about throwing in accessories as an inducement but in reality its added to your plan as a monthly extra cost. Did you actively request the accessory kit? Maybe it was one of these though? 

 

Unfortunately with leasing your options are fairly limited (and all expensive). I wish I could advise otherwise.

 

Peter Gillespie

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New Contributor dennybroll
New Contributor

Re: Lease plan cancellation fees

Hey Optus. Been a long time customer and received the text about the plan changes.

 

i have a question re: phone return.  My phone has been replaced twice by the manufacturer due to technical faults. Therefore the original phone Optus provided no longer exists and I've paid (in part) for my current handset and have just been paying my bill.

 

was wondering what happens in this situation? 

cheers

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Esteemed Contributor
Esteemed Contributor

Re: Lease plan cancellation fees

As long as it was by the manufacturer and you have the paper trail then same deal as per everyone else. Hand it back or buy it. 

 

Peter Gillespie

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New Contributor Blue12
New Contributor

Re: Lease plan cancellation fees

I have completed my 24 month lease contract (now 26 months) and I was wondering what the cost would be If I were to hand the lease phone to Optus and cancel my plan instead of upgrading.

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Esteemed Contributor
Esteemed Contributor

Re: Lease plan cancellation fees

 @Blue12 

 

Assuming The phone is in good condition then $0.

 

Mild damage like significant scratches or a screen needing replacement would incur a $250 fee 

 

Peter Gillespie

 

PS Make up your mind soon as spirits will charge you the buy the phone fee a few months after the 24 months is up. Somewhere between 3 and 6 months depending on when you signed the lease

New Contributor Blue12
New Contributor

Re: Lease plan cancellation fees

Thanks.
I have a few small scratches on the side of the phone created from the phone cover but they're not too serious.

 

I appreciate the help.

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Esteemed Contributor
Esteemed Contributor

Re: Lease plan cancellation fees

Should be fine but you won't know for sure until you hand it back. Nb see my PS on previous post.

 

Petey Gillespie

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New Contributor Eileva
New Contributor

Re: Lease plan cancellation fees

So just an update to this. I'm now I think 14 months into the contract. Just asked on live chat what the cancellation fee would be. 

 

Got told it was $1690....

Early termination fee $425

Accessory repayment fee $170

Device repayment charges $620

Lease device charges $475

 

This was in respond to my asking the cost to return the phone, cancel the contract and not sign a new contract. 

 

The man on live chat was adamant this is the cost I will have to pay if I return the device. I kept thinking maybe he is working this out if I want to keep the device But he confirmed that isn't the case and this is what I will have to pay...

 

@petergdownload 

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