Early Termination Charge explained
Terminating your Pay Monthly (including SIM Only) Service Agreement early
You may cancel your Pay Monthly Service Agreement (Agreement) at any time by contacting Tesco Mobile Customer Care. If you cancel your Agreement before the end of your Minimum Contract Period, you may incur an Early Termination Charge (ETC). We explain how we calculate ETCs below, but we will always notify the amount to you before you cancel.
When you cancel
Depending on when you cancel your Agreement, you may be subject to charges for usage for the month you are in when you cancel, plus the ETC. You can choose to cancel your Agreement:
- Immediately; or
- When you use a PAC code that you have requested from us; or
- On your next Billing Date.
If you cancel your Agreement before your next Billing Date, you will incur charges for any usage you have made on the Tesco Mobile Pay monthly Service. The charges you will incur will be the total sum of (1) the current standard rate charges for calls, text and data within the Inclusive Allowance categories capped at the fixed monthly subscription tariff and any bundles you selected when you made your purchase, plus (2) the current standard rate charges for any calls, text and data outside of the Inclusive Allowance categories. We then calculate your ETC.
How we calculate your ETC:
- We multiply the monthly subscription charge of your Agreement by the number of months remaining on your Minimum Contract Period;
- We then make deductions:
- We take off VAT at the applicable rate*; and
- We also add a small discount of approximately 3% for any benefit we might receive for us no longer providing you service on our network,
together this adds up to a 20% discount.
Example – Pay Monthly
You have a Pay Monthly Service Agreement of £10 a month (which is your monthly subscription charge), with six months remaining of your Minimum Contract Period. We multiply £10 by six, which totals £60. We then take off 20% of deductions, making your ETC £48.50.
If you cancel your contract after your Minimum Contract Period has ended, you won’t have anything to pay on your Pay Monthly Service Agreement other than the amount you have used in that month as set out in When You Cancel. (See below for Anytime Upgrade Flex customers).
Anytime Upgrade Flex Customers
If you are an Anytime Upgrade customer, your bill is made up of your Pay Monthly Service Agreement and your Anytime Upgrade credit agreement repayments. Therefore, if you are thinking of leaving us, you will need to pay off your credit agreement as well as an ETC.
If your credit agreement is longer than 24 months, your ETC for usage is limited to the duration of your Minimum Contract Period, which will never exceed 24 months. In summary:
- If you cancel your contract before your Minimum Contract Period, you will have to pay an ETC for usage and pay off your credit agreement for your mobile handset;
- If you cancel your contract after your Minimum Contract Period, but before the end of your credit agreement, you won’t have to pay an ETC but you will have to pay off your remaining mobile handset credit agreement;
- If you cancel your contract after both your Minimum Contract Period, and credit agreement has ended, you won’t have anything to pay other than the amount you have used in that month.
If you are an Anytime Upgrade Flex customer with a rolling usage contract, you will not be required to pay ETCs on your usage contract, although you will be required to pay off your credit agreement.
* To add VAT you multiply the figure by 0.2. To deduct VAT you multiply the figure by 0.1667.