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    With some phone companies and deals etc like Orange or Carphone Warehouse, it has for example upfront fees ranging from 29.99-£299.99 for an Iphone 5 priced at £36.00 per month.

    What are those fees? Are they deposits? I just telephoned Orange and they said that a "deposit" might be taken but that it will be refunded in the fourth month - is this true? Are those upfront fees refunded?
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    Upfront fees are not usually deposits, they are usually to cover the extra cost of the phone which the contract does not itself cover. i.e. paying £20 per month for 24 months might not cover the cost of an iphone 5, so you would pay £100, for example, on top to meet that.

    I've never heard of an actual deposit being taken though.
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    (Original post by HumanSupremacist)
    With some phone companies and deals etc like Orange or Carphone Warehouse, it has for example upfront fees ranging from 29.99-£299.99 for an Iphone 5 priced at £36.00 per month.

    What are those fees? Are they deposits? I just telephoned Orange and they said that a "deposit" might be taken but that it will be refunded in the fourth month - is this true? Are those upfront fees refunded?
    Upfront charges listed as part of the contract are handset prices, and not refunded. Deposits are implemented rarely and on a case-by-case basis, rather than listed outright.
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    Contract phone break down-

    Contract at £36pm - You pay £36pm inc VAT every month for your set allowance of Minutes/Texts/Data. If you go over your allowance this will be charged at standard rate and be reflected on your bill.

    Upfront cost of £49- This is a non refundable one off cost that you pay. You usually pay one off costs on high end handsets like the iPhone to cover the costs of the handset. Usually paying an upfront cost makes the line rental cheaper. e.g paying £200 upfront may mean you pay £26pm, paying nothing upfront may mean you pay £36pm.

    Deposit- If for some reason your credit check shows your credit rating is bad then the network may ask you to pay a separate refundable deposit. This can be anything from £50-£300 depending on the network. You pay these as a security for the company as they don't want to give you credit due to your poor credit rating. As long as you pay 3-6 bills without fail you will get the deposit back. If you miss a bill then the network keep the deposit. Like Gofre said, these are very rare.

    Phone- The phone you get on contract will come with a 1 or 2 year warranty. You have 28 days to exchange the phone. After those 28 days you can get the phone repaired under warranty via the network/manufacturer.
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    (Original post by Sum Gai)
    Contract phone break down-

    Contract at £36pm - You pay £36pm inc VAT every month for your set allowance of Minutes/Texts/Data. If you go over your allowance this will be charged at standard rate and be reflected on your bill.

    Upfront cost of £49- This is a non refundable one off cost that you pay. You usually pay one off costs on high end handsets like the iPhone to cover the costs of the handset. Usually paying an upfront cost makes the line rental cheaper. e.g paying £200 upfront may mean you pay £26pm, paying nothing upfront may mean you pay £36pm.

    Deposit- If for some reason your credit check shows your credit rating is bad then the network may ask you to pay a separate refundable deposit. This can be anything from £50-£300 depending on the network. You pay these as a security for the company as they don't want to give you credit due to your poor credit rating. As long as you pay 3-6 bills without fail you will get the deposit back. If you miss a bill then the network keep the deposit. Like Gofre said, these are very rare.

    Phone- The phone you get on contract will come with a 1 or 2 year warranty. You have 28 days to exchange the phone. After those 28 days you can get the phone repaired under warranty via the network/manufacturer.
    Well said mate!
 
 
 
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