My memory of the law of contract is a bit sketchy but perhaps the person who wrote the letter is thinking that their advertised price is not an offer but an invitation to treat. I suppose the question is whether that changes when payment has been made, particularly if the payment can be shown to have been accepted.
I'd go the ombudsman route I think, after checking that it couldn't let me in for any material expense. If it's anything like financial services, O2 will have to pay for the complaint win or lose which gives them an incentive to settle when you indicate that you will invoke it.
What is beginning to annoy me now is that many of these very large companies have created such a monster that they can't apply a common sense solution even when if they want to. Utilities seem to be the worst.
One such has just emailed me to say my balance is now £0.00 and they are very sorry that for 8 months they have been sending me bills for unused gas supplied via a non-existent meter. Trouble is we have been here before, and I fully expect another bill in the next post.
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O2 - what would you do? new
O2 - what would you do? new