Broadband News
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BT broadband rolling contracts refered to Ofcom by TalkTalk
24 Feb 2010 | 11.44 Europe/London
TalkTalk is calling on Ofcom to ban BT, and any other provider, from using ‘rolling contracts’ to hook customers in to long-term contracts.
BT came under heavy criticism yesterday in a Which? report for using contracts which tie consumers in to the service for 18 months and are then renewed at the end of the 18 months. This potentially leaves broadband customers tied-in endlessly unless they specifically request for a contract not to be renewed.
Those wishing to leave an 18 month contract, before it is over, can find they face penalties and TalkTalk believes this is unfair and stifling the market among those considering changing broadband provider. It is calling on the industry regulator, Ofcom, to take action.
The ISP claims that BT is relying on customers not being aware or not getting around to cancelling a rolling contract when they have the opportunity.
“It’s unacceptable that BT can place the onus on its customers to cancel their contracts – simply because it knows that many of them will forget,” a spokesman told SamKnows.
“We would like to see these unfair rolling contracts stamped out and have already called upon Ofcom to take a firm line in this area.”
Broadband deals legal, says BT
In its defence BT claims that its contracts are legal and are within Ofcom guidelines. It also points out that customers receive notification when an 18 month deal is coming to an end and are told how to avoid being signed up to another 18 month deal. The ISP claims that there are many products and utilities sold on the same basis of assuming a contract can be rolled on, unless a consumers chooses not to do so.
Nevertheless, TalkTalk is adamant that this placing of the onus on customers to get in contact to avoid behind tied in to a provider for a further 18 months is wrong and should be outlawed.
BT came under heavy criticism yesterday in a Which? report for using contracts which tie consumers in to the service for 18 months and are then renewed at the end of the 18 months. This potentially leaves broadband customers tied-in endlessly unless they specifically request for a contract not to be renewed.
Those wishing to leave an 18 month contract, before it is over, can find they face penalties and TalkTalk believes this is unfair and stifling the market among those considering changing broadband provider. It is calling on the industry regulator, Ofcom, to take action.
The ISP claims that BT is relying on customers not being aware or not getting around to cancelling a rolling contract when they have the opportunity.
“It’s unacceptable that BT can place the onus on its customers to cancel their contracts – simply because it knows that many of them will forget,” a spokesman told SamKnows.
“We would like to see these unfair rolling contracts stamped out and have already called upon Ofcom to take a firm line in this area.”
Broadband deals legal, says BT
In its defence BT claims that its contracts are legal and are within Ofcom guidelines. It also points out that customers receive notification when an 18 month deal is coming to an end and are told how to avoid being signed up to another 18 month deal. The ISP claims that there are many products and utilities sold on the same basis of assuming a contract can be rolled on, unless a consumers chooses not to do so.
Nevertheless, TalkTalk is adamant that this placing of the onus on customers to get in contact to avoid behind tied in to a provider for a further 18 months is wrong and should be outlawed.
BT are simply doing what other utilities do, British gas is another culprit. I was under the impression that is what we had the quangos for? to sort them out? Obviously the quangos aren't doing their jobs, so they should be sacked. Good on TalkTalk, I hope they succeed and stand up for the little people, cos nobody else takes any notice of us.
24 Feb 2010 | 18.56 Europe/London