The small print when you move home or leave your broadband deal
For many broadband users who find themselves in a contract they don't
like, the thought of escape is uppermost in their minds.
But then they discover that the cost of ending the contract and moving
to a better deal elsewhere is so high that it would cost them at least
six months' worth of benefits from the new contract.
Here are some of the charges you could end up paying:
Late payment fees:
Namesco, BT, Directsave Telecom and Virgin Media all charge late
payment fees, ranging from £7.50 - £25, offering limited flexibility
for people to pay when they can afford to.
Direct Save Telecom not only charges a £14.95 disconnection fee for
late payment. You also pay a £14.95 administration fee for insufficient
funds for a direct debit. Namesco charges a fixed £25 for any non
payment or late payment.
Moving home charges:
Madasafish, Namesco and Be*** all charge at least £50 to reconnect you
once you have moved.
Contract termination fees:
Cancellation fees are uniform across all broadband providers. The
standard cancellation policy is that you have to pay off the remaining
monthly subscription fees of the contract period - this could be
anything up to 18 months.
Be aware however that if a provider says there is no minimum contract
that doesn’t mean you won’t pay a cancellation fee. Some, such as
PlusNet, Direct Save Telecom and Be Broadband, will charge a fixed
cancellation fee of between £47 and £80 within the first 12 months.
Contract termination - equipment fees:
BT charges a £45 equipment fee if you cancel your contract. Eclipse is
probably the worst, charging £51 plus VAT for unreturned equipment.
What other small print quirks are there?
BT offers 250 wi-fi minutes a month for free but if you look in the
small print this is for the first year only after which a monthly
charge kicks in.
Pipex is entitled to charge the customer for internal relocation.
Vodafone at Home charges £25 per month for its service – but the fee
rises to £35 per month if the customer cancels their combined mobile
phone contract.
Eclipse, Orange, Tiscali and Virgin Media will request a security
deposit upfront if the customer persistently defaults payments.
TalkTalk may request a deposit or impose credit limits before allowing
the customer to use mobile and international services.
BT may ask the customer to pay an upfront deposit before receiving his
or her broadband service.
