BT attacked for "cynical" broadband contract renewals

 

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By Stuart Turton

Posted on 3 Mar 2009 at 14:27

TalkTalk is gunning for BT, accusing the company of being "cynical" over its automatic contract renewals.

The rolling contract policy means that subscribers coming to the end of their deals with BT are automatically signed up for another year if they do not explicitly notify the company they wish to leave.

TalkTalk is claiming that "forgetful" customers could be forced to pay up to £180 if they then want to leave.

"We believe that rolling contracts are a sharp practice at any time, but particularly so in the current credit crunch and with given the riches available in the market," says Andrew Heaney from TalkTalk. "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."

BT takes issue with TalkTalk's stance, claiming that the accusations misrepresent the facts.

"The statement describes our customers as unwitting, but they can't be. They opted into this service because they're getting free evening calls. They signed up for a better deal," says a spokesperson for BT. "We also believe we're in line with Ofcom regulations, so would dispute that rolling contracts are unfair."

"They are very clearly reminded in writing with around 30 days notice when their contract is coming up for renewal that they will be entering into a new 12-month period unless they say that they do not wish to do so. Many other services, such as magazine subscriptions, insurance and car breakdown services are contracted in similar ways."

Ofcom says it's investigating TalkTalk's complaints.