Ofcom announce cheaper charges for consumers to end phone contracts
In 2008 Ofcom stated that they believe that under the Unfair Terms in Consumer Contract Regulations 1999 that consumers should never have to pay more than that payments left due on a contract and should often pay less than this based on cost savings to providers from not having to provide the service due to the contract ending early. After working with the UK's 3 largest landline providers, Ofcom says that consumers could save up to 85% following changes announced today, and the cheaper termination charges will also apply where broadband is bundled in the same package.
Ofcom provide a table of popular packages from BT, TalkTalk and Virgin Media which details the new monthly cost for ending the contract early. Users on BT Weekend for example used to pay £11.54 per month if cancelled within the minimum contract term but this has now been reduced to just £2 per month. TalkTalk Evening and Weekend has reduced from £14.44 to £3 and Virgin Media's Broadband L (on cable) will reduce from £12.50 a month to £9 a month.
We hope Ofcom continue this valuable work by looking similarly at the mobile phone networks and early termination charges.