Relish broadband hit out at hidden cease charges
A light hearted story (but with a serious message) to end the week.. Relish Broadband have taken to a Soho coffee shop to point out the pitfalls of broadband contracts that feature hidden price hikes or costs and advertise the fact that they do not have any hidden fees in the small print for those who use its services.
Exit or early termination fees, such as the £30 fee to cancel the 'coffee contract' feature in this video have become the latest weapon of many utility providers, including broadband, to try and dissuade people from switching their contract within the minimum term. For broadband, a cease charge is due if you terminate your service. This is a charge levied by Openreach at approximately £30 to cover the costs of disconnecting a line and updating records. If you use a migration path then a cease charge shouldn't usually be due but if you terminate as you are moving home then the cease charge would be due.
Broadband providers also usually charge a monthly fee for ending a contract inside the minimum term, and this may also include a proportion of line rental charges, sometimes at a reduced rate. BT's Broadband early termination fees (valid from 3rd July) can be seen here, and for example for Unlimited BT Infinity 1 broadband + Weekend Calls is £18.75 per month plus £8.50 per month for line rental termination. The £31 cease charge is also due if you terminate the line. These charges can easily add up as they are valid for the remaining months on your contract.
What Relish don't point out in the video is that if you sign to one of their 12-month contracts and cancel after a few months, you would have to pay the remainder of the contract off as you would with BT. Their 1-month options (where available) wouldn't include these extra charges.