You are here: Home - Household Bills - News -

No penalty for telecoms users who switch providers mid-contract

Written by:
Landline, broadband and mobile phone users can now exit their contracts without being penalised if prices are hiked unexpectedly.

Under new rules from telecoms regulator, Ofcom, providers must allow customers to exit contracts without penalty if they increase the monthly subscription price agreed at the point of sale.

Providers must also give customers one month’s notice before they hike prices.

The rules also state that any changes to contract terms, pricing or otherwise, must be communicated clearly and transparently.

The move follows an Ofcom review into the fairness of contract price terms which found consumers were often caught unawares by price rises in what they believed to be fixed price contracts.

Claudio Pollack, Ofcom’s consumer group director, said: “We have reached an important milestone in our work to ensure consumers and small businesses have better protection against unexpected price increases.”

Dominic Baliszewski, telecoms expert at said the new rules should avoid providers using “any sneaky tactics” to reduce costs rather than increase revenues.

However, he highlighted that if customers do decide to switch following a mid-contract price rise, they will only have 30 days to do so

“Switching provider is very easy nowadays but we are concerned that some customers may miss their opportunity to switch if they miss the notification, for example if they are away for a few weeks on holiday,” Baliszewski said.

 Read our guide on how to switch broadband providers


Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Almost half of over-35s’ wills ‘inaccurate’

Almost half of people aged 35 and over who have written a will have failed to amend it following a...