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How to get out of a contract without being penalised

Tahmina Mannan
Written By:
Tahmina Mannan
Posted:
Updated:
28/06/2013

Follow this step-by-step guide to cancelling and avoid any hefty penalty fines from your service provider.

Dominic Baliszewski, broadband expert at broadbandchoices.co.uk said: “There are few things more annoying than wanting to switch provider due to a poor service, but having to wait until your 12 or even 18 month contract is up.

“That’s why it’s so important to compare all the options when switching – you’re less likely to get into that situation.”

However, if you are locked into a contract and looking to leave, you do have a few options:

1. Distance selling regulation – by law, customers have a right to cancel their contract within a seven day window after signing up – either online or via phone.

There are a few exceptions but, generally speaking, if you’re within this window and want to cancel simply tell your provider and you should be free to leave. Just be clear in your correspondence that you wish to leave this service.

2. Satisfaction guarantee – some providers offer a satisfaction guarantee when you sign up. This is usually 28 days and during this time should you want to leave for any reason you are free to do so.

Remember, you’ll probably have to return any routers, set-top boxes, and other equipment, but this is a minor inconvenience compared to being stuck in a contract that you’re not happy with.

3. You have a significantly worse connection than similar users – this one’s a little complicated. If your connection is drastically slower than other customers who are the same distance from your exchange then you could have grounds to cancel your contract.

The problem is that this is very difficult to prove. Still, if you think this applies to you carry out speed tests at regular intervals to check your speed and then tell your provider you think you’re not getting the service you should be.

4. Complain to your provider – companies want to keep you as a customer so if you’re leaving due to a service issue, the first step should always be to complain. It’s likely your complaint will be resolved, and you may even get some money off your bill as a goodwill gesture.

5. Complain to the Ombudsman – if you’ve exhausted all other optionsand your complaint has been open for more than eight weeks then you can complain to the Ombudsman. It can review the case and, if it sides with you, order your provider to cancel your contract.

Ofcom says that consumers who have been smacked with a change of terms and conditions also have certain rights afforded to them.

Changes to terms and conditions

Phone and broadband providers can change the terms of a contract so long as they provide a month’s notice.

However, if you believe the change will cause you material detriment or is unfair your provider should consider the complaint and, if it agrees, allow you to end the contract without penalty.

If you believe your provider has not followed these requirements contact its customer services department and explain your problem.

If this doesn’t resolve your problem ask your provider for a deadlock letter. This enables you to take your complaint to an Alternative Dispute Resolution (ADR) scheme.

ADRs act as an independent middleman and will examine the case from both sides and reach a decision it thinks fair. If eight weeks have passed since you first formally complained you can contact the ADR directly.

There are two ADR schemes – Ombudsman Services: Communications, and the Communications and Internet Services Adjudication Scheme (CISAS). All service providers must belong to one of the schemes.

Your provider will tell you which scheme it is a member of, or you can use our ADR checker.


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