ISPs slash charges to customers who cancel their contracts early
The three biggest ISPs in Britain have all agreed to lower their charges to customers who cancel their contracts early. Of course, this wasn't a collective altruistic decision, but rather, they did after regulators put the thumb-screws on them.
In the past, BT, TalkTalk and Virgin Media have made subscribers pay full (or thereabouts) for every month left on their contract in order to release them early.
However, from October (June 1st for TalkTalk) they will all charge you much less if you want to jump ship. With some packages the difference will be as much as 85 per cent less.
What we're looking at here is, for example, if you want to cancel your deal with TalkTalk's Essential home phone and broadband package, you would have had to cough up £33.48 for each month left on your contract. Now, if you want to break the deal, it'll set you back £8 per month. Much more reasonable.
Ofcom have been on at the ISPs for over a year in getting them to cut cancellation charges, being of the opinion that providers were breaching their obligations under the Unfair Terms in Consumer Contract Regulations 1999. Read Ofcom's findings here.