BT Automatic contract renewal

Dutchie71

I just found out that after the initial 12 month contract with BT, they will automatically sign you up to another 12 month contract if you do NOT contact them when they send you the letter. Surely this is bad business practice bordering on legality! How can they sign you up for another 12 months without any intervention from the customer. Surely like most other providers, after the initial contract is up, it goes onto a month-by-month contract until you sign up to a new contract. With BT it is the other way round and they are depending on people to call them to cancel. No contact = new contract. Is this really legal? Is this part of the Distance Selling Rules whereby no signature is required for new contracts. I now have to pay a termination fee of £78.18 or I am locked in until 25/9/2010. I will be sending an email to the CEO of BT and to Otelo to dispute this automatic renewal! Can anyone offer any advice?

Ypaymore

So why if they wrote to you to remind you when your contract was nearing the end of a renewable period, did you not to tell them you didnt want to renew it? Did they not make it clear enough?

Their very clear on their site.

"Unlimited Evening & Weekend Plan. Only £11.25 a month line rental with Direct Debit and paper-free billing, for new and existing residential customers signing up to a 12 month renewable contract. This means you have a 12 month minimum renewable period. So, after 12 months, your contract will be automatically renewed for another 12 month minimum renewable period unless you tell us otherwise. We'll write to remind you when your contract is nearing the end of a renewable period."

Ofcom did look into renewable contracts see their findings.
http://www.ofcom.org.uk/consult/condocs/addcharges/faq/

You might find this interesting : http://www.theregister.co.uk/2009/03/03/bt_talktalk_contracts/

Dutchie71

Thank you for your response and for the additional helpful info. I thought that by calling BT I would have to end my contract and line rental with them, which I did not want to do at that stage. I did not realise that by phoning them, I could change the contract to a month-by-month contract.

I will phone them up again, but don't expect them to change their stance, which is fine, as they have now lost a BT customer for life as I will vow never to have any of their services again, once this contract runs out. Guess I am stuck with poor broadband which was the whole reason for changing line rental as I wanted to switch Broadband provider, but that is for discussion in another topic.

BT_company_representative

Hi Dutchie71,

The information Ypaymore has given you is correct. Basically when you sign up for a 12 month renewable contract we will contact you at the end of the 12 months. A letter is sent to advise that we will automatically renew the contract for a further 12 months or you can call the number on the letter to opt out.

If you do decide to opt out at that stage then we do not apply a further 12 month term but you can continue having your line rental and calls on monthly basis if you wish. If you need any further help just send an email to btcare@bt.com and I will be happy to help. Please include ‘Dutchie71’ in the subject field.

Cheers

Shane.

DVardysShadow

Unfortunately, Dutchie, they have had you. The BT reps have nothing useful to say here, but they would do well to take the message back to their bosses that auto renewing contracts puts people's backs up. Hopefully, one day, ofcom will put a stop to this.

Dutchie71

In my eyes it is bad business practice and even Ofcom don't like it, but it is allowed and they have strict guidelines which BT have followed.

Due to these actions by BT, once the contract is up for renewal, I will make sure I opt out and then move my Line Rental with another provider.

Never again will I ever use BT for any products and services and I will let my friends and family know of my experience with them and the underhand tactics they use to keep you locked into another 12 month contract.

In the long term, it is BT who lose out, not me! :rotfl: