£380 charge for going over BT broadband monthly usage?

jimbms

Thwere are several pieces of software that will check your usage on a continual basis and prevent downloads over a certain size or not allow usage when the limit is exceeded. I dont know why people do not pay the couple of quid extra for unlimited, just checked my average over the last 12 months and it comes to 90gb/month, very glad I pay £2.75 extra for unlimited

OlliesDad

DrScotsman wrote: »

Cross posted.



To be honest I'm not sure, but I think your starting points on Google would be with the words "excessive" and "penalty", and the legislation here

This situation is completely different to banks and parking fines.

The customer purchases the service for say 20gb for £10 followed by £1 per additional GB used. This is not a fine or penalty, but a service.

Similar to a mobile phone package, if you have gone over your free allowance, you are charged the standard rate per call/text.

DrScotsman

OlliesDad wrote: »

This situation is completely different to banks and parking fines.

The customer purchases the service for say 20gb for £10 followed by £1 per additional GB used. This is not a fine or penalty, but a service.

OFT:

5.9 The Regulations are concerned with the intention and effects of terms, not just their mechanism. If a term has the effect of an unfair penalty, it will be regarded as such, and not as a 'core term'. Therefore a penalty cannot be made fair by transforming it into a provision requiring payment of a fee for exercising a contractual option.

No one buys non-unlimited plans with the intention of going over the limit, it's never cost effective. It definitely has the effect of being an unfair penalty (subject to our current argument of whether or not the £380 reflects BT's losses)

Similar to a mobile phone package, if you have gone over your free allowance, you are charged the standard rate per call/text.

The standard rate is usually pretty decent, usually equal to the PAYG rates, which is pretty fair.

Equaliser123

Agree with Olliesdad. This is not a penalty as it is simply a pricing mechanism on top of the inclusive allowance.

Effectively, there is no "breach" by the OP - simply using up the allocated allowance - and so the law of penalties does not come into it.

pimento

I'd still advise the OP to throw her self on BT's mercy and say she'll upgrade to unlimited and sign up for a new contract. In the first instance in any case.


I hope they've apologised to the teenaged son who, it would appear, was not the main culprit.

DrScotsman

Equaliser123 wrote: »

Agree with Olliesdad. This is not a penalty as it is simply a pricing mechanism on top of the inclusive allowance.

Effectively, there is no "breach" by the OP - simply using up the allocated allowance - and so the law of penalties does not come into it.

Help me out, I'm not sure if you've ignored my quote from the OFT or if you disagree that it applies.

Like I said, no one buys non-unlimited broadband with the intention of using the so-called "service" of going over the limit. Even if they did, I think I can say with certainty that no one would have the intention of "using it" for 380GB. This means that this "service" doesn't form part of the core terms. BT probably know that they cannot levy penalties for breach of contract, so they have attempted to turn the breach of contract into a "contractual option" as above so that they can levy penalties and call it a service. The OFT believe that the UTCCR is wise to that and will treat it as a penalty for breach of contract.

Equaliser123

DrScotsman wrote: »

Help me out, I'm not sure if you've ignored my quote from the OFT or if you disagree that it applies.

Like I said, no one buys non-unlimited broadband with the intention of using the so-called "service" of going over the limit. Even if they did, I think I can say with certainty that no one would have the intention of "using it" for 380GB. This means that this "service" doesn't form part of the core terms. BT probably know that they cannot levy penalties for breach of contract, so they have attempted to turn the breach of contract into a "contractual option" as above so that they can levy penalties and call it a service. The OFT believe that the UTCCR is wise to that and will treat it as a penalty for breach of contract.

I'm not persuaded that it applies in this case. I do agree with you that nobody would ever use a capped service for 380GB but, frankly, that is such high usage that it would fall foul of any "fair use" tarriff anyway.

£1 per GB isnt actually that much - particularly when, say, compared to mobile broadband charges where it is very easy to establish the £/GB charge. I think given the relatively reasonable price per GB and the massive use the OP has made of the service, it is reasonable.

OlliesDad

Personally i don't think that this would be classed as a unfair contract term! I think that £1 per GB is actually very reasonable, many operators charge anywhere up to £15 per GB (this was on a payg mobile broadband service).

I do however believe that BT may be willing to do something with regards to the amount as an act of goodwill.

Equaliser123

OlliesDad wrote: »

Personally i don't think that this would be classed as a unfair contract term! I think that £1 per GB is actually very reasonable, many operators charge anywhere up to £15 per GB (this was on a payg mobile broadband service).

I do however believe that BT may be willing to do something with regards to the amount as an act of goodwill.

Yes, I agree. The charge per GB is not high. The fact that the OP has used so much - and on any analysis, a MASSIVE amount of usage - has led to the high bill.

pimento

I think I would say to BT when I called them that I would have to be mad to have run up a huge bill knowingly. I'd confess to being a bit of a luddite and be honest and say that I didn't realise when my digibox broke down and I started using my broadband connection to watch the TV quite what the implications were considering that had I known, I could have called and upgraded to unlimited for a fraction of the cost. That I now understand how it all works and would like to take advantage of their unlimited service. I might even allow myself to be talked into BT Vision if the pressed me. Still probably cheaper than paying the £380 if they will let you off if you sign up.