Fixed Price ? broadband at BT

mexicanpete_2

I wonder if anybody can comment on my correspondence with BT.

I signed up to a fixed price deal of £12.99 per month for 18 months (Im not in a low cost area). After some months they increased the bill twice, once for VAT and a second time because I assume they were skint.

The initial letter from BT says

"You will pay £12.99 a month for 18 months" There is no qualification of this statement anywhere in the letter.

The sales staff told me my price was fixed for 18 months and in a recent telephone call they reconfirmed that my price was fixed.

One letter from BT says that their terms and conditions allow them to increase the price, Another letter says that it is MY responsibility to check that what BT write to me and promise in a sales call is compatible with their terms and conditions. Their sales staff are not familiar with all their terms and conditions according to BT's correspondence.

The Omdudsman's response was that "if its in the terms and conditions then its ok and the sales staff would not promise anything not allowed by the terms and conditions" He had no interest in obtaining the voice transcript of the call even though I gave him the exact call reference.

I'd be interested in any legal or other observations

By the way the quality of the broadband service has been good.

macman

BT contracts are not 'fixed price', the T&C's allow them to increase prices, refer to your original contract.
As far as the VAT increase is concerned, they have no option but to charge the higher rate.

mexicanpete_2

That is BT's line.

The reason I asked for comments is as follows

As I understand the situation the contract is the letter or sales conversation. If there is a clear statement in the letter or sales conversation that contradicts the terms and conditions, which takes precedent? You cannot have a statement in a letter "You will pay £12.99 per month" without qualification that is compatible with terms and conditions that allow price rises.

I was always advised as a sales person that anything you promise in a letter takes precedent and is known as an agreed variation to the terms and conditions.

Either way it is a sales scam in my view. The sales staff are promising what their terms and conditions do not purport to allow and from my correspondence this is known to BT

macman

It's not BT's line. It what their T&C's always have said.
I don't know of any telecoms co. that has ever offered 'fixed price' tariffs. The T&C's for the relevant tariff will be in your contract letter or on their website.
And please explain how you think a sales conversation or letter you had can over-rule a government decision to raise VAT?

mexicanpete_2

In that case what does it mean when they write in a letter "You will pay £12.99 a month for 18 months"?

What does it mean when they say £12.99 a month for 18 months is guaranteed"?

Oh and by the way if you want to cancel within 18 months you will pay a penalty.

As I read the situation what BT want is for you to pay whatever they decide and if you don't like it and take you custom elsewhere you will pay BT a penalty. Nice business. If you treat your customers like this don't complain if your share price ends up on a permanent downward slide.

kwikbreaks

As macman has said it is standard industry practice for the T&C to allow for a price rise during the term. It is up to the provider to notify you and if the change is "material" you would be entitled to leave without penalty. I'm guessing there would be a separate clause mentioning changes in tax rates and as it was low it probably wouldn't be deemed to be a "material" change anyway.

Whatever the change was I doubt it would be worth the effort involved in disputing it because their legal team would have already let the retentions people know if they had to let customers go early without penalty. There will be no way that you can force them to continue to supply service at the old rate.

In short you have been stuffed. If you don't like it move on as soon as you can without incurring penalty charges.

macman

So you're now saying that, in addition, you weren't aware that it was an 18m minimum term contract (standard practice)? Did it not occur to you to ask that during your sign-up process?.
If you fail to study the T&C's, don't complain after the event.
PS: please name a telcom that offers fixed price contracts.