Three year contract I never agreed to

benjymous

At my previous address, I had my internet supplied by a small reseller, who decided to pull out of the ISP business, so transferred my account to entanet.

I moved house in May 2010, and considered moving to Virgin, but wasn't sure how long I was going to stay at that address, so didn't want to sign a long-term contract, then have to move to a non Virgin area.

Instead I decided to keep my internet service, but was told that entanet don't directly deal with end users, so I'd have to take up a new service with a reseller. They gave me a few numbers to contact.

I discussed my needs over the phone with one, and got offered a phone + broadband package which met my needs. The details were confirmed over email, and I was emailed a direct debit mandate to print out, sign, and return to them.

Now, nearly two years later, I decide I'd like to switch to Virgin Media, to take up faster broadband, so I email the reseller to give them a month's notice.

They inform me that I'm on a three year contract, and want me to pay the remaining fees in full (15 months * £30) in order to disconnect.

The issue here is that I was never made aware of the three year term (considering I avoided Virgin as I didn't want to commit to a long contract), and I have never signed anything other than the direct debit mandate.

They tell me that the three year term is marked clearly in their t&c, and that there's a note on the account that I got free installation because of the three year term, but neither of these things were brought to my attention at the time.

Can they legally hold me to a contract / terms & conditions that were not made clear at the time, and were never signed?

Buzby

A 3-year commitment is unusual for domestic arrangements, but it isn't illegal - if this term was stipulated and you accepted this, you would be bound by it whether it was brought to your attention or not. However, just as networks are under pressure, they cannot charge you the full amount of any remaining service period, and has been extensively scaled back to a lower amount for a service not provided.

As for not signing the contract, have you paid them at all - ever? This is all that is required to confirm your satisfaction with the service and the terms under which it operates. If you are not relocating, it may be easier to simply see out the minimum term and leave immediately your lock-in expires. The only consolation is that the cost for monthly service should be cheaper due to your commitment, than someone only agreeing to 12 months, but It might be worthwhile investigating this (as if you were a new customer) as it may give you the chance to argue further. Also find out whether you gave them the ability to report your financial dealings to a CRA.

benjymous

Buzby wrote: »

A 3-year commitment is unusual for domestic arrangements, but it isn't illegal

Actually, that's a relevant point - I've often suspected (though they won't confirm) that I was mistakenly put on a business contract instead of a domestic one, which probably explains the three years.

We get fairly regular phone calls and mailings from companies like the Yellow Pages asking if we'd like to be added to their directories - it's not a coincidence / recycled number, as they have corruption of my personal web domain as a "company name" on file.

phead

Ofcom has now banned 3 year contracts for mobile and broadband, so you are on good ground. Also their rules state that contract lengths must be clear and upfront to anyone signing up, which doesn't appear to be the case here.

Start with a complaint to the ISP, read the ofcom site to see how to move it forwards if you get no luck there.

EDIT, Read this ruling, is this the same company?

http://www.ukbusinessforums.co.uk/forums/showthread.php?t=166625&page=2

In particular the part headed "Update note – 5 November 2007 "

Buzby

I don't believe it is a 'ruling' however it isn't seen as 'best practice' on consumer contracts, but perfectly fine for business ones.

I thnik the OP needs to verify whether this is a commercial contraxt that is running in error, as this might be a speedier way to resolve the issue.

macman

phead wrote: »

Ofcom has now banned 3 year contracts for mobile and broadband, so you are on good ground. Also their rules state that contract lengths must be clear and upfront to anyone signing up, which doesn't appear to be the case here.

Start with a complaint to the ISP, read the ofcom site to see how to move it forwards if you get no luck there.

EDIT, Read this ruling, is this the same company?

http://www.ukbusinessforums.co.uk/forums/showthread.php?t=166625&page=2

In particular the part headed "Update note – 5 November 2007 "

But this would not necessarily give grounds to void an existing 3 year contract without penalty. Did the OP ever ask what the minimum term was when they signed up?

miketigheBBC

Hi there benjymous,

My name is Mike Tighe and I'm an Assistant Producer for the BBC Radio 4 programme 'You and Yours'. I was wondering if I could talk to you about a story I'm working on on long-term contracts. It would be great to hear about your experiences with this particular three-year contract.

If you could get in touch on the details below as soon as possible, it would be massively appreciated.

Best Wishes,

Mike

Mike Tighe
Assistant Producer, You and Yours
Mike.Tighe@bbc.co.uk
020 7765 4919

philthebook

hi ofcom has told these companies that they have to have new deals in place with all us long suffering souls by January 1st 2013. i rang ofcom and asked if that meant i can get rid of my phone company then, at this new deal stage. the answer from this regulatory watchdog was that they dont know.

Buzby

Continuing to be as useless as a chocolate teapot. The issue of Consumer Vs Commercial contracts will be a major exclusion, without a doubt.