Is the whole contract value a reasonable cancellation fee when moving home?

Gandru

Clearly I don't think it is, but I'm looking for a practical definition of reasonable here. These are the circumstances:

I upgraded my pre-Paid phone/broadband deal to an unlimited package (to accommodate a lodger's voracious appetite for data). This was an 18 month contract. Six months later I've moved due to my landlord choosing to sell the house, which was unexpected.

The company want me to either pay £59 to transfer the service (and restart the 18 month contract) or pay the remaining 12 months of contract in full (which I don't think is reasonable). I neither need (no lodgers at the new place) nor can afford the contract.

I've never experienced this problem for myself, I've helped other people in similar situations and a phone call has usually resolved it.

I suggested what I thought was a reasonable compromise - that I take out a new 12 month pre-paid contract - but they're not interested.

I'm looking into Ofcom and all that but any information from anyone with recent experience of a similar situation would be very helpful.

cajef

Gandru wrote: »

I). This was an 18 month contract. Six months later I've moved due to my landlord choosing to sell the house, which was unexpected.

The company want me to either pay £59 to transfer the service (and restart the 18 month contract) or pay the remaining 12 months of contract in full (which I don't think is reasonable). I neither need (no lodgers at the new place) nor can afford the contract.

I'm looking into Ofcom

You took out an eighteen month contract which after six months you want to cancel, why do you think it is unreasonable that the company want payment for the remainder, it is hardly their fault you have had to move and don't wish to continue the contract.

What exactly do you think Ofcom will do?

spannerzone

Unfortunately the clue is in the word 'contract' that you agreed to when taking out the contract. It's one of life's little annoyances.

dreamypuma

Sounds reasonable to me. You committed to a contractual minimum term of 18 months with the company. You now want to end the commitment you made to the detriment of the supplier. The supplier wants to be compensated.

When signing up to a contract, it is your responsibility to assess and manage the risks associated with the longevity of the commitment you make. This includes the risks of unforeseen circumstances and changes that could affect your ability to fulfil the contract.

bod1467

What inducements or other benefits did you get when taking out the new 18 month contract? If you got X months free or half-price then what they are requesting is fair - if not then it is unfair (IMO) and consequently an unfair contract terms, ergo unenforceable. One party cannot place a term on the other that amounts to a fine or penalty - only courts can impose those. A company can only expect to retain (or claim) their reasonable costs.

The specifics are key to whether or not they are being reasonable.

Buzby

It would be to the landlord I would be looking to if he decided to terminate your tenure leaving you to pay costs to move because of his actions. However, if you took out the contract for a term longer than that agreed with the LL, you'll need to pay the cancellation.

Gandru

Thank you for the helpful comments. The majority view is not what I was hoping for, not because I don't know what a contract is, but because my experience (acting on behalf of others) of the practices of the large companies like Virgin was that they didn't impose any charges beyond a months notice. Practices don't make for rules, though. I'll probably still ask Ofcom for their view (just for them to answer the question, cajef) but expect I'll just have to transfer the contract to my new place. Thanks again.