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Telecom company - can ARCs still apply?

I'm currently trying to cancel a phone line with broadband package we have with a telecom company.

They're trying to enforce an Automatic Renewing Contract (ARC) termination fee in excess of £1200+VAT (for 30 or so months - apparently it not long renewed, but we've never received notifications of renewals).

My understanding is that ARCs were banned by ofcom (Google "ofcom bans rollover contracts"), and that we should have been moved off the contract by 31/12/2012.

I sent them through the ofcom link, which has been ignored. Can they do this?
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