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BT charging £55 for Hub after cancelling contract due to last years price hike?

Does anyone know if BT are within their rights to charge me for the returned modem/hub after I terminated my contract with them after the price hike last year? I have been on the phone to them for around 45 minutes this morning and got nowwhere. I kept getting told that only the calls part of the package was included in the 'no penalty for leaving' clause but not the hub and the man even told me that I would have been charged for this whether I had sent back the modem or not! I then told him that if I was paying for the modem that I wanted it back, but the answer was predictably NO.
Any help appreciated before I end up having to pay them.
Thank you
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