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Contract Exit Charges

I read of a cracking deal on Broadband/Landline on MSE and ordered it up. I had been with my prievious provider for a number of years and the idea of exit penalties never ocurred to me. I assumed that like a power company, there might be a £50-60 penalty to pay, but they demanded over £200.00, effectively the basic cost of the service for the remainder of the contract.
This this includes line rental I do not see how this can be justified - I have to pay a line rental to the new provider as well and I cannot see any justification for having to pay for it twice.
Any ideas?

Comments

  • Buzby
    Buzby Posts: 8,275 Forumite
    You appear to have a pre-existing minimum term contract...yes? You say a number of years, but if you benefited from a later renegotiated arrangement, the minimum term usually reapplied. It is justified because you agreed to the term, and if cancelling within any agreed term the firm is entitled to charge you what you would have paid, whether you use their service or not. The new MSE deal is only ever worthwhile when you have completed your original commitment.
  • JJ_Egan
    JJ_Egan Posts: 20,281 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    As above really .

    (demanded over £200.00, effectively the basic cost of the service for the remainder of the contract.)


    Its the word contract that gives the clue .

    You where in contract and broke the contract its very normal to be billed by the ISP for the remaining months on the contract you broke . See multiple identical posts .

    From MSE
    If you signed up to broadband in the last 18 months, or longer in rare cases, first check if you're still in your contract period. If so, double-check that leaving doesn't breach your contract before switching. Exit penalties may kibosh savings.
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