Massive EE bband cancellation charge

Computersaysno

EE want iirc £250+ to cancel my o/s bband contract [i'm moving house and they can't do fibre for me at new address]


Has anyone successfully argued that their cancellation charges are actually a 'penalty', and as such are unenforceable.


Yes I might be in breach of contract [18 month deal], but they can only 'charge' me to be put in the position where they would have been anyway ie they will have suffered no [or minimal losses] by me cancelling???

AndyPK

Every provider does that. Ask them to provide you with ASDL at your new address.


Better to have ASDL that to need to pay out £250 and get nothing for it

bertiewhite

When I moved from Lincolnshire to Wales, BT couldn't provide fibre so they downgraded me to "normal". I was mid-contract and asked if I could just have the rest of the existing contract; they insisted I take out another 12 month contract but at least I didn't have to pay a cancellation charge.

Like Andy PK says - can't you do that?

JJ_Egan

OP before you do anything just work out if your move and new customer discounts are worth considering .

Its not a penalty you have a contract for a product at your current address only .

kwikbreaks

Was this sum the full cost of the remaining term?

If so you need to check if they are following whatever rules govern this because breach of contract charges would normally only be expected to compensate for lost profit and by cancelling you are saving them money in so far as...

Saving in payment to BT (whichever division) for the phone line and data connection (assuming they don't continue to charge the full whack for the remaining term which I can't believe they do.

Saving on costs associated with data usage

Saving on admin and support

In short you should only be reimbursing the profit element for the remaining term + whatever non-recoverable charges they face from their suppliers + admin for wrapping up the contract.

Whatever the answer it will probably work out cheaper paying than being a test case challenging them in court.

onomatopoeia99

Computersaysno wrote: »

Has anyone successfully argued that their cancellation charges are actually a 'penalty', and as such are unenforceable.

The test in English law as to whether penalties in contracts are enforceable is currently

whether the impugned provision is a secondary obligation which imposes a detriment on the contract breaker out of all proportion to any legitimate interest of the innocent party in the enforcement of the primary obligation

I suggest you should read the entire Beavis and El Makdessi / Cavendish judgments at the Supreme court, from which the above is a quote, and form an opinion on that basis whether you wish to engage a contract law specialist to fight this for you.

This post is not advice.

Computersaysno

I think they might not want this to be tested in court....so I'm hoping to get away with it!

kwikbreaks

Only if they think you are prepared to fork out the doubtless huge legal fees to challenge them.

If you just cancel the DD then they will pass the debt over to a collection agency and you not only risk additional charges but having your credit rating trashed,

There are some guidlines an how much they can charge but I don't know wher and can't provide any links. I'd suggest a session on google.

lee111s

If they turned round and cut off your connection but wanted payment I'm sure you'd have something to say.

It works both ways. You entered a contract, you're the one changing the terms, thus you have to pay, or, accept service at the new address.

macman

If you cancel within minimum term then they have lost the revenue that you would have otherwise paid had you honoured the contract.
The fact that FTTC is not available at your new address is irrelevant, because the contract you agreed was at the current address-not any other address in the UK.
Usually this is asked (several times a week) by VM subscribers moving to a non-VM area, but I can now see the same happening for those moving from FTTC to ADSL-only areas.

Computersaysno

macman wrote: »

If you cancel within minimum term then they have lost the revenue that you would have otherwise paid had you honoured the contract.

The loss they will suffer is surely only the profit they would have made on my contract, not the full monthly amount I'm paying???