PlusNet charging termination fee for moving (to Virgin) after price hike (?)

fiscoking

Hello,

I'm with plusnet for phone and broadband. Received the notification of price hike. Phoned them up to cancel (mid contract). They agreed.

Told them I was moving to Virgin. They told me that I'd be charged a broadband cessation fee (~30 gbp) as no one would be taking the broadband line over, and they could do this as it was not classed as a contact early leaving penalty.

I thought ofcom have said that there can be no charges for leaving phone\broadband early if the price is raised?

If PN are correct, then the ocfom statement is rubbish. A charge for leaving is still a charge irrespective of what you call it.

Anyone kow who is correct?

Thanks.

unforeseen

It's a charge that Open reach levy against all ISPs for cancellation of your broadband on a BT type line regardless of the reason for leaving. Some ISPs absorb this charge, others pass it on

It has nothing to do with moving away because of price hike. If you moved to any other ISP but Virgin then it would have been free.

[Deleted User]

@fiscoking
When Plusnet charge you this money, I would start an official complaint against Plusnet using their complaints procedure (or start it via Resolver - a Martin Lewis of MSE fame approved complaints process). If they refuse to return the £30, then take it to the Ombudsman (it doesn't cost you, just Plusnet)
You can argue it is a penalty for Plusnet to charge you and goes against the OFCOM principles. People have posted that they have got the money either dropped or back from Plusnet. But you will need to complain in writing.

fiscoking

Hello unforseen,

Thanks for the reply. I was aware as to why the charge is levied, and I understand what you've said but it seems to me to contradict the guidance published by OFCOM.

If ofcom say you can terminate a contract without (financial) penalty, then there should be no 'charge' for leaving.

The ofcom guidance is here:
https://www.ofcom.org.uk/__data/assets/pdf_file/0027/29682/guidance.pdf

What PN are saying, is that the ~30 odd charge for leaving isn't a contractual penalty, it's something else because if they can categorise it as something else then they can charge it. It's just the way PN have decided to interpret the above guidance from ofcom. It's a penalty in all but name.

If their interpretation is correct then there's nothing stopping providers from charging all sorts of other stuff under the same banner when you leave.

It's getting to the point where the ordinary man or woman in the street needs a legal advocate to run them through a standard broadband contract.

Granted, Virgin Media is the odd one out as they have their own infrastructure, but it just happens to be the one with the best deal on for me at the moment.

I wonder how many other people understand this. I'll ring OFCOM on Tuesday and see what they say.

Regards.

Mchambers

I moved to Vodafone when Plusnet increased their prices.i had no problems doing this and Plusnet did not charge me any cancellation charges.

Plusnet were stupid as they would not match Vodafone prices. If they had, I would have stayed.

I now have a spare Plusnet router, which they are not interested in getting back. So I have just thrown it away.

unforeseen

It isn't a contractual penalty it is a charge from Openreach that they pass on. Nothing to do with your contract with Plus net.

It is a charge that Openreach levy against every user for cancelling broadband.

Buzby

Agreed - the cessation fees are to remove the BB xDSL connection and are to cover the work by OR which is billed to company that billed for the line. It is not against OFCOM rules and is not a leaving penalty.

FWIW, if you leave VM, they do not make a similar charge because OR are not involved at any stage. You!!!8217;ll also find the line restoration charge is mentioned in all T&C!!!8217;s too.

spyhunter

Openreach no longer charge the cease fee.

[Deleted User]

spyhunter wrote: »

Openreach no longer charge the cease fee.

BT don't charge a cease fee any longer, are you mixing Openreach up with BT?

unforeseen

BT have axed it but Openreach still charge it.

In other words BT have stopped passing the cost on to their customers but are absorbing it.

It is still being charged but it is up to individual ISPs whether they pass it on. Plus net obviously do.

BT and Openreach are two totally seperate entities within the group as is Plus net although it is now part of BT.

fiscoking

Just spoken with OFCOM and they've confirmed that a broadband cease charge is not classed as a penalty. The service provider is within their rights to charge it even if the monthly cost for service provision is increased mid-contract and the subscriber elects to terminate.