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Early Termination of BT Broadband contract... What a malarky

I would be interested to hear from anyone trying to reduce or contest an early exit fee from BT
I have been offered 200Mb for £20 per month buy a new provider in our area - £20 less and 5 times faster than BT. Consequently I have had several calls with BT today in an attempt to agree early termination amount and switch provider.

The Facts:
I renewed my BT Broadband last August, tying me into a 24 month contract. 
Currently I pay £37.99 per Month rising to £40.99 this month (April 24) for 66-73Mb download 

BT have quoted £324 to exit my deal which I find a bit steep. I have challenged this verbally with them on the grounds that my upcoming price increase is 7.9% and therefore in excess of their stated 3.9% above the rate of inflation (currently 3.4% according to the ONS) I have been told that they are working on an inflation figure of 4% and therefore they are not in breach of the contract which I signed when I renewed online last August.

I was frustrated to discover that BT do not provide an email address to put my case in writing and according to the friendly call handler I spoke to, I must go down a complaint route which can only be initiated verbally; it will then be escalated to his manager who will call me to discuss.

I am not trying to get out of paying an exit fee, but feel the £300+ is unreasonable. especially when they are unable to match the competition on price or speed.  Has anyone else had a similar experience and have they been able to find a legitimate loophole to slash their early exit fee?


Comments

  • I'd be going back to the new provider to ask if they might be able to help with the BT early exit fee, there's often budget available when a new new operator is trying to break into an existing market.

    TBH £324 to release you from a contract that if completed would mean you are liable for something north of £600 doesn't seem like too bad a deal.
  • littleboo
    littleboo Posts: 1,689 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    What you feel is reasonable, and what the other providers is offering, is not really relevant to your BT contract
  • BoGoF
    BoGoF Posts: 7,098 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Having read that rant, where is the malarkey?

    BT have done nothing wrong here. I'd be interested to hear who is giving you 200mb - is this guaranteed?
  • cymruchris
    cymruchris Posts: 5,556 Forumite
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    The remaining contract value is over £600 - and that's what you signed up to, so £324 does seem favourable. There'd be no point having contracts if we could all walk away for £25. As others have suggested - the new company might have options in terms of helping out with the cost, so they'd be good to get in touch with and ask.

    It appears you can complain by email - or by snail mail, however I'm not sure that there's anything to complain about, when they are releasing you from your contracted terms for about half the value of the remaining contract.


  • 400ixl
    400ixl Posts: 4,427 Forumite
    1,000 Posts Third Anniversary Name Dropper
    So you are 6 months (ish) into a 24 month contract which is £40.99 (which has increased by the 7.9% (inflation+3.9%) that the contract allows them to do and will rise next April again). As such you have still got a commitment to pay BT over £700 over the term of your contract. BT are offering to let you out of the contract for £324, so less than 50% of your commitment.

    Where in that are BT being unreasonable?

    Is the new provider using the Openreach network? I am assuming not if BT cannot match the speed as your exchange is likely not FTTP enabled yet if the max speed is the 74Mb FTTC service.
  • M25
    M25 Posts: 332 Forumite
    Third Anniversary 100 Posts Name Dropper Photogenic
    If you desperately need the extra speed take the hit.

    If you just want a better deal be more careful in future and keep your account with BT until you've fulfilled your contract.

    I think you will know this by now.


    You could bump BT but that would be silly as you might need their service again.

    Not sure why you renewed with BT as that deal was nothing special especially for the speed you get (as you now know).
  • iniltous
    iniltous Posts: 3,544 Forumite
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    edited 3 April 2024 at 10:23AM
    The CPI + 3.9% is the January CPI figure, which was 4% so a 7.9% increase is correct, so you don’t have a case to be excused ETC on that basis,
    as already stated , the total amount you would pay , if you fulfilled your contractual obligation is much more than what the ETC has been calculated as , so the appropriate reductions have been made to reflect the VAT element, and the costs savings BT have , by no longer supplying your service , so it’s really your choice, pay the correct ETC and ‘legally’ leave your obligations, or  continue with your BT contract until the minimum term ends , you could complain but you don’t  have a case , you agreed to something , the fact that something you consider to be better comes along doesn’t change your agreement with BT , and the ETC amount seems to have been fairly calculated 
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