Termination Fees and Billing Dispute with KCOM

I’m seeking advice on a situation I’m currently facing with my previous broadband provider, KCOM.

I began using KCOM broadband in December 2023. Recently, my family and I relocated to Surrey on July 29, 2024. Prior to the move, I contacted KCOM to inform them of my change in address and to confirm if I could continue using their services at the new location. I was informed that KCOM does not cover my new area. Naturally, I asked about the implications for my billing, as I believe it’s unfair to pay for a service I can no longer access due to their lack of coverage. I was then given the option to terminate the service, which I agreed to.

Immediately after our conversation, my internet service was disconnected. I had just paid for the new billing cycle starting July 20, 2024. Towards the end of the call, I was informed that I would be charged a termination fee of £568, which I find extremely unfair given the circumstances.

To add to my concerns, on August 16, 2024, I received an email from KCOM’s Finance Collection Team, asking me to pay the outstanding balance of £29.98 within seven working days, or face an additional interest charge of £7.

I would greatly appreciate any advice on how to handle this situation. It seems unreasonable to be charged a termination fee and ongoing charges for a service that I’m unable to use due to their coverage limitations.

Thank you in advance for your guidance.

Comments

  • Ayr_Rage
    Ayr_Rage Posts: 2,387 Forumite
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    KCOM are quite entitled to charge you the termination fee.

    You entered into the contract for a certain period and it is you that has decided to leave early.

    They have no obligation to provide national coverage and you should have researched KCOM before joining.

    You may be able to negotiate a reduction but if you don't pay be prepared for them to take further action that may affect your credit rating.
  • born_again
    born_again Posts: 19,654 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    https://www.ofcom.org.uk/phones-and-broadband/bills-and-charges/cw_01198/

    I know there was something about virgin doing this when people moved out of their area's & they got pulled up on it.
    Life in the slow lane
  • Neil_Jones
    Neil_Jones Posts: 9,521 Forumite
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    edited 20 August 2024 at 2:54PM
    KCOM isn't the same thing as Virgin though.

    KCOM only serves the Hull area.  They don't serve anywhere else, so they effectively have a monopoly in that area.  Virgin covers the whole country, but not every property.

    The OP may not have had a lot of choice if they lived in the area, as KCOM was pretty much the only phone/internet supplier in town, if they didn't go down the mobile internet route.  Move out the area, they can't supply you, not their problem.
  • 400ixl
    400ixl Posts: 4,482 Forumite
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    Their early termination fees depend on which service you have and then by how long of a contract you have left.

    They can be found at https://www.kcom.com/home/legal/early-termination-charges/

    Not very sympathetic to people moving out of their service area :(
  • Neil_Jones
    Neil_Jones Posts: 9,521 Forumite
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    400ixl said:
    Not very sympathetic to people moving out of their service area :(

    Hardly surprising to be honest.  Its like asking an ISP in France if they'll continue to supply you when you move to Germany.  Not going to happen.
  • Kim_13
    Kim_13 Posts: 3,235 Forumite
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    edited 24 August 2024 at 2:52AM
    Surely though, if OP has paid the termination fee, they shouldn't still be billing? Their loss of continued revenue is covered in that termination fee. From the information posted, it appears as though KCOM may be trying to have their cake and eat it.

    If the early termination fee hasn't been paid, then a usual bill would suggest that they haven't disconnected the account and added the fee to it. It may be easier to just pay the usual bills, if you can't afford the termination fee upfront.

    How does the termination fee compare to the amount of contract left? A termination fee of that size suggests 19 months ish, if £29.98 is a usual bill. You might have a case if the termination fee represents them trying to recover more than they would have been due under the contract.

    Edit: They do remove VAT and a small discount, so check that the fee has been calculated correctly. 
  • iniltous
    iniltous Posts: 3,595 Forumite
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    edited 25 August 2024 at 10:04AM
    As far as Virgin not applying ETC for ‘in contract’ customers that move to an area that VM don’t cover , they seem to require ‘proof’ of the customer residing in the new address ( using utility bills as proof ) ,
     I would imagine in most circumstances the first utility bill at the new address ( with the customers name on it ) will be at least a month after the customer has moved into the new property ( and therefore a month after they left the property with VM service ) , it’s unclear how VM apply this escape clause , if they say , ‘pay up including the ETC , and when you prove to our satisfaction that you now live in an address we can’t service we will refund your ETC’ seems a leap of faith for the customers or do VM delay the final bill for over a month waiting for proof  ?

    …..I’ve never seen a ex VM customer in these circumstances confirm not having to pay ETC ( or having them refunded  ) ….I’m not saying  VM have a policy that is deliberately designed so it’s unlikely a can customer use it  , but would like to see evidence of it’s successful application from an ex VM customer , or a explanation of how it’s applied that doesn’t disadvantage the customer .

    BTW , if the VM scheme works , that’s no guide to what KCOM will do in similar circumstances 
  • I suggest staying in Hull if you wish to avoid having to pay to breach a contractual term that you signed up to.
    Proud member of the wokerati, though I don't eat tofu.Home is where my books are.Solar PV 5.2kWp system, SE facing, >1% shading, installed March 2019.Mortgage free July 2023
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