Ofcom wants to ban rollover phone and broadband contracts

The UK’s communications regulator Ofcom has said that it wants to ban automatic rollover phone and broadband contracts, which are causing confusion to many people.

The world of phone and broadband contracts can be difficult for many people to understand, and with some contracts a huge number of people get caught out and end up being locked into a contract that they don’t want or having to pay hefty fees to get themselves out of it. This is something that the UK’s communications regulator is keen to address by putting an end to certain contract types.

Ofcom wants to put an end to automatically renewable phone and broadband contracts, which can result in customers getting locked in for successive lengthy periods after the initial contract period has expired. When people sign up for phone and broadband services they usually sign up to an initial contract for say twelve or eighteen months. After this has expired they can continue with the contract on a monthly basis and just give a month’s notice if they want to terminate the contract.

However, with the rolling renewable contracts the contract is renewed for a further twelve or eighteen months when the first one expires, which means that customers have to either wait until the end of the period or pay a hefty fee to get out of the contract early.

An official from Which? commented on the contracts, stating: ‘We believe rollover contracts are unfair and can stop people voting with their feet to get a better deal. It’s great news that Ofcom has taken our concerns and those of consumers on board and plans to ban this practice. Phone and broadband companies should focus on offering great value deals with top-notch customer service, so that their customers are happy to stay with them voluntarily rather than being tied in by over-restrictive terms and conditions.’

Have you found yourself locked into one of these contracts? Let us know with your comments

Source – Which