Warning issued to BT customers to be aware of rolling contracts

Customers of BT have been warned to ensure they fully understand the consequences of ignoring services that have rolling contracts in a report on PC Advisor, the IT Specialist site.

BT customers signing up for the Option 1 broadband package could fall foul of being tied into their broadband package for another year if their fail to advise their internet service provider (ISP) within the final month of their contract that they wish to cancel, it has been revealed.

Customer will have to pay £180 to opt out if the contract if they wish to end the terms and conditions prior to the end of the second term of subscription with this type of rolling contract, which was introduce in April 2008.

Most other internet service providers in the UK do not currently renew contracts automatically once the contract expires and as such BT’s policy is not representative of the majority of providers out there, noted PC Advisor.

It was mentioned that calls were being made to Ofcom for the clause to be cancel, according to a spokesman for rival ISP TalkTalk.

Andrew Hanley from TalkTalk said “We believe that rolling contracts are a sharp practice at any time, but particularly so in the current credit crunch and with given the riches available in the market. BT cynically places the onus on its customers to cancel their contracts – simply because it knows that many of them will forget.”

A spokesperson for BT did, however, reiterate that this method of contract renewal is not only clearly stated in correspondence to customers, but the ISP also contacts its customers to remind them that their contract is up for renewal 30 days before it is due to expire.

The spokesperson said “Customers make a clear positive choice to opt in to a renewable contract in exchange for the considerable benefit of free evening calls. Our customers are given clear information about the nature of their contract and what it means in exchange for the benefits they receive. The renewable aspect of contract is clearly explained three times up front to the customer.”