Ofcom tackles BT on rollover contracts

UK TELECOMS WATCHDOG Ofcom has sunk its teeth into British Telecom (BT) and told it to stop tieing customers into repeated minimum contracts without actually asking their permission.

Ofcom said that the contracts, which are commonly referred to as rollover contracts, are offered by BT as well as a handful of smaller providers, and award late noticing customers with a desire to cancel with a lovely financial penalty for their troubles.

Ofcom estimates that approximately 15 per cent of UK residential consumers are on rollover contracts and, in order to stop any more of them from incurring a cancellation charge at the whim of a telecoms provider, is proposing to change some regulations.

The real problem for users is that it makes switching providers difficult. So, say a consumer has tired of their current service and decides to leave, they might be told that yes, they can, but they will have to pay for the remaining eleven months and 29 days of their contract.

The watchdog has proposed that existing rules be changed to prohibit opt-out contract renewals in any form in both landline and broadband services. If successfully implemented the changes to the regulations could result in penalties, financially penalising offending firms of up to ten per cent of their turnover. µ