BT broadband: sneaky £31 exit fee hidden in small print


Updated on 07 July 2017 | 4 Comments

Want to cancel your BT broadband contract? You may be hit with a hefty exit fee if you try to leave.

BT has come under fire for charging customers a £31 fee if they want to leave.

The fee is particularly outrageous as it is levied even if you wait and leave after your contract has ended.

Where is this information?

If you dig through your BT broadband paperwork you’ll find the fee hidden in the small print where it is described as a “broadband cease charge” levied to cover the “additional cost” to BT to “recover equipment and amend records” when a broadband line is no longer needed.

If you are switching broadband provider to another firm that uses Openreach, the BT-owned infrastructure network, then you may escape the exit fee.

However, if you are moving to a cable broadband provider such as Virgin, are moving abroad or simply no longer want a broadband service you will have to pay the fee.

The exception is if you are cancelling your contract due to severe illness, death, or because BT broadband is not available where you are moving to.

Take a look at the latest company tricks and finance trends in our household money section.

What’s the charge for?

“The broadband ‘cease charge’ reflects the work required within an exchange to recover equipment and amend records when a broadband line is ceased,” a BT spokesperson told the Telegraph.

“It’s explained clearly on BT.com, with a link from customers’ terms and conditions. We’re currently reviewing it.”

BT isn’t the only company reviewing exit charges; Virgin Media is currently being investigated by Ofcom over its early termination fees.

Virgin Media levies a penalty fee if customers want to end their contract early, even if they are moving to an area where Virgin Media broadband is not available.

The fees can leave Virgin Media customers facing bills of up to £240 if they want to end their contract.

‘Fair and reasonable’

Telecoms firms are allowed to charge termination fees but they are meant to be fair and reasonable. BT and Virgin Media could both be accused of not being fair with their exit penalties.

Ofcom has said it will be monitoring early termination fees levied by all communication providers and may choose to investigate other firms as well as Virgin Media.

Find a better broadband deal for you with broadbandchoices.co.uk

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