Under new Ofcom rules, you'll be able to leave your contract at any time if your broadband drops below the minimum speed you signed up for.
Ofcom is introducing measures that will allow users to end their contract if their broadband speed falls below the minimum level they signed up for.
It has announced a strengthened Code of Practice on broadband speeds with the UK’s largest providers: BT, EE, KC (based in Hull), Plusnet, Sky, TalkTalk and Virgin Media.
From 20th June, it’ll be easier to switch between providers who use the Openreach network, covering BT, Sky, TalkTalk and EE. A new ‘one touch’ process will place responsibility for the switch in the hands of the company the user is switching to.
What's more, new subscribers will be able to walk away from their provider if the speeds drop below the minimum level at any point over the term of their contract. Currently, they can only walk away without paying a fee in the first 90 days should the speeds on offer fail to meet expected levels.
However, this right to exit only applies to providers who use copper or fibre-based broadband, meaning that it doesn’t cover Virgin Media.
Improving services
New Ofcom chief executive Sharon White said that while customer service levels in the industry have improved, people still find it too difficult to change provider and cancel contracts. They’re also frustrated with customer service.
She highlighted four key areas for improvement:
- Clear and more accurate information in advertising and at point of sale;
- Easier switching with a smoother transfer;
- Clear and fair contract terms with no hidden charges and lock-ins;
- Better complaints handling, including the option to leave when services are inadequate. This includes clear signposting of free alternative dispute resolution services.
Taking action
[SPOTLIGHT]The watchdog has also announced a six-month monitoring and enforcement programme, covering how suppliers deal with customers who choose to switch to a new deal. It acknowledged that the complaints it receives from the general public suggest that suppliers "are systematically making it difficult for customers to exit their contract. We consider that this allegation is extremely serious and, if sustained, may result in significant consumer harm within the market for UK communications goods and services."
Ofcom warned that if it finds evidence that suppliers are obstructing customers from leaving their contracts, it will take enforcement action.
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