On 18/06/2010 09:36, Steve Hayes wrote:
> On Thu, 17 Jun 2010 21:09:08 +0100, tim.... wrote:
>
>> "PeterC"<(E-Mail Removed)> wrote in message
>> news:1tqgetsno6vej.agbw7eh5js1j$.(E-Mail Removed)...
>>>
>>> "The three big landline telephone firms - BT, TalkTalk and Virgin -
>>> have agreed to make big cuts to the cost of ending their deals early."
>>>
>>>
>>> http://news.bbc.co.uk/1/hi/business/10341663.stm
>>
>> I find this comment particularly patronising
>>
>> "It is still best if people avoid early termination fees altogether so
>> phone companies must make sure consumers know exactly what they are
>> signing up for in the first place"
>>
>> Given that almost no-one offers a contract that doesn't specify a
>> contract term of less than 12 months please can the author tell me how I
>> sign up for such a contract if that is what I want.
>>
>> tim
>
> There is some sense to it though. For example, if (like us) you have had
> standard BT service for many years but might be moving away in less than
> 2 years, a new contract (with BT or whoever) isn't attractive because of
> the minimum term, no matter how tempting the offer.
>
Not so long ago, before the advent of the termination fee, BT
historically did not charge anything for termination of service,
provided that the original 12-month term was up.
If you terminated within the first 12 months, you would be charged for
the unused part of the term only.
Now, instead of having an open-ended contract, subject to a 12-month
minimum, they found a way to make more money by making you take out a
new contract every year. In this way, they can justify termination fees
if someone terminates just after their new annual contract starts.
How this ever got past OFCOM, I don't know - but it's a rip-off and
we're stuck with it!
George