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TELECOMS
Dave Millett of telecoms broker Equinox explains how to
avoid over-paying for your telecoms
Let’s face it; no telecoms means
no business. So perhaps it’s not
surprising that so many people feel
taken advantage of by their telecoms
supplier. One question we are
frequently asked is ‘Can you get me
out of this contract?’. To which our
reply is ‘That depends’.
If your supplier tells you that you’re
still in contract and you’re not sure
whether you really are or not, here is
a guide. This will also help protect you
before signing any new deal.
My contract ends when?
The onus is on suppliers to prove
contract end dates. Just because the
system says so does not mean it is
correct. For example, one of our clients
was told their contract had renewed
two days before they enquired about
it. It could be a coincidence, but the
supplier offered no proof of the renewal
date e.g. a call recording, copy of the
original signed document or e-contract.
If suppliers refuse to provide that then
they probably have something to hide.
Renewals and cancellations
Ofcom has rules to protect consumers
and businesses with 10 or fewer
employees. The protection bans
automatic rollover of contracts and gives
customers the ability to cancel contracts
because of price rises and/or failure to
deliver promised broadband speeds.
Some suppliers try to find their way
round these protections.We have seen
contracts saying ‘tick this box to keep
tariffs after contract end date’. There
is no explanation that by ticking this
box you are agreeing to an automatic
renewal. But that’s exactly what you are
doing. Effectively they are getting you
to waive your rights by ticking the box.
Be careful about notice periods. They
may not be as tricky as ‘only on the
fourth Tuesday before the full moon’,
but they can vary greatly. The most
extreme we’ve seen required three
years’ notice!
Traps to avoid
Other traps to look out for include:
n
Automatically restarting your
contract if you change or add
something;
n
Having different terms for each
element of the contract. For example,
having calls for two years and, in small
print, the lines for five years;
n
Adding new services that have their
own contract so end dates never align.
This can make cancellation almost
impossible as you’re never out of
contract on all services simultaneously;
n
Changing the Terms and Conditions
– but only stating this on the website.
Many contracts state that suppliers can
change the T&Cs without notifying you
directly; they simply need to update the
information on their website. Make a
note to check regularly if you have this
clause; and
n
False inducements to buy – the
advertising says ‘we promise to save
you money’ but your invoices show no
savings.
Penalties for early cancellation can
be high so check contracts carefully.
To reinforce how careful you need
to be, here is an example: the customer
Starting out on
the right foot
signed a contract which had a box
marked minimum term on the front page.
This had been left blank. The salesperson
verbally assured the customer it was a 12
month deal. However, in the small print
of the contract a clause stated that if the
minimum term was blank the contract
was for 60 months. The supplier refused
to budge.
How can you reduce the risks?
1
Check if the supplier is signed up to
the telecoms ombudsman. Free binding
arbitration is available to consumers and
small businesses if there is a dispute.
Obviously, if you have serious doubts
consult a lawyer.
2
Send an email setting out your
understanding of the contract. Ask them
to confirm that in a conflict between
their T&Cs and the email, the email takes
precedence and that you are only signing
the contract on that basis. The email
could include:
n
Contract duration and notice period;
n
That prices are fixed for duration – any
change gives you freedom to cancel
without penalty, whenever it is spotted;
n
Only the charges specified in the
contract may be levied – this stops
hidden costs such as call set up fees and
any changes in Terms and Conditions;
n
Repeat any claims made (e.g. you will
save money) and state that they are a
condition of the contract and that if they
fail to meet these the contract is null
and void;
n
The contract will not rollover at the
end of the term without your explicit
prior consent.
3
Compare the invoices to the prices
in the contract.We have seen large
differences.
Many of these points could apply to
other services. However, the telecoms
industry is often guilty of using
confusing jargon and relying on people
not noticing details or being unwilling to
challenge their supplier or go through a
lengthy process to get redress. Be vigilant
from the start so you sign a fair contract.
And don’t be reticent. Challenge your
supplier if you believe they deserve it!
Be careful
about notice
periods. They
may not be as
tricky as ‘only
on the fourth
Tuesday before
the full moon’,
but they can
vary greatly.
The most
extreme we’ve
seen required
three years’
notice!
