BT Charging Punitive Fees Just For Leaving

[entseo]

Hi,

I recently transferred from BT to Virgin Media for my broadband and telephone service. I had been having issues with BT for years and they could never resolve these, so in the end I resolved to leave them.

But BT behaved very churlishly when I did this. To cut a long story short, after "trying it on" with various things, they are insisting on charging me £31 for each line (account) that is being closed. I am closing two accounts because it takes BT two lines to do what Virgin Media can do in one.

I asked BT's Newcastle technical complaints team what exactly this £31 (or in my case £62 because I had two lines) was for, and they said it was for closing the accounts. I told them that I could understand them charging a fee for supplying a service, but to charge a fee for NOT supplying a service I could not understand.

Their reply was no more enlightening, and could not explain what this charge was actually for.

Therefore I must construe that this £62 fee is a punitive charge. It is nothing else than a peevish charge for leaving their service and going to a competitor.

As I understand it, "punishment" charges like this are illegal under consumer law.

But is this correct?

Any help on this would be much appreciated.

Thanks,
Gordo

[des8]

Re: BT Charging Punitive Fees Just For Leaving

BT terms and conditions :
39. If you end your service or switch to another Broadband provider on a different network you may have to pay a cease charge by way of compensation to us. The cease charge is as set out in the Tariff Guide and we will tell you what your cease charge will be when you place your order with us.

OFCOM's view on this:
"If a customer decides to cancel a broadband service (and doesn't plan to switch to a new company which also uses BT's network) they may receive a 'cease' charge. This even applies if they have completed their contract. The company is passing on a charge which it has to pay, to BT Openreach.
Ofcom's final guidance is that a cease charge is probably fair, provided:

• the charge is made clear to customers before they sign on the line; and
• it's based only on the actual costs that come with ceasing a service."