Do you know when your broadband, TV or mobile phone contract will come to an end? If not, you could be overpaying by as much as £150 a year if you’re out of contract, Ofcom has revealed.
Research by Ofcom revealed that around 8.8 million broadband customers in the UK are already out of contract. This rises to a whopping 20 million when you take into account mobile and pay-TV customers too.
When a broadband contract expires, the price you pay per month usually increases. But, sign a new deal either with your existing provider or a different ISP and you probably won't see your monthly bill rise. In fact, Ofcom believes that around three million of out-of-contract broadband customers could actually upgrade to a higher-speed package with their provider and pay less than they do now.
Until now, making a note in your diary to investigate new broadband deals a month or so before your current package expires was the only way around this. However Ofcom is making this much easier with new rules that force telecoms providers to tell you when you’re nearing your contract end date.
The rules, which came into force on February 15, mean broadband, TV and landline providers must notify you between 10 and 40 days before your contract comes to an end. They can alert you by either email, letter or text message. Whichever method they choose, they must tell you the contract end date, what you're paying now and how much the service will increase by once the contract has expired.
They’re also required to highlight the notice period required to terminate the contract and the best deals they’re currently offering including telling loyal customers what prices are available to new customers.
If you're already out of contract or you choose to say with your existing provider, without signing a new contract, you’ll get a reminder every year about your provider’s best deals.
"Millions of people are out of contract right now and paying more than they need to. These new rules make it easier to grab a better deal”, said Lindsey Fussell, Ofcom’s Consumer Group Director
The rules are part of Ofcom’s Fairness for Customers Scheme, which was launched in 2019 and includes other initiatives such a cap on the cost of calling directory enquiries services, allowing customers to switch mobile contracts by text and automatic compensation if you’re left without internet access for two or more days.
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