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Old 3rd September 2021, 18:40   #1
wraymond
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Default Plusnet

My annual contract comes up for renewal soon and I'm thinking about changing provider. I've been told by them there will be a cancellation charge of £61! For not renewing! It's my first contract with them and a cancellation charge should not be applicable to a decision not to renew. Anybody know the ropes?

Unfortunately, on another point, recent events concerning my person have resulted in the Doctors telling me not to drive for the foreseeable. That's more than something of a blow. Looks like a quite nice 2500 might be for sale soon. And a lovely Mazda MX5 with exceptionally low mileage. Ah well, easy come easy go.
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Old 3rd September 2021, 18:49   #2
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Originally Posted by wraymond View Post
My annual contract comes up for renewal soon and I'm thinking about changing provider. I've been told by them there will be a cancellation charge of £61! For not renewing! It's my first contract with them and a cancellation charge should not be applicable to a decision not to renew. Anybody know the ropes?
Check the small print for clauses. If you have signed up to a fixed term usage then in contract law that is it. It is nice to be able to give advance warning that one is not going to renew but without looking at the small print it is hard to say why this company believes it can charge a user for keeping within the terms of the contract.

Could go on re this theme and I hope you don't get into the never able to cancel a direct debit saga. I had to change my account numbers to evade one persistent "robber".

Kev
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Old 4th September 2021, 10:35   #3
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You probably have to give them 30 days notice after the contract is up. As such you will be put on the elevated monthly charges. Happened to me, rip off batrsads !
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Old 4th September 2021, 12:12   #4
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Originally Posted by torque2me View Post
Check the small print for clauses. If you have signed up to a fixed term usage then in contract law that is it. It is nice to be able to give advance warning that one is not going to renew but without looking at the small print it is hard to say why this company believes it can charge a user for keeping within the terms of the contract.

Could go on re this theme and I hope you don't get into the never able to cancel a direct debit saga. I had to change my account numbers to evade one persistent "robber".

Kev
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Originally Posted by Atlan View Post
You probably have to give them 30 days notice after the contract is up. As such you will be put on the elevated monthly charges. Happened to me, rip off batrsads !


Not quite correct in both case. When a fixed period contract is coming to an end, Plusnet will have sent a reminder email, followed by another an possibly another. All with offers to renew at some price or not. This usually occurs starting about one month before fixed price contract expiry. If the subscriber takes no action to renew or leave, the service is moved to a monthly rolling contract, which itself may be subject to an early termination charge.

The service provider incurs an operational cost when moving a service between contracts and when a service is terminated. This being the case, it's not unreasonable to make a charge to cover this cost if the subscriber fails to act on the reminders issued prior to the initial fixed price contract end.

All this is quite standard across the industry and will be part of the T&C's of the initial contract. Subscribers sign-up to a fixed price for a fixed term contract, not a fixed-term contract, otherwise the service would be automatically terminated at the end of the contract. It's the same with fixed-price electricity or gas contracts.

Think about the alternatives when a subscribers fails to take action - there are only two other options. These being that the initial contract is renewed at some fixed price without the subscriber's express agreement or the service is just terminated. Neither of these would be acceptable to most subscribers.

Remember that Plusnet will also have taken out a contact with Openreach for the copper infrastructure and either another part of BT or a separate entity for the backbone/fibre network in order to provide the BB service for another month on a rolling basis.

So no, they are not being rip off batrsads. They are covering their costs when a subscriber fails to take action that should be taken in accordance with their contract.

PS I have no association with Plusnet. I just happen to have worked in the telecomms industry designing/building service networks infrastructure and operational systems for nearly 40 years and understand costs associated with the provision, operation and termination of telecomms services.

Last edited by MSS; 4th September 2021 at 15:44..
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Old 5th September 2021, 18:07   #5
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Default To answer Wryamond's query

Provided you choose not to renew in accordance with the email/letter sent by the provider leading up to your fixed-price contract expiry, there should be no charge.

With the information you have given, I suspect that your contract is not yet up for renewal and Plusnet believe that you are attempting to leave before the contract expiry date. Are you sure that you have a 12-month contract and not 18 month?

Ref. info on Plusnet website.

https://www.plus.net/help/legal/contracts-policy/
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Old 5th September 2021, 20:55   #6
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Not quite correct in both case.
Sorry to burst your bubble but it was the case with me.
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Old 5th September 2021, 21:26   #7
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Originally Posted by Atlan View Post
Sorry to burst your bubble but it was the case with me.

Perhaps you misunderstood me?

You are incorrect in making the judgement that because you were asked to pay the termination fee, it makes them 'rip off batrsads !'. Unless of course you feel it reasonable that others should be paying the costs incurred on your service provision.

The bubble remains intact and floating high!

Last edited by MSS; 6th September 2021 at 07:25..
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Old 5th September 2021, 21:29   #8
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Originally Posted by wraymond View Post
Unfortunately, on another point, recent events concerning my person have resulted in the Doctors telling me not to drive for the foreseeable.
Ahh that's not good Ray, hope things improve quickly for you.
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Old 6th September 2021, 06:38   #9
torque2me
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Quote:
Originally Posted by MSS View Post
Not quite correct in both case. When a fixed period contract is coming to an end, Plusnet will have sent a reminder email, followed by another an possibly another. All with offers to renew at some price or not. This usually occurs starting about one month before fixed price contract expiry. If the subscriber takes no action to renew or leave, the service is moved to a monthly rolling contract, which itself may be subject to an early termination charge.

The service provider incurs an operational cost when moving a service between contracts and when a service is terminated. This being the case, it's not unreasonable to make a charge to cover this cost if the subscriber fails to act on the reminders issued prior to the initial fixed price contract end.

All this is quite standard across the industry and will be part of the T&C's of the initial contract. Subscribers sign-up to a fixed price for a fixed term contract, not a fixed-term contract, otherwise the service would be automatically terminated at the end of the contract. It's the same with fixed-price electricity or gas contracts.

Think about the alternatives when a subscribers fails to take action - there are only two other options. These being that the initial contract is renewed at some fixed price without the subscriber's express agreement or the service is just terminated. Neither of these would be acceptable to most subscribers.

Remember that Plusnet will also have taken out a contact with Openreach for the copper infrastructure and either another part of BT or a separate entity for the backbone/fibre network in order to provide the BB service for another month on a rolling basis.

So no, they are not being rip off batrsads. They are covering their costs when a subscriber fails to take action that should be taken in accordance with their contract.

PS I have no association with Plusnet. I just happen to have worked in the telecomms industry designing/building service networks infrastructure and operational systems for nearly 40 years and understand costs associated with the provision, operation and termination of telecomms services.
I did say that the small print would need to be checked.

Kev
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Old 6th September 2021, 07:08   #10
MSS
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Originally Posted by torque2me View Post
I did say that the small print would need to be checked.

Kev

Indeed, you did. I hope you appreciated that my response was polite and factual but hopefully informative.

I would however say the fact that these service contracts are fixed-price for a fixed-term as opposed to just fixed-term contracts is a fairly basic feature as opposed to a small print item.
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