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A consultation by Ofcom on changes to the rules that govern price rises during fixed-term contracts has just closed. fairtelecoms has responded as part of the Consumer Forum for Communications (CFC).
At the moment, providers can increase charges and don’t have to let customers leave, without penalty, where increases aren’t of “material detriment”. The definition of this term varies by provider which results in inconsistency across the market.
Our view is that consumers should be free to leave contracts without having to pay a penalty when a provider increases the charge for the core part of a package. Where equipment, such as a mobile handset, was supplied as part of the deal, a provider should be free to charge for it for the remaining portion of the term.
At the moment, providers can increase charges and don’t have to let customers leave, without penalty, where increases aren’t of “material detriment”. The definition of this term varies by provider which results in inconsistency across the market.
Our view is that consumers should be free to leave contracts without having to pay a penalty when a provider increases the charge for the core part of a package. Where equipment, such as a mobile handset, was supplied as part of the deal, a provider should be free to charge for it for the remaining portion of the term.
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