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Originally posted by 5corpio
Ofcom, the telecoms regulator has banned rollover contracts, which trap over a million BT customers with their landline provider.
The year-long contracts renew automatically without customer consent, and consumers are then charged to leave the provider. Ofcom said yesterday that the contracts "raise barriers to effective competition by locking customers into long-term deals with little additional benefit."
The contracts for both landline and broadband internet services will be banned from December this year, while those who have already signed the contracts will have to be migrated onto different deals by December 2012. BT is by far the largest provider of these contracts – with an estimated 1.5 million customers on rollover deals – while other providers such as TalkTalk offer rollover contracts to businesses.
The Telegraph has campaigned against rollover contracts, and would like to see them banned for energy providers as well as telecoms companies. At present Scottish Power and British Gas use rollover contracts, while EDF has recently phased them out following customer feedback.
Watchdog Consumer Focus said that Ofgem, the energy regulator, should now move to do the same as the telecoms regulator.
Audrey Gallacher, Director of Energy, said: "Rollover contracts penalise energy customers in much the same as phone and broadband subscribers – leaving people tied into contracts which they...Read more on todays story----> CLICK HERE
The year-long contracts renew automatically without customer consent, and consumers are then charged to leave the provider. Ofcom said yesterday that the contracts "raise barriers to effective competition by locking customers into long-term deals with little additional benefit."
The contracts for both landline and broadband internet services will be banned from December this year, while those who have already signed the contracts will have to be migrated onto different deals by December 2012. BT is by far the largest provider of these contracts – with an estimated 1.5 million customers on rollover deals – while other providers such as TalkTalk offer rollover contracts to businesses.
The Telegraph has campaigned against rollover contracts, and would like to see them banned for energy providers as well as telecoms companies. At present Scottish Power and British Gas use rollover contracts, while EDF has recently phased them out following customer feedback.
Watchdog Consumer Focus said that Ofgem, the energy regulator, should now move to do the same as the telecoms regulator.
Audrey Gallacher, Director of Energy, said: "Rollover contracts penalise energy customers in much the same as phone and broadband subscribers – leaving people tied into contracts which they...Read more on todays story----> CLICK HERE