BT accused of failures over contract cancellation rights

A Which? study found the company did not provide “sufficient cancellation rights” when existing customers signed up to renewable contracts over the phone.

It found that these customers were not supplied with written details of their termination rights until it was too late for them to cancel without incurring a penalty.

Complaints relating to such contracts prompted Which? to call BT 10 times posing as prospective customers.

Only one sales rep informed the “customer” of early termination charges and three failed to mention that the contract was renewable until they were asked specifically on the subject.

According to the consumer group, this breaches UK distance selling regulations.

Peter Vicary-Smith, chief executive at Which?, accused BT of “pulling a fast one by not ensuring some customers get written notice of a cooling-off period”.

He added: “Many phone companies aren’t doing enough to make the cost of getting out of contracts clear upfront and some charge exorbitant cancellation fees.”

The company has now agreed to introduce an “early termination right” for customers which means they will be able to cancel their contracts within a “statutory cancellation period” without incurring charges.

BT spokesman Michael Jarvis said the company complied “as far as possible” with the UK regulations and “fully” with the EU Distance Selling Directive.