Price hike? Cancel without penalty
Rules set by the regulator Ofcom mean that customers can leave mobile, landline or broadband contracts penalty-free if a provider ups prices mid-term if it’s bigger than the RPI rate.
You can cancel your contract and switch to any other provider, as long as you do so within 30 days of being told about the price increase.
But, if your broadband provider has warned you about rises in their terms and conditions and they are in line with RPI, you won’t be able to leave if you’re still locked into a contract. If you do want to leave, you’ll have to pay an exit fee.
If you’re outside the minimum term of your contract then you’ll be allowed to leave without paying. You should check with your provider about how much notice you need to give to do this.
If you want to cancel and you’re not within these rule you may have to pay an early termination fee. These fees could be very high.
For example, if you sign up to an 18 month contract and want to cancel in the second month, you could have to pay 16 month’s worth of fees.
Broadband contracts and RPI
Your broadband provider may be able to hike the price of your fixed contract by the rate of the Retail Price Index (RPI).