BT, Talk Talk and Virgin Cut Termination Rates by up to 85%

Due to an 18 month review conducted by telecoms regulator Ofcom, companies BT, Talk Talk and Virgin Media have made pledges to reduce the cost of terminating a landline contract early.

When signing up to receive a landline service through a provider, you are contracted into a monthly fixed duration. If you choose to leave the contract early and switch to an alternative supplier then companies will often impose a termination fee.

Ofcom have stated that consumers should never have to pay more than the amount of remaining payments, in terms of contracted calls. The regulators have noted that when a customer leaves a provider, costs are reduced as the maintenance of the service is no longer required. Therefore early termination rates should reflect this saving.

Ofcom reviewed the early termination rates in regard to the Unfair Terms in Consumer Contract Regulations 1999. It should be noted that the telecoms providers did not deem their charges unfair but have agreed to reduce fees by up to 85%.

Talk Talk have already implemented the changes to their termination fees with BT and Virgin to follow suit in October of this year. The new charges will also apply to landline customers who receive broadband in the same package.

Ofcom are pleased with the moves being made by BT, Talk Talk and Virgin Media and hope other companies will follow suit.

For more information please see www.ofcom.org.uk

For non geographical, freephone and 08 numbers see 08 Direct.