Consumer disputes £240 charge after cancelling broadband

A consumer came to Communications Ombudsman after they were charged £240 when they cancelled a broadband service that had been affected by slow speeds and repeated disconnections.

The dispute

The consumer had joined the broadband provider after taking advantage of an offer that contributed towards the early termination charges from their previous provider.

However, after joining, they began experiencing problems with their broadband. They said the service was slow and kept disconnecting, and they raised the issues with their provider.

The provider eventually agreed to allow the consumer to cancel their broadband service without penalty because of the problems they had experienced.

However, after cancelling, the consumer found that a charge of £240 had been added to their account.

The charge related to the offer they had received when joining. Under the provider’s terms and conditions, if qualifying services were cancelled within 12 months, the consumer would need to repay the amount they had received towards their previous provider’s early termination charges.

The provider offered the consumer some account credit and a £25 goodwill payment, but the consumer remained unhappy. They brought their dispute to Communications Ombudsman and asked for the clawback charge to be removed.

Outcome

We reviewed the evidence provided by both the consumer and the broadband provider.

The provider’s terms and conditions made it clear that the early termination fee credit would need to be repaid if qualifying services were cancelled within 12 months.

However, we also considered why the consumer had cancelled their service.

The consumer said they wouldn’t have cancelled their broadband if it had been working satisfactorily, and the provider had agreed to the cancellation following the service issues they had reported.

We also couldn’t see evidence that the provider had explained the financial consequences of cancelling the service in relation to the clawback fee.

Taking these circumstances into account, we didn’t consider it reasonable for the consumer to be responsible for the charge.

We decided that the provider should apply a £240 credit to the consumer’s account to cover the full cost of the clawback fee.

Communications Ombudsman comment

When a dispute comes to us, we look at the evidence from both sides and consider the individual circumstances of the complaint. In this case, our independent review helped reach a fair outcome for the consumer and resolve a dispute that they had been unable to resolve directly with their provider.

We don’t see an issue with providers including terms that allow them to recover incentives offered to consumers if they choose to cancel their contract early. However, where a consumer cancels because the provider hasn’t supplied an acceptable level of service, we don’t think it’s fair for them to be effectively penalised as a result.

If you have an unresolved complaint with your broadband or communications provider, find out how Communications Ombudsman can help.