There are lots of broadband deals available on the market, with new ones coming out all the time. But if you want to switch to a deal that is much better value then you may be put off from doing so because of the fees involved in cancelling your contract.
But now things are about to get a lot better for customers after Ofcom announced that it had come to an agreement with the three biggest landline customers that they would start to introduce lower charges for cancellations.
Virgin Media, BT and TalkTalk have all agreed to cut their cancellation fees for a number of their landline packages, as well as landline and broadband bundles.
TalkTalk introduced its new charges on June 1, and will be offering the same cuts to its Tiscali users from November 1. Virgin and BT will both cut their fees from October 2010.
Ofcom stated that the companies did not think that their charges were unfair, but that they agreed to reduce them for their customers.
Companies want to recoup their losses when customers cancel a contract, and so have made the fees very high as a result. But the new cuts are quite substantial.
For example, the TalkTalk Essential phone and broadband bundle cancellation fee has gone down from £33.48 per month to £8. And the Virgin Media phone and broadband bundle has gone down from £29.99 a month to £6.63 for the first month and £4.63 for the remaining months.
It is thought that more companies will follow suit in the future as they could face action from Ofcom if they do not.
Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.