From January 1st 2013, Ofcom rules that an Automatically Renewing Contract (ARC) is no longer enforceable on telephone and/or broadband for residential consumers and businesses with less than ten employees.
Following a study by Ofcom into the practices of telephony and broadband service providers, the watchdog has decided to intoduce a change to General Condition 9.1 which mean that providers can no longer automatically renew the contract of a residential customer or that of a small business with ten or less employees.
From 31st December 2012, communications providers will no longer be able to sign customers onto an automatically renewing contract (ARC) and from 1st January 2013 customers within these sectors must be migrated onto non-rolling contracts.
In addition, providers must be pro-active in helping those customers who wish to migrate to a non-rolling contract and take a more flexible approach to termination fees who wish to change providers after completion of their first fixed term.
Fixed term contracts for the residential customer and small business with 10 or less employees have also now been capped at a maximum of 24 months.
Ofcom's rationale for these changes is to widen consumer choice and increase healthy competition.
Here at Power Computing Business Solutions, we have never used ARCs and always respect the wishes of our customers should they wish to leave us at the end of their term.
Furthermore, we are more than happy to assist you in migrating to a more suitable tariff from our portfolio and will actively work with you the facilitate that. Why not contact us to day for a free, no obligation bill analysis to see how much we could save you? We have saved our customers an average of 35% on their telephony and broadband charges.
Call us now on 01234 905108 for your contract review.