what happened when James' broadband bill went up 30% overnight
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I hear plenty of complaints about dodgy broadband deals but this one is a first.
James lives in a remote part of Norfolk without access to a fast broadband connection.
Last year his neighbour popped round to say that he had just paid for a dedicated leased line to his home – and offered to hook James up to it.
It was the news he had been waiting for but it did come with a catch.
His neighbour asked for a payment of £50 a month to use the connection.
James didn’t mind this. The next day he was presented with a contract and it was explained that this committed him to a rental of 24 months.
He was asked for an initial payment of £250 to cover the cost of running a cable to James’ house. James signed the contract and paid the money.
All has been well with the arrangement but there is now a major sting in the tail.
And then....
James’ neighbour has just told him that he is increasing the rental to £85 a month.
James has responded by saying he did not agree this. In response, his neighbour has highlighted that the contract says “£50 per calendar month or such other amount as the supplier [James’s neighbour] determines”
James therefore contacted me to ask if his neighbour can get away with this. The short answer is no, for two reasons.
Firstly, you cannot supply a broadband connection to a consumer unless you are approved to do so by Ofcom.
The contract James has with his neighbour is therefore unenforceable as its illegal due to being in breach of the Communications Act 2003.
Secondly, if the contract had been binding, the clause allowing James’ neighbour to increase the fees ‘at will’ without James’ consent would not have been binding as it would be classed as an unfair term.
This highlights that not all contracts are legally binding. If you’re stuck in a nightmare deal, it’s worth getting it checked out.
James’ story is one I’ve never heard before so I wonder if it is happening elsewhere.