Contracts from service operators are the bane of many people’s lives. Despite OFCOM implementing what the industry knows as General Conditions, many operators continue to flout them.

Two such operators I have had the unfortunate pleasure of encountering on behalf of clients are, Chess Telecom PLC and Elite telecom.

Let’s look at the single biggest change in recent history of the telecoms market, ARC’s or automatically renewing contracts, you know the ones, where you sign up for x amount of months and if you miss the anniversary you are automatically tied in for the same initial period again. These contracts were removed from sale at the start of this year 2012, to consumers and companies of 10 or less, however, If my understanding is correct, from 13 September 2011, if you signed an ARC after this date OFCOM allow you to terminate the contract, giving the standard notice, at any time, whether you have served the full term of the contract or not.

OFCOM also, in their guidance to operators, make it clear that no early termination charges should be applied unless the operator has endured costs due to the supply of equipment, or free install. That’s only fair after all.

Yet the annoying thing is, operators are playing on your ignorance, Elite Telecom for example recently applied termination charges to a client who gave them the 30 days’ notice, even after my intervention and provision of OFCOM guidelines to them, (operators have a habit of not training their call centre staff properly, this allows them to plead ignorance and ensure the staff give their customers the wrong information, to the operators benefit of course) they, Elite, through their call centre staff, still tried to enforce the contract, which within their small print stated a minimum term of 24 months (more on that later). My client wasn’t aware they had signed for 24 months, and this was hidden away in the small print. The result is we have requested a letter of deadlock to allow us to take the matter directly to arbitration. Again, operators are required to have independent arbitrators and advise of who they are on their website. Check with your supplier to make sure they do.

Now, back to the 24 month contracts.

From May 2011 OFCOM introduced rules in relation to contract length for consumers and small business, 10 staff or less. The maximum length of contract is 24 months, however, you must be offered a 12 month contract as well, if your supplier has failed to offer you a 12 month contract and instead just signed you on a 24 month contract, then your supplier is in breach of OFCOM regulations.

Going back to Elite Telecom, within their general terms and conditions on contracts, they state their minimum term contract is 24 months. In other words their customers don’t have a choice and there for have never been offered a 12 month contract. In this scenario, OFCOM will deal directly with a complaint from you, as it is within the general conditions of supply from the operator where the operator has breached the OFCOM general conditions.

Chess Telecom PLC, where do I start, let me just say that in 20+ years in this industry Chess Telecom have to be the worst operator I have ever encountered. Recently, again a small business, less than 10 employees, gave the standard notice to cancel their contract, to their surprise, this is what they were told (now you will understand what I meant about not training their staff) Firstly, you signed a new contract in April 2012, the customer hadn’t and asked for a copy of the original contract from last year 2011, at which they were told “OFCOM tell us we only need to keep copies for 6 months” I actually have their general manager tell me this on an email re another client. I have yet to find anything from OFCOM which states or even implies this. I believe corporate law requires them to keep copies of contracts longer. Secondly, you are on an ARC, we have until Dec 2012 to take you off this, true except the client has given notice to terminate. Thirdly, you are on our best price guarantee contract (how many contracts is the client on I wonder) and by signing that, as long as we beat whoever you are going to you are resigned to us for the initial term, sounds an awful lot like an ARC to me? But also means that you can never leave Chess, hardly competitive practice is it?

Another guilty pleasure of Chess Telecom is to agree line rentals and call costs with you on your new contract. Don’t expect it to last, I can guarantee that within a few months your prices will have increased.

Why don’t you check your contract terms and conditions and ensure your supplier is being 100% honest with you, or if you need advice use the contact form to get in touch.