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Minimum Contract Periods
Your Minimum Contract Period will be determined by the account
type for which you signup. The rules that specify what your Minimum
Contract Period are as follows:
1. Business customers enter into
a 12 month contract.
2. Residential customers enter into a 1 month contract unless you:
- i) specifically choose to sign up to an annual contract account,
or
- ii) specifically choose to sign up to a 'No Install Fee', 'Deferred
Hardware' or 'No Activation Fee' ADSL account options (see
below), or
- iii) choose to signup to a BT-install ADSL product
- in which cases your Minimum Contract Period is 12 months.
At the end of your contract period, if you do not tell us that
you wish to cancel we will automatically renew your contract. Your
cancellation request must be given 30 days prior to your contract
end date.
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ADSL 'No Install Fee', 'Deferred
Hardware' or 'No Activation Fee' options and the Cancellation
Penalty
What must I pay if I leave within the first 12-months?
Should you decide to leave the service prior to fulfilling
an initial 12-month term a cancellation charge would be levied.
This is referred to in Section 19 of the Terms and Conditions as the Cancellation Penalty.
Should you leave the service within the first 12-months of
your subscription this Cancellation Penalty would be calculated
from the following values:
- Activation Fee. This is the full cost of the BT
line activation fee that was in effect at time of subscribing
to the service.
- Outstanding Fees. These being the cost of supplied
Hardware if outstanding.
- Outstanding Period. The amount of whole months
remaining to fulfil a 12-month initial term.
- Administrative Charge. An administrative fee, this
being the sum of £11.75 inc VAT.
For customers with 'No Activation Fee' products, the Cancellation
Penalty will be calculated as follows:
Activation Fee plus Outstanding Fees plus ten
percent of the same, divided by twelve and multiplied by the
Outstanding Period, plus the Administrative Charge.
For all other customers the Cancellation Penalty will
be solely the Administrative Charge.
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Example:
John signed up to 'ADSL
Home Self Install' with USB modem Starter Pack, choosing
to spread the cost of his Starter Pack over the first
year with the 'no activation fee' option.
He has been a customer for 5 months, having signed up
on 5th March. Whilst he has enjoyed his ADSL Home account
he is moving house to an area that cannot get ADSL and
gives his 30 days notice on 17th August. Because John's
next subscription payment falls within the notice period,
his account is due to be closed on 4th October. This
leaves a further 5 months to run until his initial 12-month
term is completed.
Instead of being held to a 12-month contract which would
cost John 5 X £30.99* = £154.95, John's
actual settlement figure is calculated as follows:
- The
standard activation/install fee at the time of signing
up was £58.75 inc VAT
- The
Outstanding Fees (hardware) is £52.24
- The
Outstanding Period is 5 (months).
- Admin
Charge is £11.75
John's
Cancellation Penalty then is calculated at:
- Activation/Install
Fee (£58.75) + Outstanding Fee (£52.24)
= £110.99
- + 10%
(£11.10) = £122.09
- Divided
by 12 = £10.17
- Multiplied
by Outstanding period (5) = £50.85
- + Admin Charge (£11.75)
= £62.60
* product price shown is an
example
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