Services and Billing

My provider has tied me into another 12-month contract without informing me – are they allowed to do this?

man looking at billOfcom confirmed in September 2011 that rollover contracts will be banned from December 2011.

The contracts, also known as Automatically Renewable Contracts (ARCs), roll forward to a new minimum contract period – with penalties for leaving – unless the customer actively opts out of the renewal.

The ban applies to ARCs for fixed voice  and fixed broadband services sold to residential and small business customers.

Ofcom also required communications providers to move all residential and small business customers currently on rollover contracts to alternative deals, and to completely remove rollover contracts from the market by 31 December 2012.

Providers who continue to have customers on ARCs beyond 31 December 2012 could face enforcement action including a financial penalty of up to ten per cent of turnover.