Renew before 23/3 or pay extortionate out of contract price?

[#1]

Apologies if I get into trouble but here is the transcript of the chat I just had with "Sales" on the Plusnet site (after having selected "I'm leaving / cancelling"). 

So they won't drop the calls part of my out of contract package unless I sign up for a new one, leaving me paying this obscene amount a month until we leave this property. Still paying the OOC price as we will be moving in the next 3 months and I work from home and still need broadband.

Info at 13:24, May 15:
Please wait while your chat is transferred to the online sales team.

Info at 13:24, May 15:
You are now chatting with Lynette.

Lynette at 13:25, May 15:
Welcome to Plusnet chat Andrew, you are through to Lynette in Richmond, Surrey & I’ll be your guide: how may I assist you today?

You at 13:27, May 15:
Hi, I am a longstanding Plusnet customer but am meant to moving soon so let my contract run out. I am now being charged an extortionate £70.13 for broadband, landline and unlimited calls package (have been OOC for 2 months now). Can I drop the unlimited calls package please as I don't use my landline / telephone, which should reduce my monthly OOC price?

Lynette at 13:28, May 15:
I will be happy to help you with that.

You at 13:28, May 15:
Thank you.

Lynette at 13:29, May 15:
I recommend changing to FIBRE(without a voice service phone line) if you don't want to keep your landline.

Lynette at 13:29, May 15:
We'll re use the same BT socket on Fibre so no engineer's visit is needed.

You at 13:30, May 15:
....but I don't want to sign up for a new contract becuase if I move in 3 months time, I would have 9 months cancellation fees on a 12 month contract or 21 months cancellations on a 24 month contract.

Lynette at 13:31, May 15:
You can move your Plusnet broadband to a new address for free, but we will then need you to stay with us for at least 18/24 months from the date of the move, otherwise there is a £65 charge for the move.

Lynette at 13:32, May 15:
I am very sorry to hear that you want to leave us. Please contact cancellation team on 0330 1239 123, they will be able to help you with this.

You at 13:34, May 15:
Why can't you drop the unlimited calls part of my out of contract package? it would save me £12.69 a month (better than nothing).

Lynette at 13:35, May 15:
I ca offer FIBRE(without a voice service phone line) for £24.99 on a 24 month.
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Lynette at 13:36, May 15:
How does that sound Andrew?

You at 13:37, May 15:
But as above, if I then move and am only 3 months into a 24 month contract, what are the plusnet cancellation fees please for the remaining 21 months I wouldn't be using?

Lynette at 13:37, May 15:
You can move your Plusnet broadband to a new address for free, but we will then need you to stay with us for at least 18/24 months from the date of the move, otherwise there is a £65 charge for the move.

Lynette at 13:37, May 15:
For more information on Early Termination Charges,please click here for the details, thank you.

Lynette at 13:37, May 15:
Early Termination Charge (ETC) calculation: (Monthly Rate X Months remaining). Then further 1% minus from this figure to give total charge.

Example calculation: Your monthly Plusnet Plan is £23.99 a month. If you cancel with 6 months remaining, we multiply the £23.99 by six, totalling £143.91.
UK VAT (20%) is taken off off that figure, leaving it at £115.15. Finally, we take 1% off that figure & add current VAT, making your final Early Termination Charges £136.80.

You at 13:40, May 15:
Okay, thank you for explaining. I wouldn't be taking Plusnet in the house we are moving into though as it is provided in the monthly rent total. Hence paying through the nose at this current address out of contract until we leave here, but I still need broadband as i work from home

Lynette: I am very sorry to hear that you want to leave us. Please contact cancellation team on 0330 1239 123, they will be able to help you with this.

[#2]

@andyt1970, you would probably be better moving to a provider that offers short (monthly) contracts. There are a few around - the monthly cost is higher than the Plusnet contracted rate, but lower than the out-of-contract rate. E.g. depending on your location, Now may offer a monthly contract with a £70 set-up fee for £21pm. So that is cheaper than Plusnet out-of-contract after 2 months. And there is always AAISP - they offer monthly contracts that cost a little more, but less than Plusnet's out-of-contract price.

Alternatively, a 4G solution may be viable.

[#3]

Thank you, have considered NOW Broadband before.

Anyone able to tell me what the cancellation fees would be on this 12 month offer I get when logged into my account please?

Can't get ant more details on what's included as I don't want to click Renew contract beforehand. Not offering much info. is it?

Would that be cheaper to renew then pay 9 months cancellation fee than by joining NOW for a 30 day contract?

Thank you.

[#4]

I thought that call plans could be changed whenever the customer wanted (even in contract as it is only the broadband/line rental element that is covered by the 24/18/12 month contract). The call plan is (or at least used to be until very recently) sold on a monthly basis and if amended, such amendment takes effect at the next billing date. If Plusnet have changed that scenario then they have not publicised that change to their paying customers. Customer Services ought to be able to action such a change and if the particular operative does not know how to do so they should pass you to someone more knowledgeable.

The Customer Options Team (COT) should be able to tell you what the cancellation charges would be on that offer and they should be able to amend your current call plan - tel. 0800 013 2632. They usually answer quite rapidly. If you do sign up for the offer make sure that the call package is not carried over  to the new contract. 

[#5]

The fee will be months left x £26.99 as you are OOC

[#6]

My best guess for pricing - assuming cancellation after 3 months - would be as follows:

Plusnet out-of-contract : 3 * £71.38 = £214.14

Plusnet new 12 month contract: 3 * 26.99 + 9 * (0.99 * 26.99) =  £321.45

Switching provider would take a couple of weeks minimum - so assume a month of Plusnet

Now monthly contract: 71.38 + 70 + 2 * 21.00 = £183.38

AAISP monthly contract: 71.38 + 15.00 + 2 * 45.00 = £176.38 (plus you need a router)

It seems that renewing on a 12 month deal and cancelling after 3 months is the most expensive option. Just paying the £71.38 is painful, but not far off the cheapest option - unless the timescale changed to be more than 3 months

[#7]

The cancellation charges will not be the same as the monthly in contract charge, unless PN have changed their policies recently.  As I said COT will be able to tell you exactly what the charges will be. As an example, in my current contract, which was charged at £21.99 per month (two price rises ago!) the cancellation charges were declared to be £13.61 per month, set out in the email I received when I took out the contract in January 2023.

[#8]

Even if you cancel the OOC now, do you have to give 30 days notice. If you do, you still have £71 to pay.

What is mobile BB like?

[#9]

The chat above gave the ETC at 99% of the monthly charge (not counting any extras that can be cancelled immediately).

It used to be the case that you didn't pay the VAT on ETCs, but the tax law changed a while ago so that you do now still pay the VAT.

[#10]

@corringham 

The phone transcript that the OP posted above does suggest that VAT is not paid on ETCs (see the example towards the end of the chat)..

The other thing I note from the chat was that the PN operative twice ignored the OPs request to remove the call package. I do not see why such removal is dependent upon whether the OP is in contract or not.

This was a chat with the on line sales team (the clue is in the name!) rather than communication with COT who deal with cancellations etc., and can also offer new contracts which may or may not be the same as the on line offerings. The OP needs to speak to them.

[#11]

@jgb, the phone transcript says the VAT is removed from the monthly charge, the charge is reduced by 1%, and then VAT is reapplied (that gives the same result as reducing the VAT inclusive price by 1%). So it confirms VAT is applied to ETCs. 

As for the call package, I expected it to be possible to remove it without any problem as call plans are on a monthly contract. Since it appears to be a problem it may be the case that it triggers a product change which forces a move to SOGEA?

[#12]

@corringham 

My apologies I misread the transcript.

The difficulty in removal of the call package is puzzling. If PN have changed the fact that call packages are on a rolling monthly basis than that needs to be communicated to customers as it is a fundamental change of contract notwithstanding that any such change is being caused by triggering a move to SOGEA or some such issue. The chat does not say that it is not possible to remove the package, just appears to ignore the request and try to sell another product. I do suspect that the OP has just not spoken to the right person at PN to get this done.

[#13]

@jgb I think you are correct that the best solution is to get the call package removed - and that it may be possible if the OP can get to talk to the right person.

Perhaps the best approach it to contact Plusnet task to remove the call package without mentioning any other issue? That might avoid the attempt to sell another contract...

[#14]

@corringham 

I have just looked at removing my call plan via the Members Centre and it appears to be possible if a little convoluted.  From the Dashboard select Phone > Go to Call Plans (next to Current Product box) > Pay as You Call (Line Rental Only) Choose this Call Plan..

I am in a contract but I assume that this route will work if out of contract, i.e. the Current Product box will show No Contract or similar)

[#15]

AFAIK call plans are still on a rolling monthly basis and can be changed without affecting any contract

The t & c say

• 8.1. If you want to change your call plan or call features you may request this at any time. For call features, the change will normally happen within 24 hours of the request. For call plans, the change will take effect on your next billing date. This won't affect your minimum term of the service. Charges for the new call plan or call features will be payable as set out in the Price Guide. Charges for call plans and call features are paid monthly in advance. As call features can be changed part way through a billing month, your bill following the change will include a pro-rata charge or refund to account for the change made during your previous billing month.

@andyt1970call COT,  they should be able to remove your call plan