Contract Cancellation and Penalty Charges

I have recently received the letter from BT informing me of the impending price rise for line rental etc. I have generally been happy with BT but I'm now finding their basic price structure prohibitively expensive, so took the decision to move my business elsewhere.
I contacted BT last week only to discover that I was tied to a automatically renewing 12 month contract that doesn't end until next March which would cost me over £40 to terminate early. My issue is that I received no notice from BT that the contract was renewing before the anniversary and there is nothing on the regular bills or the account section of the website stating this date. BT assure me letter were sent but it seems a common theme that these don't always arrive. According to BT's T&C's these letters should arrive in plenty of time to cancel if required. I understand that this price change may also be viewed as a material change in the contract I hold and so should allow cancellation without penalty.
I raised a complaint to this effect as I feel these are extremely sharp business practices and generally unfair. I was told by the person raising the complaint it was basically a waste of time as these issues are regularly turned down. I received a call this afternoon stating the complaints dept was happy with the situation and would not be acting further.
From what I understand Ofcom has already reviewed this situation and next month Penalty charges are being slashed. Please could somebody let me know how I escalate my complaint to Ofcom and also if there is an exact date when these reduced penalties come into effect?
Rant over. Many thanks.
Rob

I can't believe this. I had exactly the same issue and looking at the date on your post, on the same day! My paper bill didn't arrive this month, it was due yesterday, today I received a call saying I had to pay my bill, so I checked online and noticed that the discount of my contract wasn't there. I called them and they said they renewed my contract without my concent, neither my letter nor by phone. Like you they said a letter was issued, but I never got that letter because I had to complain from day one signing with BT, and I was desperate to get to the end of the contract. The person who picked up my call is some other part of the world, said I HAD to fulfill my contract whether i signed it or not. Obviously, they know nothing about consumers rights.
I'm not sure how to deal with the situation now because I'm not going to pay for a contract that I didn't agree to, neither will I pay for contract that increased in value, and a contracted that was set before the letter changing the line rental.
I'll keep an eye on this thread in hopes that someone has an answer for us. I'm sorry this has happened to you, but I'm glad in a way that my complaint is not the only one.

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Hi, just started another 12 month contract (I only realised this when I logged on today). And I also see there is a price rise set for 28th April. Can I use this as an excuse to leave early?
I'm on Unlimited Evening & Weekend Plan at no extra cost and I guess I cannot use the price increase as an excuse (to be honest I don't even know if the price increase affects me!?)
Oh well, will just have to put a pin in the calendar.
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FYI, this is a response I've got in a different forum:-
"The only good thing about these price increases is as the opening poster suggests it does allow cancellation of services with no penalty charge to pay.
see the BT terms and conditions sections 47 - 50. tried to post link but can't as a new user, anyway google "bt cancellation charges" and the terms and conditions for BT telephony, broadband, infinity, vision etc should be one of the first things you get.
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In that case, you should look carefully at any paperwork that BT sends you, including the small print at the back of the little BT Update magazines that BT sends out from time to time.
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Just been told to leave contract will be charged 220 quid!! I'm actually moving in with someone to save for my own place and he already has BT so can't take it with me.
I have Broadband Option 1 and anytime calls, been told my contract doesn't end till Feb 2013, I have no paperwork to tell me I had signed for an 18 month contract. I have asked them to provide some proof of that now.
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I think you'll find a verbal agreement is a contract when it comes to telephone sales. If not then broadband, TV and mobile suppliers wouldn't have sales agents in call centres. By your reasoning, if a verbal agreement is not a contract, then BT don't have to provide what you agreed they would when the sale was made? Contracts work both ways. You agree to pay for the length of time agreed, and the company agree to provide a service for that length of time so long as payments are made. If not they have to be seen to be trying to rectify any issue within a reasonable time frame.
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BT Contract Cancellation - A potential Dominic Lit...

Hello everybody, Im new to this but need some help/suggestions.
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Our service started on the 3rd June and on the 16th June (13 days after) we sent BT an email explaining that we want to end the contract. It says on the contract (which came into effect in March 2011), and I quote;
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Can anybody advise us what to do next? We have the right to cancel but they are somehow able to lie to us whilst still taking our money. I cant believe how a manager can be so false and be a blatant liar, despite me pointing out the ovbious to him. Its like talking to a brick wall!
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Contract Cancellation and Penalty Charges

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