What is ‘in contract’ and ‘out of contract’?
Being in contract means you’re still within the terms of the agreement you signed with your current provider.
Broadband contracts typically run between 12-months and 24-months. You’re legally obliged to pay your monthly bill until the deal ends.
Not paying or cancelling your monthly bills can result in legal action. Some providers may pass any outstanding debt onto a collection agency, which can affect your credit rating.
You should never cancel monthly payments without speaking to your provider directly.
You can break the contract, but your broadband provider will charge you an exit fee. The exact amount will vary. Some providers charge a set fee; others calculate it by the number of months left on the contract.
Out of contract means that you’ll deal has ended. You’re now free to shop around and switch to other providers offering better deals.
Broadband providers are legally required to notify customers when their contract is ending. This is usually by email or letter. But they’re easy to miss, so contact your provider to see if you’re out of contract.
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