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BT pays £18 million back to customers after contract rule breach

BT has refunded £18 million to customers after failing to follow UK rules on clear contract information, Ofcom confirmed this week.

The problem centred on BT’s EE and Plusnet brands. When customers signed up, they weren’t given key details about their contracts – including early exit fees, contract length and service speed. These transparency rules came into force in June 2022, but BT didn’t bring its processes up to standard until September 2023.

That left at least 1.1 million customers affected, covering around 1.3 million services. Many weren’t aware of the costs of leaving their contracts early, which led to some paying fees they shouldn’t have.

Last year, Ofcom fined BT £2.8 million for the breach, calling it “serious” because BT knew the rules and still didn’t act quickly. While the fine was significant, the bigger task was reimbursing customers who’d been unfairly charged.

Ofcom said BT has now met its obligations: either refunding or crediting £18 million to those affected. For customers who couldn’t be reached, BT donated £440,000 to 17 charities.

For BT, it’s an embarrassing episode, but for consumers it’s an important win for fairness and transparency. Ofcom has made it clear: if companies don’t follow the rules, they will be held to account.

What this means for you

If you’ve ever been hit with early exit fees, this case shows why it pays to check whether your provider gave you all the right information before you signed up. If they didn’t, you may have grounds to challenge those charges – even after you’ve left the service.

Stay informed about your rights

Cases like this aren’t rare – and knowing the latest consumer news can help you protect your money.

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