When we are not satisfied with a telecommunications service or are offered a better deal by another company, our first reaction is usually to cancel our current contract and subscribe to a new one. But can we simply cancel such contracts? What are the consequences if we opt to do so?

Before signing up with a new mobile or internet service provider, we should first have a look at the cancellation clauses of our contract. This is especially the case if we intend to terminate the contract before it expires.

If the reason why we want to terminate the contract is because we have been offered a better deal by another company, then we should check what penalty fees apply for terminating the contract prematurely. These fees might be quite high, especially if we have just started our fixed term contract.

If, on the other hand, our contract has expired, we can cancel it at any time. In this case, all we need to do is follow the company’s cancellation policy.

If the cancellation procedure is not clearly outlined in the contract, we should call the company’s customer care and ask what we need to do to terminate the service. Most probably, we will be asked to write a letter in which we should include the following information: we clearly declare that we have the intention to terminate the contract; give details of the service we want to cancel; our account number; and our name, address and contact details.

We should also ask for a written confirmation that the cancellation letter has been received and accepted. It is also advisable that we send the letter by registered post to avoid the situation where we are told that the cancellation letter was never received by the service provider.

As consumers, we are only legally entitled to cancel a telecommunications contract without incurring any penalties or charges if the service provider fails to provide us with the service agreed to during the contract of sale.

Should this happen, we should first inform the service provider about the problems we are facing with the service and give them the possibility to provide a solution. If the problem is not resolved within a reasonable time, then we may opt to terminate the contract.

We have 14 days to change our mind if we entered into a telecommunications contract either off-premises, over the phone or online. The Consumer Rights Regulations give us these rights and clearly stipulate that we do not have to give a reason why we want to cancel the service.

If we start using the service before the cooling-off period expires, we still have the right to cancel the contract but we will have to pay for any usage we may have made.

In case of problems or queries about our cancellation rights regarding contracts related to telecommunications services, consumers may contact the Office for Consumer Affairs within the Malta Competition and Consumer Affairs Authority for more information and assistance.

odette.vella@mccaa.org.mt

Odette Vella is director, Information, Education and Research, Office for Consumer Affairs, Malta Competition and Consumer Affairs Authority.

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