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Annual contract questions

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Annual contract questions

I'm helping someone sign up to Plusnet and I'd like to ask some questions about the annual contract for Broadband Plus.

1. Are there any advantages to the annual contract other than saving £11.75?

2. Can he cancel within the first year subject to 30 days notice, paying £11.75 and paying the deferred equipment/activation charges?

3. Is year 1 paid up front in full? If so, is year 2 paid up front in full too?
9 REPLIES
Community Veteran
Posts: 14,469
Registered: 30-07-2007

Annual contract questions

1) Not really. I always I would always recommend paying the extra 11.75 and going with a monthly contract for peace of mind as you never know what may happen in the next 12 months and being able to leave with just 30 days notice makes this less of an issue.

2) No. If he signs up to an annual contract he must pay the full 12 months worth of fees + any deferred hardware / activation costs before he can leave (subject to the 45 day plusnet guarantee which allows you to leave without paying the full 12 months within 45 days of signing up.

3) Don't understand you question. The broadband connection is paid monthly in advanced from the date it is activated.
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Annual contract questions

Third question was whether the annual contract requires the first years fees (12 * £14.99) to be paid in one lump sum, or whether it is paid on a monthly basis. From your reply I deduce that both the annual and monthly contracts are paid on a monthly basis?
Community Veteran
Posts: 14,469
Registered: 30-07-2007

Annual contract questions

You still pay monthly in advanced. PN do sometimes allow quarterly or annual payments on business accounts but residential are normally paid monthly.
prichardson
Grafter
Posts: 1,503
Registered: 05-04-2007

Annual contract questions

Both monthly and annual contracts are paid for on an monthly basis. So no, annual contracts do not pay for a years service up front.

If your on an annual contract and you wish to leave, you still give 30 days notice. However, you must pay the remainder of your monthly subscription fees upto the end of the contract.

EG. If you choose to leave in month 5, you must pay 7 months worth of subscription.

Kind Regards,
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Annual contract questions

Yeah, from that it seems like £11.75 is worth paying for the flexibility in a rapidly changing internet market. Thanks for the clarifications.
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Annual contract questions

One other thing, after year 1 ends, does it automatically turn into a monthly contract? Or once year 2 starts is he locked into a whole second year?
Community Veteran
Posts: 14,469
Registered: 30-07-2007

Annual contract questions

You still remain on an annual contact in year 2 and more, but you can cancel giving the normal 30 day notice at any time without having to pay the remainder of that years payments. I.e. you are effectively the same as a monthly contract but your contract still states it is annual.
kitz
Rising Star
Posts: 817
Thanks: 45
Registered: 08-06-2007

Annual contract questions

>> after year 1 ends, does it automatically turn into a monthly contract?

The account will still be classed as "annual" on the records, but once the 12 months has passed, he will only be required to give the 30 days notice.

The only "grey" area that does require clarification is if the user changed product type within the first year... whether that started a new 12 month period or not.
afaik PN were looking to clarify that, and I havent seen anything official yet about those particular circumstances.
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Annual contract questions

So basically Plusnet waive a £11.75 set-up fee in return for a commitment to stay for one year. Phew, got there in the end!

I can't help thinking this could be better explained in the T&C. When I did a search for "annual" the only sentence I got was:

Quote
Following activation of the Service, Charges shall be payable in advance monthly or annually unless any other payment method has been agreed in writing between PlusNet and the Customer or as detailed on any accepted Customer Order.


This paragraph led me to believe that on annual contracts a whole years payment is taken in advance, which I understand is not the case.