I am leaving BE and was looking for an appropriate LLU supplier. Having read the positive reviews of Xilo here I decided they may be a good choice. I understood that the £40+VAT activation fee for inbound migrations was a condition imposed by O2 Wholesale and would therefore apply to any inbound migration to an O2 reseller.
The good folks at Aquiss are able to offer ex-BE customers free inbound migration to the same O2 wholesale service. On learning this, I attempted to cancel my order with Xilo. It is unfortunate that the broadband market is so complex for lay people to understand, however I am aware of the Distance Selling Regulations and understood that I had statutory cancellation rights.
I raised a ticket with Xilo two working days after initially placing my order, which is still more than a week from my proposed activation date. I did not receive a reply over the weekend so on Monday afternoon I telephoned. I was disappointed to be told the following by a Xilo representative:
-the OFT guidance suggests that broadband services are exempt from the DSRs. ( I have not been able to confirm this with the OFT)
-it may not be possible to cancel the order with the wholesaler, despite there still being four working days before the activation date
-if the service could not be cancelled, installation would go ahead and then be ceased, and there would be cease charges to pay
-if the service could be cancelled, there would be a £20 + VAT charge as explained in their website terms.
I have the following difficulties with this position. First, I was not told at the time of placing my order that service would begin immediately and that my cancellation rights would be affected. I now understand having done some research that Xilo's supplier may charge Xilo for any work done provisioning my line, and if a customer was to cancel under the DSRs then they would absorb these losses. I can therefore understand that Xilo would be reluctant to let me cancel without passing on this charge. However, I believe Xilo did not correctly follow the provisions of the DSRs in order to be able to do this.
Since Xilo referred me to the OFT guidance on how the DSRs were applied, I looked at this information myself. It appears that for services like broadband where service is performed before the end of the 7 day cooling off period, the cancellation rights are lost as soon as the service begins. However I was told service would be �activated� on March 14th and was not told of any preparatory work or its effect on my cancellation rights. The OFT interprets the guidance in the following manner:
Under the DSRs, if the pre-contract information was not provided in
writing or another durable medium available and accessible to the
customer, then you must confirm the information outlined in the first
eight bullet points in the Pre-contract information required under the
PSRs list, and also the following information, in a durable medium
when and how to exercise customers� rights to cancel under the
DSRs including
for services � the consequence of agreeing to a service
starting before the end of the usual seven working day
cancellation period
How and when you must supply written and additional information
Under the DSRs, you must supply the written and additional
information in a durable medium before the conclusion of the contract, or in �good time� afterwards during performance of a services
contract, or, at the latest, at the time of delivery of goods.
Information is said to be received in good time if customers have
sufficient time to act on it when they receive it, for example,
to enable them to exercise their right to cancel.
If you provide pre-contractual information in a form that does not
allow it to be stored or reproduced by the customer, such as during
a phone call or on a website, then you must confirm in writing, or in
another durable medium.
Unless you have agreed that they can, your customers cannot cancel
if the order is for
services once you have started the service, provided you had the
customer�s agreement to start the service before the end of the
usual cancellation period and you have provided the customer
with the required written information before you started the
service, including information that the cancellation rights would
end as soon as you started the service
Different rules apply to services where the customer agrees that
the service starts before the usual cancellation period expires.
These rules are as follows.
Where you have supplied the required durable information before
the service starts and the customer agrees to the service starting
before the end of the usual cancellation period, their cancellation
rights will end when performance of the service starts.
If the customer agrees that the service can start before the usual
cancellation period ends and you do not provide the required
written information until after the service has started, but still
provide it in time for it still to be useful, cancellation rights will last
for seven working days after the day the customer receives the
information. But if you finish providing the service within seven
working days after the day the customer receives the required
durable information, cancellation rights will end on the day of
completion.
What if...?
... The customer wants to cancel after the work is started?
Once you have started work or begun to provide a service,
the customer is contractually bound to honour their part of the
contract so long as you
had their agreement to start the service
provided them with the required durable information in advance
of your starting, including that their cancellation rights would end as soon as you started carrying out the contract.
Durable medium
We consider this means a form in which information can be retained
and reproduced but cannot be edited, such as an email that can
be printed or a letter, fax or brochure that can be kept for future
reference. Information on a website is not durable as it can be
changed at any time after the consumer has accessed it.
I raised a ticket with Xilo yesterday raising these points, and look forward to their response. My personal view is that it would be for the ISP to tell customers in a durable form at the time of concluding the contract or soon enough afterwards for the information to be useful that once the order is placed with their wholesaler the customer no longer has the right to cancel. This would avoid the ISP being responsible for any wholesale charges in the event the customer chose to cancel, but the lay consumer cannot be expected to understand the intricacies of broadband provisioning and in my case I think a refund should be made as I requested to cancel within the 7 day period and was not notified that my cancellation rights were adversely affected in durable form as required by the regulations. This could easily be done in the email which accompanies a successful order.
EDIT: I had posted a copy of the email I received from Xilo when I placed my order with them. This was the "durable information" referred to in the Regulations and I posted it to show that it did not mention my cancellation rights. However, Matt at Xilo has asked me to remove what he believes to be confidential information and I am cooperating in the spirit of goodwill.
Note no mention of my cancellation rights or how they may be adversely affected by service beginning within the 7 day cooling off period.
Finally, I anticipate that Xilo would refer to their website terms and conditions. First, a website is not considered a durable medium so in terms of the DSRs these clauses should have been provided by email when the contract was concluded or soon after. Second, it is not clear which services the broadband charges apply to. Indeed it is not clear that these terms formed part of the contract as they were not drawn to my attention during pre sales, at the time of concluding the contract, or immediately after in a durable medium.
I hope this matter can be resolved to the satisfaction of all parties and I look forward to hearing input from other members. I have been a BE customer for six years and hope I can find a new ISP to continue a hassle free internet experience.
Edited by deleted (Tue 12-Mar-13 14:28:28)