Magnifying the small print

Recent research shows broadband users are falling foul of extra charges as a result of not reading the small print.

The study by moneysupermarket.com shows a quarter (25 per cent) of broadband users just skim read their contracts, and an additional eight per cent admit they do not read it at all. As a result a quarter (24 per cent) of all broadband users have been stung for charges they were not expecting.

Common hidden charges people were not expecting to pay include:

Helpline costs
Non-direct debit costs
Moving and installation costs
"Fair usage" policy

Rob Barnes added: "With so many offers out there it's easy to be blinded by the headlines and enter into a contract without thinking about what it entails. Remember, if something looks too good to be true, it probably is.

"With this in mind its so important customers read their contracts. By not doing this, people are clearly unaware of what extra costs maybe lurking in the small print and as a result, could end up with a huge unexpected bill at the end of the month.

"Some providers look to make their money in ways they're not prepared to tell you about upfront. Whilst we support charges that are fair and protect the broadband provider from exposure to bad customers, we are against fees imposed without users' knowledge."

Five things customers should look out for:

Charges for paying by non-direct debit methods
What is your download limit? Does you provider charge if you go over it?
How much does it cost to call your provider if you have a technical problem?
Does it cost you to cancel your contract or if you move home in the first 12 months?
Does your provide charge a setup fee?

moneysupermarket.com has taken a close look at contracts from 14 leading broadband providers. The research uncovered surreptitiously imposed additional charges and highlighted which of the providers have the least transparent contracts.

Some additional charges include:

BT charges £1.50 per month and £4.50 if quarterly billed, Virgin charges £5 per month and Sky £4 for non-direct debit payments.
Having no minimum contract term doesn't mean you won't pay a cancellation fee. Direct Save Telecom and Be charge around £50 if you cancel in the first 12 months.
Namesco charges £25 plus VAT for a failed payment. Direct Save imposes a £14.99 administration charge for a failed direct debit. BT and Virgin Media have similar fees of between £7.50 and £10.
Orange technical support calls cost up to 50p a minute and Virgin Media 25p.
Direct Save (£40), Virgin (£30), Sky (£30) and Be (£24) ask for between £15 and £40 in one off set up fees.
Eclipse charge £1.75, Madasafish £2 and Pipex £3 for every Gb a user goes over the download cap.