Small print that says you CAN quit TalkTalk
Hacked telecoms giant is refusing to let customers leave without hefty exit fees. But we reveal the . . .
MILLIONS of TalkTalk customers could legally quit the broadband firm without penalty and may be entitled to damages, Money Mail can reveal.
Angry customers have been trying to escape their contracts with TalkTalk since the firm revealed last week that it had been the victim of a cyber attack which led to personal data and banking details being accessed. It was the third attack in 12 months.
But those who have attempted to quit have been told they must pay hundreds of pounds to break their contract early.
Yesterday TalkTalk said it would not waive termination fees for customers wanting to end their contracts unless they could prove money had been stolen from them.
But today we can highlight loopholes in the firm’s terms and conditions which may help customers to leave without penalty.
We have spoken to legal experts who believe customers can prove TalkTalk has not taken due care to protect and preserve their personal data — therefore making its own contract void.
Marc Gander, a lawyer and founder of the campaigning Consumer Action Group, says: ‘Of course, TalkTalk is going to try to make it as hard as possible for customers to leave their contracts.
‘But there is a fundamental principle here: how important is the protection of personal data to a consumer contract?
‘You would be able to argue that it is critical, and that anyone who had not acted suffi - ciently to protect a customer’s data was in breach of a contract and so made it void.
‘That TalkTalk had already been suscepti-ble to two hacking attacks before this third one is proof enough, I think , that they have not taken enough steps to protect their customers’ personal data.’
On Monday, a 15-year -old from Northern Ireland was arrested on suspicion of taking part in the October 21 attack on TalkTalk. Nearly four million customers were left at risk following the data breach.
TalkTalk says while its website was com - promised, its core systems were not. No account passwords were taken and credit and debit card numbers were protected.
However, bank details were accessed — though yesterday TalkTalk was trying to downplay how important these might be, stating that the information is only that shared when you sign a cheque or make a payment, such as your account number.
But as Money Mail reveals over the page, this information is exactly the type that leaves you open to attack should it fall into the hands of cyber-criminals.
Normally, when you sign up to an internet or phone deal you must take out a contract that runs between 12 and 24 months.
Under TalkTalk terms and conditions, if you want to leave early you must pay a fee based on the monthly cost of the contract.
So, someone on the firm ’s Plus deal of phone and broadband would face a fee of £275.64 if they had 12 months remaining . Such fees are standard among phone and internet firms.
But there is a ray of hope for TalkTalk customers who want to quit. A crucial term in the TalkTalk contract obliges the broadband firm to carry out its service with reasonable skill or care and to protect and preserve customers’ personal data.
Lawyers say TalkTalk had a duty to look after a customer’s personal information under this contract and the Data Protection Act.
Section 18 of TalkTalk’s terms and conditions relating to privacy may be particularly useful for customers affected by the hacking. This is where the firm pledges to protect and preserve any informa - tion given by customers.
Under TalkTalk’s privacy policy it says: ‘We take protecting your data seriously, and will do our utmost to employ appropriate organisational and technical security measures to protect you against unauthorised disclosure or processing.’
John Deane, from Slater and Gordon, who specialises in commercial law, says: ‘TalkTalk’s privacy policy, which forms part of its contract with its customers, states that TalkTalk will only share data with third parties with the consent of the customer, and do its utmost to employ organisational and technical security measures to protect against security breach. Yet customers’ data has been shared with third parties without the consent of those customers.
‘As a result, TalkTalk has failed to honour its contractual promises to its customers.’ Some TalkTalk customers may also be able to use the Consumer Rights Act, which came into force on October 1, or the older Supply of Goods and Services Act 1982 (specifically sec - tion 13), in order to prove that TalkTalk had not taken due care with their details. Heather Korwin-Szymanowska, associate at law firm Stephensons, says: ‘Under consumer law, TalkTalk owes you a duty of care and this could be classed as a breach of those duties.’
TalkTalk’s terms and conditions also state that the firm is not liable for data loss. But lawyers say this is not enforceable because it is an unfair contract term.
Mr Deane, adds: ‘Any exclusion or limitation of liability on the part of TalkTalk will be subject to the controls of consumer protection legislation and possibly rendered ineffective due to the imbalance in the bargaining positions of the parties at the time of contracting.’
A spokesperson for TalkTalk says: ‘Since Wednesday’s cyber-attack, we’ve been updating customers and working with the Metropolitan Police and cyber -security experts to understand what happened and what data has been stolen.
‘Investigations so far show that sensitive financial information — i.e. credit and debit card numbers — was protected.
‘Bank account numbers and sort codes that are printed on a cheque may have been accessed. But without more information, criminals can’t use them to take money from your account.
‘ We can confirm that in the unlikely event money is stolen from a customer’s bank account as a direct result of the cyber -attack, rather than as a result of any other information given out by a customer, then as a gesture of goodwill — on a case by case basis — we will waive termination fees.
‘This was a criminal act and we are acting in line with our terms and conditions.’