Directive issued to Melita plc with regard to applicability of early termination fees
Subscribers are entitled to a contract when subscribing to such service/s. This contract may specify an initial contract period which, by law, cannot exceed 24 months. Should subscribers wish to terminate a service during this initial period, the service provider can charge what are described as ‘early termination charges.’ It is important to note that these early termination charges cannot be applied when terminating a service under a contract which has been renewed after the initial contract period (which cannot exceed 24 months) had expired.
The MCA is aware of a number of instances where early termination charges were being applied by Melita plc to those subscribers who terminated services after a renewal of contract had taken place and after the initial 24 month-period had elapsed.
By means of this Directive, Melita plc is being required to desist, with immediate effect, from such practices.
Moreover, Melita plc is also being required to refund any early termination charges, upon justified requests by subscribers, to those who terminated their service after a renewal of contract had taken place and after which the initial 24 month-period had elapsed. Such subscribers are encouraged to contact Melita plc directly.