It is now a year since BT introduced their ‘rolling’ contracts for their broadband packages. For us regular broadband users it means that unless we notify BT prior to our existing contract coming to an end they will automatically renew it for another 12 months.

This is not a problem until you decide to switch not having noticed that your contract renewal date has passed and therefore BT would be entitled to charge you as much as £180 to release you from your current broadband service.

Most consumers experience contracts in their time and know that they have to honour them for a set period of time - like most broadband and mobile phone contracts. However BT’s is an exception to the rule at present but the worry is we could see more heading that way to protect their profits.

With so many broadband users now looking to switch and save with broadband deals available from as little as £5.99 a month some consumers could be left seriously out of pocket.

One broadband service provider TalkTalk has complained to industry regulator Ofcom about BT’s practice. Andrew Heaney from TalkTalk commented, “BT cynically places the onus on its customers to cancel their contracts - simply because it knows that many of them will simply forget.”

Many users are still paying between £15 and £20 per month from older contracts and would see vast reductions by switching broadband provider at a time when we are all feeling the credit crunch. It is certainly unfair when consumers expect to have a choice after they have already honoured their agreement.

Broadband providers are already trying to cream in profits from hidden charges from premium rate number support, paper billing charges, installation fees and early termination charges.

Make sure you know the dangers of a rolling contract and that you are aware of your annual renewal date so you can compare broadband deals to find the best price.