4.3/5 TrustpilotOFCOM regulated
← Back to Blog

4Com Early Termination Fees: Why Exit Quotes Hit £28k

4Com Early Termination Fees: Why Exit Quotes Hit £28k

The £28,000 Quote That Makes Business Owners Freeze

Scroll through the 1-star reviews on uk.trustpilot.com/review/4com.co.uk and you will find a recurring figure: £27,000 to £28,000. That is the exit quote multiple business owners describe receiving when they asked to leave 4Com early.

For most small businesses, £28k is not a cancellation fee. It is a reason to stay. And that — according to Trustpilot reviewers — is precisely the problem. The exit quote is not designed to be paid. It is designed to keep you in the contract.

We are Compare The Networks, an independent, OFCOM-regulated business telecoms comparison service. We have helped UK businesses compare mobile, VoIP and broadband deals since 2008. We are not affiliated with 4Com. This article explains, factually, how the 4Com early termination fee is typically calculated, why it is so high, and what your options are if you want to leave.

Why 4Com Exit Fees Are Higher Than Normal

A "normal" telecoms exit fee is calculated on the remaining months of a single contract at the agreed monthly rate. On a 24-month contract with 6 months left at £100/month, the exit fee is broadly £600 — high, but manageable.

4Com is different because there are typically two separate agreements in play:

  1. The 4Com service agreement — the call minutes, broadband, VoIP, support.
  2. A separate equipment lease — most commonly with Propel Finance or BNP Paribas Leasing Solutions, covering the Hihi handsets and hardware.

Reviewers describe these running on different lengths — the service at 24 or 36 months, the equipment lease at 60 or 84 months (5 or 7 years). To leave fully, both agreements have to be satisfied.

Read our 4Com 7-year contracts article and 4Com finance agreement trap article for the full mechanics.

The Exit Fee Formula (Approximately)

Based on the publicly reported figures in Trustpilot reviews, the early termination fee for a 4Com deal typically adds up as:

(Remaining service months × monthly service rate) + (Remaining lease months × monthly lease amount × number of handsets) + VAT + admin fees

Worked Example

Say you are a 6-person small business:

  • 4Com service at £200/month, 12 months remaining
  • 6 handsets on Hihi finance at £45/month per handset, 60 months remaining (5 years left on a 7-year lease)

Service remainder: 12 × £200 = £2,400 Lease remainder: 60 × £45 × 6 = £16,200 Subtotal: £18,600 Add VAT at 20%: +£3,720 Admin / early settlement fee (example £500): +£500 Total exit quote: £22,820

A slightly larger business with 10 handsets and/or longer remaining on the lease comfortably hits the £27k-£28k figures Trustpilot reviewers publicly describe. Our 4Com finance agreement trap article digs further into how the finance side inflates the number.

Why the Lease Remainder Is the Killer

In a standard telecoms contract, the longer you have been a customer, the lower your exit fee — because there are fewer months remaining. With 4Com's two-agreement structure, that logic breaks.

The reason: if you are approached at month 18 to "renew for a new discount", and you sign a new 7-year lease, you are back at month 1 of that 84-month clock. Your exit fee has just reset to a multi-year maximum. See our 4Com contract problems article for how the forced-renewal cycle works.

Trustpilot reviewers describe this happening repeatedly — customers who thought they were near the end of their deal find they actually signed a new 7-year agreement a year earlier and are nowhere near exit.

How to Get Your Exact Exit Quote

Do not rely on a verbal figure. Do not call and ask. Do this:

Step 1: Write to 4Com

Email 4Com's customer services. Ask for, in writing:

  • The end date of your service agreement.
  • The total outstanding on the service agreement as of today (in £).
  • The end date of your equipment lease.
  • The name of the finance company holding the equipment lease (Propel, BNP, etc).
  • The total outstanding on the lease as of today (in £).
  • Any early settlement fees or admin charges that would apply.
  • A written quote for the total cost of terminating both agreements today.

Step 2: Also Write to the Finance Company

If you have the finance company details, write to them separately with the same questions. You want two sources of truth. You also want the finance company's position in writing because they are a separate legal entity — what 4Com says may not bind them.

Step 3: Keep Everything

File every response. Date-stamp every document. You will need these if you later complain to CISAS on misselling grounds.

Ride It Out or Pay to Leave?

Once you have the written quote, the decision is straightforward arithmetic.

Cost of Staying

  • Remaining months of service at the current rate (which may be the trebled post-discount rate, not the introductory one).
  • Plus remaining months of lease.
  • Plus any further annual price increases.

Cost of Leaving

  • The one-off exit quote.
  • Plus the cost of a new, honest contract with another provider.

If the exit quote is less than the total remaining cost, leaving is mathematically rational — and you escape the annual price rises, the forced-renewal cycle, and the hardware lock-in.

If the exit quote is more than the total remaining cost (which happens when the lease has years to run), the rational move may be to ride it out to the service-agreement end date, then refuse to re-sign and walk at natural expiry.

Either way: get real numbers. Get a free VoIP quote to see what the new-contract side of the equation looks like.

When to Challenge the Exit Fee via CISAS

An exit fee is not necessarily enforceable just because it is in the paperwork. If you believe you were mis-sold the contract — told the term was 2 years, signed a 7-year lease, not told about the finance company — you have a misselling complaint.

If CISAS finds in your favour, the remedy can include:

  • Cancellation of both agreements without penalty.
  • Refund of charges already paid.
  • Release from the separate finance lease as part of the remedy (though this typically requires the finance company to be on notice).

The process:

  1. Complain to 4Com in writing. Be specific about what you were told vs what the paperwork says.
  2. Wait 8 weeks or get a deadlock letter.
  3. Submit to CISAS at cisas.org.uk.

Full step-by-step in our 4Com complaints CISAS article and 4Com misselling article.

Never accept a verbal resolution. If 4Com phones to negotiate the exit fee, say: "Please put that in writing and email it to me." CISAS decides on written evidence.

The "Forced Renewal" Trap — A Warning

Trustpilot reviewers describe a pattern where, when a customer asks about leaving, 4Com's response is not a quote — it is a retention offer. Commonly: "If you sign a new 7-year agreement, we can reduce the rate."

This is the same trap that locked them in originally, restarted. Before considering it:

  • Ask: what is the exit fee today? In writing.
  • Ask: what would the exit fee be in 6 months? In writing.
  • Compare the renewal offer against honest market pricing. Get a free VoIP quote before you decide.

If the retention offer is only competitive because the alternative is a £28k exit quote, that is not a good deal — it is duress.

Practical Tips If You Are Paying the Exit Fee

If you decide to pay to leave, do this to protect yourself:

1. Get a Full and Final Settlement Letter

When you pay the exit fee, insist on a written letter stating:

  • The amount paid
  • That both the service agreement and the equipment lease are terminated
  • That no further charges will apply
  • The date all Direct Debits will stop

2. Cancel Direct Debits Only After Confirmation

Do not cancel the Direct Debits to 4Com or the finance company until you have the written confirmation. Early cancellation can trigger default notices that damage your credit file.

3. Return the Hardware Per the Lease Terms

The finance company typically wants the kit back (or to charge a buy-out). Get written instructions on how to return, and keep proof of postage.

4. Port Your Numbers Before You Pay

If you have phone numbers with 4Com, port them to your new provider first. A contested exit can delay porting. See our leave 4Com guide and Business VoIP page.

Frequently Asked Questions

How much is the 4Com early termination fee?

It varies by contract, but Trustpilot reviewers report £27,000-£28,000 for mid-sized small businesses. The figure is driven by the remaining months on the separate equipment lease (commonly 5 or 7 years) plus unexpired service. Get your exact figure in writing from both 4Com and the finance company.

Can I negotiate the 4Com exit fee?

Sometimes, but Trustpilot reviewers describe the main "negotiation" being a retention offer to sign a new 7-year agreement rather than a genuine reduction in the exit fee. If you believe you were mis-sold, the proper route is CISAS — where the adjudicator can order cancellation without penalty.

Do I still pay the 4Com exit fee if I complain via CISAS?

Not necessarily. If CISAS rules in your favour on misselling grounds, the remedy can include cancellation of both agreements without penalty. Keep everything in writing while the complaint is active and do not pay the exit fee until you have a decision.

What if 4Com threatens my credit file or blacklists my business?

There is no UK telecoms blacklist. A missed payment on the finance agreement could affect the director's credit file, which is why you should not cancel Direct Debits unilaterally — complain formally instead and keep the written trail. Any "blacklist" threat should be requested in writing and used as CISAS evidence.

Is it cheaper to leave 4Com early or ride it out?

It depends on the numbers. Get the written exit quote. Add up the remaining cost of staying (at the trebled rate). Compare to the cost of leaving plus an honest alternative. Where the lease has 5+ years to run, riding the service agreement to natural end and refusing to re-sign is often the most rational path.

Explore Your Options

Get a free VoIP quote and see what the new-provider side of the equation looks like. 24-month terms, transparent pricing, no 7-year hidden leases.

Or read more:

Nearly 20 years helping UK businesses. Over 1,000 verified Trustpilot reviews. OFCOM-regulated. Free.

Get your free VoIP quote.

About this article. Claims reported here are attributed to public reviews on Trustpilot and similar platforms. They represent the opinions of the reviewers cited, not statements of fact by Compare The Networks. Brands named may dispute these claims. If you are a brand representative who believes any content requires correction, please contact us.

Facing a huge 4Com exit quote? See what honest VoIP costs.

24-month terms, transparent pricing, no hidden 7-year leases.

Get Your Free VoIP Quote
Get VoIP Quote →