Do you know, exactly the same thing happened to me last year. I aggreed to have cable tv on the basis of a one year free trial, but they charged me for it each mont for 4 months. After dozens of calls they finally aggreed to a refund, then charged it instead of crediting it. And they said the same, we have to pay it and then they'd refund it. I refused to pay them over £100 that I didn't owe and they cut me off.
So I spoke to a supervisor and told her to cancel everything and to summonse me for non-payment and everything came back on.
If you persist you'll get your money and your service back. But keep going 'cos they owe you for the phone calls - they're free from an ntl phone and expensive on a mobile. - and because its an insult to treat you as if I've welched on your payments. The won't give you much but its the principle of getting them to admit the error and its consequences.
Every time you ring, ask for a supervisor 'cos that goes on the call record, and besides the call-centre staff aren't paid enough to have to deal with unhappy customers.
And put it all in writting to them, using names and making it clear that this is a complaint and that you require a satisfactory answer or you will take it to the omburdsman. And keep a copy of the letter so you can send it to the omburdsman.
If nothing else a written complaint makes you feel better 'cos you can think about what to say and make your points without being interupted.
Good luck. If only they didn't have such good products we could all go to BT
