January 12, 2009
NEW GUIDANCE AFTER MP’S CAMPAIGN AGAINST HIDDEN PHONE COSTS
An MP who fought against BT charging customers extra for not paying by direct debit has welcomed new guidance from communications regulator Ofcom.
In 2007 John Healey put pressure on BT to drop the charges, which were costing many customers, especially the elderly, an extra £18 a year. He also took up the issue with Ofcom.
Now, following pressure from MPs like Mr Healey and consumer groups, Ofcom has ruled that companies should not be able to hide charges for services like itemised billing or non-direct debit payment in the small print on contracts.
Mr Healey said: “I was concerned that customers who always paid their bill on time but were unable to set up direct debits – or simply preferred to pay by cash or cheque – were charged more for that decision.
“I am pleased that Ofcom are cracking down on this unfair practice and hope companies will now be up front with customers so they can easily understand what they are paying for.”
Ofcom have produced a guide for consumers offering advice on the type of charges to look for before signing up with a new communications provider. You can find a copy on Ofcom’s website or pick one up from Mr Healey’s office in High Street, Wath.
Telecoms and pay-TV companies now have three months to make any necessary changes to their pay and conditions – or Ofcom can take action.
Last year, BT responded to pressure by launching BT Basic, a new call pricing structure with no extra charge for non-direct debit payment for those on low incomes and pensioners in receipt of certain benefits.
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