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06|06|07

Ofcom reviews additional charges on customer bills

Ofcom has today launched an industry wide review of additional charges made by communications providers on customers.

Consumers face additional charges from their provider above those they already pay for the service – whether home phone, mobile, broadband or pay TV. These additional charges can be due to a number of factors, including:

• Not paying by direct debit;
• Late payment;
• Having service restored after it has been restricted or suspended following late payment; or
• Early termination fees (terminating a contract within the specified minimum contract period).

Following complaints from consumers, Ofcom is launching an own-initiative review of these charges. Ofcom will examine consumers’ awareness of and attitudes to these types of charges. The review will consider whether additional charges are sufficiently transparent, whether the charges or their levels are unfair and what action, if any, is necessary.

Ofcom Chief Executive, Ed Richards said: "Consumers of communications services see headline prices fall. But they must not be misled. As they make their choice of provider, they need confidence that any additional charges are fair, transparent and justified."

Ends.

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