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10|07|08

Improving the effectiveness of the consumer complaints process

Ofcom today outlined options for improving the way in which consumer complaints are handled.

Ofcom receives thousands of complaints every week from consumers who are dissatisfied with their experience in the communications sector.

Under current Ofcom regulations, all communications providers must have and comply with a Code of Practice for Complaints which has been approved by Ofcom. They must also be a member of an Alternative Dispute Resolution (ADR) scheme which Ofcom has approved. A consumer can go to an ADR Scheme if they cannot resolve a complaint directly with the communications provider. There are currently two Ofcom-approved Schemes – CISAS and Otelo – which offer free resolution services to consumers.

But Ofcom research shows that consumer awareness of complaints handling procedures is low with less than 50 per cent aware of communications providers’ Codes of Practice for Complaints and 15 per cent aware of at least one of the two ADR Schemes.

To help address this and to improve the effectiveness of the schemes, Ofcom is proposing the following changes to the current process:

1. reducing the time consumers must wait before taking their complaint to an ADR Scheme, from 12 to eight weeks;
2. requiring communications providers to write to consumers who have made a complaint to tell them that they have the right to ADR;
3. having a single Ofcom Approved Complaints Code of Practice which all communications providers have to comply with, which sets out minimum standards for complaints handling procedures;
4. requiring communications providers to keep records of complaints for 15 months, so that Ofcom can effectively monitor compliance and undertake enforcement action where necessary; and
5. introducing limits on the call charges that are appropriate for complaints handling lines used by communications providers.

If a communications provider doesn’t comply with the regulations Ofcom is able to fine up to 10 per cent of its annual relevant turnover.

Ed Richards, Ofcom Chief Executive said, “Effective complaints handling and an accessible scheme for resolving disputes ensure that individual consumers are able to seek redress when things go wrong. Inadequate or inappropriate procedures can cause significant harm and detriment to consumers”.

The consultation runs until 4 October 2008 and Ofcom hopes to publish its Statement in early 2009.

The consultation is published at: http://www.ofcom.org.uk/consult/condocs/alt_dis_res/summary/

Alternative Dispute Resolution in practice: recent case studies

CISAS

A consumer had been trying unsuccessfully for several months to close their account. The communications provider on several occasions didn’t take money from the consumer’s direct debit and then disconnected the consumer for ‘non payment’ and they also took money from the consumer after the services had been cancelled. This had an adverse affect on the consumer’s credit rating and caused them considerable anxiety and stress. The consumer complained to CISAS. CISAS found that the communications provider was in the wrong and awarded the consumer £600 compensation and directed that a senior executive of the communications provider write a letter to the consumer confirming the request for disconnection.

Otelo

Another consumer agreed to switch their telephone service because a communications provider told them they would pay significantly less for a service from them. The consumer became concerned that the stated minimum contract term was ambiguous and was also asked to confirm by a date that had already passed that they didn’t require other services offered. The consumer made several attempts to talk about their account with the communications provider but found its complaints procedure difficult to use. Otelo found that the communications provider had delivered a quality of customer service that was far below the standard that could reasonably be expected. It decided that the consumer should be released from the contract without penalty and required the communications provider to make a payment to the consumer to reflect the poor service given. The communications provider was also required to ensure that in future potential customers were given accurate, comprehensive and unambiguous information about the service offered.

Ends.

NOTES FOR EDITORS

1. Advice for consumers on the Alternative Dispute Resolution schemes can be found at: http://www.ofcom.org.uk/consult/condocs/alt_dis_res/consumerfaqs/

2. More information on the Ofcom-approved ADR Schemes can be found here:

CISAS http://www.cisas.org.uk/

Otelo http://www.otelo.org.uk

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