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19|05|09

A swifter resolution to telecoms complaints

The time consumers will have to wait to seek an independent resolution of their disputes with communications providers will be reduced under new rules introduced by Ofcom.

Under the present system, consumers must allow twelve weeks for their communications provider to resolve their problem before taking their complaint to a dispute resolution service.

New rules, which come into force on 1 September 09, mean that consumers can use the dispute resolution service eight weeks after making an initial complaint to the communications provider.

Ofcom receives thousands of calls each week from consumers who are dissatisfied with their provider. A communications provider should be allowed a reasonable amount of time to resolve a consumer’s complaint but our research shows that complaints are almost as likely to remain unresolved at twelve weeks as they are at eight.

How to make a complaint

All communications providers must have and comply with an Ofcom-approved Code of Practice for complaints and be a member of an Alternative Dispute Resolution (ADR) scheme.

There are currently two Ofcom-approved schemes – CISAS and Otelo – which offer free dispute resolution services to consumers. Following an application by a consumer, the relevant scheme will examine the case. Any decision is binding and the communications provider could be required to take necessary action and may include financial compensation for the consumer.

If a communications provider does not comply with these regulations Ofcom is able to fine up to 10 per cent of its annual relevant turnover.

A guide for consumers on how to make a complaint about their communications provider can be found here: http://www.ofcom.org.uk/advice/guides/complain.pdf.

Review of ADR schemes

Ofcom has also set out the criteria we intend to use in our review of the approval of ADR schemes, scheduled for 2010. We will be making sure that the schemes are accessible, independent, fair, efficient, transparent, effective and accountable.

The full statement can be found here: http://www.ofcom.org.uk/consult/condocs/alt_dis_res/statement/.

Ofcom Chief Executive, Ed Richards, said: “The vast majority of consumers are happy with their telecoms services. For the minority who aren’t we want to ensure that customers get a fair and swift resolution to their disputes.”

Alternative Dispute Resolution in practice: recent case studies

CISAS: a customer sent a letter terminating two mobile telephone accounts. The company said that only one of the contracts was to be terminated and chased the customer for payment of the other account. The Adjudicator found that the letter plainly referred to both accounts and, to reflect the damage done to the customer by the wrong credit entry being made by the company, compensation of £600 was awarded. The company was directed to give an explanation and a full apology to the customer.

Otelo: a consumer contacted a provider and asked for a basic package but was placed onto a more expensive one. The consumer complained to the provider so they downgraded the consumer but charged them for it in their next bill. The provider failed to respond to the consumer’s complaints. The Ombudsman considered the consumer to have received a shortfall in customer service and required the provider to credit the disputed charge, apply a goodwill credit and send consumer a letter of apology.

Ends.

NOTES FOR EDITORS

1. Advice for consumers on how to make a complaint about a communications provider can be found at: http://www.ofcom.org.uk/advice/guides/complain.pdf.

2. CISAS: www.cisas.org.uk
Otelo: www.otelo.org.uk

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