NEW TELECOMS OMBUDSMAN TO RESOLVE CONSUMER COMPLAINTS

Ref:      23/01
Date:    15 March 2001

Detailed proposals for a new Telecoms Ombudsman with powers to resolve disputes between consumers and telecoms companies have been published today by Oftel.

The telecoms Ombudsman will provide an important new layer of consumer protection and is based on other successful industry Ombudsman schemes.

Under the proposals, the new Ombudsman would:

• encourage companies and consumers to resolve their dispute as quickly as possible;
• resolve disputes up to the value of £5000 when the consumer has been unable to reach agreement with their phone company;
• award compensation on a case-by-case basis; and
• be as accessible as possible in order to meet the wide range of needs of different consumers.

Announcing the new consumer protection measures, David Edmonds, Director General of Telecommunications, said:

"The new telecoms Ombudsman will be a fast and effective service for consumers to get their dispute resolved, without the expensive and time-consuming process of going to court.

"These proposals result from a joint industry/consumer working group chaired by Oftel.

"I welcome the active support of many in the industry and consumer movement for these proposals and look forward to this continuing as we tackle the practical issues together.

"The Ombudsman will encourage companies to resolve disputes as quickly as possible, backed up with powers to decide on individual cases and award compensation to consumers as appropriate.

"The Ombudsman will be funded by the industry and will be independent, fair and publicly accountable. It will be essential for the Ombudsman to be accessible to all and demonstrate best practice when dealing with consumers, especially those with special needs.

"Oftel will continue to handle complaints and enquiries from the public about telecoms services, but can refer consumers to the Ombudsman where there is a contractual dispute which companies have failed to resolve through internal procedures."

"I have taken a close interest in this work and have given the initiative my wholehearted support. I expect the industry and consumer groups to continue to work constructively with Oftel to establish a model of best practice."

The proposals for a telecoms Ombudsman were welcomed in the Government’s Communications White Paper.

Patricia Hewitt, Minister for Small Business and e-commerce, said:

"I am delighted that Oftel and the telecoms industry have responded to the challenge to create a new consumer Ombudsman. As customers become more demanding, services become more sophisticated and the telecoms industry becomes more competitive, it is vital that consumers who are unhappy with their telecoms service should be able to have a fast, effective, independent  complaints body."

Oftel has begun a public consultation to consider the practicalities of setting up the Ombudsman. The consultation period runs until 15 June. Oftel will issue a statement in July. It is expected that the Ombudsman will be up and running by April 2002.

1. Developing a telecommunications Ombudsman is available from Oftel’s website at www.oftel.gov.uk/publications/consumer/ombu0301.htm. Copies are available to the media from Oftel’s Press office on 020 7634 8991 and to the public from the Research and Intelligence Unit on 020 7634 8761.

2. The Ombudsman will be appointed in accordance with the ‘Nolan principles’ of public life.