Ofcom set to ban 'unfair' charges

[gkd_uk]

Telecom and internet firms will soon have to stop levying extra charges that the regulator Ofcom says are unfair.
The regulator is responding to complaints about additional charges for paying bills by cheque or cash, ending contracts early or paying bills late.

Any extra charges must be clear and "demonstrably fair", Ofcom says.

The draft guidance from the regulator covers bills and charges not only for home phones but also for mobile phones, broadband and pay TV.

If charges remain unclear to customers, firms will not be able to recoup more than the cost of providing the service, under the draft rules that should come into force in the autumn.

"For consumers to get an all round fair deal they need to know the full costs of the services they are buying," said Ofcom's chief executive Ed Richards

"Our proposals will encourage companies to be open and straightforward about additional charges where they feel it is necessary to include them.

"In addition, our proposals mean that, in some cases, additional charges will be subject to clear limits which would provide direct protection for consumers," he added.

Read More