Regulator Reigns in Broadband & Phone Charges
Ofcom has announced it will investigate "additional charges" imposed by telephone and broadband providers. The probe will focus on charges for paying by methods other than direct debit or to have a service restored after disconnection. BT has recently been in the news following it's decision to charge those paying by quarterly cheque an additional £4.50.Broadband providers and other utilities are keen to get customers to pay by direct debit. It costs them less than processing cheques and the volume of late / failed payments they have to spend money chasing is reduced. The benefit for consumers is increased convenience for those who do not want to have the hassle or remembering to pay a regular bill.
But it's not all good news for the consumer. If usage is metered rather than a fixed monthly cost, direct debits will typically be an estimated payment based on previous usage. Although consumers are re-credited any overpayment at the end of the year.
In the meantime it's the supplier rather than the consumer who has been earning interest on that money. The overpayment can sometimes involve sums of several hundred pounds.
Ofcom's Ed Richards says "Consumers have seen 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."
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TheRateTart
rate tart noun [C]
1 also card tart, card surfer
someone who continually switches credit card providers in order to get the lowest interest rates available
2 also rate surfer
someone who regularly switches savings or loan accounts in order to get the best interest rates available
rate tarting noun [U]
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