OFCOM Deal with ‘Unfair’ Broadband Charges

By Julia Kukiewicz Staff Writer Monday, 24 March 2008

Worst Broadband Providers for Hidden Costs Who do we think are main culprits for unfair broadband charges? Virgin Media - £5 extra for not paying by direct debit, up to £114 for cancelling contract early Sky Broadband - £5 extra for not paying by direct debit TalkTalk - £1.25 for receiving paper bills, up to £70 for cancelling contract early Related Broadbands News See our other recent related broadband news stories and guides: Broadband Fair Use Policies Explained and Exposed Neil Hawkins ploughs through the small print and unroots the best - and worst - broadband fair use policies. Is your broadband provider playing fair? The Tear-out Guide to Switching Broadband Providers HAS your broadband provider been hoodwinking you with hidden charges? Perhaps its time to switch? Adam Mitchell provides the web's most comprehensive and easy-to-understand guide to switching broadband providers.

THE UK telecoms regulator OFCOM has launched an investigation into what have been deemed ‘unfair’ charges levied on broadband customers.

In a statement OFCOM suggested that the aims of the report were twofold:

• to protect poorer consumers, and
• to ensure that broadband deals are properly marketed

The regulator’s report will examine the extra fees imposed on customers who pay their bills late, who want to terminate a contract early, who cannot pay by direct debit or whose service is suspended following late payment.

“There is a concern that some additional charges may [be] excluding these [poorer] consumers from some communication services altogether,” they said.

Small Print Explained

The report underlines the importance of small print to consumers.

Under the Unfair Terms in Consumer Contract Regulations 1999 additional charges should be fair and easy to understand.

Some broadband providers seem to have missed the memo on that one, however.

Worst offenders

Amongst the worst offenders seem to be Virgin Media, Sky Broadband and cheap broadband favourites, TalkTalk.

Virgin Media and Sky currently charge an extra £5 for consumers who do not pay by direct debit and BT charges £4.50.

This is clearly bad news for people such as the elderly and freelance workers who can’t be certain that they will be able to pay their direct debits.

However, you may be able to save on your bill by checking it online. TalkTalk charges £1.25 and BT £1.20 for sending out paper bills.

There have also been reports of exorbitant charges for ending a contract early. TalkTalk has been known to charge £70 while Virgin Media reportedly charges up to £114.

Argue

Until the results of the OFCOM report come into effect the best advice is to always check the small print of your contract and, when all else fails, ring your internet provider and argue the charges down.

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