Ofcom review 'additional charges'
Ofcom has launched an industry wide review of what are known as 'additional charges', made by mobile phone, TV, broadband and telecommunications providers. This covers charges made for:
- Not paying by direct debit
- Late payment
- Having service restored after it has been restricted or suspended following late payment
- Early termination
The review was launched following complaints from consumers on the above, and will look at consumers' views and awareness on these, examining the transparency, and how fair the charges are. This could work both ways for consumers. Depending on findings, any hidden charges could be shown as unfair, and removed, but it could result in a higher overall monthly charge to cover the revenue lost by these previous charges. Price transparency is vitally important to ensure consumers know how much they are paying, and to help them make the right choice of provider, particularly in areas of high competition such as the broadband market.