Broadband News

Ofcom issues record telecoms fine of £4.6m on Vodafone

The sleeping tiger of Ofcom has bitten and taken a £4,620,000 chunk out of Vodafone. The fine is the result of two investigations run by the national telecoms regulator.

Some 10,452 pay-as-you-go customers who tried to top up their mobile service but Vodafone failed to credit the accounts lost £150,000 in total over a 17 month period. Vodafone has chased down all but 30 of these accounts and refunded people. As a result of this failure a fine of £3,700,000 was handed out. Apparently a new billing system is at fault and the size of the fine reflects the fact that apparently Vodafone only acted once Ofcom intervened. For the 30 where they are not able to identify the customer a sum of £100,000 has been donated to charity.

The smaller fine of £925,000 was handed down for failures in how Vodafone handled complaints, with customer service staff not having clear guidance to help them identify what constitutes a complaint and a failure to escalate complaints in a fair and timely manner.

The fines come with a 20 day notice to pay and the money once paid to Ofcom will be passed onto HM Treasury.

Comments

Like all regulator's fines the guy that pays will be the customer. The winner of course is the chancellor. Ofcom should find another sanction, like confiscating bonus payments or sending the scoundrels to the pokey

  • 961a
  • 10 months ago

To fine individuals (or send them to jail) is not within the scope of a regulator. Criminal law requires a prosecution in a court, not the ruling of a regulator. It also needs an identifiable law to have been broken along with a clear personal responsibility.
In any event, the publicity will damage Vodafone and it's not the customers, but the shareholders who pay the price. Vodafone cannot arbitrarily raise prices in a competitive market.

  • TheEulerID
  • 10 months ago

They should build a factory specialising in making fibre optic cables and subsidise the hell out of it. Lets make fibre -£1 per metre! Paid for by other peoples tears.

  • darren_mccoy
  • 10 months ago

any fees charged by ofcom will be passed onto customers (probably add 2p for calls or text charges)

  • leexgx
  • 10 months ago

I've recently had an annoyance with 3 and two bills adding 1p to the cost as a rounding problem. Still awaiting a response after their 48hr contact email days later. 1p isn't much but if you have 100,000s of customers not noticing......for several months...every little helps!

  • paulmjstone
  • 10 months ago

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