Ofcom raps TalkTalk for customer billing
TalkTalkTiscaliBroadcastingOfcom has threatened TalkTalk and its Tiscali UK division with potential fines for breaching consumer protection rules, after they billed customers for services that had been cancelled.
The media regulator said that it has received 1,000 complaints "this year alone" about the two firms issuing bills to consumers for services that had not actually been provided.
TalkTalk and Tiscali UK - acquired by the TalkTalk Group in late 2009 - have now been issued with a legally-binding notification requiring them to comply with Ofcom's rules for customer billing.
Should they not comply with the notification by December 2, Ofcom will launch enforcement action against the companies, which could include a maximum financial penalty of 10% of their relevant turnover.
The notification also requires TalkTalk and Tiscali UK to take steps to remedy any harm caused to consumers, including refunds to be provided to anyone billed for cancelled services since January 1, 2010.
The two operators must also stop any debt collection action against affected consumers, and withdraw from any legal proceedings already started. Steps should also be taken to help any consumers who have had their credit rating affected by the debt collection action.
In its investigation, Ofcom considered a number of complaints from consumers and also checked TalkTalk and Tiscali UK's own customer records.
One consumer complained to Ofcom that she had cancelled her account with Tiscali UK in February 2006 but was pursued by debt collectors for the cancelled services. The company's records showed that the woman paid £609.97 for services she never received.
Another consumer switched her landline from TalkTalk to another provider in January this year, but continued to receive bills totalling £109.77 for the service she had cancelled.
"Ofcom is determined to stand up for consumers and take action against companies that break the rules," said Claudio Pollack, Ofcom's director of consumer affairs.
"Our investigation into TalkTalk and Tiscali UK found that they had billed customers for cancelled services; this is unacceptable which is why we have ordered them to clean up their act or face the consequences."
In a statement, a TalkTalk Group spokesperson said: "We identified an issue with the cancellation process for ex-Tiscali customers caused by an error on a legacy billing system.
"We are resolving this by migrating all ex-Tiscali customers onto one network and billing system which will allow us to process cancellations much more effectively.
"TalkTalk Group has co-operated fully with Ofcom's investigation and we apologise for the inconvenience caused to this limited group of former customers."
TalkTalkTiscaliBroadcastingOfcom has threatened TalkTalk and its Tiscali UK division with potential fines for breaching consumer protection rules, after they billed customers for services that had been cancelled.
The media regulator said that it has received 1,000 complaints "this year alone" about the two firms issuing bills to consumers for services that had not actually been provided.
TalkTalk and Tiscali UK - acquired by the TalkTalk Group in late 2009 - have now been issued with a legally-binding notification requiring them to comply with Ofcom's rules for customer billing.
Should they not comply with the notification by December 2, Ofcom will launch enforcement action against the companies, which could include a maximum financial penalty of 10% of their relevant turnover.
The notification also requires TalkTalk and Tiscali UK to take steps to remedy any harm caused to consumers, including refunds to be provided to anyone billed for cancelled services since January 1, 2010.
The two operators must also stop any debt collection action against affected consumers, and withdraw from any legal proceedings already started. Steps should also be taken to help any consumers who have had their credit rating affected by the debt collection action.
In its investigation, Ofcom considered a number of complaints from consumers and also checked TalkTalk and Tiscali UK's own customer records.
One consumer complained to Ofcom that she had cancelled her account with Tiscali UK in February 2006 but was pursued by debt collectors for the cancelled services. The company's records showed that the woman paid £609.97 for services she never received.
Another consumer switched her landline from TalkTalk to another provider in January this year, but continued to receive bills totalling £109.77 for the service she had cancelled.
"Ofcom is determined to stand up for consumers and take action against companies that break the rules," said Claudio Pollack, Ofcom's director of consumer affairs.
"Our investigation into TalkTalk and Tiscali UK found that they had billed customers for cancelled services; this is unacceptable which is why we have ordered them to clean up their act or face the consequences."
In a statement, a TalkTalk Group spokesperson said: "We identified an issue with the cancellation process for ex-Tiscali customers caused by an error on a legacy billing system.
"We are resolving this by migrating all ex-Tiscali customers onto one network and billing system which will allow us to process cancellations much more effectively.
"TalkTalk Group has co-operated fully with Ofcom's investigation and we apologise for the inconvenience caused to this limited group of former customers."