Over one million customers at major telecoms firm owed cash after contract failures – how to claim
OVER a million BT customers could be owed cash after the watchdog found they hadn’t been provided with the right information when signing up for a contract.
The issue involves customers of BT subsidiaries EE and Plusnet, which made a combined 1.3million sales to around 1.1million customers without providing them with contract summary and information documents.
As a result, some customers were unaware they would have exit fees if they tried to leave the provider, regulator Ofcom said.
This is a breach of Ofcom’s consumer protection rules, which came into effect in 2022 to ensure customers get clear information about products they’re buying.
For example, they must give a short summary of key terms including the price and length of the contract, the speed of the service and any early exit fees.
At the time it brought the rules in, Ofcom said BT had assured it it was confident it would meet the deadline for ensuring it provided this information.
However, following an investigation, Ofcom found BT was aware that some of its sales would not meet the deadline from as early as January 2022.
Ofcom has now fined BT £2.8million, which it said “reflects the seriousness of the breach” of its rules.
It said BT must also find and reimburse any affected customers who were charged exit fees and contact remaining customers who are still with the company and offer them the right to cancel without a fee.
It must also amend all its sale processes to ensure they meet the rules.
Ofcom said: “Our rules are clear that if the required contract summary and contract information is not given, the contract is not binding on customers.
“As a result, an early exit fee should not have been payable by these customers.
“In some cases, BT deliberately chose not to comply with the rules on time.
“Other providers dedicated the resource required to meet the implementation deadline for these new rules, and BT is likely to have saved costs by not doing so.”
A spokesperson for BT said: “We’re sorry that some of our Pre-Contract information and Contract Summary documents were not available to some of our customers in a timely manner.
“We apologise for any inconvenience caused and have taken steps to proactively contact affected customers and arrange for them to receive the information and be refunded where applicable.
“We take compliance seriously at BT and we’re working closely with Ofcom to implement the remedial actions as a result of their findings.”
How to complain about your telecoms firm
IF you're having trouble with your telecoms provider, escalating your complaint might get it taken more seriously.
First, contact them to let them know what your problem is and give them chance to rectify the issue.
If this doesn’t resolve your problem, raise a formal complaint.
Contact the provider in writing and say you’re making a formal complaint and explain how you’d like it to be resolved.
Make sure to provide as much information and evidence as possible to back up any claims you’re making, such as that you haven’t received the service you pay for.
Take screen shots of your devices if you have slow download speeds or make a note of times you tried to make calls that failed, for example.
You can escalate your complaint to the an alternative dispute resolution service if you’re still not happy.
For example, service Resolver looks at cases against some telecoms firms such as BT.
The regulator, Ofcom, doesn’t currently have the power to resolve individual cases, but reporting a firm to Ofcom can help build up a bigger picture.
Ofcom can then investigate companies if it receives significant numbers of complaints against them.
By Laura Purkess, consumer features editor and consumer champion
Could I be owed compensation?
EE and Plusnet refused to confirm how much a typical customer might be owed when asked by The Sun.
Ofcom said the number of individual customers affected is likely to be smaller than the number of affected sales, as some customers will have purchased more than one service affected by the failure.
However, if you were charged an exit fee by EE or Plusnet in the last two years and don’t have any documents about this, you may be owed it back.
You should be identified and contacted directly by your provider and offered a refund within the next five months.
Ask your firm if you’re not sure.
How to save on your mobile phone bill
NOT happy with your current mobile phone deal?
If you’re outside the minimum term of your contract then you won’t need to pay a cancellation fee – and you might be able to find a cheaper deal elsewhere.
But don’t just switch contracts because the price is cheaper than what you’re currently paying.
Take a look at how many minutes and texts, as well as how much data you’re using, to find out which deal is best for you.
For example, if you’re a heavy internet user it’s worth finding a deal that accommodates this so you don’t end up spending extra on bundles or add-ons each month.
Also note that if you’re still in your contract period, you might be charged an exit fee.
Ready to look elsewhere? Pay-as-you-go deals are better for people who don’t regularly use their phone, while monthly contracts usually work out cheaper for those who do.
It’s worth using comparison websites, such as MoneySupermarket and uSwitch.com, to compare tariffs and phone prices.
Billmonitor also matches buyers to the best pay-monthly deal based on their previous three months of bills.
It only works if you’re a customer of EE, O2, Three, Vodafone or Tesco Mobile and you’ll need to log in with your online account details.
There’s also MobilePhoneChecker, which has a bill monitoring feature that recommends a tariff based on your monthly usage.
If you’re happy with your provider then it might be worth using your research to haggle a better deal.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
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