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Wednesday, 2 March 2011

TalkTalk Pays Millions in Compensation

As consultants in the Telecoms industry, we regularly see elements of bad practice from suppliers.  For example, we recently came across a situation where unreasonable connection charges were hidden within the terms and conditions of a suppliers contract.

However, it is a case of bogus billing that has taken to the headlines this week.  Industry regulator Ofcom launched an investigation in July 2010, following more than 1,000 complaints from customers who received aggressive demands for the payment of bills they did not owe.
As a result, two telecoms firms, TalkTalk and Tiscali, have repaid nearly £2.5m to customers in compensation, amounting to an average of £40 per customer. 
TalkTalk put the problems down to a new billing system introduced after it bought Tiscali in June 2009.  Following the complaints, Ofcom have confirmed that the two firms, who together have 4.2 million customers, have now taken steps to fix the problem. 

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