Lewes MP Norman Baker has today welcomed the result of a sector-wide review undertaken by the communications regulator, Ofcom, into the extra charges that some communications providers levy on their customers for not paying by direct debit.
Over recent months, Norman’s constituency office in Lewes has received a large amount of letters from constituents complaining about the extra charge that some companies such as BT now place on their customers for not paying by direct debit.
The issue has received a considerable amount of attention in the national media, as it is considered by many to equate to the penalisation of those on low-incomes who are unable to commit to paying by direct debit.
Ofcom has now produced a consultation document, setting out where a number of such practices need to end or need to be made more transparent to customers. In addition, after discussions with Ofcom, BT will now introduce a new low-rate line rental package, 'BT Basic', which will be made available to those in receipt of certain state benefits, and will come without a direct debit charge.
Speaking on the issue, Norman said: "I am glad to see that Ofcom is taking this issue seriously. The introduction of extra charges for customers, simply because they do not pay by direct debit is a very serious matter, as it is likely to penalise those on low-incomes, who are weary of switching to direct debit through fear of going over their bank limits.
"I have been contacted by many of my constituents about this and have raised this issue with both BT and Ofcom on their behalf.
"Although the news of the new 'BT Basic' package is a step in the right direction, I feel that more needs to be done. I welcome the news that Ofcom is seeking to make sure that companies such as BT are more transparent when it comes to how they charge their customers."
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Contact Norman at:
Norman Baker,
23 East Street,
Lewes,
East Sussex,
BN7 2LJ.
Tel: (01273) 480281.
Fax: (01273) 480287.
Email: info
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