{"id":15253,"date":"2018-01-16T10:53:22","date_gmt":"2018-01-16T10:53:22","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=15253"},"modified":"2018-05-21T12:35:51","modified_gmt":"2018-05-21T11:35:51","slug":"ofcom-probe-uk-isp-direct-save-telecom-cancellations-debt-recovery","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2018\/01\/ofcom-probe-uk-isp-direct-save-telecom-cancellations-debt-recovery.html","title":{"rendered":"Ofcom Probe Direct Save Telecom Over Cancellations and Debt Recovery UPDATE2"},"content":{"rendered":"

The UK telecoms regulator, Ofcom<\/a>, has launched a probe into budget phone and broadband ISP Direct Save Telecom<\/a> in order to examine the provider’s approach to recovering debt from customers, including how they handle related service disconnections or migrations.<\/p>\n

As part of this probe the regulator intends to examine DST’s compliance with their consumer protection rules, specifically General Conditions<\/a> 13 (Non-Payment of Bills) and 22 (Service Migrations and Home-Moves) rules. Under certain circumstances ISPs can disconnect customers who haven’t paid their bills and they can even block a customer’s request to switch to another provider.<\/p>\n

Ofcom Statement<\/strong><\/a><\/p>\n

Following consideration of information provided by DST in response to Ofcom<\/a>\u2019s initial enquiries, Ofcom<\/a> has decided to open an investigation into the company\u2019s compliance with GC 13 and GC 22.<\/p>\n

GC 13 requires all CPs to, amongst other things, ensure that any measures taken to secure payment from customers or disconnect them following non-payment of bills are proportionate, not unduly discriminatory and give due warning to customers. CPs must also publish these on their websites.<\/p>\n

\u2018Cancel Other\u2019 is a consumer protection mechanism designed to ensure that customers are not switched to another provider without their permission. It should only be used by CPs for very specific reasons and only in certain circumstances.<\/p><\/blockquote>\n

Ofcom said their “investigation will examine whether there are reasonable grounds to believe that DST\u2019s approach to debt management misuses the Cancel Other process and\/or in other respects fails to comply with its obligations under GC 13 and GC 22<\/em>.” The regulator now expects to gather further evidence until April 2018<\/strong> and they will then update on their findings.<\/p>\n

We have hailed DST for a comment and will report back if one arrives.<\/p>\n

UPDATE 3:24pm<\/strong><\/p>\n

The CEO of DST, Stavros Tsolakis<\/strong>, has told ISPreview.co.uk: “Direct Save Telecom<\/a> have and will be providing full support to Ofcom during this investigation. We remain committed to providing an excellent service with low prices, whilst continuing to remain compliant. Until Ofcom have finalised their investigation, we will not be making any further comments in this regard<\/em>.”<\/p>\n

UPDATE 21st May 2018<\/strong><\/p>\n

Ofcom has decided not to take any further action after DST made a number of changes to its debt management processes and practices intended to secure compliance with GC 13 and GC 22. In addition, as a result of the formal investigation, DST has also provided the following written assurances to Ofcom.<\/p>\n

DST’s Assurances to Ofcom<\/strong><\/span><\/p>\n

* DST will make all necessary changes to its policies and procedures to ensure that it only uses Cancel Other in the circumstances permitted in the General Conditions. This includes ensuring that it does not use Cancel Other to prevent a customer in debt from switching to another provider (or to make the customer\u2019s ability to switch conditional on resolution of a debt issue).<\/p>\n

* DST will ensure that customers are aware about the consequences of continued non-payment before any actual suspension or interruption of service.<\/p>\n

* DST will maintain an up-to-date published debt management policy on its website at all times and refer to these in its terms and conditions for consumers and business customers.<\/p>\n

* DST will ensure that its staff are appropriately informed about these process changes, to ensure the assurances are operationalised.<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

The UK telecoms regulator, Ofcom, has launched a probe into budget phone and broadband ISP Direct Save Telecom in order to examine the provider’s approach to recovering debt from customers, including how they handle related service disconnections or migrations.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[53,36],"class_list":["post-15253","post","type-post","status-publish","format-standard","hentry","category-uk_isp_news","tag-direct-save-telecom","tag-ofcom-regulation"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nOfcom Probe Direct Save Telecom Over Cancellations and Debt Recovery UPDATE2 - ISPreview UK<\/title>\n<meta name=\"description\" content=\"The UK telecoms regulator, Ofcom, has launched a probe into budget phone and broadband ISP Direct Save Telecom in order to examine the provider's approach\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ispreview.co.uk\/index.php\/2018\/01\/ofcom-probe-uk-isp-direct-save-telecom-cancellations-debt-recovery.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Ofcom Probe Direct Save Telecom Over Cancellations and Debt Recovery UPDATE2 - 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