Home » 

UK ISP News Archives

 » 
Sponsored Links

BT Calls on Ofcom UK to Get Tough with Broadband and Voice Mis-selling

Posted: 28th Sep, 2009 By: MarkJ
The Trading Standards Institute (TSI) and BT have teamed up to pressure Ofcom into taking more robust action against the "mis-selling misery" being caused by telecoms (broadband and voice) providers who hijack consumers’ phone lines. The campaign appears timed to coincide with Ofcoms new consultation (original news) on tougher proposals to tackle the problem.

BT estimates that more than 800,000 of its customers have complained about being scammed by another telecoms company. Ofcom's own statistics show that one in forty UK households (half a million families) fall victim to the mis-sellers every year. The watchdog estimates that the cost to consumers was a massive £40 million in 2008.

The dodgy methods used by some agents to switch consumers to their company against the customer’s wishes include “slamming”, where the customer is switched to the company without their knowledge. There are also more subtle tactics, such as getting the customer’s signature or agreement by falsely claiming to be “part of BT” or getting them to agree to sign their name for “more information”.

Ron Gainsford, chief executive of Trading Standards Institute (TSI), said:

“We’re very much in favour of the telecoms industry adopting the consumer protection pin code system. We believe that it will stamp out at source the sort of rogue trading practice that has been plaguing telecoms consumers for more than five years.”

The campaign proposes a new system to protect people, which is based around a simple Consumer Pin Code. If you wanted to switch phone companies, you would ask your existing supplier for a pin code, which you would then be given to your new supplier. The new supplier can only give you service if they have the code. BT hopes this will provide certainty that the consumer has clearly chosen and consented to change companies.

It could also be adopted as the standard switching process for all communications services, including packages or “bundled” services, stopping customers being transferred by mistake or without their consent. Consumers would get the short and simple pin code quickly and be able to move to a new supplier much faster than current processes allow.

John Petter, managing director of BT’s Consumer division, said:

“We need to slam the slammers. The process we’re proposing will put an end to mis-selling misery for good, protect consumers and safeguard fair competition. Ofcom’s own data shows that a consumer protection pin code would eliminate mis-selling.

It’s criminal that this has been going on at this level for more than five years. I can’t think of any other industry where this would be considered acceptable. It really is time that this was stamped out.”

John Robertson, MP, chair of the All-Party Group on Communications, said:

“I have been concerned about mis-selling and the lack of protection for consumers for some time. I welcome this new initiative, which I believe will help to address a serious issue in the communications market.”

We assume this new system would supersede the existing broadband migration code (MAC) process used by most providers. However it is worth remembering that a M.A.C works in much the same way as BT's proposed Consumer Pin Code and slamming can still happen here too.

In the case of broadband migration code abuse, a customer’s details are forged and sent to an ISP, resulting in an unwanted migration from one provider to another. It is not yet clear how a pin code system would be able to prevent the same thing from happening.

However it is worth pointing out that voice line rental services do not yet appear to have a system like the one proposed. Indeed such a service could potentially make it easier to swap providers where a customer has a bundle of voice and broadband products.

TSI and BT have produced “Talk to the Hand” - a free, guide for consumers, featuring five simple steps they can take to protect themselves from landline mis-selling. It is available to download at: www.bt.com/misselling.
BT's Five Simple Steps you can take to protect yourself from mis-selling

1. Identify

Always ask for the caller’s full name and company details and write them down, and if approached at the door, ask to see their identification badge. Do not be afraid to ask again if they are vague or unclear.

2. Record

Note the time and date of any calls or visits you receive, and keep a written record of conversations. Also ask for the name of the person you are dealing with (check their ID if a visit), the organisation they represent and a contact number the organisation can be phoned back on and make a note of this too.

3. Withhold

Never give out your bank details to verify your identity.

4. Ask Questions

Always ask for precise information about the price you will be paying. If you’re not sure, or need more time to think, then ask the caller to post the information to you first.

5. Be Clear

Make it very clear if you are accepting or refusing the offer, or simply waiting to receive more information. It is your decision and you can take as long as you want to decide if you want to move.
We also have some more details on broadband specific mis-selling - HERE.

UPDATE - 2:30pm:

BT informs us that they are aware of MAC abuse, which is classed as fraud, but state that their "[validation process] would usually need the account number, or if that is not available, then they would have to answer a number of security questions." However the operator warned that other ISPs may not employ these same protections. Mind you, we're sure a "good" fraudster could get most of the personal details needed to pass BT's process.

A BT spokesman added:

"Our campaign is aimed particularly at fixed phone lines rather than broadband because the current process for phone lines is open to abuse. The company the customer is moving to, has the responsibility for advising the company the customer is moving from, that the customer wants to move and has given their consent.

If the customer realises that they have been “slammed” and they contact their supplier during the ten-day switchover period, then their supplier can cancel the order. When used properly this can help to protect consumers from mis-selling, unfortunately, it can also be abused with genuine orders being cancelled by the company about to lose the customer."
Search ISP News
Search ISP Listings
Search ISP Reviews
Cheap BIG ISPs for 100Mbps+
Community Fibre UK ISP Logo
150Mbps
Gift: None
Virgin Media UK ISP Logo
Virgin Media £24.00
132Mbps
Gift: None
Shell Energy UK ISP Logo
Shell Energy £26.99
109Mbps
Gift: None
Plusnet UK ISP Logo
Plusnet £27.99
145Mbps
Gift: None
Zen Internet UK ISP Logo
Zen Internet £28.00 - 35.00
100Mbps
Gift: None
Large Availability | View All
Cheapest ISPs for 100Mbps+
Gigaclear UK ISP Logo
Gigaclear £15.00
150Mbps
Gift: None
YouFibre UK ISP Logo
YouFibre £19.99
150Mbps
Gift: None
Community Fibre UK ISP Logo
150Mbps
Gift: None
BeFibre UK ISP Logo
BeFibre £21.00
150Mbps
Gift: £25 Love2Shop Card
Hey! Broadband UK ISP Logo
150Mbps
Gift: None
Large Availability | View All

Helpful ISP Guides and Tips

Sponsored Links
The Top 15 Category Tags
  1. FTTP (5473)
  2. BT (3505)
  3. Politics (2525)
  4. Openreach (2291)
  5. Business (2251)
  6. Building Digital UK (2234)
  7. FTTC (2041)
  8. Mobile Broadband (1961)
  9. Statistics (1780)
  10. 4G (1654)
  11. Virgin Media (1608)
  12. Ofcom Regulation (1451)
  13. Fibre Optic (1392)
  14. Wireless Internet (1386)
  15. FTTH (1381)
Sponsored

Copyright © 1999 to Present - ISPreview.co.uk - All Rights Reserved - Terms  ,  Privacy and Cookie Policy  ,  Links  ,  Website Rules