Ofcom to probe telecoms charges

Ofcom has bowed to consumer pressure and launched a review of the additional charges levied by communication companies. 

The official investigation will look at practices such as charging customers extra if they do not pay by direct debit, late payment fees, contract termination charges and additional costs to reconnect users who have been cut off.

"Following complaints from consumers, Ofcom is launching an own-initiative review of these charges," said an official Ofcom announcement.

The industry watchdog said that its industry-wide review would examine consumer awareness of, and attitudes to, these types of charges.

This will include deciding whether the additional charges are sufficiently transparent and fair, and whether any action is needed to correct current practice.

"Consumers of communications services see headline prices fall but they must not be misled," said Ofcom chief executive Ed Richards.

"As they make their choice of provider, they need confidence that any additional charges are fair, transparent and justified."