'Bill shock' complaints to TIO soar

Stuart Corner
Sunday, 05 December 2010 11:41

IT Policy - Regulation

The Telecommunications Industry Ombudsman (TIO) has reported an almost five percent decrease in new complaints during 2009-10, but very substantial increases in categories relating to credit management and 'bill shock'.

The TIO reported an 86 percent increase in issues relating to financial over-commitment regarding mobile services, 47 percent for landline services and 36 percent for internet services There was also an 81 percent increase in issues about the calculation and/or imposition of roaming charges on a mobile service and a 71 percent increase in issues regarding the calculation and/or imposition of charges for Internet usage on a mobile service.

Ombudsman, Simon Cohen, said: "Across every service type - landline, mobile and Internet - we are seeing issues about financial over commitment increase. Part of the reason for this is so-called "bill shock', where consumers receiving unexpectedly high bills, often after large downloads to mobile devices such as smart phones or incurring unexpected global roaming charges."

"Telecommunications are an essential service," Cohen said. "Complaints about financial over-commitment take on a real significance if they result in reduced or no access to a phone and Internet. There are steps telephone and Internet companies can take to help customers avoid unexpectedly high bills and debt problems."

Overall, Cohen said: "There has been an improvement this year following a period of sustained and substantial complaint growth. While positive, there is clear room for improvement."

Complaints to the TIO about customers being unable to contact their phone or Internet companies, or being left on hold for too long, have substantially decreased - a sign of improved access for consumers."

However complaints about incorrect or inadequate advice about Internet services increased by 41 percent; about landline services 27 percent and about mobile services by 59 percent.

On the positive side complaints about mobile premium services decreased more than 70 percent, in part the result of an improved industry code." The overall five percent decrease, and in particular this 70 percent figure were welcomed by industry players, who largely ignored the rises in financial complaints. Consumer body ACCAN, however, seized on this increase to demand tighter regulations.