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Ofcom to investigate 'hidden phone charges'

Customers left out of pocket from extra fees levied by their phone, pay-TV and broadband providers might gain extra protection from regulator Ofcom.

The body announced a consultation into the issue yesterday, which will see the charges fully investigated.

Customers should generally be made "much more aware" of the extra costs by firms, Ofcom said.

Commonly, these consist of additions to bills if the customer does not by Direct Debit, cancels their contract early or delays payments.

Consumer groups have said that these penalties are unfairly high.

Ofcom chief executive Ed Richards said: "Consumers are benefiting from greater competition and lower prices. But for consumers to get an all round fair deal they need to know the full costs of the services they are buying.

"Our proposals will encourage companies to be open and straightforward about additional charges where they feel it is necessary to include them. In addition, our proposals mean that, in some cases, additional charges will be subject to clear limits which would provide direct protection for consumers"

Should Ofcom decide to introduce extra guidelines for provides, they will be expected to comply within three months, the regulator also said.

Its consultation will report in the Autumn.

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