Ofcom Clamp Down On Unfair Charges.

"Communications companies need to do more to help customers understand extra charges on top of their usual bills, Ofcom said.

The communications regulator has published new guidance to help protect consumers from unfair charges that are "often hidden" in the small print.
Firms have been told that extra charges must be fair. Those charges should reflect only the direct cost to the provider of collecting the money.
Companies must generally be "clear and up front" with their customers and do more to make it easy to understand the charges.
The extra charges are are usually for paying by cash or cheque instead of direct debit, receiving an itemised or paper bill, paying late or not at all or leaving a provider before the contract has ended.
The guidance says charges for customers who do not pay by direct debit should be clear and limited to the cost of dealing with the payment. Charges for itemised billing should not usually be more than £1.50 per bill. Extra charges for late payments should only reflect the direct cost of collecting the money.
Customers who end contracts early should never have to pay more than the payments left under the contract, and should often pay less to reflect the costs providers save because their service ends early, Ofcom said.
Telecoms and pay-tv companies have until the beginning of April to make the necessary changes to their terms and conditions. Ofcom will then consider the best way to ensure they comply with regulations.
Ofcom chief executive Ed Richards said: "When consumers shop around for the best deal, they should be able to easily assess the true cost of what's on offer.
"We want to make sure that telecoms and pay-TV companies are up front about all their charges and, where there are small print charges, they must be fair."



Source: http://www.google.com/hostednews/ukpress/article/ALeqM5hYlx_WtTf70tW_Na0yrS-AmBdAYQ