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BT overcharging paperless customers

BT's latest wheeze is to overcharge by 75 pence paperless customers who get their quarterly bill in May. (I predict that they will overcharge £1.50 in June). As we all know, on 1 April 2008 BT increased their charge for paper billing from 50p per month to a punitive (and therefore probably unenforceable) £1.25 a month. If you accept paperless, then not charging you for paper appears, in BT-speak, as a 'benefit' on your bill. So we got, on our February bill, a 'benefit' of 50p for April. Our May bill recalculates what in BT-speak is called the 'rental' (ie the minimum charge even if you don't make any calls) for April, leaves unchanged the 'benefit' of 50p for April, and charges (correctly) in advance for May June and July. Presumably, BT hope that most people won't notice, and even fewer will bother to complain, and they will collect several million lots of 75p.
Wonder when Tesco will latch on to the same idea? They could automatically bill you for a pair of kippers, put a 'saving' on the bill if you don't actually buy any kippers, then put up the price of kippers, but leave the 'saving' unchanged!
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Comments

  • topherxp
    topherxp Posts: 267 Forumite
    Sounds like its more the case that only your affected by this, as for both my April and May bill's both have the £1.25 discount.

    So maybe not the wisest thing accusing BT of fraud when it looks like it is just a technical problem affecting your billing. You should give BT a call as your right, you may only get the 50p discount next time, but if BT don't know the problem how can you expect them to fix it.
    If saved £2710 and only spent the interest (Based on a return of 5%), you would have enough money to pay your TV Licence every year. Saving you £7452.50 over a period of 55 years, based on you buying a license from the age of 20 until your 75 at a cost of £135.50.
  • billsavings
    billsavings Posts: 2,015 Forumite
    YoungNick wrote: »
    As we all know, on 1 April 2008 BT increased their charge for paper billing from 50p per month to a punitive (and therefore probably unenforceable) £1.25 a month.

    From 1st April 2008, BT increased basic residential line rental by 75p a month to £11.75 a month, they also increased the paper-free discount from 50p a month to £1.25 a month.
  • System
    System Posts: 178,187 Community Admin
    10,000 Posts Photogenic Name Dropper
    BT have now admitted that to me that the error is widespread. I still predict that it affects all customers on quarterly bills who have opted for no paper bill, and get their quarterly bill in May. If you are on monthly bills, topherxp, that would explain why your bills were right. Yes, I know that in BT-speak it's a 'rental' of £11.75 with a 'discount' of £1.25. But there's no reason why real people should buy into this marketing-speak. It's a minimum charge of £10.50 for access to the network (not 'rental' of some copper wire, for heaven's sake!), plus £1.25 if you want a paper bill.
  • littleboo
    littleboo Posts: 1,629 Forumite
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    YoungNick wrote: »
    BT have now admitted that to me that the error is widespread. I still predict that it affects all customers on quarterly bills who have opted for no paper bill, and get their quarterly bill in May. If you are on monthly bills, topherxp, that would explain why your bills were right. Yes, I know that in BT-speak it's a 'rental' of £11.75 with a 'discount' of £1.25. But there's no reason why real people should buy into this marketing-speak. It's a minimum charge of £10.50 for access to the network (not 'rental' of some copper wire, for heaven's sake!), plus £1.25 if you want a paper bill.

    Line rental or access to the network, it all amounts to the same thing. I dont think it's marketing speak, far from it. Line Rental is terminology that has been in use for years and years and most people understand. Suddenly calling it a "network access charge", well that would be marketing-speak.
  • Heinz
    Heinz Posts: 11,191 Forumite
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    YoungNick wrote: »
    I still predict that it affects all customers on quarterly bills who have opted for no paper bill, and get their quarterly bill in May.
    My quarterly bill (dated 18-5-08) arrived the other day and shows the £1.07 (excl. VAT) paper-free discount correctly (in advance) for May, June and July.
    Time has moved on (much quicker than it used to - or so it seems at my age) and my previous advice on residential telephony has been or is now gradually being overtaken by changes in the retail market. Hence, I have now deleted links to my previous 'pearls of wisdom'. I sincerely hope they helped save some of you money.
  • System
    System Posts: 178,187 Community Admin
    10,000 Posts Photogenic Name Dropper
    So did mine, Heinz, for May, June, and July. The problem is, that BT haven't given the contractual 'discount' for April - on our bill, and, BT tell me, others. (But I've already made £500 on the lottery by never buying a ticket!)

    Yes I know it's been called 'rental' since the days of the GPO. Like you still see STD, although there are no 'subscribers', or 'trunk' calls, or 'dials'. Though, come to think of it, 'subscription' would be a more-or-less sensible term for the £10.50 minimum charge. Like the gym - you pay it, whether you use the gym or not!
  • molerat
    molerat Posts: 33,055 Forumite
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    YoungNick seems to have it spot on here. On my new bill it has April refund of £9.35 for old plan and new charge of £10.00 for new plan. Then £30.00 advance charges and discount on advance charges of £1.07 x 3 for May, June & July. There has been no extra discount for the added charge for April. Basically they have applied the new charge but not the new discount.
  • topherxp
    topherxp Posts: 267 Forumite
    Does it matter what is called? The bottom line is that you'd pay the same whether its called line rental, subscription, access charge.

    Its called line rental because its a phone line and you rent it.
    If saved £2710 and only spent the interest (Based on a return of 5%), you would have enough money to pay your TV Licence every year. Saving you £7452.50 over a period of 55 years, based on you buying a license from the age of 20 until your 75 at a cost of £135.50.
  • molerat
    molerat Posts: 33,055 Forumite
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    I don't give a monkeys what they call it but I can see that I have been over charged for it. Thanks YoungNick.
  • System
    System Posts: 178,187 Community Admin
    10,000 Posts Photogenic Name Dropper
    Thanks, molerat. And your post #8 explains it much more clearly than I did.

    As for the 'line rental', not caring what they call it, is wise. Not realising what it is, is dubious. It isn't rental of any physical object. If it was, it would depend on your distance from the exchange, and the ease of maintenance. It's the largest basic monthly charge the cartel of providers can get away with. That's why they all charge the same, £10.50 give or take 50p, and all throw in weekend calls. (Including Virgin, when the only 'line' you have is a couple of metres across your front garden.) Meanwhile, the providers are all pushing up the price of individually-billed calls, because they want us all on a flat monthly charge for 'all' calls (except calls to 084x, 087x, and 09x, because for these, they have to collect a cut for the organisation you are calling; and calls to mobiles, which are a different ballgame). For many of us, a flat monthly charge for 'all' calls will be a good deal (and, of course, it won't be divided into a 'line rental' charge, and a 'calls' charge). But these flat monthly deals will tend to force the likes of Finarea, and, alas, Orchid electronics, out of business.
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