Over one million BT customers handed £1,000s in compensation after contract failures – are you affected?
BT has been forced to pay out millions to customers after it was found to have failed them over contracts.
Watchdog Ofcom has said today the telecoms company has refunded or credited a huge £18million in total to customers.
AlamyBT has been fined £2.8million by the watchdog for the error involving contracts[/caption]
The issue had affected customers of BT subsidiaries EE and Plusnet.
The watchdog previously found they had made sales to more than a million customers without providing them with contract summary and information documents.
It meant some customers were unaware they would have exit fees if they tried to leave the provider.
Ofcom fined BT £2.8million over the error, saying it should have provided customers with clear and simple contract information.
The watchdog’s consumer protection rules, which came into effect in 2022, state that customers should have a short summary of key terms of the contract.
These include the price and length of the contract, the speed of the service and any early exit fees.
When Ofcom’s rules were brought in, it said it had been assured by BT that the provider would meet the deadline for providing the information to customers.
But an Ofcom investigation found BT was aware that some of its sales would not meet the deadline from as early as January 2022.
After being fined by Ofcom, BT was told to contact the majority of affected customers.
It gave them the opportunity to request information on their contract and/or cancel the contract without charge.
But some customers affected by the error had already left BT before they could be contacted and may have been charged an early exit fee.
Under Ofcom rules, these customers didn’t need to pay the fee as they hadn’t been given the information about their contract.
It meant the watchdog also forced BT to refund any affected customers who may have been charged for leaving before the end of their contract period.
BT paid out £18million to customers as a result.
Ofcom said at the time: “Our rules are clear that if the required contract summary and contract information is not given, the contract is not binding on customers.
“As a result, an early exit fee should not have been payable by these customers.
“In some cases, BT deliberately chose not to comply with the rules on time.
“Other providers dedicated the resource required to meet the implementation deadline for these new rules, and BT is likely to have saved costs by not doing so.”
A BT spokesperson said: “We’re sorry that Pre-Contract information and Contract Summary documents were not available to some of our customers in a timely manner.
“We have taken steps to proactively contact affected customers and refund them if they had subsequently paid any early termination charges.
“We take compliance seriously at BT and have worked closely with Ofcom to implement all remedial actions.”
How to complain about your telecoms firm
IF you're having trouble with your telecoms provider, escalating your complaint might get it taken more seriously.
First, contact them to let them know what your problem is and give them chance to rectify the issue.
If this doesn’t resolve your problem, raise a formal complaint.
Contact the provider in writing and say you’re making a formal complaint and explain how you’d like it to be resolved.
Make sure to provide as much information and evidence as possible to back up any claims you’re making, such as that you haven’t received the service you pay for.
Take screen shots of your devices if you have slow download speeds or make a note of times you tried to make calls that failed, for example.
You can escalate your complaint to the an alternative dispute resolution service if you’re still not happy.
For example, service Resolver looks at cases against some telecoms firms such as BT.
The regulator, Ofcom, doesn’t currently have the power to resolve individual cases, but reporting a firm to Ofcom can help build up a bigger picture.
Ofcom can then investigate companies if it receives significant numbers of complaints against them.
By Laura Purkess, consumer features editor and consumer champion
Could you be owed compensation?
The Sun has asked BT whether all affected customers have been paid compensation now and will update this piece when we hear back.
Ofcom said the number of individual customers affected is likely to be smaller than the number of affected sales, as some customers will have purchased more than one service affected by the failure.
However, if you were charged an exit fee by EE or Plusnet in the last two years and don’t have any documents about this, you may be owed it back.
You should have been identified and contacted directly by your provider and offered a refund.
Ask your firm if you’re not sure whether you should have been due compensation.
How to save on your mobile phone bill
NOT happy with your current mobile phone deal?
If you’re outside the minimum term of your contract then you won’t need to pay a cancellation fee – and you might be able to find a cheaper deal elsewhere.
But don’t just switch contracts because the price is cheaper than what you’re currently paying.
Take a look at how many minutes and texts, as well as how much data you’re using, to find out which deal is best for you.
For example, if you’re a heavy internet user it’s worth finding a deal that accommodates this so you don’t end up spending extra on bundles or add-ons each month.
Also note that if you’re still in your contract period, you might be charged an exit fee.
Ready to look elsewhere? Pay-as-you-go deals are better for people who don’t regularly use their phone, while monthly contracts usually work out cheaper for those who do.
It’s worth using comparison websites, such as MoneySupermarket and uSwitch.com, to compare tariffs and phone prices.
Billmonitor also matches buyers to the best pay-monthly deal based on their previous three months of bills.
It only works if you’re a customer of EE, O2, Three, Vodafone or Tesco Mobile and you’ll need to log in with your online account details.
There’s also MobilePhoneChecker, which has a bill monitoring feature that recommends a tariff based on your monthly usage.
If you’re happy with your provider then it might be worth using your research to haggle a better deal.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories
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