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O2 fined £10m for overcharging customers

O2 fined £10m for overcharging customers

A woman in soft focus walks past an O2 store on the street, with the focus on the company's logo on its sign

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Mobile network O2 has been fined £10.5m by telecoms regulator Ofcom for overcharging its customers.

For eight years, some customers who were leaving the network were double-charged some fees on their final bills, Ofcom said.

The error affected more than 140,000 pay-monthly subscribers between 2011 and 2019, totalling £2.4m.

O2 said it had refunded many of the customers, adding an extra 4% to the sum involved.

But it has been unable to contact some of its former subscribers. Those refunds will be donated to charity.

Despite the refunds, Ofcom decided that O2 had broken important rules around providing customers with accurate bills and that it deserved a fine.

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On top of the 140,000 who paid the extra amount, a further 110,000 people were overcharged a total of £38m – but did not end up paying the bill, and were not due a refund.

Ofcom said that O2 knew about the “issues with its billing processes” in 2011, but failed to fix them. It kept overcharging customers for a further eight years.

O2 said: “We are disappointed by this technical error and sincerely apologise to customers impacted.

“We identified the issue ourselves and notified our industry billing auditor. We have also taken proactive steps to refund all impacted customers for the extra charges they paid.”

Ofcom said O2 had changed its billing process so the problem would not happen again.

“This a serious breach of our rules and this fine is a reminder that we will step in if we see companies failing to protect their customers,” said the regulator’s enforcement chief, Gaucho Rasmussen.

Published at Fri, 12 Feb 2021 09:50:08 +0000

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Written by Riel Roussopoulos

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