- moneysupermarket.com urges Ofcom to address hidden charges in broadband contracts
- Almost 8 million people stung by hidden charges costing £370m**
The latest consumer survey shows one in six (16 per cent) broadband users are being stung by extra charges which on average, costs consumers an additional £44 per year. Paper billing (44 per cent) and non-direct debit payments (24 per cent) are the most common charges incurred, as well as calls to technical support lines (17 per cent) and charges for exceeding download limits (17 per cent).
For those in their twenties, the most group most likely to use broadband services, the cost of hidden charges rises to £61 per year.
Almost half (47 per cent) of those incurring additional charges did not realise these costs formed part of their contract, now moneysupermarket.com is urging Ofcom to address the issue of small print charges.
James Parker, mobiles and broadband manager at moneysupermarket.com, said: "Mobile and broadband bills are one of the few to fall in the past year yet providers are clawing back revenue with charges hidden in the small print and Ofcom need to address this practice to ensure people know upfront what things will cost.
"The fact that almost half of those incurring charges did not realise they formed part of their contract highlights the problem that these charges are hidden away. Although, it is crucial that people read contracts thoroughly, especially as 18-24 month deals are becoming commonplace, if there is a problem then you are stuck for a long time."
moneysupermarket.com's tips to avoid the hidden charges trap:
- Avoid paying by non-direct debit, this is the most common additional charge
- Know your download limit and how much it will cost per megabyte if you go over it
- Find out the cost of a help line before you call it, see if your provider offers an email service
- Find out before you sign-up what it will cost to cancel your contract, especially if you are planning to move house
- Ask about installation costs before you sign-up. For example BT can charge £122.50 to connect or re-connect a line
Broadband Providers
|
Provider |
Non Direct Debit Payment |
Paper Billing |
Installation Charges |
Activation Charges |
|
BT |
£1.50 per month
£4.50 per quarter |
£1.25 |
Free |
n/a |
|
Sky |
£0.50 per month |
n/a |
Standard Sky box - £60
Sky+ - £30 & Sky+ HD - £30 |
£25 if no active BT line |
|
Talk Talk |
Direct Debit payments only |
£1.25 |
Free |
£29.99 |
|
Tiscali |
n/a |
n/a |
Free |
£30 (if taking free line rental offer)
Broadband & Phone |
|
Virgin |
£5 |
£1.25 |
Free |
n/a |
Sourced by moneysupermarket.com 11.09.09
Mobile Phone Providers
|
Provider |
Non Direct Debit Payment |
Paper Billing* |
|
3 |
£4.00 |
£1.00 |
|
O2 |
£0 |
99p per month |
|
Orange |
£3.50 |
Free for bill statement
£1.50 itemised bill |
|
T-Mobile |
£3 per month |
£1.50 |
|
Virgin |
Can only pay via direct debit |
£1.25 |
|
Vodafone |
£3 |
£1.50 |
*Network may offer free itemised billing online
Sourced by moneysupermarket.com 11.09.09
-Ends-
Notes to editors:
* Opinium Research carried out an online poll of 2,319 British adults between Friday 5th June and Tuesday 9th June 2009.
** Of the 16 per cent of people (7.7m) who have faced additional charges for broadband, the average cost has been £44 per year. This equates to £340,137,600 in extra revenue.
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