£millions of outstanding credit unclaimed by consumers
Data gathered by Ofcom suggests that over the past 2 years around 2 million consumers have left their communications provider without claiming at least £10 million owed to them.
Ofcom is calling on consumers to check that they aren’t owed money when they switch their communications services to a new provider.
The money owed could be for having paid for line rental in advance or for promotional credits that customers may have been given during their contract. Consumers often don’t know that are owed money by their landline, mobile, broadband or pay TV provider.
Making it easier for consumers to be refunded
Ofcom has worked with communications providers to encourage them to make changes to their processes and to automatically refund credit to their contract customers.
Initially, of the major providers Ofcom spoke to, only BT, Orange and Post Office automatically refunded outstanding credit to their customers, no matter what amount was owed.
Following discussions:
- T-Mobile has agreed to automatically refund all outstanding credit and Vodafone for all customers who pay by direct debit.
- Virgin Media and Virgin Mobile automatically refunds its customers for amounts over £1 if they terminate their contracts before 28 days, and from December 2010 the process will be automated for all customers (for amounts over £1).
- O2 will automatically credit amounts over £20.
- Customers of Sky, Talk Talk (including AOL and Tiscali) and Three will need to contact them directly to arrange a refund, but our conversations with these providers have led to improved information being given to consumers about their outstanding credits.
Ofcom welcomes this increase in transparency which means that in all cases consumers should be informed by their provider if they have outstanding credit, and what they need to do to reclaim it.
Nevertheless, Ofcom thinks that industry best practice should mean that all providers refund customers the outstanding credit they are owed automatically, and without any further action needed by the consumer.
Consumer guide
To help consumers claim outstanding credit, Ofcom has published a guide which provides a clear overview of the credit refund processes of the main communications providers.
How to claim Credit Refunds
What are credit refunds?
Consumers can sometimes find themselves in credit with their communications provider when they come to the end of their contract. The money owed could be for having paid for line rental in advance or for promotional credits that customers may have been given during their contract. With some providers consumers have to ask for a refund, either by calling the provider or by writing to them. With others, the process may be automatic.
How do I claim outstanding credit?
To help consumers claim outstanding credit, this guide provides a clear overview of the credit refund processes of the main communications providers.
| Provider | Is the credit refund automatic? | What information is available from the provider? | What do I need to do? |
|---|---|---|---|
| BT | Yes | The final bill indicates if the customer is in credit. | No action required. The account is normally credited within 5 working days of the final bill being produced. |
| O2 | Yes, for credit of more than £20. | The final invoice will show if the customer is in debit or credit. It also provides the number to call to request a refund. | Customers must contact O2 for refunds of less than £20.No action required for credit of more than £20. |
| Orange | Yes | The final bill indicates if the customer is in credit. | No action required. |
| Post Office | Yes | The final bill indicates if the customer is in credit. | No action required. The credit is automatically refunded within 14 days of the final bill. |
| Sky | No | Sky writes to customers 45 days after cancellation, informing them of any credit remaining. It also explains how to claim it. | The customer needs to contact Sky to request the refund. |
| T-Mobile | Yes | The final bill indicates if the customer is in credit. | No action required. |
| TalkTalk Group (TalkTalk, AOL and Tiscali) | No | For TalkTalk customers, the final bill will indicate if the customer is in credit, and will provide the number to call to request a refund.For AOL customers, who use online billing, they can check their online bill to check if they are in credit.For Tiscali – the final bill will indicate if the customer is in credit and will provide the number to call for a refund. | Customers for TalkTalk, AOL and Tiscali need to call their respective customer services department to request a refund. |
| Three | No | Specific advice on how you can get your credit refunded is provided on your bill.In addition, you can find further information on Three’s website within the “Bills, payment and your account” section. | Customers can call a freephone number from their Three handsets to request a refund. Alternatively, customers can email Three. |
| Virgin Media | Yes for amounts over £1 | The final bill indicates if the customer is in credit. | Customers should contact Virgin Media for amounts under £1 |
| Virgin Mobile | Yes, for amounts over £1, when customers terminate before 28 days.For customers who terminate after 28 days, the process will be automated in December 2010 | The final bill will indicate if the customer is in credit. | Until December 2010, customers who terminate their contract after 28 days will need to contact Virgin Mobile to request their refund. |
| Vodafone | Yes for customers paying by direct debit. | The outstanding credit is displayed on the bills for all customers (paying by direct debit or other methods).The number to call is also provided on the bill. | Customers paying by methods other than direct debit need to request their refund by contacting Vodafone’s customer services. |
The guide can be also be found here: http://consumers.ofcom.org.uk/files/2010/10/how-to-claim-credit-refunds.pdf
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