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£4.50 extra if you pay BT by cheque

BT customers who pay their telephone bill by cash or cheque will in future pay an extra £4.50 every quarter.

The extra charge is because the cost of processing cash or cheque payments is far higher than those for direct debits.

The move will impact about 5.5million customers, generating the company an extra £24million every quarter.

Under the new pricing plan, which takes effect from May, late payment fees will also rise to £7.50, from the current penalty of £5.

Karen Darby, of price comparison service SimplySwitch.com, said the new charges could rake in up to £99million a year for the telecoms giant.

"This is a brave move by BT, a provider that is already one of the UK’s most expensive,” she said.

"Switching to direct debit is generally a good idea, but customers who are unwilling or unable to pay this way shouldn’t have to put up with these charges.

“Switching phone companies is quick and easy and doesn’t involve changing phone number or having new phone lines installed. If customers are unhappy with these new penalties, they should hang up on BT and switch providers.”

Feb 9, 2007
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