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Phone scam hits UK callers

Landline and mobile phone users are having their calls transferred to premium rate phone providers and only realise the switch has occurred upon receipt of huge monthly bills.

Sales staff from a provider typically cold-call users claiming their tariff would save them money, and subsequently sign them up - regardless of whether the user gives their consent.

The practice, known as slamming, is thought to be common because phone companies do not need a signature or written consent to put customers on other tariffs or providers.

It is reportedly impacting thousands of people, as fees are first imposed by the new provider and then by the initial provider with a reconnection fee that can be as much as £125.

Ofcom is said to be investigating an average 500 complaints a month, many from consumers whose phone service was switched after they merely expressed interest during a cold-call.

The regulator says mobile phone slamming “increased sharply” during the first half of 2007, as a growing numbers of customers found themselves on tariffs they hadn’t asked for.

It has already investigated slamming in relation to 11 providers, including the Post Office and Tesco, since a code of practice on the selling of phone services took effect in 2005.

In light of the recent surge in slamming, companies will be told to monitor their sales teams and ensure their customers have express knowledge of any switch before they implement it.

Providers caught slamming could also face a maximum 10% take of their turnover in fines – a penalty Ofcom imposed on Just Telecoms Ltd when it found it had breached the code of practice in June 2006.

Feb 27, 2008
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