Home phone News

BT demands crackdown on landline scams

Thursday 8 October, 2009

By Becca Talbot - becca@consumerchoices.co.uk

BT is urging telecommunications regulator Ofcom to help protect its customers and put a stop to landline providers scamming British households.

Home phone giant BT (www.bt.com) has called on Ofcom to start a pin number scheme, similar to the codes used for switching broadband supplier, in an attempt to stop phone companies switching customers’ supplier without their consent.

Figures from Ofcom reveal that over half a million households in the UK each year are victims of home phone mis-selling, in scams known as “slamming.”

“Slamming” can involve tricking customers into signing a contract to switch supplier or getting them to sign-up “for more information”. BT said it has even had some customers who have been approached by fraudsters claiming to be part of the BT group.

John Petter, managing director of BT’s consumer division, said: “We need to slam the slammers. The process we’re proposing will put an end to mis-selling misery for good, protect consumers and safeguard fair competition.”

The proposed scheme, which is backed by the Trading Standards Institute, would mean customers would request a pin number from their current home phone supplier, which they would then pass on to their new supplier, if they wanted to switch.

“Ofcom’s own data shows that a consumer protection pin code would eliminate mis-selling,” added Petter.

However, the regulator has revealed it has doubts over BT’s suggested system. A spokesman told the BBC: “We have concerns that a process which requires consumers to contact their existing provider before they switch [such as a pin based process] may impede switching and the benefits to competition which flow from easy consumer switching processes.”

Earlier this year Ofcom implemented measures to stop the mis-selling of both fixed line and mobile phone services which have helped to reduce the number of households who complain of “slamming” to just 700 a month.