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Firms cashing in with costly helpline calls

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Published Date: 29 May 2008
COMPANIES that force their customers to use premium-rate helpline numbers to rake in extra profits have been named and shamed in a new report.
More than 30 firms and government agencies are using more expensive 0871, 0870, 0844 or 0845 numbers for customer service or technical support lines. It can cost more than double the price of a call to a regular number starting with 01 or 02, accor
ding to a report by Which? magazine.

Those shamed include British Gas, Barclays and the internet service provider Tiscali, as well as government bodies such as the TV Licensing and the Driver and Vehicle Licensing Authority (DVLA). Some make millions a year from the windfall, researchers said, while just ten organisations were found to offer 0800 numbers that are free from a land-line.

Firms using premium numbers share revenue from calls with phone service providers – meaning the longer a customer is kept hanging on, the bigger the sum cashed in. For example, the DVLA made £3.4 million from its 0870 number in the last financial year.

Neil Fowler, the editor of Which?, said: "Why should you pay for the privilege of making a complaint or getting a problem fixed? It's unacceptable.

Check if there's a cheaper phone number or ask the company to refund the call cost – it's the least they can do if you're calling about a faulty product or bad service."

The report investigated the most common landline charges and found a ten-minute call to an 0871 or 0870 number costs up to £1, while 0845 calls cost 60p and 0844 numbers 50p.

Ofcom, the regulator, announced plans to try to stop organisations making money from 0870 numbers by cutting the cost of calls so that they will cost no more than a geographic number such as 01 or 02, or a new 03 code.

Which? contacted a range of organisations to establish what numbers they are using, finding more than 30 still use expensive customer lines and some simply switched from 0870 numbers to other expensive codes.

The watchdog called customer helplines at broadband and utility companies and government agencies to find out how long callers were kept waiting to speak to someone. British Gas, AOL and the DVLA kept people hanging on the longest, with average waiting times of around three minutes. One call to AOL was held for more than 15 minutes, at a cost of 75p from a BT landline.

Orange has an 09 number (50p a minute) for broadband technical support for some customers. Nikon and Tiscali have switched from 0870 to 0871, which is just as expensive, while Apple, Sony and CarphoneWarehouse/TalkTalk use 0870 for some or all helplines.

Those praised in the report included Canon, RAC Insurance and Toshiba, which have switched from 0870 to 0800 or a (cheaper) geographic number. BT, which had 0845 numbers for technical support, has switched to 0800.

A spokeswoman for the Scottish Consumer Council said it was outrageous that customers were being charged at premium-rate numbers. "Good practice in complaint handling should be easy and fair and accessible to everyone," she said.

FACT BOX

THE following organisations were those identified by Which? as having expensive customer lines:

• 0871 – up to 10p per minute: Admiral Insurance, Bell Insurance, Diamond Insurance, Elephant Insurance, Nikon, Tiscali.

• 0870 – up to 7.9p per minute: Apple (tech support), Carphone Warehouse/Talk Talk, DVLA, Gladiator Insurance, Lexmark, Philips, Sony, Zanussi-Electrolux.

• 0844 – up to 5p per minute: AOL, Orange, Panasonic, Sky (free for Sky Talk customers from July), TV Licensing.

• 0845 – up to 3.95p per minute: Barclays, British Gas, Consumer Direct, Direct Line, Eon, Green Flag, Halifax, LloydsTSB, Miele, Npower, Philips, Scottish and Southern Energy, Scottish Power, TV Licensing, Virgin Media.

Roll of Honour – the following organisations were identified by Which? as having cheaper customer lines:

• 0800 – free of charge: Apple (helpline), BT, Canon, Churchill, Dyson, Norwich Union Direct, RAC, Scottish and Southern Energy.

• 03: Passport Office (from August).

• 01/02: Panasonic, Philips, Toshiba.

A ten-minute call from a BT landline to a regular number, such as 01, 02 or the new 03 code, costs 40p at most.



Page 1 of 1

  • Last Updated: 29 May 2008 12:58 AM
  • Source: The Scotsman
  • Location: Edinburgh
 
1

Guga II,

Rockall 29/05/2008 01:13:23
Yet another method of ripping off the public.
2

M.T.,

29/05/2008 05:22:49
1#

Precisely. Fine us if we have filled in a form late or it hasn't arrived due to an inefficient Royal Mail.
A friend had a accident with her car and left it in the garage. When the road fund licence was up, she filled in the SORN. She didn't have the money to have the car repaired but a year later, she received a fine because the SORN had not been applied for again. It cost a small fortune in telephoning DVLA to appeal but of course she had to pay the fine. She scrapped the car which cost her also.
3

Fifi la Bonbon,

29/05/2008 07:33:03
#2 - a tragic, sobering tale of somebody forgetting to do something and thereby breaking a law, and her efforts to try appealing pointlessly because her appeal was bound to fail. Will this madness ever end?
4

Boy Wonder,

29/05/2008 07:58:57
My bank is an 0845 number. I didn't realise it was costing as much.

Why hasn't Ofcom and the Government stopped this rip-off by now? Is it because many of them sit on the boards of these companies and so are bought off?

It's pure robbery with extreme violence!!
5

SouthernSkye,

29/05/2008 08:02:41
Point here that stuns me is Govt agencies using high cost call lines. That really is a p|ss take isn't it?
But where are our opposition? When is this being debated in parliament?
Never I'll wager as they are all a bunch of self-centred,pocket-lining na'er do wells** who don't give two hoots for you and I.
(Note: **there are a few exceptions to this generalised rule, but not many!)
6

bluehead,

edinburgh 29/05/2008 08:05:51
ripping off is the brittish culture these days, there is no end to the amount of people waiting to empty our pockets,with the labour goverment being one of the first
as I have said before this country is on it's way down the lavatory pan,no wonder so many people are leaving.
what a dump!!!!

7

ramraideruk,

London 29/05/2008 10:17:37
Try www.saynoto0870.co.uk . This should help with free and geographical number instead of the premium rate ones.
8

unbiased,

Erehwon o Elddim 29/05/2008 10:52:33
My son lost/had stolen his British passport in France. Local Gendarmerie were not interested, neither were UK Bobbies - it cost £7.50 to ring an 09 number - and all he got was a recorded message! Luckily, by the way, he was born in Aus, so had an Aussie passport to get back into this country.
9

unbiased,

Erehwon o Elddim 29/05/2008 10:54:17
That was the Passport Office by the way!
10

Maryon Jeane,

Shrewsbury 29/05/2008 13:10:03
TV Licensing is the worst - they overcharge people who AREN'T their customers and who need to ring to stop themselves being harassed by TV Licensing! AND they're generally unhelpful and keep you hanging on.

If you need to call them, make them pay: use their (unpublicised) freephone numbers: 0800 551 550 or 0800 328 2020.

 

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