(Image Credit: iStockPhoto/BraunS)
UK telecoms regulator Ofcom has fined EE after finding the operator made “fundamental billing mistakes” that led to nearly 40,000 customers being overcharged.
Ofcom identified two separate breaches of billing rules. The first error involved charging customers roaming in Europe the same rate as calls to EE’s customer services number in the US. Instead of the intended 19p per minute, affected customers were billed £1.20 per minute.
That mistake resulted in 32,145 customers being overcharged by a combined total of about £245,700. The second issue occurred when EE made calls to its customer services number free from within the EU from 18 November 2015, but continued billing customers until 11 January, creating overcharges totalling £2,203.
EE did not reimburse customers for the first billing error until Ofcom intervened, though it acted promptly to correct the second issue. The errors proved costly for the operator: Ofcom has imposed a fine of £2,700,000 in addition to requiring EE to refund affected customers.
Ofcom reports that while most customers have been refunded, EE could not identify at least 6,905 individuals who are still owed payments amounting to around £60,000 in total. Because those customers could not be located, EE donated just under £62,000 to charity. Ofcom has instructed EE to make further attempts to find and reimburse everyone affected.
Lindsey Fussell, Ofcom’s Consumer Group Director, said: “EE didn’t take enough care to ensure that its customers were billed accurately. This ended up costing customers thousands of pounds, which is completely unacceptable.”
“We monitor how phone companies bill their customers and will not tolerate careless mistakes. Any company that breaks Ofcom’s rules should expect similar consequences.”
The fine must be paid within 20 days and will be remitted to HM Treasury. EE received a 10 percent reduction in the penalty after agreeing to a formal settlement.
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