Utility Bill Charges - 8th Jun, 2007

Sian James says she is concerned at charges levied by Communication Providers for paying bills by means other than Direct Debit

Sian James MP said:

"I have received complaints from people in Swansea East about why they must pay extra charges on bills.

"Consumers face additional charges from their provider above those they already pay for the service - whether home phone, mobile, broadband or pay TV. These additional charges can be due to a number of factors, including:-

1. Not paying by direct debit
2. Late payment
3. Having a service restored after it has been restricted or suspended following late payment.
4. Early termination of a contract.

"The main concerns, I have received, relate to charges for not using a direct debit facility. I believe that charging people penalises them unnecessarily. Obviously, companies may be making money on the back of consumers who choose not to pay by means of direct debit. The choice should be available to consumers, free of any charge.

"I have raised this issue in Parliamentary Questions to the Minister at the Department of Trade and Industry. The Minister, Margaret Hodge, said that many MPs have written to her to express concerns. Clearly, there is an issue, which needs to be resolved.

"I am pleased to hear that Ofcom is now conducting a review of these charges. The review will consider whether additional charges or thier levels are unfair and what action, if any, is necessary.

"I have made representations to Ofcom on my constituents' behalf and I look forward to the outcome of the review."