Automatic contract renewals, which binds the home phone and broadband customers for further 12-month contracts are prohibited under the proposal of telecommunications Ofcom underregulator.
At the moment, find thousands of telephone users, typically come to the end of a 12-or 18-month contract, even sign up for another year unless they actively opt out renewal. These contracts, also known as rollover contracts currently offered by BT and several smaller Telecoms providers.
Consumers who fail to read their mail correctly, or is away at the time have found themselves bound to a new contract – often against their will.
Ofcom under estimates, around 15% of British residential consumers who roll over contracts. It mentions that they are anti-competitive and should be prohibited.
The regulator said that it will consult industry in a process that ends on the 12. Unless companies can justify why roll over contracts should continue, they will probably be banned "in summer".
Separately, Ofcom under the has this week warned it could yet TalkTalk faces a fine, even though it pays £ 2. 5 m compensation for former Tiscali customers over 62,000 defective invoicing.
Ofcom under says it received more than 1,000 complaints regarding incorrect bills from companies after people had stopped taking their services.
Problems are caused by the acquisition of Tiscali, TalkTalk in late 2009. The issue has been highlighted in the Guardian money many times.
Among billing errors received a customer bills for £ 110 from TalkTalk after she switched to another provider. Another customer paid Tiscali £ 610, despite cancelling her account in February 2006, after being sent bills from debt collection services.
Several customers have complained to the money they have been chased by the debt collectors to money, as they knew they did not owe.
TalkTalk says: "we are pleased Ofcom under has recognized the significant steps we have taken to resolve the billing issues. We moved our customers to our single billing platform at the end of January, and our focus on the ability to resolve any outstanding issues continue.
But the watchdog still receiving complaints and warned it could issue the TalkTalk with a fine, which could be up to 10% of its turnover – if it found evidence that it had continued to violate the rules.
Because TalkTalk had taken significant steps to solve the problem within the time limit set, says Ofcom under that, under existing rules could not be fine company for the original offence.
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