Telecoms watchdog fines BT-owned Plusnet £800,000 for overcharging former customers

Ofcom, the telecoms watchdog, has fined BT-owned Plusnet £880,000 for overcharging customers, following a 10-month investigation.

An error in Plusnet’s billing system meant that 1,025 former Plusnet customers were overcharged by more than £500,000 when the BT subsidiary continued to bill them after their landline and broadband services had been cancelled.

Lindsey Fussell, Ofcom's consumer group director, said: "There can be no margin for error, and no excuses, when it comes to billing customers correctly.

"This fine should serve as a reminder to telecoms companies that they must adhere to Ofcom's billing rules at all times, or face the consequences."

Plusnet has contacted all affected customers about the issue. So far it has refunded 356 former customers a total £212,140, including interest at 4pc.

It has donated the remaining funds from customers it could not contact to a dozen local charities.

“Plusnet has also made clear to Ofcom the steps it has taken to prevent any future billing errors of this kind,” an Ofcom spokesman said.

The £800,000 fine will be passed on to the Treasury and includes a 20pc reduction after Plusnet agreed to settle the matter and admit full responsibility for breaching Ofcom’s billing rules.

Ofcom has issued a string of fines to telecoms providers in recent months. In January, it fined EE £2.7m for overcharging customers, while in October Vodafone was slapped with a £4.6m fine for mis-selling, inaccurate billing and poor complaints handling.