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| Vodafone fined £4.6m by Ofcom for breaking customer rules | Vodafone fined £4.6m by Ofcom for breaking customer rules |
| (35 minutes later) | |
| Regulator Ofcom has fined Vodafone £4.6m for "serious" breaches of consumer protection rules, its largest fine to date for a telecoms operator. | |
| The regulator said Vodafone had misled pay-as-you-go customers, charging them for top-up credit but "providing nothing in return". | The regulator said Vodafone had misled pay-as-you-go customers, charging them for top-up credit but "providing nothing in return". |
| It also found Vodafone had broken the rules on handling customer complaints. | It also found Vodafone had broken the rules on handling customer complaints. |
| Vodafone offered its "profound apologies" and said it was "determined to put everything right". | |
| Lack of guidance | Lack of guidance |
| The fine stems from two earlier investigations into Vodafone, which has 20 million mobile customers in the UK. | |
| One found that 10,452 pay-as-you-go customers lost out when Vodafone failed to credit their accounts after they paid to top up their mobile phone credit. | |
| The affected customers collectively lost £150,000 over a 17-month period, Ofcom said. | The affected customers collectively lost £150,000 over a 17-month period, Ofcom said. |
| The problems were caused by IT issues linked to the company's move to a new billing system. | The problems were caused by IT issues linked to the company's move to a new billing system. |
| However, Vodafone "failed to act quickly enough to identify or address these problems" and only moved to fix the issue after Ofcom intervened, the regulator said. | However, Vodafone "failed to act quickly enough to identify or address these problems" and only moved to fix the issue after Ofcom intervened, the regulator said. |
| A second investigation found that Vodafone's customer service agents were not given "sufficiently clear guidance" on what constituted a customer complaint. | A second investigation found that Vodafone's customer service agents were not given "sufficiently clear guidance" on what constituted a customer complaint. |
| Moreover, poor processes meant some complaints were not handled "in a fair, timely manner". | Moreover, poor processes meant some complaints were not handled "in a fair, timely manner". |
| The firm also failed to ensure customers were told, in writing, of their right to take an unresolved complaint to a third-party resolution scheme after eight weeks. | The firm also failed to ensure customers were told, in writing, of their right to take an unresolved complaint to a third-party resolution scheme after eight weeks. |
| 'Unacceptable' failings | 'Unacceptable' failings |
| In a statement, Vodafone said it had "fully refunded or re-credited" 10,422 pay-as-you-go customers out of the 10,452 affected. It said it was unable to track down the remaining 30 affected. | In a statement, Vodafone said it had "fully refunded or re-credited" 10,422 pay-as-you-go customers out of the 10,452 affected. It said it was unable to track down the remaining 30 affected. |
| It also said it had invested in better customer service and training. | It also said it had invested in better customer service and training. |
| "Everyone who works for us is expected to do their utmost to meet our customers' needs," it said. | "Everyone who works for us is expected to do their utmost to meet our customers' needs," it said. |
| "It is clear from Ofcom's findings that we did not do that often enough or well enough on a number of occasions. We offer our profound apologies to anyone affected by these errors." | "It is clear from Ofcom's findings that we did not do that often enough or well enough on a number of occasions. We offer our profound apologies to anyone affected by these errors." |
| Lindsey Fussell, Ofcom Consumer Group director, said: "Vodafone's failings were serious and unacceptable, and these fines send a clear warning to all telecoms companies. | Lindsey Fussell, Ofcom Consumer Group director, said: "Vodafone's failings were serious and unacceptable, and these fines send a clear warning to all telecoms companies. |
| "Phone services are a vital part of people's lives, and we expect all customers to be treated fairly and in good faith." | "Phone services are a vital part of people's lives, and we expect all customers to be treated fairly and in good faith." |
| Are you a pay-as-you-go Vodafone customer? Was your account not credited after payment? Let us know about your experiences. Email haveyoursay@bbc.co.uk with your stories. | |
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