Calling time on premium rate calls for consumers

 

On 14th April 2014, the UK Financial Conduct Authority (FCA) hit out against financial services firms, including high-street banks, charging customers premium telephone rates for after-sales customer care or complaints and announced its plans to launch a consultation on the issue later this year. Many financial services firms provide, particularly for existing customers, premium rate telephone numbers for consumers which can turn out painfully expensive when a simple query unexpectedly turns into a drawn out call where customers are put on 'hold' or passed to a different department or more senior call-taker (sounding familiar?).

The FCA's consultation will propose that rules relating to charges for customer services or complaints are standarised and capped at the cost of a basic rate telephone call. The consultation will also seek to examine a range of proposals aimed at improving complaints handling by financial services firms, and, amongst other points, look at issues regarding complaints records and respond to recommendations proposed by the Parliamentary Commission on Banking Standards last year.  At present, companies authorised by the FCA are required to provide customers with a free channel for making a complaint, however, this could be in the form of an email address or by post rather than a free telephone number. The FCA's announcement yesterday refers to a campaign led by consumer group Which? calling for principles relating to telephone calls outlined in the forthcoming EU Consumer Rights Directive coming into force this summer  to be applied to financial services firms used by millions of consumers across the UK.

 

Christopher Woolard, the FCA’s director of policy, risk and research said yesterday, ‘It is not fair that customers often have to use expensive phone lines when calling firms to ask for help or to complain...We would welcome companies looking again at the rates they charge for phone calls ahead of our consultation’. Which? executive director, Richard Lloyd welcomed the FCA’s announcements stating, ‘We're pleased the FCA agrees customers shouldn't have to pay a premium to talk to their bank or insurer. Changing the rules so financial firms can only offer basic rate helplines would be a big win for the 87,000 people who supported our campaign’.