Vodafone fined £4.6 million for 'serious and sustained' customer failings
Vodafone has been fined more than four and a half million pounds by the industry regulator for "serious and sustained" breaches of consumer protection rules.
The £4,625,000 penalty follows two investigations by Ofcom into the telecoms giant's services to pay-as-you-go customers and for its handling of complaints.
One investigation found that more than 10,000 customers lost a total of £150,000 over a 17-month period when the company failed to credit their accounts after they paid to 'top-up' their mobile phone with credit.
Ofcom said Vodafone "failed to act quickly enough" to identify or address the issue, which occurred after the firm switched to a new billing system.
In a second investigation, the watchdog found that Vodafone failed to comply with rules on handling customer complaints, with customer service advisers "not given sufficiently clear guidance on what constituted a complaint".
It also found that "insufficient" processes meant complaints were not "appropriately escalated or dealt with in a fair, timely manner".
Vodafone has admitted the breaches and reimbursed all customers who lost money, Ofcom said. It added that the company had made a £100,000 donation to charity in relation to 30 customers who faced financial loss but could not be identified.
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. We will not hesitate to investigate and fine those who break the rules.”
Ofcom added that the money from the fine, which must be paid within 20 working days, will be passed on to HM Treasury.
In response to Ofcom's ruling, Vodafone said: