Major UK ISP Plusnet has made the news across the UK recently, after being hit with a particularly severe fine of £880k from Ofcom. The fine comes after the company was found to be continuing to send bills to more than a thousand ex-customers.
The ISP, owned by BT, recently attempted to carve its own space within the world of communications. The brand had hoped to find a place for itself within the hugely competitive industry by attempting to design a trustworthy, honest, and down-to-earth image. Unfortunately, this outcome is unlikely to support such an idea. In fact, Plusnet might need to seriously think about how they’re going to regain their customers and continue to develop a loyal following after this huge hit.
The Billing Error
The problem with billing happened after an error took place within the Plusnet billing system, which meant all cancelled lines suddenly became identified as “live”. This meant that more than a thousand different customers continued to receive charges from the ISP, even after they had cancelled their broadband or landline services. As you might imagine, the outcome was a lot of unhappy customers, primed to complain.
For years now, the advertising campaigns behind Plusnet have been focused almost exclusively on the idea of the brand being an “approachable” and “friendly” northern entity – willing to go out of their way to make sure they keep their customers happy. Now that the latest scandal has led to so many unhappy customers, Plusnet are going to have a rough time trying to cement that image into the minds of their audience.
A Bad Day for Yorkshire
Telecoms sources around the country have noted that the latest development has particularly isolated Yorkshire, and northern parts of the UK, who feel as though their name has been dragged through the mud thanks to the terrible billing mistake.
Interestingly, although it may seem as though the fine issued by Ofcom is pretty astronomical, it’s actually a lot smaller than it might have been. Ofcom decided to reduce the fine by around 20% following Plusnet’s willingness to partake in a formal settlement. When the company discovered the error in their billing software, they refunded around 365 of their customers for a total of £212,140 – a figure which also gave the customers a further 4% interest on refunds for the bills they shouldn’t have paid.
However, the fine remains heavy enough to act as a reminder to all telecoms companies that it’s crucial to adhere to the billing rules that Ofcom sets at all times if they want to avoid some serious consequences. Essentially, in the world of telecoms, it’s important never to forget that the customer comes first!
