TIO Annual Report 2003/04

Case Studies

Unauthorised Direct Debits

The Complaint:

The TIO received a complaint about a Member making unauthorised direct debits for a dial-up internet account when the customer had not activated or used the service. The complainant claimed the provider debited his account for two months' access despite advising him that it would not do so unless he called to formally activate the account. TIO

Response:

The TIO expects a provider to refund disputed charges where evidence indicates that a customer's account has been incorrectly debited. However, it should be noted that many 'trial' or 'free' internet set-up discs require credit card details before the consumer can proceed. After the trial period has ended, the onus is on the consumer to indicate to the provider that they do not wish to continue with the service. If this is not done, a provider will often commence monthly account debits. In investigating these complaints, the TIO has regard to whether the advice about the need to cancel the service was made clear and whether the service has actually been used.

The Outcome:

The provider waived all the charges debited from the complainant's account, but the complainant requested that dishonour fees and interest also be refunded. Without admission of liability, the provider also agreed to refund all bank fees.