Ofcom eases customer dispute process

Ofcom has cut the length of time consumers have to wait before they can take a complaint about a communications provider to arbitration.

Under new rules to introduced by the telecoms regulator, from 1 September a consumer will be able to approach either Cisas or Otelo, the official alternative dispute resolution (ADR) services, eight weeks after making an initial complaint to a provider instead of the current 12 weeks.

Ofcom said most disputes are resovled before needing ADR, but it wanted to ensure those that weren't were dealt with swiftly and fairly. After an examination in 2008 looking at how easy it was for customers to access the ADR system, Ofcom said its research showed that dragging the process out did not ensure a complaint could be resolved.

“We believe that by enabling customers to take their unresolved complaints to ADR earlier, consumers will benefit from a reduction in the stress and anxiety which often accompany prolonged disputes… our research shows that complaints are almost as likely to remain unresolved at 12 weeks as they are at eight," said the regulator.

Under the Communications Act 2003, all communications providers must comply with an Ofcom-approved Code of Practice for complaints and be a member of an ADR scheme.

There are currently two Ofcom-approved schemes – Cisas and Otelo – which offer free dispute resolution services to consumers. Following an application by a consumer, the relevant scheme will examine the case.

Any decision is binding and the communications provider could be required to take necessary action and may include financial compensation for the consumer. If they do not comply, Ofcom is able to fine up to 10 per cent of its annual relevant turnover.

The regulator has also announced it will launch a review of the ADR schemes next year. With the last review in 2005, it said it had noted some concerns raised by some providers and would be making sure that the schemes remain accessible, independent, fair, efficient, transparent, effective and accountable.

Ofcom chief executive Ed Richards said: “The vast majority of consumers are happy with their telecoms services. For the minority who aren’t we want to ensure that customers get a fair and swift resolution to their disputes.”

A guide for consumers on how to make a complaint about their communications provider can be found on Ofcom's website.