You are here: Home - Household Bills - News -

BT accused of ‘financial blackmail’ by MPs

0
Written by:
02/03/2007

BT has been accused of ‘financial blackmail’ by a group of MPs for charging customers who elect not to pay their bills by direct debit.

Around 35 MPs have signed a Commons motion initiated by David Hamilton, Labour MP for Midlothian, which criticises the charges as unfair and unwarranted.

From this May, BT customers who do not pay their bills every month by direct debit will be charged £4.50 a quarter, which the MPs say hurts poor customers the most. They want BT to withdraw the levy immediately.

The motion they have tabled ‘notes with concern the decision by BT to introduce a charge on customers who decide not to pay their bill by direct debit or monthly payment plan’.

It ‘acknowledges that these forms for payment may save BT some administrative costs but that consumers deserve to be able to make a free choice about the method they use without financial blackmail’.

Figures show that only 92% of households in the UK have bank accounts and this fact led the MPs to comment that ‘these charges would penalise the poorest more than other groups’.

Given that BT made profits of £1.4bn in the final quarter of 2006 alone, they have demanded that the company review the proposed charge ‘immediately’.

 

 

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
UK workers start their retirement plans at 28

Such is the love affair that Britons have with their work that they start taking pension advice and preparing for...

Close