An IT failure has resulted in TalkTalk and its subsidiary Tiscali being hit with a £3 million fine, after the communications regulator Ofcom found the error meant that some customers were charged for unused services.
The regulator gave TalkTalk until December 2010 to rectify the problem - caused by a failure to correctly integrate Tiscali customer details into its system - however almost 3000 customers still received inaccurate bills between this date and March 2011.
The resulting fine could have been far higher - Ofcom can levy up to 10 per cent of a offending business’ turnover - but the regulator took into consideration TalkTalk paying compensation of £2.5 million, and reducing complaint calls by 40 per cent by introducing new customer service and IT systems.
“We are of course disappointed at the scale of the fine and feel it is a disproportionate penalty; however we are striving to continually improve and invest in customer experience and are pleased at the clear progress we are starting to make,” says TalkTalk CEO Dido Harding.
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