Telecoms customers turning to their providers for debt advice, Ofcom new research shows

The UK’s communication regulator Ofcom’s latest report shows that 4 in 5 telecoms customers turn to their telecoms provider for debt advice.

Ofcom keeps a close eye on levels of debt in the telecoms market and monitors how vulnerable customers are treated by providers. In November 2023 Ofcom commissioned research to look into the experience customers have had of telecom’s debt.

Because of the impact being in debt can have, including that debt leading to disconnection of communication services, Ofcom encourages providers to take extra measures to ensure that people are treated fairly and any extra support with social tariffs or links to free debt advice organisations are shared.

The new research asked over 1,100 adults if they had missed at least one payment and received any debt support from their provider and if they would look elsewhere for debt support. It showed that most would look to their providers for help or information about debt if needed.

The key findings show:

• Just over 2% of customers had missed at least one payment, and less than 1% had missed two or more payments.
• More than four in five (83%) of those who had looked for information about debt support had turned to their provider for it. Those who had looked for support information from their provider were usually able to find it.
• 48% of people who had not missed a payment in 2023 would turn to their providers for information about debt support if they were struggling to pay. 32% of these people would turn to friends and family. And 22% would look to a charity/organisation that gives free debt advice.
• Only around half (53%) of those who experienced telecoms debt last year are able to recall receiving information from their provider about debt support, this may point to providers’ communication of debt not being as effective as it could be.

Under Ofcom rules, providers must have policies and procedures in place to make sure vulnerable customers are treated fairly, including those in financial difficulty. When this happens, Ofcom expect providers to:

• Emphasise the support they offer to customers in debt
• Allow customers time to get help and support, without the threat of disconnection during that period
• Take account of the customer’s individual circumstances where appropriate
• Consider offering payment holidays or deferrals, or freeze additional fees and charges
• Discuss a realistic, reasonable and flexible repayment plan
• Offer tariff advice, whether switching to a cheaper tariff or social tariff
• Signpost customers to debt organisations or charities that can provide free advice and support

Last month, the UK Regulators Network published information to help people who may need additional support during the ongoing cost-of-living crisis. Ofcom’s advice to customers who are having difficulty paying a bill is to talk to your provider as soon as possible – they might be able to help.