UK - Users owed STG 10 million by telephone companies

[this is money] Customers of telephone and mobile firms are being urged to reclaim money owed to them when they switch contracts.

Industry regulator, Ofcom claims that over the past two years at least £10m has been left in mobile, landline, broadband and TV accounts.

Ofcom say that some accounts are in credit when they are closed during the process of switching to an alternative provider.

The cash is from line rental which has been paid in advance or promotional credits paid at the beginning of a contract.

The regulator said all companies should automatically refund all money owed, but until now only three had done so.

BT, Orange and the Post Office were the only companies who had an automatic refund policy on outstanding credit in their customers' accounts.

Since Ofcom's investigation, T-Mobile has now agreed to do so and Vodafone is now doing so for its direct debit customers.

Meanwhile, Virgin Media and Virgin Mobile have agreed to do so from 1 December for sums greater than £1, and O2 will now automatically credit sums of more than £20.

But Ofcom said Sky, Talk Talk and Three are still insisting on customers contacting them first.

However, Ofcom criticised this, saying everyone in the industry should refund customers with all the outstanding credit they were owed, without customers having to ask first.

Ofcom's Chief Executive, Ed Richards, said: 'Consumers were telling us that they found it difficult to claim unused credit from their providers when they left their contracts. Taken together, people have been millions of pounds out of pocket as a result.'

'We hope that automated refund processes, clearer signposting by providers and our new consumer guide should help consumers claim back money that is rightfully theirs.'

Phone users owed £10m in unused credit