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Ofcom Raises Penalties for 'Silent Call' Collectors
Government proposals to dramatically increase the fines for companies who persistently make silent calls to consumers using automated calling systems could see penalties jump into millions of pounds each year.
The maximum penalty for companies who cause 'nuisance and distress', particularly to older or vulnerable consumers is £50,000. The new OFT suggestion could see these fines rise to £250,000, £500,000, £1m or even £2m.
However, Mike Purvis, managing director of Transcom, suggested that the fine might still not be a deterrent. He explained: "The financial benefit to companies generating silent calls mean they become more efficient. Although I happen to think it's a false economy.
"The fine the government is proposing should be commensurate with efficiency gains rather than an introduction on an arbitrary basis. If hundreds of agents are generating hundreds of calls then the gain of doing this might be greater than the penalty."
Ofcom currently has the power to take action against those who misuse the networks or services in a persistent manner, or in a way that causes or ilkely to cause unnecessary annoyance, inconvenience or anxiety.
Consumer Minister Kevin Brennan added: "As well as causing untold anxiety, silent calls are potentially damaging to the good name of the firms which make them. Firms that eliminate them cold see increased customer loyalty and reduced operational costs from handling complaints."
Tessera broadly welcomes this new approach to an all too familiar problem.
A member of the Tessera team explained: "In this day and age, no one should be bothering consumers in this way. At Tessera, our abandoned call rates come in considerably lower than 1% - often even lower than that! We monitor our rates daily to ensure full compliance.
"We're proud of our record and it's only through this proactive approach that the industry can move forward."
The original consultation runs until 22nd January 2010 and is available online at http://berr.gov.uk/consultations/page53310.html
Original article courtesy of Credit Today.
