Consumers still ripped off by charges hidden in small print

At a time when every penny counts and households are looking to cut down bills, research from moneysupermarket.com shows almost 4.5 million households have been stung with hidden charges that line the providers' pockets with over £160m worth of extra revenue.

The new survey shows a quarter of broadband users (27 per cent) are still falling foul of extra charges which, on average, costs consumers an additional £36 per year. Paper billing (9 per cent) and non-direct debit payments (7 per cent) are the most common charges incurred, with charges for late payments (6 per cent) and installation (5 per cent) also aggravating customers.

Of those who have been stung with additional charges, BT customers had to foot the most expensive bill with an extra £51 per year. Virgin Media (£42), Sky (£35) and AOL (£29) make up the rest of the top four imposing added charges.

A further study by moneysupermarket.com reveals a quarter (25 per cent) of broadband users only skim read their contracts, an additional eight per cent admit they do not read contracts at all. As a result 53 per cent of Sky customers, 60 per cent of Virgin Media customers and 65 per cent of BT customers were unaware of the additional charges they incurred.

James Parker, mobiles and broadband manager at moneysupermarket.com, said: "Although we've seen telecom bills fall in the past year, providers are still clawing back millions with unnecessary charges, many of which are unfair. People without an email address or unable to pay by direct debit shouldn't be unfairly charged. Ofcom should look at either eradicating these charges or imposing strict caps to protect the consumer.

"With this in mind its essential customers thoroughly read their contracts. By not doing so, people are unaware of any extra costs that may be lurking in the small print and, as a result, could end up with a huge unexpected bill at the end of the month. It's not just broadband customers that need to be aware, all the major mobile providers charge for some billing and some charge for non-direct debit payment.

"Whilst we support charges that are fair and protect the broadband provider from exposure to bad customers, we are against fees imposed without users' knowledge."

Five things customers should look out for:

Charges for paying by non-direct debit methods
What is your download limit? Does you provider charge if you go over it?
How much does it cost to call your provider if you have a technical problem?
Does it cost you to cancel your contract or if you move home in the first 12 months?
Does your provider charge a setup fee?