CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

EE fined for complaints handling policies

Article By: ,  Financial Analyst
July 3, 2015 4:36 PM

Ofcom has fined EE, the UK's largest mobile phone operator, £1 million for breaching rules surrounding customer complaints.

From 2011 to 2014, EE did not provide customers full information about how complaints could be taken to an independent body. These details should have been provided in writing, but were not, according to the watchdog.

As regulator of the communications industry, Ofcom has recently undertaken a project to identify issues in how complaints are handled by telecommunications companies. The investigation into EE was part of this.

Deadlock letters

When EE customers have a complaint that cannot be resolved, they have the right to take the issue to an independent body up to two months after the complaint is first made. As a precursor to going to the independent body, a "deadlock letter" is requested.

Ofcom found that between July 22nd 2011 and April 8th 2014, EE customers who requested such a letter never received it. 

EE also failed to notify some customers that they could refer any complaint to an independent body free of charge.

Claudio Pollack from Ofcom explained that providing the right information to customers is "vital".

"Ofcom imposes strict rules on how providers must handle complaints and treats any breach of the rules very seriously," he said.

Historic conduct

However, EE made it clear in a statement that the fine was related to historic conduct and does not reflect the company's current policies.

A spokesperson for the company commented: "While this in no way excuses it, it is important to note that we identified issues in our complaints handling and began our programme to tackle these problems head-on in 2013, before Ofcom started their investigation."

The spokesperson added that the company has made significant improvements since then: "Ofcom's current figures highlight that complaints into Ofcom about EE have fallen by 50 per cent in the past year."

EE is jointly owned by Deutsche Telekom and Orange. Both firms have a 50 per cent stake in the company.

On Friday (July 3rd), Orange stock was up 0.78 per cent to 14.27, while Deutsche Telekom was down 0.48 per cent to 15.43.​

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024