Banks call charges: customers still face costly bills

The EU Directive had financial services and passenger transport among a lengthy list of exemptions. For the UK to have overridden the exemption for financial services would likely have been seen to be ‘gold plating’. In the UK this always needed a separate stream of regulation.

Work began on the EU Directive in 2008 and it was published in 2011 with a target date of 13 June 2014 for implementation. The UK adopted the directive, holding a consultation in 2012, publishing draft legislation in August 2013 and the final version in December 2013.

The FCA had long been aware of that implementation timetable but failed to adopt parallel regulation for the financial sector. The FCA is now running a consultation but it’s too little, too late. Whatever the FCA has up their sleeve will be rendered obsolete by the forthcoming requirement, from 1 July 2015, to declare the Service Charge wherever an 084, 087 or 09 number is advertised.

Halifax still charge premium rate on08457 number.

If they continue using 0845 numbers after 1 July 2015 they will have to change all of their marketing materials to declare their Service Charge next to their number.

The replacement matching 0345 numbers should be brought into use at the earliest possible opportunity. Ofcom made these available in 2007.

I complained to Santander, which is still using 0844 numbers for customer service. I don’t like web forms because it is more difficult to keep a track of correspondence The only email address I could find was the CEO one.

I received a prompt reply: “To enable me to register and investigate your concerns, please can you provide me with your full address, including postcode, your date of birth and daytime telephone number?”

My complaint is not over a personal issue. They have my name and email address and unless they want to send my a birthday card, why do they want my dob.

Hi Joan for the Halifax use the apps say no to 08 (or Google) and see if there is an alternative offered that is a landline or 03 number
when I dial 0800 numbers using 0800 wizard it will change a number in front of you should a CHEAPER alternative be available
Try this with a few different APPS or websites as it may not be altered on the first that you try to use as NOT in THEIR database but may be included in a Competitor’s alternative database

There are various methods for looking for alternative numbers in order to avoid calling expensive 084 and 087 numbers. Thankfully they are becoming more and more redundant.

The focus has moved on to educating users of 084 and 087 numbers about the forthcoming changes to call pricing with the suggestion they change their number to one in the 03 range.

This immediately benefits all callers rather than the select few who happen to stumble upon some website or app.

Ian – I appreciate what is being done, but the expensive numbers are still with us. I met at least four while switching my home insurance recently.

Until the last costly number has gone, I support anyone trying to inform others of cheaper alternative numbers. You and I know about alternative numbers but many still do not. It seems likely that costly numbers are still being advertised because they are a worthwhile source of revenue.

What are the ‘other ways’ – surely they are not secret?

Calls to 01 and 02 numbers have far-end handover. The transit costs are higher for the call originator.

Calls to 03 numbers have near-end handover. The transit costs are higher for the call terminator.

I think this is one of the reasons for the difference in termination fees between calls to landline 01 and 02 numbers and calls to non-geographic 03 numbers.

To clarify, the complaints I made about costly phone numbers were not in relation to financial services.

The focus now has to be on the forthcoming requirement shortly to be imposed on ALL users of 084, 087 and 09 numbers to either justify their Service Charge and amend all of their marketing materials to declare it, else change their number to stop imposing it. Unlike previous regulation, this also covers sales and enquiry lines.

Yes, the forthcoming obligation to notify callers of the “access charge” will embarrass organisations away from using these surcharged numbers. If it is obvious to the caller that they are paying a per-minute fee to the called party in circumstances where such a fee is inappropriate, then it will create poor customer relations.

What are the new regulations called and where are they published? All I can find is Ofcom documents about the changes, but no wording of the new regulations.

It is telephone companies that must declare their Access Charge.

Service Providers must declare their Service Charge wherever their number is advertised.

These are the two essential components for delivering “Clear Call Rates for Everyone”.

Ian was right to correct the terminology. The portion of the charge to the benefit of the provider of the Service being called is called the “Service Charge”. Each phone company will have to set, and declare a single (pence per minute) rate of “Access Charge” which applies to all calls to 084/087/09 and 118 numbers. (Where the call is at a fixed rate per call, regardless of duration, the Access Charge will be also.)

The Ofcom website describing the changes is ukcalling.info. The amendments to the “Standard Conditions”, which apply to the telephone companies, have been published. The requirement to declare the Service Charge will be imposed by Phonepay Plus for 087/09/118 numbers, in conjunction with the CAP (ASA), which will cover 084 numbers.

We are delighted to see that very many users of 084 numbers are now moving away to 03 or geographic numbers and we hope that this trend will continue and accelerate once the impact of the new regime is recognised. We think it unlikely that many 084 users will be content to declare the Service Charge. There will undoubtedly be some who fail to recognise the change, due to incompetence; they will have to be firmly chased up – and we will play our part in that.

We will look to the ASA (and Phonepay Plus) to take swift and effective action against any who deliberately seek to mislead their callers.

We hope that the growing amount of publicity about the change (which will be deliberately focussed much nearer to the 1 July) will render attempts to mislead ineffective.

Sorry, I meant the “service charge”. I know the difference; I just used the wrong one of the two phrases.

So if an 084 number is not in an advertisement, it won’t be covered by the new rules? As I understand it, the ASA only regulates advertisements.

No, the ASA brief is much wider, for example it includes all information provided on web pages.

If there is seen to be a major gap in the application of the “unbundled tariff”, we will return Ofcom to the points we have made in consultation responses about the need to ensure that Service Charges are invariably declared wherever there may be a need for them to be known.

There may be some cases where, for example, a directory will indicate that all listed 084 numbers have a Service Charge of up to 7 ppm. It is our sincere hope that there will really be very few 084 numbers left, by 1 July, apart from those which are mistakes that will be corrected over the following few months.

Be assured that, although we are taking a positive view at this stage, we will be watching very closely and be ready to act swiftly.

There should be no surprise that Ofcom have had no involvement in those issues. None of those issues come within a mile of Ofcom’s remit.

Ofcom’s actions have been to make 03 numbers available, enforce the rules surrounding 03 numbers and change the way 084, 087 and 09 call costs are declared.

The forthcoming transparency of non-geographic call costs will ultimately have a far greater effect than all of the other recent regulation and guidance.

Thanks Ian. It looks as if I may have to carry on looking up alternative numbers for some time to come. 🙁

Who are you calling?

Most retailers, traders and passenger transport companies have changed to 033, 034 or 037 numbers.

Most government departments and public services have changed to 0300 or 0345 numbers.

Most banks have changed to 0345 numbers.

Most of the NHS uses 01, 02, 0300, 0344 or 0345 numbers.

Usage of 084 and 087 numbers has massively declined over the last 18 months.

Ofcom’s forthcoming changes will mainly affect sales and enquiry lines and insurance companies as well as mopping up any remaining lines that have failed to heed previous regulation and guidance specific to their sector.

NatWest offers
0345 7888 444 (England and Wales)
0345 9000 200 (Scotland)

Never call the 0845 numbers again.

If you’re calling from a mobile phone there’s usually no price difference between calling an 0844 or an 0845 number. From 1 July 2015 the way these call costs are declared is changing.

If they continue using 0845 numbers after 1 July 2015 they will have to change all of their marketing materials to declare their Service Charge next to their number.

The replacement matching 0345 numbers should be brought into use at the earliest possible opportunity. Ofcom made these available in 2007.

Robert C
if you have a FLEX PLUS account CALL 01793 541200 (from a say no to 08 APP on mobile ) and you will get that as one off the options in the menu —
May also work with different accounts as on entering the details this could transfer me automatically to a particular card or account number department for me

Robert for Lloyds Bank Look at the company website UNDER CONTACT US
the number from overseas is +44 1733 462 255
(for telephone banking) SWAP the +44 for a ‘0’ to make 01733 462 255 It is a PETERBOROUGH area standard landline number
I assume other departments will have a similar number for yourself.
I called this when trying to get a problem sorted for MRS xx – UNKNOWN TO ME as they used a different name on a money site forum ( just like now – I do not know you mate)
BUT were getting nowhere when BY MISTAKE they RECEIVED over £3000- PAID INTO their account. Told the bank but the bank did not want to sort this problem FAST so the person was panicking about this Told to send a CHEQUE but never had a cheque book – Company would supply a cheque but wanted £25,00 for this ??? to fix their mistake
On calling ABOVE NUMBER to find procedure to fix a mistake like this got straight through
at NO COST TO ME as I used a mobile AND I do not bank with them
Eventually it took a MONTH to fix and the woman received over £100.00 compensation to cover their time and expense due to the companies failure to act sooner

Their new number is 0345 6100 100.

Wherever you see an 084 or 087 number advertised, try calling the matching 034 or 037 number.

PC World now uses 03 numbers. As these are charged at the same rate as calling an 01 or 02 number and count towards inclusive minutes on landlines and on mobiles, there’s no longer a need to go looking for alternative numbers.

BT and Vodafone are two major providers of 0845 numbers to businesses and the only two networks to charge calls to these numbers at a discounted rate compared to their inflated per-minute rated charges for calls to 01, 02 and 03 numbers. BT’s discount is imposed by the NTS Retail Condition which ends on 1 July 2015. These is no such regulation imposed on Vodafone.

The new system of call charging for 084, 087, 09 and 118 numbers that comes into effect on 1 July 2015 for all landline and mobile providers will give further clarity to these call prices. Any funny business will be obvious for all to see simply by comparing the cost of calling 01, 02 and 03 numbers with the Access Charge for calls to 084, 087, 09 and 118 numbers.

When you call an 084, 087, 09 or 118 number, part of the call cost is set by the caller’s provider and part is set by the organisation being called. The cost of calling 01, 02 and 03 numbers is set entirely by the caller’s provider. If you are paying an extortionate rate for calls to 01, 02 and 03 numbers, you are on the wrong price plan or with the wrong provider.

Most people no longer pay a per-minute rate for calls to 01, 02 and 03 numbers and instead have an inclusive allowance as part of a call plan. On those landlines where no such call plan is in place, these calls can cost 10p per minute or more. An inclusive deal with AnyTime calls usually offers better value for money for any caller making more than about 10 minutes per week of daytime, weekday calls to 01, 02 and 03 numbers. For example, BT offers Home Phone Saver for £19.99 per month including Line Rental, AnyTime inclusive calls and Caller ID. This is only about £3 more than Line Rental on its own.

On pay as you go mobile phones, calls to 01, 02 and 03 numbers vary from 3p per minute to 45p per minute. Callers have complete control over how much they pay for these calls. If you are paying a high rate it is time to change to a different deal or to a different provider. Contract deals (with or without a phone) offer another way to make these calls and should also be investigated. The effective per-minute rate on a contract, even if, for example, only half of the allowance is used, can still be less than the pay as you go rate.

The Termination Rate for calls to geographic 01 and 02 numbers is just over 0.2p per minute. For calls to non-geographic 03 numbers it is about 0.5p per minute. For calls to mobile phones it is a little over 0.8p per minute. All of these calls should be cheap from landlines and from mobiles. If they are not, it’s time to change to a better deal.

As with every regulation there has ever been, there will always be a few who ignore it and carry on regardless. The success story, here, is the huge number of organisations that have already complied with the new rules that were introduced in June 2014. Millions of calls per week that this time last year would have been to 084 and 087 numbers are now instead being made to 03 and 080 numbers.

Doubtless there will be a number of organisations that fail to comply with what they are required to do by 1 July 2015. The media can tear them to pieces once their position is known.

They will, however, be in the minority. Most banks have already adopted new 0345 numbers. On the other hand, the insurance industry has shown little movement away from expensive numbers.

Ofcom are already running adverts about the forthcoming changes both in trade magazines and in the national press. There can be no excuse for not knowing about what is coming.

Organisations using 084, 087 and 09 numbers now have only a few short months left to justify their Service Charge and amend all of their marketing materials to declare it, else change their number to stop imposing it.

They have until 1 July 2015 to amend their marketing materials.

They have these two main choices:

“Call us on 084X XXX XXXX
“Calls incur a Xp per minute Service Charge on top of your phone provider’s Access Charge.”

The Service Charge can be up to 7p per minute on calls to 084 numbers, and varies depending on the number called, not by which provider is used to make the call.

“Call us on 034X XXX XXXX
“Calls to 03 numbers cost the same as calling 01 and 02 numbers and count towards inclusive allowances on landlines and on mobiles.”

The latter is a much more attractive proposition for most callers.

The other choice is:

“Call us on 080X XXX XXXX
“Calls are free from landlines and from mobiles.”

Free calls to 080 numbers from mobile phones takes effect on 1 July 2015.

Organisations will pay higher fees for incoming calls to 080 numbers than for incoming calls to 03 numbers.

Thanks Ian. Can you tell me what enforcement is likely to take place if organisations fail to meet the deadline? We have had years of nuisance calls and the fines are few and paltry.

I have noticed that it is becoming harder to find phone numbers on companies’ websites. At one time, income from costly calls was a means of deferring costs, but that is nearly history.

I have some sympathy with companies and other organisations having to provide information that many of us could find on their websites.

Numbers starting 084 and numbers starting 087 with a Service Charge of up to 7p per minute will be dealt with by Advertising Standards.

Numbers starting 087 with a Service Charge of more than 7p per minute and numbers starting 090, 091, 098 and 118 will be dealt with by PhonepayPlus.

Ofcom is also monitoring compliance and says it is ready to take action where needed.

Perhaps we should nominate you to appear on Mastermind, Ian. I have an idea of your chosen specialised subject.

Unfortunately, the Basic Rate legislation banning 084/087 customer service numbers doesn’t apply to financial services, so Santander / Aviva can still legally rip you off to their heart’s content.

Santander is one of the worst banks for making misleading and illegal claims about the cost of 084/087 calls. Their website claims that for 0845/0870 “Calls from some fixed networks cost no more than a national rate call.” That may be true for BT, but who are the others? And they’re still falsely claiming that the call set-up fee for 0844 numbers is 13p or 15p when it’s actually 15.97p.

The dozy FCA is still plodding along with its consultation about banning phone charges above basic rate, but it doesn’t close until 15 March so don’t expect any action any time soon !

There’s no question that the FCA has been entirely ineffective. Whatever the FCA eventually comes up with, will be too little, too late. It will be trumped by Ofcom’s new transparency measures and it is this forthcoming change that is mostly responsible for banks moving from 0845 to 0345 numbers.

The new call charge system coming into effect on 1 July 2015 eliminates connection fees on calls to 08, 09 and 118 numbers. The requirement to declare the Service Charge and mention that the caller’s phone provider will add their Access Charge will make it abundantly clear that terms such as ‘local rate’ and ‘national rate’ no longer apply.

The new number for First Direct is 0345 6100 100.

Wherever you see an 084 or 087 number advertised, try calling the matching 034 or 037 number

Calls to 03 numbers cost the same as calling 01 and 02 numbers and count towards inclusive allowances on landlines and on mobile phones. While most people will call these numbers as part of an inclusive allowance, those without such an allowance will be paying up to 12p per minute from a landline or up to 45p per minute from a mobile. Calls to 01, 02 and 03 numbers may be ‘inclusive’ but they are never ‘free’. Those who are paying a per-minute rate for these calls are very likely on the wrong call plan for their needs.

Users of 084 and 087 numbers do not get ‘first dibs’ on the matching 034 or 037 number. Ofcom regulations ensure that 034 and 037 numbers can be used only where an organisation already uses the matching 084 or 087 number. The number migration can be done at any time. There is no time limit.