Cable firm NTL has abandoned plans to charge customers €2 extra per bill for not paying by direct debit, The Irish Timeshas learned.
The charge, supposed to have been introduced on bills issued from April 1st, is "no longer applicable" to existing customers, a company spokeswoman said yesterday. However, the charge will still apply to new customers. This will be reviewed when the Consumer Protection Bill is enacted.
No announcement has been made about the decision to abandon the charge, which provoked controversy when it was spoken of last November. NTL's website continues to state, wrongly, that the charge will be introduced this month.
Chairwoman of the National Consumer Agency Ann Fitzgerald last night welcomed the move: "I'm delighted at this news, as forcing people to pay by direct debit was a major issue for many consumers."
This is the second time the company has reversed its decision. Last February, it agreed under pressure not to levy the charge on pensioners and customers with special needs.
Yesterday, its spokeswoman said the decision was driven partly by the imminent enactment of the Consumer Protection Bill and partly by an ongoing review within the company.
The Bill, which has passed all stages in the Oireachtas and will be signed into law by President Mary McAleese at the weekend, bans retailers from imposing surcharges based on the means of payment used by customers.
When it first mooted the charge last year, NTL said it was necessary to cover the extra administrative expense involved in handling non-direct-debit payments.
Asked whether it proposed now to increase its charges to compensate for the non-introduction of the charge, the spokeswoman said: "Price changes are always under review and any price change, as is customary, will be communicated directly to our customers."
A separate charge for late payment of subscriptions has gone ahead - this fee, €7.68 per late bill, was introduced in January.
However, the company agreed to consumer demands that it notify customers first that their bill is in arrears before imposing the charge.
It has also improved its call centre services after customers complained they were unable to get a response.
The Consumer Protection Bill's ban on surcharges will also affect travel agents who impose an additional fee on customers who pay by credit card.
The Irish Travel Agents' Association said its member were continuing to levy the charge pending commencement of the legislation.