Why hasnt Ofcom banned non-Direct Debit charges?
The law does not allow us simply to ban additional charges such as non-direct debit charges. However, suppliers must be clearer on what customers will actually pay. We think consumers should be able to assess the true costs of whats on offer, including any extra charges they have to pay. When suppliers advertise prices, they may set out non-direct debit charges in such a prominent and transparent way that consumers see them as part of the price for the services they are buying. Where this is so, normal competition and not regulation will drive prices on behalf of consumers. But, if a supplier does not make these charges prominent and transparent enough, and consumers see them as separate, additional charges, we think they should reflect direct costs only. They should only include the companys extra costs of collecting normal payments and not, for example, the cost of bad debts.
