BT faces £1.3bn compensation claim for historical overcharging

BT faces a collective action claim worth over £1.3bn for years of overcharging its landline and broadband customers.

In 2017, Ofcom found that BT had been increasing charges for landlines every year since 2009 despite falling wholesale costs for landline services.

BT agreed to reduce its landline prices by £7 per month, but it wasn't ordered to pay compensation to affected customers for the previous eight years of overcharging.

The Collective Action on Land Lines (CALL) group launched a collective action claim against BT in 2021. It is seeking compensation for over three million BT customers to be paid compensation of between £300 - £400, with some potentially paid more. 

The trial commences this week and is expected to last eight weeks.

If you think you're an affected BT customer, here's how the collective action works and what you could be entitled to.

What is a 'collective action'?

This type of claim allows a group of individuals to group together to try to get compensation for the losses they have experienced.

The claim is brought by a representative of the group on behalf of those affected. Currently, claims for breaches of competition law, like this, can be opt-in or opt-out. This claim is 'opt-out' meaning that every member of the group is automatically included in the claim unless they choose to opt out.

Am I entitled to money back?

Though BT overcharged customers from 2009, the claim is only seeking damages from 2015 due to legal rules.

Over 3 million BT customers are likely to be affected by this claim. 

The case covers two groups of BT customers, approximately 1.5 million who had a landline without broadband between October 2015 - April 2018, and experienced increased charges, could be entitled to compensation. 

The claim is also seeking compensation for approximately 2 million customers who between October 2015 and December 2023 had both a broadband service and a BT landline, but not together as a package or a 'bundle'.

These people were excluded from BT's 2017 price cut.

Depending on how long you have been or were a BT customer, you could receive a payment between £300 - £400 if the claim is successful, some customers could be entitled to more.

How can I join the claim?

The claim has been brought by Justin Le Patourel, founder of CALL.

The claim is an 'opt out' case, meaning Justin is acting on behalf of all BT customers who were overcharged.

You won't need to do anything further to join the action yet. However, if the claim is successful, you will need to provide certain information in order to receive your compensation.

For more information visit the CALL website.

How to get a better deal on your landline or broadband

Unfortunately, staying loyal to a provider can result in you paying more than you need to.

If you think you're paying too much for your landline or broadband, it's worth considering switching to a new provider, who will likely offer you a better deal to sign up with them.

Here's how to go about switching or haggling your way to a better deal.

1. Check you can leave your provider

Look at your contract to make sure you've completed the minimum term, or call your provider if you're unsure.

If you're still under contract, you could be hit with a heavy cancellation fee for leaving early.

Or if you're outside your minimum contract period, your provider might offer you a cheaper broadband deal or another incentive to stay.

Read our guide on how to haggle for a better deal to make sure you get the best offer possible.

2. Choose a new deal

It can be confusing to know which new deal is best to go for.

Which? Switch Broadband - our online comparison service - allows you to check which providers offer broadband where you live and compare different deals.

Once you find a deal you like, make sure you have all the details on exactly what you'll be signing up for and for how long.

If you're not given one by the provider, ask for a speed estimate for your address, as well as checking for any connection or router charges and the total monthly cost.

3. Contact your new provider

If you're switching between providers who use the Openreach telecoms network - such as BT, EE, Sky and TalkTalk - then your new provider will arrange the whole transfer for you.

You'll be sent notification letters from your old and new providers confirming when the transfer will take place.

But if you're switching to or from a cable network, such as the one used by Virgin Media, you'll need to contact your current provider to cancel your contract.

You'll then receive a notification from the provider you are leaving that your contract is ending, and will be given a new contract from your new provider which will tell you when your contract is due to start.

• Read more: how to switch broadband provider

This story was first published on 18 January 2021 and updated on 29 January 2024