Phone regulator slaps collapsed firm True Telecom with £300,000 fine in mis-selling scandal

Oliver Gill
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True Telecom was also fined by information regulators earlier this year (Source: Getty)

A collapsed landline phone company has been fined £300,000 by the regulator in a "slamming" mis-selling scandal.

True Telecom, which fell into administration at the end of October, "repeatedly broke four separate Ofcom rules".

The firm engaged in "slamming", an aggressive form of mis-selling where landline services are transferred without customer knowledge, regulator Ofcom found.

Read more: Ofcom just revealed which firms are the naughtiest

It also said True Telecom made "repeated subsequent attempts" to transfer customers who had cancelled contracts to its services.

The watchdog said True Telecom – which according to the company website has a five star "excellent service" rating – signed customers up for banned 36-month contracts and found it in breach of rules requiring records of consent to be retained.

Today's fine follows a £85,000 penalty imposed by the Information Commissioner's Office in September for nuisance calls.

On top of Ofcom's fine, the regulator is demanding True Telecom reimburses affected customers.

True Telecom has been contacted for comment

Read more: Got your number: Phone watchdog probes "deliberate misconduct" and "scams"

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