True Telecom busted by Ofcom for 'slamming', misselling and more

Ofcom handed down a £300,000 fine to business phone and broadband company True Telecom after concluding a year-long investigation yesterday. The watchdog decided that True Telecom broke four of its rules repeatedly in the period between 8 October 2015 and 26 October 2016. The Dartford-based company engaged in 24 counts of " …

[adam payne]

The company went into administration earlier this month, but despite considerable job cuts, its services are still running for customers, and it is still liable to pay the penalties set by Ofcom.

A company fined by the Ofcom goes in to administration, surely that has never happened before.

[Anonymous Coward]

Apparently, the people behind True Telecom have already used this trick multiple times to avoid OFCOM fines and court judgements against them.

They are already up and running under a new name, but in the same offices, same phone number. and with the same executives.

[Alan Brown]

The interesting part about UK limited liability company law is that it cushions the shareholders, but NOT the directors.

If OFCOM want to make an example of them (and they should), there's a clear path open (The insolvency service don't like repeat phoenixers either)

[Alan Brown]

If you have details of this (past and present), then the insolvency service would love to hear from you - confidentially (you have to give your name, but it's not passed on)

I've seen accusations on ripoffreport (2014) that one of the directors was a prohibited person and the other has been arrested multiple times for FSA-related fraud. If true they raise interesting questions.

[Commswonk]

A company fined by the Ofcom goes in to administration, surely that has never happened before.

And if my reading of the article is correct it hasn't happened this time either; "Ofcom fines company that is already in administration" is the right way to look at it. Doesn't mean the fine will be paid, of course.

[davidp231]

It doesn't... they just liquidate and set up shop under a slight variation of the original name, and carry one. Rinse and repeat.

[kain preacher]

How about a ban on the executives from working in telecom for five years.

[Spanners]

Americanisation

We do not need a US standard of behaviour from our telecoms companies. Reading about them is bad enough.

[Mike Scott 1]

Pretty obvious and clear breaches - Why did the investigation take a year? That seems to have given the directors the time to admin and phoenix the company. Seems that OFCOM are still running are 2400baud...

[David 132]

Seems that OFCOM are still running at 2400baud...

"Our investigations work at a rapid pace...

...a Pace Linnet 1200/75, to be precise. We hope to upgrade to V.22bis by 2025."

[batfink]

So, no chance of the fine actually being paid then...

As usual

[Martin-73]

Seems par for the course

for titchy little upstart 'telephone companies'. We have had our line taken over by one, seems they can't provide an address where their exchange is, and they don't like being told that makes them not a phone company

[ecofeco]

What the hell?

Do these companies never learn?

Rhetorical question of course.

[TheVogon]

Re: What the hell?

"Do these companies never learn?"

Of course. And what they learn is to rinse and repeat...

[Doctor Syntax]

Essential step needed: the moment an investigation* starts the company's bank account is frozen. When unfrozen (it doesn't need to take long, just enough to tell the bank the conditions) no payments can be made to the shareholders or directors or close relatives of the same without the investigator's express permission and to get that permission there needs to be a very good explanation; an explanation so good that it's unlikely ever to be good enough. Any other payments also need to be run by the investigator to ensure they are essential to the running of the business.

*Investigation means an investigation by any regulator, ICO, OfCom, Trading Standards or whatever.

[Corp-Rat]

You Fiend! Undermining capitalism like that!

I like your style, make it so!