HomeServe fined £750,000 for 'excessive' silent and abandoned calls

Home insurance and repairs company HomeServe has been fined £750,000 by Ofcom for making an excessive number of silent and abandoned calls to UK customers.

In the first insurance related case of its kind, the telecoms watchdog opened an investigation into the company last year as part of its monitoring and enforcement programme aimed at reducing harm caused to consumers by silent and abandoned calls.

The probe found that the company exceeded its abandoned call rate set by Ofcom on 42 separate occasions between 1 February and 21 March, 2011 with an estimated 14,756 calls being made to consumers.

Ofcom also revealed that HomeServe had made an estimated 36,218 calls in breach of its rules prohibiting companies from making repeat calls to specific numbers within the same 24 hour period, where a call has been identified by AMD technology as having been picked up by an answer machine.

In reaching its decision, the regulator took account of a number of factors including, the steps taken by HomeServe to bring itself into compliance with the rules on silent and abandoned calls, and its offer to compensate consumers who suffered harm from receiving silent and abandoned calls as a result of its breach of the rules.

Silent and abandoned calls can be generated by automated systems known as diallers and answer machine detection (AMD) technology.

Dialler systems, which are mainly used in call centres, automatically dial telephone numbers and connect the consumer to agents as soon as the phone is answered.

AMD technology disconnects calls made to answer machines before they are put through to call centre agents, which can make call centres more efficient.

But problems occur when dialler systems generate more calls than are answered by call centre agents.

Also, AMD technology can end a call when a person has answered because it mistakenly identifies the call as being picked up by an answer machine.

HomeServe’s fine is payable to Ofcom and passed on to HM Treasury. The company is required to pay it within 30 days of receiving the penalty notification.

Ofcom’s consumer group director Claudio Pollack said: “Our rules are there to prevent consumers suffering annoyance, inconvenience or anxiety from silent or abandoned calls. 

“We hope today’s fine will send a strong message to all companies that use call centres that they need to ensure they are fully compliant with the rules or face the consequences.”

HomeServe has set up a dedicated helpline for consumers seeking compensation if they have been affected by silent or abandoned calls made by the company. The number is 0800 389 5280.