The emergency amendment to the ICSTIS Code of Practice should give ICSTIS (the Independent Committee for the Supervision of Standards of Telephone Information Services) time to identify breaches of its Code and, where appropriate, direct phone networks to withhold funds pending the outcome of investigations.
These funds may, in some circumstances, be used in payment of fines later imposed on the offending service provider.
It is hoped that the amendment will reduce the profits made by fraudsters and the harm to consumers caused by the rapid payment by some of the phone networks that offer premium rate numbers to service providers on a revenue share basis.
The payment system is complicated, with customers paying their telecoms providers for calls, including those made to premium rate services, and the telecoms providers then paying the relevant service providers' charges for connecting the calls.
According to ICSTIS, these payments can be made as frequently as every few days, or on a weekly basis, with the result that when a consumer complains there is little that can be done, as the funds have already been sent to the premium rate services provider.
Often the premium rate provider then disappears, without ICSTIS being able to apply the key deterrent of holding monies gained, pending completion of its investigation and the imposition of sanctions.
ICSTIS Director George Kidd said:
“The changes to the Code will prevent those who seek to rip off consumers from benefiting by stopping the money from reaching them. The changes have been welcomed by the majority of the industry and with their continued cooperation consumers will be better protected.”