Go’s €1 charge on cash payments now part of tariff, MEP claims consumers are being misled

The telecommunications company Go has replied to accusations of price-fixing and of raising charges for cash clients, saying that it was actually discounting the price for its direct debit clients.

Go issued a statement in response to claims by Labour MEP Alex Agius Saliba, who said Go, Melita and Epic were raising charges by €1-€2 for clients who did not pay their bill by direct debit mandate, a move that could hurt pensioners and other elderly clients who effect payments in cash.

But Go said that its changes will only affect those clients who pay for their service by direct debit, by having a discount applied to their bills.

The move stems from the EU directive PSD2, which enforces a discounting – rather than a charging – mechanism. Malta’s Central Bank said telecommunications companies must revisit the way they bill customers and how charges are represented in the bill.

So for subscribers who have direct debit in place, their monthly outlay remains unchanged.

“What has changed, is how these prices are represented in the bills,” Go said.

But if customers are not subscribed to paying with a direct debit, that is, they are paying directly at outlets or online, the €1 previously charged will now be represented as part of the basic tariff fee. “Should they wish to introduce DDM, they will also start to receive a €1 discount per service.”

“Direct debit mandate payment methodology is widely used across a number of services. It is safe, reliable, and convenient for both parties. It is also one way of increasing efficiency and reducing paper consumption. Whilst we respect our customers’ choice of payment method, because ultimately, their experience is what matters most to us, we do encourage direct debit for the wider benefits this offers,” Go said.

But Agius Saliba replied to the Go statement on Friday morning, saying the PSD2 directive had actually made the charges illegal, and did not oblige companies to apply the fees. “The directive speaks of giving clients an incentive to use direct debit… the discount is not an incentive but a payment imposed on all clients and then returned to those who use the direct debit mandate.”

The MEP insisted that a real discount from Go and the other companies should be a 50c deduction for those who use direct debit, without increasing the fees for others. “That would be a promotional offer – not giving clients a euro that is taken back five seconds later!”

Agius Saliba said the change in customer contracts and the increased tariff was against the PSD2 directive. “It is about not having extra charges on the basis of how one pays. Legally, the [telcos] might be right, but morally they are going against the spirit of the directive. Stop using legalisms and big words to mislead consumers! Remove those charges today.”