UK telecoms regulator Ofcom has said that TalkTalk and its UK subsidiary Tiscali have paid £2.5 million in compensation to users who received bills despite cancelling their contracts.
The company paid refunds and goodwill payments to 62,000 customers who reportedly received bills even after cancelling their service with TalkTalk.
Ofcom decided to step in after it received over a thousand complaints from consumers across the UK, stating that they were wrongly charged.
The watchdog has also threatened TalkTalk with a fine if it continues to receive complaints from consumers and asked it to distribute the compensation as quickly as it can.
According to The Press Association, one TalkTalk customer paid a £109.77 bill even after cancelling her TalkTalk contract.
The company said that the issue originated from a faulty billing system and vowed to set things right.
“We moved all of our customers to our single billing platform at the end of January and our focus on resolving any outstanding billing issues continues. We remain committed to providing great value and service to our 4.2 million phone and broadband customers,” the company said in a statement.
Since TalkTalk has taken steps to fix the problem within the deadline, Ofcom will not fine the company for the initial offences, though it could take action against TalkTalk, including a possible fine, should a similar problem reoccur.