Phone cards 'charging for a 50-second minute'

Pre-paid phone cards are overcharging customers by "redefining the minute", it is claimed today.

Firms are accused of charging for a "50-second minute" - cheating users of 10 seconds calling time in every minute - and selling cards which expire earlier than advertised. Communications regulator Ofcom is investigating a number of companies after users complained of being ripped off by numerous scams.

Evidence presented to an inquiry concluded that nearly half the cheap-rate internationalcalling cards sold in the UK each year contain " fraudulent elements".

Chris Tooley, chairman of the European Calling Card Services Association, said: "Many of the swindles can be so subtle that most people don't even notice they are being short-changed." He told the Financial Times: "The most blatant abuse is misleading advertising that claims the international rates on offer are much better value than they really are."

Customers typically buy the cards at newsagents, then dial a number and access an automated system using a pin code. They are advertised as offering better rates than large telecoms groups. There are more than 100 firms in the UK selling cheap rate cards.

Ofcom is investigating four firms over allegations of overcharging: Vectone Group Holding, Calling Card Company (UK), Limited (Alpha Telecom-Cheers International Limited and Primus Telecommunications Limited.

The Consumers Association welcomed the review of the £1bn industry. A spokesman said: "The people that use these cards tend to be vulnerable and do not have a clear idea about what rights they have."