Mobile-phone operator Three Ireland is to refund almost €2.7 million to customers after a review of its billing system by the telecoms watchdog ComReg.

A subsequent review by the company found that some customers had continued to be charged for services after they had cancelled their contracts.

ComReg said that, rather than proactively refunding customers, Three had kept these charges as credits on inactive accounts, and had issued a refund only if a customer requested one.

The review also found other types of credits that had not been claimed, or pro-actively refunded, by Three after the cancellation of customer contracts.

September target

The company has told the regulator that more than 173,000 customers were affected.

Three will now refund just under €1.3 million in post-cancellation charges, and €1.4 million for other credits on inactive accounts.

Refunds will be issued from this month, with the aim of paying back all customers by September.

“Three has confirmed that, in future, credits will not remain on inactive accounts and that Three will pro-actively refund such credits to its customers,” ComReg said.