Ofcom revealed in a statement that it had uncovered evidence of "mis-selling, inaccurate billing and poor complaints handling processes" for British customers of Vodafone, the world's second-largest mobile operator.
Ofcom said it had conducted two investigations which found Vodafone had failed to credit the accounts of 10,452 pay-as-you-go mobile customers in Britain -- and then mishandled their complaints.
The breaches took place over a 17-month period up to April 2015. During that time, the affected customers lost a combined USD 150,000.
The London-listed mobile phone company expressed "profound apologies" over the matter.
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"We deeply regret these system and process failures. We are completely focused on serving our customers: everyone who works for us is expected to do their utmost to meet our customers' needs, day after day, and act quickly and efficiently if something goes wrong," it said.
"It is clear from Ofcom's findings that we did not do that often enough or well enough on a number of occasions. We offer our profound apologies to anyone affected by these errors."
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