A charge for late payment may be raised when a Customer fails to settle their bill within 10 calendar days, (for Customers that are billed quarterly), or 7 calendar days, (for Customers that are billed monthly), of the date of the Red Reminder .

The charge is applicable to both residential and business Customers.

The above charge may be raised if BT has not received payment for the outstanding bill withinby 10the calendarpayment days,due (for Customers that are billed quarterly), or 7 calendar days, (for Customers that are billed monthly), of the date of the Red Reminder.

The charge will normally be included on the subsequent bill in the one-off payments section. Exceptionally, if BT has commenced the initial phase of disconnection due to non payment by barring outgoing calls (OCB), then the late payment charge plus the restoration from OCB charge will be added to the amount outstanding for which payment is required before service is fully restored.

Service is provided under BT's Terms & Conditions for residential and business service as appropriate.

The Red Reminder will include a message forewarning customers of a charge as a result of late payment.

The method of bill payment can preclude the receipt of a Red Reminder and as a consequence the late payment charge will not be applicable. These payment options are as follows:

• -Monthly-MPP Paymentno Planlonger exists
• -Variable Direct Debit
• -Onebillplus (Business)
• -BT Pay&Call (Consumer) (BT Pay&Call was withdrawn on 31st December 2009)

Late payment charges will not be applied on the following bill types:

• -Final (except when a Late Payment Charge is outstanding from a previous bill)
• -Supplementary
• -Monthly-Usage, Payment Plan settlementsand
• -Usage, and-Initial.
-Initial.

Part payment of bills will not exclude the raising of the late payment charge.

The late payment process will be suspended when a Customer disputes their bill before the payment due date. However, once the dispute has been resolved the late payment process will be resumed from the point at which it was suspended.If. the dispute is raised after the due date the late payment charge will be applied.

If, at the time that charge is raised, a Customer contacts a Sales Advisor and agrees to set up either a Monthly Payment Plan, Direct Debit or alternatively opts for BT Pay&Call (BT Pay&Call was withdrawn on 31st December 2009) or Onebillplus, then the late payment charge will be waived.