A third of customers overpay for mobile phone contracts, watchdog says
A third of customers are overpaying for mobile phone contracts, with some people paying an extra £400 each year, according to the latest research.
One in three customers are still being charged the full price of their contract even after paying off the cost of their handset.
According to the research by Which, customers of Three were the worst affected as the phone network did not apply any discount to bundled customers when the contracts ended.
Around four in 10 Three customers whose contracts ended in the last six months said they had not seen a price drop at the end of the term. City A.M. has contacted Three for comment.
Which said the mobile phone overpayments were costing UK customers £182m.
In February, regulator Ofcom said providers had 10 to 40 days to start sending end-of-contract notifications for customers coming to the end of their contract.
The mobile networks told Which that they had sent the notifications but some may have been missed.
A quarter of customers said they had not got round to changing providers, a fifth said they were happy with the deal and one in five thought they were getting a good deal. A further one in five said they trusted their provider.
Natalie Hitchins, head of home products and services at Which, said: “While some mobile firms have taken action to end overpayments, our research suggests that others could do a lot more to ensure that customers are not being exposed to rip-off charges.
“Ofcom should ensure that all providers are treating their customers fairly and have taken enough steps to stop people overpaying.
“In the meantime, it is really important that customers don’t wait. If you think you might be out of contract or overpaying, check your phone bills to see if you can save money with a SIM-only deal or with an upgrade to a new phone.”