Mobile news

Mobile users over-charged for phones could get compensation similar to PPI scandal – The Sun


MOBILE users who’ve been charged for phones they’ve already paid off could be due compensation similar to the PPI scandal.

Consumer right experts are urging mobile networks to issue refunds following new guidelines coming into force next month.

 Mobile phone users who've been overcharged on handsets could be due compensation

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Mobile phone users who’ve been overcharged on handsets could be due compensationCredit: Getty – Contributor

These mean that more than 1.4million users will automatically be switched to cheaper deals, where they pay for airtime only, once their contracts come to an end.

It follows concern that people on “bundled” deals have been languishing on pricey rates after they’ve already paid off their handsets.

Phone regulator Ofcom says the move will save 1.4million customers an average of £74 a year (£11 a month).

Separately, a Citizens Advice report found a couple of years ago that providers are overcharging customers by up to £450 a year after they’ve paid off their handset.

Will my mobile provider switch me to a cheaper deal?

HERE’S what the major mobile providers say they’ll do for out-of-contract mobiles users:

  • EE and Vodafone will reduce their prices for customers out of contract for more than three months. Both companies will confirm the level of this discount before the end of the year. The discount is expected to take into account the level of savings available if customers switched to a comparable Sim-only tariff.
  • O2 will reduce the monthly price for its out-of-contract customers to the equivalent 30-day Sim-only deal. This will apply to its direct customers only, but O2 will discuss options for customers who take out O2 contracts with third-party retailers.
  • Tesco Mobile will reduce the monthly charges for out-of-contract customers who are overpaying to the best available airtime tariff.
  • Virgin Mobile will move its out-of-contract customers to the equivalent 30-day Sim-only deal.

Yet Ofcom doesn’t have the power to force telecoms providers to make the changes.

Three is the most notable major player that won’t take part, and says it believes the changes are counter-productive because it won’t encourage people to switch for even larger savings.

But if you’ve been charged for a phone you’ve already paid off, it’s worth contacting the provider and ask for a refund.

Martyn James, from online complaints tool website Resolver, told The Mirror: “If people have been overcharged, they should be refunded.

“Ofcom’s new rules will undoubtedly make things better for millions, who might have been overcharged in the future.

“But that still leaves the millions who have already been overcharged.”

Meanwhile, Ernest Doku, from comparison site uSwitch, said: “While the introduction of end-of-contract notifications is great news for consumers, if they are out of contract they should act not wait around for a letter.”

Network providers aren’t yet legally required to issue refunds to customers who’ve been overcharged, as they technically haven’t broken any rules.

But it could be compared to the PPI scandal, when banks compensated customers who’d been mis-sold payment protection insurance policies.

How to cut your mobile bill

FIRSTLY, decide if you’re happy with your current deal and whether you want a new deal or handset – or both.

If you’re outside the minimum term of your contract then you can leave penalty free – and you might be able to find a cheaper deal elsewhere.

Pay-as-you-go deals are better for people who don’t regularly use their phone, while monthly contracts usually work out cheaper for those who do.

The best way to find a new deal is by checking comparison websites, such as MoneySupermarket and uSwitch.com, which compare tariffs and handset prices.

It’s also worth trying Billmonitor, it matches buyers to the best pay-monthly deal based on their previous three months of bills.

It only works if you’re a customer of EE, O2, Three, Vodafone or Tesco Mobile and you’ll need to log in with your online account details.

MobilePhoneChecker has a bill monitoring feature that recommends a tariff based on your monthly usage.

If you’re happy with your provider then it might be worth using your research to haggle a better deal.

Phone, pay-TV and broadband customers must now be warned when their contract is due to expire to stop rip-offs.

Mobile users can also save money by switching provider using just a text.

And if you’re going away on holiday, here’s how to avoid mobile roaming charges as holidaymakers are slapped with a £50 fee just to send a picture.

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