Mobile users could be due PPI-style compo payouts after being overcharged for phones
MOBILE users who've been overcharged for their phones 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.
These mean that more than 1.4million out of contract users will automatically be switched from their standard variable rate to cheaper Sim-only tariffs.
It follows concern that people on "bundled" deals have been languishing on pricey rates after their contracts end.
Phone regulator Ofcom says the move will save 1.4million customers an average of £74 a year (£11 a month).
Separately, Citizens Advice estimated in 2018 that four million Brits have been charged £490million for handsets they already own.
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. With 02 Refresh, the standard on its pay monthly tariffs, it automatically lowers your bill once you've paid off your phone.
- 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.
While a year earlier, the charity found that providers are overcharging customers by up to £450 a year after they've paid off their handset.
Yet Ofcom doesn't have the power to force telecoms providers to make the changes to automatically switch customers.
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, or if you've paid over the odds for staying loyal, it's worth contacting the provider and asking for a refund.
Martyn James, from online complaints tool Resolver, recommends first going through old bills and then explaining that you would've switched to a cheaper deal if you'd known.
Network providers aren't 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.
Mr James told The Sun: "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."
"In the insurance industry, the Financial Ombudsman has upheld a number of cases where customers have been overcharged on their bills.
"In principle, that applies to other sectors too."
Meanwhile, Ernest Doku, mobiles expert at comparison site uSwitch, said: "Consumers who are out of contract with their broadband, mobile phone and pay TV providers may be overpaying on their bills by millions of pounds every year.
"While the introduction of these notifications is great news for consumers, if you are out of contract don’t hang around waiting for your letter to arrive, as it could be a year before you are informed."
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.
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