Ministers fume as phone giants are accused of ‘overcharging’ customers by up to £450 a year
Digital Minister Matt Hancock slammed companies like Vodafone, EE and Three and said it was time mobile phone giants 'took the initiative' and played fair.
MINISTERS last night demanded action as mobile phone giants were accused of “overcharging” loyal customers by up to £450 a year.
Citizens Advice said the likes of Vodafone and EE were failing to bring down prices when Brits have paid off the cost of a handset.
Typically prices should fall after the initial two-years, the charity said.
But in the vast majority of cases they stay the same, meaning customers are being ripped off by as much as £38 a month.
Last night, furious Digital Minister Matt Hancock said it was time mobile phone giants “took the initiative” and play fair by their customers.
He said: “It’s only right that mobile customers should be notified when they have paid off the price of their handset.
“And that their future bills should reflect this.”
Citizens Advice said Vodafone, EE and Three were all guilty of profiteering.
It said on average Brits who stay on the same contract after two years – by which point a handset is paid off – are overcharged by £22 a month.
Even on cheaper handsets, Citizens Advice said EE were overcharging loyal customers by £16 a month.
The rip-off for the new iPhone 8 could be as much as £46.
The charity demanded phone firms split out the cost of a handset on bills.
Gillian Guy, chief exec of Citizens Advice, said: “Some of the largest mobile phone providers are routinely overcharging their loyal customers.
It’s clearly unfair and especially concerning that older customers are more likely to be stung by this sharp practice.”
She added: “Ministers and the regulator must now call time on these rip-offs and stop firms overcharging customers like this.”
Bosses at O2 boasted that they already separate out “airtime” and device costs on their bills. O2’s Nina Bibby said: “Forcing customers to pay for a phone they already own not only hits their pockets but undermines trust.”
A spokeswoman for Vodafone last night said: “We strive to give our customers the price plan that best suits them.
“Wherever possible we contact customers nearing the end of their contract to offer them a range of options.”
Citizens Advice has been at the heart of the campaign to push for fairer energy deals over the past year.
It urged Consumer Minister Margot James last year to extend a price cap on prepayment meters to other ‘vulnerable’ Brits – a policy now being enacted by energy regulator Ofgem.
