Brits being overcharged £490m on phone contracts
Brits are shelling out £490m extra for phones which they already own, according to new research published today.
Citizens Advice said 4m people in the UK were being charged by operators for handsets after their contracts had ended, even though they only need to pay for calls, texts and data.
Though some operators design their contracts so customers are not charged for their handset once it has been paid off at the end of a contract, EE, Three and Vodafone routinely charge customers extra.
The charity has called on the companies to make pricing more transparent by separating out the cost of the mobile service and the phone. Bundled contracts are often used to confuse customers and lock them into paying more than they would for buying the device outright through a two-year contract.
Read more: DEBATE: Should we ban mobile phones in schools to help kids concentrate?
"It is unacceptable that mobile providers are knowingly overcharging customers for phones they already own," said Gillian Guy, chief executive of Citizens Advice.
"We’ve heard a lot of talk from government and the regulator but now we need action. Other companies have already stopped doing this so we’re looking for these three major providers to follow suit.
"In the meantime, consumers should check their phone bills to see if they can save money with a SIM-only contract or upgrade to a new phone.
Ofcom is currently consulting on how to address the problem, while Citizens Advice suggests sending one notification to customers when their contract is up is not enough to help consumers save money.
Read more: Telecoms firms to profit off broadband price hikes when contracts expire