16th January 2015
The wrong mobile phone contracts are costing customers an average of £159 every year.
New research by consumer group Which? has shown as many as seven in 10 people are on the wrong phone plan and paying for services they don’t use or are going over their allowances and incurring extra charges.
The average person is overpaying by £159 a year and Which? said by switching phone contracts three-quarters of people could save at least £50 per year.
The total cost of phone overspend equals £5.42 billion every year in the US and even though consumers know they are on the wrong deal , they don’t do anything about it.
A total of 42% of those surveyed think there is a better value phone tariff out there but just 52% have switched supplier, according to Ofcom research.
The survey by which shows just 8% of people trust mobile phone services.
Richard Lloyd, Which? executive director, said: ‘It’s shocking that consumers are overpaying by billions of pounds for mobile phone contracts that just don’t suit their needs.
‘Mobile phone companies must do more to help people get the best deal, making switching hassle free and ensuring that pricing is transparent. If we don’t see mobile firms making voluntary improvements then we will ask the regulator Ofcom to step in.’
Which? has called for phone companies to unlock handsets automatically for free to allow customers greater control over their tariff. The group also wants companies to notify customers at least a month before the end of their contract and give consumers information on the best deals – separating the monthly cost of the phone provided from the service charge.
Ofcom should also introduce a system where the provider gaining new business is responsible for the switching of providers, making the process easier for consumers.