Mobile users told to haggle

Out-of-contract mobile customers could be overpaying by almost £100 a year by not pushing for a better deal.

Research by consumer champion Which? reveals many smartphone users are likely to do nothing when their contract ends.

Under rules introduced by Ofcom, telecoms companies, including mobile providers, must issue end-of-contract notifications (ECNS) warning customers their contract is about to end to help them avoid price hikes and encourage them to shop around for a better deal.

Mobile providers are also required to tell customers about the best deals they have available in ECNS.

However, a study by Which? found mobile users were most likely to do nothing (13%) when they received an ECN compared to other telecoms customers (9%) – putting them at risk of overpaying on their bill.

Out-of-contract customers can quickly find their new tariff is of poor value and, in some cases, such as with EE, Three and Vodafone, shoppers may end up being significantly overcharged at the end of a contract or continue to pay for a handset that has already been paid off.

However, the report showed some customers who negotiated with their provider saved up to £96 a year. And those who haggled or switched were more likely to get better deals for a similar price, for example with additional data or minutes.

Natalie Hitchins, head of home products and services at Which?, said: “Nearly a year after ECNS were introduced, our research shows mobile customers are less likely than broadband or TV customers to act when their contract ends and many are still grossly overpaying on their bills.”