Warning! Your cheap phone deal is ending
Alerts to prevent people ending up on rip-off tariffs
MOBILE phone and broadband providers could soon be forced to warn customers when their cheap deals are about to end.
The Ofcom plan is designed to stop millions of people being automatically rolled over on to much more expensive tariffs.
The watchdog wants customers to be sent an “out of contract” notice so they can agree new terms or switch company.
Ofcom said most providers do not remind people that their deal is coming to an end nor do they explain the next move.
Lindsey Fussell, from the regulator, said: “We’re concerned many people are paying more than they need to – particularly those who are out of contract.
“Customers told us they want to be alerted when their phone, TV or broadband contract is coming to an end and get advice on their options. Under our plans, providers would have to do exactly that.”
The proposals, under consultation until October 9, would include landline phone deals.
Ofcom found that on average customers bundling landline and broadband services paid 20% more when their contract ended as they were unaware it had happened.
Citizens Advice found mobile phone customers who failed to switch at the end of their deal paid £22 a month extra for their loyalty.
Around 20 million people are outside minimum contract periods.