February 25th 2023.
Which? is asking providers to reconsider any price rises as people continue to struggle with the cost-of-living crisis. They are advocating customers should have the option to exit their contract without any penalty if the charges are increased in the middle of the agreement. Additionally, they are calling for the cancellation of 2023's inflation-based hikes for financially vulnerable consumers.
Which? is warning that customers are in a predicament between accepting the ‘exorbitant’ charges or paying an exit fee of more than £400 to break the contract. It has calculated that the average EE customer on a bundled contract could see an increase of £66.36 annually, while the typical Three customer would see a hike of £56.40. Those wishing to end their contract prematurely would be charged £424.67 by EE and £379.46 by Three.
Rocio Concha, Which? director of policy and advocacy, commented: ‘It’s hugely concerning that many mobile customers could find themselves trapped in a Catch-22 situation where they either have to accept exorbitant – and difficult to justify – mid-contract price hikes this spring or pay costly exit fees to leave their contract early and find a better deal. With many households struggling to make ends meet, it is completely unfair that people are trapped in this situation. Which? is calling on providers to act quickly and reconsider any price rises. Firms should cancel 2023 hikes for financially vulnerable consumers and allow all customers to leave without penalty if they face mid-contract price rises.’
(Image Source: https://metro.co.uk) Which? is urging providers to reconsider price increases as individuals battle the cost-of-living crisis
Mobile phone users could be facing enormous mid-contract price rises or termination fees that exceed £400, as warned by a consumer advocacy group.
Which? is requesting that providers reconsider rate increases as people are confronted with the persistent cost-of-living quandary.
The organisation is hoping that customers can exit their contract without any penalty if their charges are increased mid-contract.
Moreover, it has asked them to cancel 2023's inflation-linked price increases for those who are financially disadvantaged.
The ‘big four’ mobile companies – EE, O2, Three and Vodafone – raise their rates every April in accordance with the Consumer Price Index or Retail Price Index, with an additional 3.9%.
EE, Three and Vodafone are using CPI, which will lead to price increases of greater than 14% this year, while O2 is using the more elevated RPI measure, leading to some clients facing increases of more than 17%.
Since the price increases are frequently applied during the middle of the contract, customers are obliged to either accept them or pay exit fees to get out of the agreement.
The rate hikes are most significant for bundled contracts in which the customer pays for both the usage and the handset.
(Image Source: https://metro.co.uk) People are ‘locked’ into expensive phone contracts, According to Which?
Rocio Concha, Which? director of policy and advocacy, stated: ‘It is very concerning that many mobile customers may find themselves stuck in a Catch-22 situation where they are either required to accept exorbitant – and hard to justify – mid-contract rate rises this spring or pay costly exit fees to break their contract early and find a better deal.
‘Given that many households are having difficulty making ends meet, it is totally unjust that people are held captive in this situation. Which? is requesting providers to take swift action and re-examine any price boosts.
‘Companies should cancel 2023 hikes for those who are financially vulnerable and permit all clients to leave without penalty if they experience mid-contract rate rises.’
Which? computed that the average EE customer on a bundled contract would experience an annual increase of £66.36, while the typical Three customer would be faced with a hike of £56.40.
The same EE customer would be liable for exit fees amounting to £424.67 if they were to leave a year early, while Three's customer would need to pay £379.46 to break their contract.
(Image Source: https://metro.co.uk)
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