Out-of-contract mobile customers overpaying by £100 a year, claims Which?

MOBILE phone customers whose contracts have ended could be overpaying for their bills by £96 a year, according to Which?.

The consumer group is urging phone customers to switch contracts to avoid “rip-off” price hikes once their deal has ended.

Mobile phone users can save almost £100 by switching deals at the end of a contractCredit: PA:Press Association

Phone networks, broadband and TV providers are supposed to alert customers 10 to 40 days before their contract expires so they can find a cheaper offer and avoid price hikes.

But Which? has warned consumers are still failing to shop around or haggle for better deals.

A new mobile deal is always most attractive at the start as providers will lure you with lower monthly repayments, the latest handset or perks such as free minutes or data.

But these offers typically only last for one or two years, and at the end of the deal you will be moved onto a more pricey standard tariff.

How to save on your mobile phone bill

NOT happy with your current mobile phone deal?

If you’re outside the minimum term of your contract then you won’t need to pay a cancellation fee – and you might be able to find a cheaper deal elsewhere.

But don’t just switch contracts because the price is cheaper than what you’re currently paying.

Take a look at how many minutes and texts, as well as how much data you’re using, to find out which deal is best for you.

For example, if you’re a heavy internet user it’s worth finding a deal that accomodates this so you don’t end up spending extra on bundles or add-ons each month.

Also note that if you’re still in your contract period, you might be charged an exit fee.

Ready to look elsewhere? Pay-as-you-go deals are better for people who don’t regularly use their phone, while monthly contracts usually work out cheaper for those who do.

It’s worth using comparison websites, such as MoneySupermarket and uSwitch.com, to compare tarrifs and phone prices.

Billmonitor also matches buyers to the best pay-monthly deal based on their previous three months of bills.

It only works if you’re a customer of EE, O2, Three, Vodafone or Tesco Mobile and you’ll need to log in with your online account details.

There’s also MobilePhoneChecker,which has a bill monitoring feature that recommends a tariff based on your monthly usage.

If you’re happy with your provider then it might be worth using your research to haggle a better deal.

A survey of 4,000 customers found 13% of mobile users were likely to do nothing when they received an end-of-contract notification (ECN) compared with 9% of broadband or TV users.

This puts them at risk of overpaying on their bill on a “poor value” out-of-contract tariff.

Instead, mobile users are being urged to shop around and even haggle with their current provider for a better deal rather than accepting what they offer in their ECN.

How to get a better mobile deal

Which? found that a fifth of mobile phone customers accepted the deal offered by their provider in their ECN.

This may save money and avoid price hikes on a standard tariff but there are ways to make even more savings

A third of customers either haggled or switched provider, saving as much as £96 in some cases.

Of those that haggled with their provider, 70% said they were offered an upgraded deal, which meant more data or minutes on their plan.

In contrast, just 55% were offered an upgraded deal in their end of contract notification.

The best way to haggle is to arm yourself with information of other deals that are on offer from rivals.

Check comparison websites such as MoneySuperMarket or Compare The Market and phone your current provider to see if they can beat what other’s are offering in return for keeping your custom.

Alternatively, you can shop around for other deals on comparison websites or using the Which? mobile switching service.

Don’t just compare the monthly repayments but also consider the amount of data and minutes on offer and use USwitch’s data calculator to work out how much you will actually use to avoid overpaying.

It may even work out cheaper over the long-term to take a SIM-only deal.

This means buying a handset outright and finding a lower cost SIM-only contract.

Purchasing a handset upfront may be more expensive initially but it can work out more cost effective if you don’t upgrade regularly.

Natalie Hitchins, head of home products and services at Which?, said: “Nearly a year after end-of-contract notifications 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.”