Mobile users to be able to switch contracts without penalty
24/10/2013
Ofcom have announced changes which will mean mobile users will be able to switch contracts without paying a penalty in the event of their contract provider increasing prices mid-term.
The regulator further announced that any price increases, even if their within the level of inflation, will have to be clearly communicated with customers a minimum of 30 days before the price change takes effect. Following these price increases, a clause will now be triggered which gives customers the option to exit their contract without paying any cancellation fees.
The new guidelines will take effect in around three months’ time, applying to all contracts for mobile, landline and broadband that begin from that point onwards. However, the new guidelines will not affect contracts that have been entered into before that point, meaning anyone with a mobile, landline or broadband contract prior to the introduction of these guidelines will still be subject to mid-term price increases.
Claudio Pollack, consumer group director of regulator, Ofcom stated that customers from now on, “must get a fairer deal,” whilst further claiming that the current system operates in favour of contract providers rather than the customers.
Consumer group, Which? Who has been campaigning for more clarity from the regulator as to what the consumers rights are in regards to mid-term price increases on contracts hailed the changes stating that people will be able to leave these contracts and switch to a cheaper provider without being hit by extortionate exit fees," whilst Ernest Doku from Uswitch claimed that consumers will be able to vote with their feet and say no to higher bills by moving to a new deal."
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