Changes to Contracts to Protect Customers from High Prices
Ofcom to introduce new measures to broadband, TV and mobile contracts in a bid to protect customers from high prices.
08:44 07 February 2020
Ofcom is requiring firms to inform customers when they come to the end of their deal in a bid to protect customers from high prices. The move comes after the communication watchdog found that over 20 million households were still locked into expensive rolling plans even after their initial contract period has expired.
Starting February 15, everyone from phone network providers to TV services are mandated to reach out to their customers about any changes in prices that are about to kick in as well as what their top deal is.
Laura Suter, personal finance analyst at investment platform AJ Bell, said: “Ofcom has intervened to get those who don’t shop around a better deal, with providers pledging to cap rates for those out of contract and stop preferential rates being offered just to new customers."
“What you’ll be offered depends on your provider, but will all be in place by March 2020. After February, providers will also have to warn customers if they are out of contract.
“While these changes will save you money, you’ll still save more by switching to a better deal once your contract ends. Or if that’s too much hassle then call your current provider and haggle over the cost.”