Money Wellness
Teens in a circle holding smartphones
category iconbills
calendar icon08 Dec 2023

Mobile phone companies sued for overcharging loyal customers

The UK’s four main mobile phone companies are being sued for more than £3bn for overcharging loyal customers.

EE, Three, O2 and Vodafone are accused of abusing their dominant market position by failing to reduce customers’ charges once their handsets had been paid for in full.

Millions affected

It is believed between 2.3 million and 4.8 million contract customers have been affected by the practice.

The class action claim has been brought by former Citizens Advice executive Justin Gutmann and the law firm Charles Lyndon.

According to Mr Gutmann, if the claim is successful, affected customers could receive as much as £1,823 each.

What should I do if I think I’ve been overcharged?

If you think you’ve been overcharged and you want to be a part of the class action, you don’t need to do a thing.

All qualifying customers will be automatically included in the claim for free, although you can opt out if you choose to.

Super complaint

The class action comes after Citizens Advice made a super complaint to the Competition and Markets Authority (CMA) in 2018 about the practice.

Unfair and must be stopped

The CMA said:

“We do not consider that providers should continue to charge customers the same rate once they have effectively paid off their handsets at the end of the minimum contract period.

“This is unfair and must be stopped.”

Avatar of Rebecca Routledge

Rebecca Routledge

A qualified journalist for over 15 years with a background in financial services. Rebecca is Money Wellness’s consumer champion, helping you improve your financial wellbeing by providing information on everything from income maximisation to budgeting and saving tips.

Related posts

bills

11 Jun 2024

Watch out for firms that could double your energy bills

An investigation has warned bill-splitting firms can mislead households into paying up to 107% more than average on energy bills, despite seemingly cheaper packages.

bills

04 Jun 2024

Energy debt is ‘trapping people in a cycle of misery’

People who fall behind with their energy bills are being trapped in debt and it's worse for those on prepayment meters, according to new research. Find out what to do if you’re in arrears and your energy supplier is pressuring you to move to prepayment.

bills

31 May 2024

Labour sets out plans to cut energy bills for good

Labour has outlined how it plans to boost the clean energy sector in the UK and bring down households' gas and electricity bills.

bills

24 May 2024

Average energy bills to fall by £122 a year

Energy bills for a typical household are set to fall by £122 a year in July. Find out what this is likely to mean for you and what help is available if you’re struggling to pay your gas and electricity bills.