If you’re one of the 83 million Brits with a mobile phone contract, Martin Lewis claims you may be the victim of a ‘dodgy trick’ used by certain networks.
In the latest edition of his Money Saving Expert (MSE) newsletter, the financial guru warns: ‘People are often shocked by the huge savings reported into my TV show on mobiles. Yet it’s often as they’ve fallen for the same catch, and it’s one everyone needs be aware of.’
According to Martin, many sign up to all-in-one deals with higher bills to pay for the new phone on top of the monthly tariff.
‘Yet once the contract ends and the handset’s cost is repaid, some firms – often the big ones – disgracefully don’t drop the cost,’ he explains. ‘So you pay the same amount each month, even though the vast bulk of the cost was handset repayment.’
Although he argues this ‘should be banned’, it unfortunately isn’t.
And as a result, it’s vital you ‘self-police’ to avoid being overcharged, as well as checking on any vulnerable people you know.
MSE estimates that around 14 million people are ‘out of contract and being ripped off’ — and could save £100s with a simple check.
Your provider is required to send you an out-of-contract notification at the end of your term, but if you’re not sure if you’ve missed this, a free Ofcom service makes it easy to find out.
All you need to do is text INFO to 85075 and you’ll receive an automatic response from your phone company with further details.
To confirm you’re free to go elsewhere, MSE says: ‘You’re looking to see something along the lines of “a £0 early termination/cancellation charge”.’
If so, you can then shop around for a better price, whether that’s with a new network or by negotiating with your current one.
Keep your number when switching network
Some people put off switching networks to avoid the hassle of a new number, but it’s surprisingly easy to keep hold of your old one.
Text PAC to 65075 to get a Porting Authorisation Code you can send to your new provider, which will transfer your existing number in just one working day. Job done.
As long as you’re happy with your handset, a Sim-only plan will likely cut your monthly costs — especially since ‘data’s dirt-cheap right now’, with providers offering 35GB data, unlimited UK calls and texts, and free EU roaming for as little as £3 a month.
Check comparison sites for the best available deals (MSE’s ‘cheap mobile finder’ also helps you work out how much data you actually need) and either make the switch or use these as a haggling tool, asking your existing network to beat or match the price others are offering.
The same advice applies if you want to upgrade your handset. Just make sure to sell or trade in the old one, and don’t forget to consider refurbished models as they can be cheaper.
And even if you’re still locked into a contract, all is not lost. Make note of when it ends – perhaps set yourself a calendar reminder – and you can take action as soon as possible, ensuring you never pay more than absolutely necessary.
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