Panel calls for co-ordinated response to growing problem of bill shock
01 March 2012
Responding to Ofcom’s review of unexpectedly high phone bills, the Communications Consumer Panel Chair, Bob Warner, called for a co-ordinated response to dealing with the growing problem of bill shock: “As people become increasingly reliant on their mobiles, bill shock is becoming a serious problem for consumers. As well as the immediate financial impact of unexpected costs, there is also a risk that people become overly cautious of using their phones for data in case they incur extra charges, so aren’t benefitting fully from the opportunities that are available.”
The Panel also has concerns about the costs of calling some non-geographic numbers such as freephone services from mobiles, which are often significantly higher than using a landline. Information about call costs is often difficult to find, and research for Ofcom found that only 13% of people thought they knew the cost of calling an 080 number from a mobile. “This particularly affects people on lower incomes who are more likely to have mobiles rather than a landline, and use their mobile to call essential services,” Bob Warner explained.
Consumers can also risk financial hardship if their mobiles are lost or stolen – high bills can be generated in the short space of time between a theft and reporting the loss, for which the consumer remains liable.
“In line with the positive recommendations and consumer awareness guide from Ofcom, we would like to see industry develop better information and mechanisms to give consumers control over their spending and alert them when they are likely to incur additional costs. We also want providers to use the information held about typical usage profiles to intervene earlier if a phone is lost or stolen to help to protect people from charges for unauthorised use,” Bob Warner concluded.