The findings of this report are not surprising in an industry where mobile providers do their best to mislead consumers and businesses alike with tariff pricing that includes a so-called free handset.
When your contract expires, they then continue to charge a high rental price instead of reducing the price to reflect the fact that the customer has now paid off the cost of the phone.
We're proud to have done things differently at 2 Circles for the last few years by splitting the tariff cost and the handset price. We automatically stop charging you for the phone when you've paid it off at the end of the contract term!
If only all service providers did things the same way, the right way!
Vodafone, EE and Three are continuing to charge customers for the mobile phones they buy as part of a contract, even after the cost of the handset has been paid off, research suggests. Citizens Advice found that customers who do not take out a new contract are paying an average £22 extra a month. The government said the mobile firms needed to inform customers when they had paid for their handsets. The operators said that their billing systems were fair.