Mobile customers in the UK are wasting money because they chose the wrong contract, according to a new study.
Consumer watchdog Which? has published a report that says people in Britain collectively lose £5.4 billion every year due to unsuitable phone contracts.
The research pinpoints two reasons for the financial hemorrhage: people are paying for texts, minutes and data they do not use or their forking out extra cash because their phone package is too small.
What all this comes down to is the supplier not providing the best contract for the customer. If everything was correctly tailored, research shows that 72 per cent of Brits could save up to £159 a year.
The study also found that 42 per cent believe a better value contract could be found elsewhere, however many people are reluctant to switch supplier after a long-term commitment.
Which? executive director Richard Lloyd said: “Mobile phone companies must do more to help people get the best deal, making switching hassle free and ensuring that pricing is transparent.”
“If we don’t see mobile firms making voluntary improvements then we will ask the regulator Ofcom to step in.”
The watchdog is also calling on mobile phone companies to unlock handsets for free, notify customers of the best deals before the end of their contract and show the monthly cost of the handset separately from the service charge.