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Action to Stop Mobile Phone 'Rip Off'

1 June 2011

EU ACTION TO STOP MOBILE CONTRACT ‘RIP OFF’

Consumer champion, Catherine Stihler Labour MEP for Scotland, has welcomed changes to the law which will put a stop to unfair, lengthy mobile phone contracts.  Scottish consumers will also benefit from compensation if a phone provider fails to quickly transfer their ‘original’ number to another provider during a switch over.

Speaking from the European Parliament, Mrs Stihler stated:

“Thank to the new EU rules Scottish consumers will not be tied into lengthy mobile and broadband contracts with providers.  Shorter contracts are not only more fair, but allow consumers to be more flexible with their choices.  Short contracts also drive up competition and provide consumers with a better service.  Some providers have started to introduce three year contracts, against the view of regulators such as Ofcom”.

Under the new rules the maximum phone and broadband package that a consumer can be tied into is 24 months.  Providers must offer 12 month products to consumers.  However, the rules do not extend as far as to ensure that all products are available on 12 month contracts – only some.  

The new regulations will also enforce all mobile phone providers to transfer a customer’s ‘original’ phone number to a new provider within one working day.  This will put an end to consumers having to wait days or well over a week before they can operate on their exisiting number.  

Mrs Stihler cautioned:

“If phone providers fail to adhere to these new rules, they will have to provide consumers with compensation for loss of service”.

ENDS