Mobile Phone Contracts 'Fail' Users - Report

Citizens Advice is calling for an overhaul of rules governing mobile phone contracts, warning that consumers can be "taken to the cleaners".

Its 'Calling The Shots' report found users are facing charges of up to £800 to leave maximum two-year contracts that fail to deliver on coverage or features.

The charity examined the 21,500 mobile phone complaints it dealt with last year, finding the most common problems concerned faulty phones (39%), poor service and exiting contracts (17%), misleading sales practices (16%) and bill disputes (12%).

It said most phone contracts failed to specify a reasonable minimum service they could expect from their phone, meaning customers did not have the right to cancel contracts that did not deliver what was advertised.

It cited examples of people who had paid for contracts that included 3G or 4G but were unable to get coverage - being told, in some cases, to honour full contracts or pay the remainder of as much as £800 to end it early.

Citizens Advice said some customers reported being charged the full amount of their contract to cancel it before they had even received their phone.

It also calculated that the failure of phone providers and Government to put in place a cap on mobile phone bills run up by thieves had resulted in consumers, who had sought help from Citizens Advice, losing a total of £140,000.

It also cited confusion among consumers on who to contact if a phone was faulty, insisting it was the retailer's legal responsibility, and questioned how networks handled people in arrears.

Citizens Advice chief executive Gillian Guy said: "Consumers can be taken to the cleaners for ending a mobile phone contract that doesn't deliver.

"Consumers should only be paying for the service they receive. For consumers to be guaranteed a good deal from their mobile phone providers, clear minimum standards of service and better contract exit rights are needed.

"Nobody should be left to fall through gaps in regulation, so the Government should now look into simplifying how mobile phone users can get redress when they are treated badly."

It advised those stuck with poor service to speak directly to the supplier, with evidence, if possible, to explain why it should be possible to leave the contract.

Sky News is attempting to contact major suppliers for comment on the Citizens Advice report.

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