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Peter Black and South Wales West Liberal DemocratsRepresenting Aberavon, Bridgend, Gower, Neath, Ogmore, Port Talbot, and Swansea |
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AM calls for better consumer protection on mobiles
December 20, 2007 12:00 AM
The Welsh Liberal Democrat spokesperson for Social Justice, Culture, Communities and Housing has written to the Department for Trade and Industry asking them to tighten regulations surrounding mobile phone contracts, particularly those sold with 'cash back' deals.
Mr Black is acting in response to a campaign by consumer magazine 'Which?' who want to see 'cash back' schemes banned. Ofcom receives hundreds of complaints every month on this issue and many customers are finding that they are unable to get the money that they are entitled to. Those that do get paid often have to fight in order to receive their money.
"One of the problems with these deals is that the old adage of 'if it's too good to be true it probably is' doesn't apply," said Mr. Black. "If you are able to claim the cash back on these deals then you can save large amounts of money. The problem is that many customers still do not know what they have to do to get the money and when they do they are often ignored. Customers submitting their bills in accordance with the instructions frequently do not receive a response. It would be far simpler if they could claim their cash back from high street stores or if retailers paid money directly into banks on set dates in the contract. That does not happen because mobile phone companies actually budget on the basis that most customers will not take up their entitlements."
"I do not see any reason to ban these deals, but I do think there is a need to tighten up the regulations surrounding the industry. I would also like to see more clarity in the whole mobile phone contract process. I have heard of many customers who are not clear on the length of contact they have signed up for or do not realise certain services and calls are excluded from their tariff. I have asked the Department for Trade and Industry to issue new guidance which gives all customers a far clearer summary of what is included and what is excluded from their contract."
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