New photo Customers 'exploited' by phone, insurance and mortgage companies

Phone, broadband, insurance and mortgage companies are ripping off loyal customers by £4 billion, it has been revealed today. 

Following a 'super complaint' by Citizens Advice, the Competition and Markets Authority investigated concerns that companies penalise existing customers by charging them higher prices than new customers. 

It also found that vulnerable people, including the elderly and those on a low income, may be more at risk of paying the loyalty penalty.

BT was named as the broadband provider with the biggest loyalty penalty in a new report

The CMA's probe uncovered 'damaging practices' by firms, including continual year-on-year stealth price rises; costly exit fees; time-consuming and difficult processes to cancel contracts or switch to new providers; and requiring customers to auto-renew or not giving them sufficient warning their contract would be rolled over.

I saved £444 a year by challenging my bill 

Donna Robinson challenged her bill

Mother-of-four Donna Robinson was paying Virgin Media £54 per month but got that down to  £17.64 when she asked for a better deal.

That means she will now save £444 over the next year of her broadband and TV bills. 

Customers of broabband, TV and phone companies have been hit by a succession of small price rises in recent years. 

She had used Ismybillfair to challenge her costs and said they had risen as it felt like the firm 'added £3, then added £3, then added £3.'

She said: 'It isn't right. Loyalty should pay'. 

The CMA is recommending government and regulators crack down on harmful business practices using enforcement powers, stating clearly the principles businesses should follow and holding firms publicly to account for their actions.

Most radically, it also suggests that 'targeted price caps' should be put in place to protect the people worst hit.

The CMA recommended that Ofcom puts regulation in place to stop mobile providers charging pay-monthly customers the same rate once they've effectively paid off their handsets at the end of the minimum contract period.

The FCA, meanwhile should 'look closely' at evidence that insurance firms continually raise prices and take action to prevent people being exploited. This should include considering 'pricing interventions'.

Retired headteacher Ben Beavan has been a loyal BT customer since he bought his first flat in Winchester 35 years ago.

But he has since discovered he was being charged £246 more a year more than a new customer for his BT package, which includes unlimited weekend calls, broadband, and line rental.

When we challenged retired headteacher Ben Beavan's bills, BT cut them

Mr Beavan, 63, who lives with his wife Liz, 62, had believed that as a loyal customer he would be getting a good deal.

But while he was paying £45.49 a month, a new customer could get the same deal for just £24.99 a month for the first 18 months, and £32.99 thereafter.

He said: ‘I was shocked to discover my loyalty had gone completely unrewarded. I felt like I had been taken advantage of. BT is using me like a cash cow to fund the deals it offers to new customers which is not fair.’

He said: ‘We were confident we were getting the best deal as we had been customers for so long. The problem is I do not want to change my service but I am paying massively over the odds. I wish BT would charge its loyal customers fairly.’

After we intervened BT reduced the price of Mr Beavan’s package to £32.99.

A BT spokesman said: ‘We fully agree that customers shouldn’t overpay for the service they receive. We’re working harder than ever to be even clearer with our customers about their options.’ 

THE BROADBAND LOYALTY PENALTY 

Broadband providers	Average overcharge per month	% of customers overcharged	Overcharge as a % of average bill
BT	£22.75	77%	40%
Sky	£21.94	80%	41%
Virgin Media	£18.18	83%	30%
EE	£14.45	60%	35%
TalkTalk	£13.84	67%	34%
Plusnet	£11.08	82%	32%
Source: ismybillfair.com crowd sourced customer records, correct as at 5th December 2018

THE BREAKDOWN LOYALTY PENALTY 

Breakdown cover providers	Average overcharge per month	% of customers overcharged	Overcharge as a % of average bill
AA	£11.07	59%	47%
RAC	£9.17	39%	41%
Source: ismybillfair.com crowd sourced customer records, correct as at 5th December 2018

SIM-ONLY MOBILE LOYALTY PENALTY

SIM only providers	Average overcharge per month	% of customers overcharged	Overcharge as a % of average bill
EE	£10.32	46%	36%
Vodafone	£9.54	62%	38%
O2	£9.27	65%	37%
BT Mobile	£7.66	23%	35%
Tesco	£7.52	25%	39%
Three	£7.18	33%	30%
GiffGaff	£6.60	7%	30%
iD	£5.44	21%	40%
Virgin Mobile	£5.33	17%	35%
Plusnet Mobile	£3.33	25%	28%
Source: ismybillfair.com crowd sourced customer records, correct as at 5th December 2018

Andrea Coscelli, chief executive of the Competition and Markets Authority said: 'Our work has uncovered a range of problems which leave people feeling ripped off, let down and frustrated. They shouldn't have to be constantly 'on guard', spending hours searching for or negotiating a good deal, to avoid being trapped into bad value contracts or falling victim to stealth price rises.'

The CMA found that millions of people are affected, including around 1 million in the mortgage market to nearly 12 million in insurance.

Gillian Guy, chief executive of Citizens Advice, said: 'This is a strong response from the CMA, recognising that loyal customers are getting ripped off. That is exactly why we've been fighting to stop the loyalty penalty, and why we made the super complaint.

'While the CMA needs to hold regulators to account, the onus is now on Ofcom and the FCA to act. The CMA has set a six-month deadline for progress and expectations are high. Regulators must do whatever it takes to fix the loyalty penalty.'

<![CDATA[

]]>

THIS IS MONEY'S FIVE OF THE BEST BROADBAND DEALS

The Post Office's Unlimited Broadband deal costs £15.90 per month for 11 Mbps speeds, the cheapest on the market. The contract lasts 12 months with a guarantee prices wont go up during that time. No setup fee

NowTV's Fab Fibre deal costs £28.50 per month and includes 36Mbps speeds with TV Entertainment Pass (with Sky channels and over 300 boxsets). There are no setup fees and the contract lasts 12 months

Talk Talk offers a Fast Broadband package with 11 Mbps speeds with a TV Plus box which allows you to record, pause and rewind live tv plus 6 Sky Entertainment channels. It costs £27.95 a month.

Vodafone charges £23 per month for its 35Mbps speed deal. It comes with a money-back guarantee of 15% off your bill if your speeds don't reach 25Mbps. It charges £9.99 in set up fees and lasts 18 months.

Sky now offers its Entertainment package with Boxsets and Netflix bundled together for £32 per month .The contract lasts 18 months and £20 set up fee applies.

Check Your Bill campaign: What you can do 

That loyal customers are charged more will not be a surprise to many people, however, we still let companies get away with it.

At the root of this lies people not realising how much they are being overcharged and inertia, as many cannot be bothered to check their bills, challenge providers and switch if need be.

The CMA could decide to do something about this, but any action is likely to take a long time to kick in.

This is Money is therefore calling on readers to fight back against the loyalty penalty and take matters into their own hands: check your bills, demand a better deal and switch if you need to.

We also want out readers to help out their friends and relatives who are unlikely to do this themselves, perhaps because they are elderly or not internet-savvy.

To do this get your latest bills together and see how much you are paying, then check the prices offered to new customers.

Contact your provider and tell them you want a better deal or you will leave – if they won’t give it to you switch.

You can do this yourself and use the links below to compare rivals’ prices, or you could use the ismybillfair.com check and challenge service.

> Compare energy bills with our tool

> Compare broadband bills with our tool 

https://textbacklinkexchanges.com/category/the-sun-world/
https://textbacklinkexchanges.com/customers-exploited-by-phone-insurance-and-mortgage-companies/
News Pictures Customers 'exploited' by phone, insurance and mortgage companies

You don’t have to pack away your bikini just because you’re the wrong side of 20. These body-beautiful stars reveal their secrets to staying in shape and prove you can smoulder in a two-piece, whatever your age. Read on and be bikini inspired!

TEENS
Hayden Panettiere
Size: 8
Age: 18
Height: 5ft 1in
Weight: 8st

To achieve her kick-ass figure, Hayden – who plays cheerleader Claire Bennet in Heroes – follows the ‘quartering’ rule. She eats only a quarter of the food on her plate, then waits 20 minutes before deciding whether she needs to eat again.

Hayden says: “I don’t have a model’s body, but I’m not one of those crazy girls who thinks that they’re fat. I’m OK with what I have.”

Nicollette says: “I don’t like diets – I see it, I eat it! I believe in eating healthily with lots of protein, vegetables and carbs to give you energy.”

kim cattrall

Size: 10-12
Age: 52
Height: 5ft 8in
Weight: 9st 4lb

SATC star Kim swears by gym sessions with Russian kettle bells (traditional cast-iron weights) and the South Beach Diet to give her the body she wants. To avoid overeating, Kim has a radical diet trick – squirting lemon juice on her leftovers – so she won’t carry on picking.

Kim says: “I am no super-thin Hollywood actress. I am built for men who like women to look like women.”
https://i.dailymail.co.uk/i/newpix/2018/12/13/19/33215ECB00000578-6493231-image-a-10_1544729301986.jpg