Mark Pocock, our home comms expert, tells you how to avoid end of term price rises.
Figures released today show that consumers are at the risk of significant price hikes when they fall out of contract. Ofcom is currently consulting on changes to the law that will compel companies to tell you when your deal is due to expire and the rate you’ll pay but in the mean time, Mark Pocock, our home comms expert, gave his advice on beating the price hikes.
Mark said; “Unlike with broadband providers, insurance companies typically do write to you when you renew your policies, and even when consumers have it in black and white in front of them that prices are going to rise, there is evidence they still don’t take action, and this needs to change.
The fear of being disconnected has never been more acute, with modern consumers relying on their internet connection for everything from their TV to their heating, but what consumers may not know is that switching can now take hours as opposed to days. It’s vital the regulators do all they can to push transparency and openness and stamp out this tactic of taking advantage of end-of-contract confusion, we as an industry also need to step up and do more to educate consumers on what happens at the end of policies, and empower them to make the right decisions for them at renewal time.
According to Citizens Advice, over a third (35%) of under 65s have been shown to stay over three years in contracts that we know typically last less than 2 years. Apathy has always been a money maker for providers, and we’re constantly evolving our own platform to make it as transparent as possible for consumers to know what they’ll pay through the life of the contract and afterwards when prices typically rise."
So what should you do?
“It is good practice to compare in advance of the end of your contract and best thing is to take control at the very beginning. On sign up you will be told how long you’re tied in and what happens when you reach the end of that period, use a reminder tool like the one we have on-site, or make a note to ensure you know when it’s coming up.
When your contract is coming to an end you need to act fast, and know what your cancellation rights are at the expiry point – some providers require 30 days notice that you won’t be continuing before auto-renewing or moving you to a rolling contract. Be aware of your dates to ensure you never have to pay more, and are in a strong position for negotiation.”