Broadband, mobile and TV customers must be told when deals end so they can save £300 a year by switching
HOUSEHOLDS will now be told when their broadband, home phone, mobile, and pay-TV deals are coming to end in a bid to save people up to £300 a year.
Currently, providers don't have to remind customers when their minimum contract period is coming to an end or explain what will happen after.
This means people are likely to continue on a monthly rolling deal and face price increases or changes to their original deal.
Telecoms regulator Ofcom says around 20million customers are already out of contract with many spending more than they need to.
But under the new rules, which come into force tomorrow (February 15), telecoms providers must tell bill payers between ten and 40 days before their contract comes to an end.
They can do this via a text message, email or letter.
You can usually still switch if you're in contract but the problem is you'll likely be charged hefty early exit penalties that will wipe out any gain from moving.
"Millions of people are out of contract right now and paying more than they need to," said Lindsey Fussell, Ofcom's consumer group director.
Natalie Hitchins, head of home products and services at consumer group Which?, said: “If you think you may be out of contract, paying too much or are not happy with your current service, you don’t need to wait for a notification.
"You might find you save yourself hundreds of pounds a year if you haggle or switch now.”
It was revealed last year that millions of out of contract mobile customers will be moved to cheaper Sim-only deals.
While mobile users can also now save money by switching provider using just a text.
Mobile firms have also been banned from selling locked handsets as part of plans to make switching easier.