Phone and broadband customers in the UK must be warned when their current contract is ending and what they could save by signing up to a new deal, under Ofcom rules that came into force on February 15.
Around 20 million customers are already out of contract – including 8.8 million broadband customers – and many are paying more than they need to.
Ofcom research reveals that every day, 25,000 broadband customers come to the end of their contract – usually leading to an automatic price rise.
People can earn big savings on their monthly bills if they take advantage of discounts available when signing a new deal. But 16% of broadband customers don’t know if they are in contract, rising to 21% of over-55s.
So, Ofcom is introducing rules to ensure people can see whether they are on the best deal. Phone, broadband and pay-TV companies will have to warn customers between 10 and 40 days before their contract comes to an end.
Lindsey Fussell, Ofcom’s Consumer Group Director, said: “Millions of people are out of contract right now and paying more than they need to. These new rules make it easier to grab a better deal.
“But you don’t need to wait to hear from your provider. Just a few minutes of your time could save you hundreds of pounds today.”