Telco contracts leave customers paying extra on their phone plans

IS YOUR phone contract coming to an end? Here’s what you need to do to avoid being left with an expensive deal that will leave a big hole in your pocket.

EXCLUSIVE

UNAWARE phone customers could be paying too much because they are left on expensive deals once their contract has finished.

Telco giants including Optus and Telstra do not have to contact a customer once their contracts end and this can leave some customers still paying for the device component they have already paid for in full.

Consumer experts want mandatory provisions brought in to see providers alert customers — via their monthly bills or text message — when their contracts have ended.

Phone customers are being urged to check when their phone contracts end.

Consumer group Choice’s spokeswoman Erin Turner says currently customers, “can’t trust their telco to let them know when their contract is up.”

“Companies like Telstra and Optus are relying on their customers not realising that they can get a cheaper deal, even on the same mobile network,” she said.

“Telcos should be making it easier for the customers to understand how they can save money.
“For example, it would be really useful if they included a notice about when a contract is ending on customer bills.”

As cost of living expenses continue to soar, energy retailers are among those recently forced to write to customers once they reach an end of a discounted plan to help them get a better deal and consumer experts want the telco industry to follow suit.

Phone customers can be caught out by paying too much once their contract expires.

Telco comparison site WhistleOut’s spokesman Joseph Hanlon said phone providers were too quick to upsell products to customers but dragged their heels when helping them to save.

“The telcos are known for being quick to call and offer the latest phones and new contracts, but we’d love to see them suggesting cost-saving alternatives too,’’ he said.

An Optus spokeswoman said they “may” contact customers when their contract ends to “let them know of the latest plans and offers.”

Optus “may” contact customers when their phone contracts end.

“If they choose not to take up these offers their current contract will continue minus the handset repayments,’’ she said.

While a Telstra spokesman confirmed “there is no formal notification when a customer reaches the end of their contract term.”

But they said they do contact some customers to discuss new plan options once their old contract expires.

Vodafone customers can pay their handset off separately each month and can choose a monthly plan for calls, texts and data which they can change at any time.

Data from WhistleOut found comparing plans with at least 10GB of data using an iPhone 8 64GB device showed you could pay as much as $2232 over 24 months with a major carrier.

But there are deals on the market where you could be better to buy the phone outright for $1079 and pay as low as $32 per month for 18GB of data with cheaper carrier Jeenee Mobile and would pay $1847 over 24 months.

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