From The Times:

http://business.timesonline.co.uk/tol/business/industry_sectors/telecoms/article2933839.ece

November 24, 2007

Thousands hit by phone bill scams
Elizabeth Judge

Sales tactics used by mobile phone companies are to be subjected to strict new rules amid widespread evidence that customers are being duped over deals, The Times has learnt.

A surge in complaints about the sales practices of phone companies and their agents, which are being registered by customers at a rate of almost 100 a day, has prompted the telecoms watchdog to plan a crackdown on malpractice.

The complaints concern sales agents working for the mobile companies, who are accused of using aggressive and dubious methods to drum up custom. Victims have found themselves switched over to a rival provider without their consent. Others are encouraged to sign-up to a new package on the basis of a “cash-back” deal, such as a 20 per cent reimbursement on their monthly bill, that never materialises.

The regulator Ofcom is to investigate sales practices adopted by Vodafone, Orange and other main network providers. Last year the companies, which also include O2, T-Mobile and 3, signed up to a voluntary code aimed at curbing such practices.

The problem has still shown no signs of abating. In the past year Consumer Direct, the Government’s consumer helpline, has received more than 25,000 complaints on the subject. Complaints to Ofcom have risen to more than 700 a month.

Consultation on the crackdown will start in the new year. Ed Richards, the chief executive of Ofcom, said that he could have “no choice but to set mandatory standards backed up by the full weight of Ofcom’s powers”.

Related links:

Sales technique with a harsh ring
Ofcom warns of mobile phone scam

Mmm, strangley enough I got phoned up on Friday and was told that I had not upgraded my phone this year. I said I was happy with what I have got. He said I could have a cash back of £40 and got his supervisor to ring me back. He reckoned he was going to send me £40 cheque and a basic phone as a stand by in case mine broke down. he said I could nor up grade for another year. I had paid my up front yearly subscription in September. The only details I gave was to confirm my name and address and he said I would have nothing further to pay. It is supposed to be delivered on Tuesday by special delivery. Is this kosher or what have I let myself in for?

You're a believer in free lunches Sherbert?

:o

Not normally, as I have a black belt in cynacisim! However just to keep you up dated, I have just received the cheque and basic hand set from an outfit called Fone Angel who are the independent o2 stockist.

Apparantly all I have to do is to agree to stay with them (o2) on the same tariff for another year, (which I had already done last month and paid my up front annual contract at the same time).

I have emailed them to confirm to me that I will have nothing further to pay.

So if that is confirmed and the cheque is accepted by the bank, it seems to be all ok.

Has anyone else been contacted in this way?

Or am I still missing something?

It seems all above board. Just had an email confirming I have nothing further to pay until October next year (when my contract is up for renewal)
So 'Stoday' I am beginninig to believe in free lunches!!! ;)

I guess these mobile companies are desperate to keep their customers. :)

I wouldn't be entirely surprised if there is a sting in the tail of this contract...

Nor would I. However, I have a letter and email saying everything is as it was. I guess if I had taken the other option of a new phone which I did last year, I would not have any concerns. I suppose what they have done for me works out to be cheaper (for them) than an upgrade of a new phone. Where I was concerned that I was being ripped off, now I feel 99% sure that everything is OK. I only pay £120 a year for the conract and that gives me 75 free minutes a month. So for £2.30 a week, I don't think that is too bad, as long as I don't use any of the dreaded 08xxx numbers!! The only sting that I can see is that I have to keep the same tariff for another year and as I have had the same one for at least seven years and the price has always been the same, I can put up with it.