Mobile phone providers, ‘worst private sector debt collectors’ : UK charity

Mobile phone providers needed to act more responsibly to help customers avoid debt, starting with letting them set their own monthly bill caps, according  to UK charity, Citizens Advice.

According to the charity, mobile phone companies were the worst private sector debt collectors, and customers should be allowed to take their own steps to limit usage to avoid racking up bills they could not pay.

According to the charity's Falling Behind report, companies "sometimes play a significant role in people getting into mobile phone debt." The charity had analysed 26,600 cases from last year totalling almost £11 million.

There were certain cases in which, providers did not make proper assessments of whether the customer could afford the contract. There were also examples of people taking out multiple mobile phone contracts despite already being in debt.

A person who contacted the charity had over £3,000 in debts across six different phone contracts.

Citizens Advice chief executive Gillian Guy said, "Our evidence shows companies too often don't set affordable debt repayment plans, escalate debts too quickly and fail to co-operate with debt advisers. In some extreme cases companies set customers up to fail by offering them contracts they can't afford to repay.

The report recommends that mobile phone providers allow customers to set their own monthly spending caps, similar to those available for credit card users.

"Other sectors that deal with essential services have improved how they handle debts in recent years so mobile phone firms have no excuse for dragging their heels," Guy said.

"Giving customers the chance to set a cap on their bills will give consumers more power and help ensure they don't build up unaffordable charges.

"The government can also help by ensuring people can access free and independent money advice to avoid getting into debt in the first place," he added.