Five sneaky mobile phone tricks

When you're next signing up for a mobile phone contract, don't get caught out by these five catches...

You would be hard pushed to find someone who doesn’t own a mobile phone these days. From grannies to school kids, everyone is talking, texting and, increasingly, internet surfing on the go.

In a competitive market, mobile phone retailers are more desperate than ever to get your custom and there are a wide range of offers and incentives around to tempt you.

But when buying your next phone, make sure you don’t fall for any of these most common sneaky sales pitches.

1. Promises of unlimited usage

Customers can be left feeling short-changed by ‘Unlimited Usage’ promises which fail to live up to their name. Most companies operate a Fair Usage Policy which places very definite limits on a caller’s usage. These restrictions are often poorly advertised, mentioned only in the smallest of small print.

The Advertising Standards Authority has decided that the word ‘unlimited’ can still be used, provided the same advertisement clearly states that it is subject to a Fair Usage Policy. Lots of companies are still being less than transparent about the existence of Fair Usage, so check your contract carefully.

2. Overseas price traps

If you intend to use your phone abroad, extra charges are inevitable. Calls can cost up to £2 a minute and mobile internet charges can be extortionate. Be aware of these points when purchasing a phone:

• Pay-as-you-go mobiles are more expensive to use abroad than contract mobiles
• Texts cost up to four times more overseas
• You pay to both make and receive calls when abroad (receipt of texts is free within the EU)
• Internet surfing is considerably more pricey abroad. Under new EU roaming rules, if you are travelling within the EU your provider has to offer you a cut-off limit facility to warn you when you reach a certain limit (currently the cut off point is 50 Euros).
• Mobile roaming calls, texts and internet use are almost never included in any ‘free’ minutes usually included in your tariff.

3. Mis-selling and ‘slamming’

The most severe form of mis-selling is referred to as ‘slamming’. This is when your service is transferred to a new telephone company without your knowledge or consent. This is a serious and punishable offence in the telecoms industry, and can be truly sneaky.

Related how-to guide

Spend less on your mobile

Hate receiving your mobile phone bill every month? Don't put up and shut up - find out how to slash that bill and cut your costs!

See the guide

Sales people may claim to represent a different company, or you might be told you are signing up ‘for information only’ when you are actually entering into a new contract. There are even reports that customer signatures have been forged on paperwork.  

The good news is that Ofcom, the telecommunications watchdog, has introduced tough rules that mean that if a provider engages in dishonest, misleading or deceptive conduct they can be fined up to 10% of their turnover. 

4. The wrong contract

It’s estimated that three quarters of customers are losing around £200 per year from being sold the wrong contract by sales people who aren’t taking individual customer requirements into account.

People on the wrong tariff might be under-using their allowance, and may have been sold substantially more ‘free’ call minutes or texts than they need. Others might be regularly exceeding their monthly limit and finding that they have to pay extra for additional texts and phone calls. Some are paying for benefits such as increased text and data allowance which they are not using.

You may also be pressurised into signing a lengthy contract, and promises of free handsets see people locking themselves into 24 month contracts.

Research actually shows that it is more cost-effective to go for the longer contract terms, but there are negatives: it will be two years before you qualify for an upgrade or can switch provider. A recent EU ruling states that mobile operators must now offer a 12 month contract, a rule that is being enforced by Ofcom.

5. Phone insurance traps

As mobile phones become smarter and handsets become more expensive, sales people may lure you into unnecessary insurance deals. Unless you have a handset that would be expensive to replace, consider whether you need insurance at all. With the amount of excess you might have to pay, it may not be worth it. What’s more, these policies are often riddled with catches.

If you decide to go for insurance you are under no obligation to buy it from the provider, no matter how much they try to imply that you are! Check the market yourself using a website like Protectyourbubble.com, or insureyourmobile.co.uk.

It’s usually not a good idea to take up a cold-call offer of insurance. These are generated by a third party company who are out for profits alone and have very little incentive to offer good customer service. They may have restrictive terms that do not cover you for accidental loss or damage, and you may have to pay a very high excess if you try to make a claim.

Consider including your phone on your home contents insurance. Just be aware of what the policy covers and how much it will add to your premium. It may also be a slow process to get a replacement phone if something goes wrong. Find out more in The big mobile phone insurance scam.

More: Four ways technology invades your privacy | Avoid this Bin Laden death video scam