Martin Lewis Urges Immediate Action on Phone Contracts
Consumer champion Martin Lewis has issued a pressing call to all mobile phone users across the United Kingdom, urging them to send a simple five-digit text message to potentially save significant money on their monthly bills. The prominent BBC and ITV financial expert highlighted a widespread issue where millions of customers remain trapped in expensive tariffs long after their initial contracts have expired.
Millions Overpaying on Outdated Deals
Speaking during a recent episode of The Martin Lewis Money Show Live, Lewis revealed that approximately 14 million people in the UK are currently paying more than necessary for their mobile services. Many of these individuals are still tied to packages that include a handset, which they may no longer need or want, leading to unnecessary financial strain.
The recommended action is straightforward: viewers are instructed to check their contract status by sending the word 'INFO' free of charge to the number 85075. This quick text can provide immediate clarity on whether you are still under contract or free to switch providers.
How to Determine Your Contract Status
If the response from the text service indicates an 'early termination' or 'cancellation charge' of £0, it is a strong indicator that your contract has officially ended. In such cases, Lewis advises consumers to take proactive steps to reduce their monthly expenses.
He suggests visiting a cheap SIM comparison website, where various mobile providers offer competitive SIM-only packages at significantly lower rates than many existing customer plans. This move can lead to substantial savings, especially for those who no longer require a bundled handset.
Important Considerations and Market Trends
Lewis noted a key limitation: this strategy is not applicable to those on multiple-phone contracts, where different terms may apply. He also explained the broader market dynamics contributing to the issue, stating, "Prices have been going up and up. At the same time, the cost of new customer SIM deals have been plummeting."
To illustrate the disparity, he provided a concrete example: "For 50gb two years ago you'd have been paying £9. Now you can get it as cheap as about £3 a month." This highlights a growing gap where existing customers face rising costs while new customers benefit from increasingly affordable offers.
The finance guru emphasized, "Look at that dispersal - you've got existing customers going up and up and up and new customers going down and down and down. Fourteen million people are out of contract on their mobile phone bill which means you are free to switch." This statement underscores the urgency for consumers to assess their contracts and explore better options to avoid overpaying in a competitive market.
