Virgin Media O2 accuses other networks of ripping off customers by not switching them to cheaper tariffs after paying for devices.

Virgin Media O2 UK says consumers are being “swindled” by networks charging for phones they have paid for. But Vodafone calls this claim ‘incorrect and misleading’

Virgin Media O2 says UK consumers are spending millions of pounds buying their smartphones twice over”.

 “Three of the four UK mobile network operators EE, Vodafone, and Three, are continuing to charge millions of customers for their handsets long after customers have finished paying for them”, said a statement from Virgin Media O2.

“Millions of customers tied into classic contracts with EE, Three and Vodafone are at risk of overpaying for smartphones they already own”.

But Vodafone said it too had split contracts on Vodafone EVO for a number of years and called Virgin Media O2s’s claim to be the only operator to do this “inaccurate and misleading for consumers”.

‘Customers device contracts end when the loan is paid off. They are never ‘overcharged’ for their device. Therefore they will never overpay for a phone they already own. We’re disappointed to see VM02 confusing consumers with incorrect information and sensationalist headlines at a time when as an industry, we all need to be providing greater trust and clarity” said a Vodafone spokesperson.

We’re disappointed to see VM02 confusing consumers with incorrect information and sensationalist headlines at a time when as an industry, we all need to be providing greater trust and clarity”  – VODAFONE

‘Unlike VM02, we don’t position the loan coming to an end as a ‘discount’, it’s simply paid off and customers are charged for their airtime contract. All Vodafone customers are contacted at the end of their contract – to make sure they are aware of the best new deals and packages”

At the time of writing EE  and Three had not responded to an invitation from Mobile News to comment on the Virgin Media O2 claim they were overcharging.

Virgin Media O2 says it is the only mobile network operator to discount contracts automatically by putting customers on an airtime plan, once they own the phone.

An online survey conducted by Strand Partners on behalf of Virgin Media O2 analysed responses from 5,303 people.

This showed 93 per cent of users are unaware that being on a bundled phone contract can lead to overpaying for a device. Around 81 per cent said they’d feel ripped off if they discovered they’d overpaid for their phone Fourt four per cent of those out of contract for over a year earn less than £15,000 a year, meaning those on low incomes are being hit hardest

 “Three of the four UK mobile network operators EE, Vodafone, and Three, are continuing to charge millions of customers for their handsets long after customers have finished paying for them”

Eighty per cent of consumers in the study felt cheated and believed they should be automatically moved to a cheaper tariff once they pay for their handset. Most were unaware they could be charged for mobile phones they’ve already paid for through their mobile contracts.

“Bamboozled Brits don’t realise they’re being taken for a ride by opaque, confusing and outdated mobile contracts,” said Gareth Turpin, Chief Commercial Officer at Virgin Media O2.

“Consumers are being kept in the dark about when they’ve paid for their phone so are spending millions of pounds buying their smartphones twice over.

“With millions of customers from other operators stuck on contracts that force them to overpay for their smartphones, all too often in the mistaken belief it will save them money, we’re sounding the alarm on this smartphone swindle.

“Customers who buy from Virgin Media O2 will never overpay for their phone with bills automatically reduced when they’ve paid for their device – it’s simply the right thing to do.”

O2 said it was the first operator 10 years ago to introduce split contracts and automatically reduce customers’ bills once their handset loan had been repaid. Virgin Mobile launched similar plans in 2014 known as Freestyle so most Virgin Media O2 customers now take split contracts.

Citizens Advice reckons customers are spending tens of millions of pounds each month on mobile phones that they already own when out of contract.