26 June 2019: Today, O2 is launching an Overpayment Estimator to put power back into the hands of consumers, providing a quick and easy way for people to find out if they are being overcharged for their mobile contracts. The move aims to change the outdated industry practice of charging consumers for phones they already own.
Customers using the Overpayment Estimator will be asked questions about their current contract, including the device, as well as the monthly and upfront payments they are making, with the Overpayment Estimator providing guidance on how much they could potentially be overpaying per month.
Customers currently in-contract will also be offered the option to download a calendar invitation to remind them when their contract ends.
With custom plans, O2 customers don’t get charged for their phones beyond the end of their contract and, unlike some competitors, O2 will automatically and immediately lower customer bills once a phone has been paid off.
Mark Evans, CEO of O2, said: “It is simply not right that consumers across the UK are being charged for a phone they already own. You wouldn’t keep giving money to your mortgage provider if you’d finished payments and owned your house – so why should it be that way for your phone? The mobile industry does not have the best track record on transparent billing practices. Our Overpayment Estimator is another positive move towards changing that.”
The introduction of the Overpayment Estimator comes at a time when UK consumers are calling for greater flexibility in their mobile payments. Recent research conducted by YouGov on behalf of O2 found that 81% of Brits feel trapped by fixed term contracts for mobile technology, and 89% agree that operators should make monthly contract payments more flexible.
Notes to editors
How the overpayment estimator works:
Customers using the overpayment estimator will be asked the following series of questions:
Estimator calculations based on SIM free device price sales data across retail market (including manufacturers’ website (if they sell directly) and significant retailers such as John Lewis, Argos and Amazon).
Handset value taken is sales price for the device on its own (SIM free, not as part of a bundled mobile phone contract) from the last week of the month we assume you signed up (based on the how long you’ve told us you’ve been in contract).
Estimator assumes regular monthly payments over a 24-month contract, which continue without changing after expiry of the 24-month minimum term.
Other network operators offering bundled handset and airtime pay monthly contracts which don’t automatically drop the price to just airtime after 24 months include Vodafone, EE, Three as at 18th June 2019. View more details.
About O2 Refresh custom plans
O2’s revolutionary custom plans, launched in 2018, continues to be a key differentiator for O2. Customers can choose how much they pay for their device upfront (minimum upfront costs may apply) and choose to spread the remaining cost between 3 and 36 months at 0% APR for a lower monthly bill. Once in contract, customers can flex their data up or down each month and pay off their device plan at any time. Once a customer has paid off their device plan, they only need to pay for the device’s monthly rolling airtime plan, or customers can choose to upgrade or leave.
With O2 Refresh custom plans, customers don’t pay more for spreading the cost of their device and will never pay for a device they already own – illustrating once more that O2 is the true customer champion.
Note: Customers need a monthly rolling airtime plan for as long as they have a device plan, and if their airtime plan ends for any reason they will need to pay off their device plan in full. Change your Airtime Plan after 30 days and then once every billing month during your contract, choosing from a selected family of tariffs. Some promo pricing and tariff extras are only available on the starting tariff, are not transferable, and may be lost if you change to an ineligible tariff. Finance subject to status and credit checks. 18+. Direct Debit. Credit provided by Telefónica UK Ltd, SL1 4DX. Telefónica UK is authorised and regulated by the FCA for consumer credit and insurance. Terms apply, see o2.co.uk/terms.
For more information visit: http://www.o2.co.uk/custom-plans