Agreement To Protect Customers From Stolen Phone Bills

A new agreement has been announced between the government and four of the top mobile phone companies in the UK to better protect consumers from bills run up on stolen mobile phones.

Culture Secretary Maria Miller announced the move, which was agreed by four major companies; EE, Three, Virgin Media and Vodafone.

The agreement will:

• cap bills on a phone that has been reported lost or stolen
• stop unexpected mid-contract price rises by ensuring total transparency for consumers at the start of contracts
• help government in to eliminate roaming charges by 2016

BT, Sky and Talk Talk have also signed up to the agreement.

Culture Secretary Maria Miller said: "We are ensuring hardworking families are not hit with shock bills through no fault of their own.

"Families can be left struggling if carefully planned budgets are being blown away by unexpected bills from a stolen mobile or a mid-contract price rise."

Consumer Affairs Minister Jo Swinson said: "Most people now place large parts of their lives on their mobile phones - from friends and loved ones’ numbers, to photos of great nights out. The last thing you need after the hassle of a stolen mobile is to find that someone has used it and landed you with a sky high bill too.

"Phone companies have listened to government and to their customers and I welcome their agreement to protect them from unexpected costs and mid-contract price rises."

The aim is for the liability cap on mobiles that are lost or stolen to be in place from spring next year. The cap would work in a similar way to debit and credit cards, where there is a £50 liability cap.

(IT/CD)