Vodafone, EE and Three are continuing to charge customers for the mobile phones they buy as part of a contract, even after the cost of the handset has been paid off, research suggests.
Citizens Advice found that customers who do not take out a new contract are paying an average extra £22 a month.
Having never owned a smart phone and only ever had a pay-as-you-go mobile, mobile phone contracts are not something I have ever had the "pleasure" of experiencing, but many have.
Mobile phone companies mask the cost of the phones by providing them for "free" while adding the cost of the equipment into higher monthly charges, but if the contract auto renews, the cost of the equipment is still charged even when its paid off. Many people either don't know or care that they could get a cheaper tariff once their initial contract has ended.
Do you think the current trend of zero upfront cost for mobiles in exchange for higher monthly costs is fair? What about when the initial contract ends, do you shop around for a better deal? Are prices just too high for using a mobile phone?