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UK firms overcharging loyal customers

Anonymous
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UK firms overcharging loyal customers

I found this very interesting UK companies could face instant fines for overcharging loyal customers.

Will this included deals which existing customers cannot have ?

 

 https://www.hl.co.uk/news/2019/6/18/uk-firms-overcharging-loyal-customers-could-soon-face-instant-fi...

 

Brian A

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wotsup
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Re: UK firms overcharging loyal customers

Companies have been doing it for a long time, I don't even bother getting in touch with a company for a better price, I just swap. I reckon they should have given me the best price to start with and take my business elsewhere, but I always e-mail or write a letter to let them know why I no longer got my house or car insurance, gas, electricity,  internet or whatever from them. It is so easy to switch now. Just swapping my gas and leccy over now because was not happy with new tariffs that existing one offered when my existing contract expires.  

 

Got a Gmail e-mail address a few years ago, means your e-mail address is independent from your internet provider which means swapping in painless.

Anonymous
Not applicable

Re: UK firms overcharging loyal customers

Got a Gmail e-mail address a few years ago, means your e-mail address is independent from your internet provider which means swapping in painless.

 

I did the same when BT wanted £5 plus vat to keep my btinternet.com email

I think PlusNet do not charge to keep their email account if you change providers but have found GMail very good and does everything I want even though they be spying on me 

 

Brian A

billnotben
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Re: UK firms overcharging loyal customers

Most are basically cheats and crooks doing things that individuals would be prosecuted for.

Price problems always seem to be in the favour of the company. Refunds usually involve the customer doing all the running.

Deterrents have been late in coming and don't go far enough.

Maybe something like a restriction in any new customers until problems have been fixed and shown to be fixed would be a better deterrent. I wouldn't be at all surprised if unnoticed overcharging more than covered any fines.

 

 

Minivanman
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Re: UK firms overcharging loyal customers

@Anonymous 

Overcharging even loyalty is the name of the game as @wotsup  suggests. A profit making company will never ever do you any favours however it is tarted up to make it look like they are and yes, we all fall for it.

 


Don't limit the friends you haven't met with arguments you'll never have.
wotsup
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Re: UK firms overcharging loyal customers


@Minivanman wrote:

@Anonymous 

Overcharging even loyalty is the name of the game as @wotsup  suggests. A profit making company will never ever do you any favours however it is tarted up to make it look like they are and yes, we all fall for it.

 


Which is exactly why I give them no second chance to requote me. I just e-mail or write to them and tell them who I am swapping to and give them price I would have paid if I stayed with them and how much cheaper my new deal is.  Swapping has never been easier, even with banks the new one will get all you direct debit information and it is seamless...

pjmarsh
Superuser
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Re: UK firms overcharging loyal customers

One thing to remember, if everyone gets the same/great deal then that will most likely not be anything like the deals that we see today.  The costs to the company (supply costs, staff, buildings, equipment etc...) and the profits that they aim to make will all remain the same.  If they can't charge some people the higher prices, then what they are loosing from them will just be spread across everyone else.  It's a safe bet that they won't reduce profits for it.  Any lower prices would only come from reduced services, which would impact everyone.

wotsup
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Re: UK firms overcharging loyal customers

I have nothing against companies making a reasonable profit, but having been with a company for a few years with no claims and to be quoted £400 for a renewal and when you phone them it suddenly becomes about half of that is hard to swallow. 

 

You get no claims bonus on vehicle insurance, so why not on other insurance ? These companies bank on the fact that many people do not check renewals too closely and had to be forced to print last years premium as well as the new price on renewals. They love you to pay by DD and go for autorenewal  ( insisting it if for your benefit ). Even my Norton anti-virus which I can get from currys PC world or Argos for less than £20 is priced at double that if you get it from Norton on autorenewal, to me the companies who offer cheap subsidised deals to new clients while overcharging their loyal ones need fining and exposing.

Townman
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Re: UK firms overcharging loyal customers

The stupidity of this space is that businesses are busy seeking new customers to replace the ones they have pee'd off, by offering unprofitable first year deals and seeking to recover costs in year 2 onwards.

Only yesterday I dealt with my home & contents insurance renewal, something I had intended to review for years but never had the time when due.  Renewal quote was £300 - got better cover for £170 elsewhere - but I know it will not be that cheap next year.

Whilst the market seeks new customers at a loss and then tries to make profit in the following years, the issue is not going to go a way.  However whilst users chase the lowest price and not service we perpetuate their behaviour.  Industry needs to be brave and follow a lead EE started - year 2 and onwards are cheaper than the cost to new customers.

Cash backs and discounts should only be applicable in year 2 onwards - after all the companies do not have the costs of customer acquisition and set up in the subsequent years.

VileReynard
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Re: UK firms overcharging loyal customers


@Anonymous wrote:

Got a Gmail e-mail address a few years ago, means your e-mail address is independent from your internet provider which means swapping in painless.

[...] have found GMail very good and does everything I want even though they be spying on me 

 


Got sick of Gmail collecting all kinds of information on me, so after many years have switched to protonmail.com who provide fully encrypted emails without any information gathering.

A basic free account allows 500MB of storage but paid accounts will give you more features and storage.

"In The Beginning Was The Word, And The Word Was Aardvark."

idonno
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Re: UK firms overcharging loyal customers


@wotsup wrote:

I have nothing against companies making a reasonable profit, but having been with a company for a few years with no claims and to be quoted £400 for a renewal and when you phone them it suddenly becomes about half of that is hard to swallow. 


Too right. It really does make you wonder what sort of people run these companies. I always do a check at each renewal (doesn't matter what it is) to see if I can get a better deal. Even if it turns up its the same company (like the wife's car renewal was), I'd rather sign up there and then, rather than waste time on the phone. I thought most insurers now give no claims bonus on breakdown cover, house cover etc. At least mine do.

 

As for paying insurance by DD and auto renewal, it's something I try to avoid, like the plague. I do like online banking though Smiley Select direct debit to delete. Gone, just like that. Don't know why but I get instant satisfaction when I do it. Maybe its something to do with power.

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Jonpe
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Re: UK firms overcharging loyal customers

Banks have long been reducing interest rates on savings accounts after the first year.  Sometimes they reduce the rate but offer an identical, or near identical, account at the old (higher) interest rate, and even give the accounts the same name, just a diferent issue number (e.g. Easy Access and Easy Access issue 2).  A lot of customers don't realise this and end up 'earning' 0.1% p.a. on ISAs for example.  With RPI at about 3% most savings accounts offer poor value so it's important to squeeze the last bit of interest out of them.

VileReynard
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Re: UK firms overcharging loyal customers

I'd recommend https://www.moneysavingexpert.com/ - I used it to switch from my "existing power company" to "my existing power company"Funny to get a special tariff only available to switching companies.

That web site paid me £25 a few months later too.

"In The Beginning Was The Word, And The Word Was Aardvark."