Mobile phone giants charging for handsets that customers have already paid off could face a flood of PPI-style compensation claims. Campaigners want networks to give refunds of £500million in the same way banks settled over payment protection insurance. The move comes ahead of industry measures designed to cut phone bills. About 1.4million users will be switched to cheaper deals from next month when their contracts end. It follows concern that people on bundled deals keep paying the original price after the minimum contract period ends. Phone regulator Ofcom says the rip-off contracts are costing customers on average £11 extra a month, or £132 a year. New guidelines will mean they automatically roll on to a cheaper SIM-only plan, where they pay for airtime only, when contracts end. Networks must also itemise each part of the package at the point of sale. Martyn James, from complaints website Resolver, said: “If people have been overcharged, they should be refunded. “Ofcom’s new rules will make things better for millions, who might have been overcharged in the future. But that still leaves the millions who have already been overcharged.” Ofcom does not have powers to force companies to set prices or tariffs. There is not a legal requirement for customers to be refunded as they are not in breach of existing rules. Banks were forced to repay more than £50billion over mis-sold PPI. Mobile phone customers could be entitled to PPI payback for paid off handsets Mobile phones,PPI
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