An end is in sight to the problem of people who have had their mobile phones stolen being landed with enormous bills – an issue repeatedly highlighted by Guardian Money over the past four years.
The telecoms regulator has given mobile phone companies until the summer to come up with plans to introduce caps on their customers' monthly bills to prevent what has been dubbed "bill shock".
Ofcom warned the companies they face enforcement if they fail to put measures in place to protect customers from unexpectedly high bills after going abroad, or, worse, having their handset or sim card stolen.
Since 2008 we have highlighted several cases of people being hounded by mobile operators after thieves racked up big bills without the owners' knowledge. Our first story, in March of that year, featured the case of London builder Johan Potgieter, who was forced to postpone his wedding after Orange insisted he pay a £9,000 bill run up by thieves who took his mobile while he was on holiday in South Africa.
We have featured several similar stories since. Just last week we were contacted by a woman being chased for £3,000 after her sim card was stolen in Cambodia.
Few contract mobile users are aware they are liable for all calls until they report their phone stolen. Most users quickly realise their phone or sim card has gone, but often this is not the case.
Phones stolen abroad run up huge bills very quickly because of the high cost of roaming. Many phones stolen in the UK end up being used to make calls around the clock to far-flung countries.
Each time we have featured this problem we have called on the regulator to do something about it – namely offering users the chance to cap their monthly bills.
It may be several years overdue, but Ofcom appears to have finally got its act together. After conducting a review last year, it has announced it is exploring the introduction of "maximum liability limits". It will examine whether customers should automatically have a cap set on their monthly bill unless they opt out.
Ofcom is keen for the companies to come up with a voluntary plan. A spokeswoman indicated that if they failed to do so enforcement proceedings would follow. Until now the phone companies have had no incentive, as the liability for calls made has always rested with the customer.
Ofcom has also identified data charges as a matter for concern. The EU roaming regulations already require mobile operators to apply a cut-off once a mobile internet bill reaches €50 (£42) per month while travelling in the European Union. Operators must also send alerts to consumers when they reach 80% and 100% of their limit.
Ofcom supports proposals to extend this measure so European consumers would have this protection worldwide.
Research conducted as part of the review revealed that as many as 1.4 million customers may have received significantly higher than expected bills in the past six months.
"Ofcom believes mobile providers can do more to help customers control the amount they spend on their mobile phones. We have written to the mobile providers calling on them to do more to develop and promote 'opt-in' measures, such as tariffs that allow consumers to set their own financial caps or receive alerts about usage," it says.
The move was welcomed by the consumers' organisation Which? "Ofcom's report confirms what consumers have been telling us for years – that bill shock is a big problem," it says.
"We want clearer information for customers from the phone companies, plus greater protection for consumers from hefty data charges."
Ernest Doku at price comparison service uSwitch.com, says: "Consumers are still being stung with unexpected high charges. A survey of mobile phone users carried out by us revealed that only a fifth of Brits check how much they'll be charged for using their phones abroad before they go, and four in 10 have no idea of the costs."
