The accusation that loyal customers are being “ripped off” for key services is to be probed by the competition body.
It follows a super-complaint from Citizens Advice, which says customers who stick with their supplier are losing a total of £4.1bn a year on mobile, broadband, savings, household insurance and mortgage deals.
That amounts to an average of £877 per person, that charity said.
It added that elderly and vulnerable people are disproportionately affected.
The Competition and Markets Authority (CMA) said it would now “carefully consider the concerns” that Citizens Advice had raised. Acer technical Support
Gillian Guy, chief executive of Citizens Advice, said: “It’s completely unacceptable that consumers are still being ripped off for being loyal to companies they rely on every single day.
“Regulators and government have recognised the loyalty penalty as a problem for a long time – yet the lack of any meaningful progress makes this super-complaint inevitable.
“As a result of this super-complaint, the CMA should come up with concrete measures to end this systematic scam.”
The charity said that while the new price cap in the energy market would cut bills for loyal customers by £75 on average, its analysis found “excessive prices for loyal customers can be just as high – if not more so – in other markets”.
You must be logged in to reply to this topic.