Ripoff Britain

[OldBoy]

Independent price comparison service uSwitch.com has revealed that some of the major phone companies are charging customers for December usage at the new rate of VAT (20%) even though the calls and texts were made before the rise came into force. The site is urging both mobile and landline customers to check their January bills carefully.

So, if you find your phone company has overcharged you, what can you do?


Most phone companies charge monthly line rental and call package fees in advance, so most customers will find that their December line rental has already been billed at a rate of 17.5% VAT.

Hidden costs
However with calls, texts and data usage outside of your package it seems that things aren't as straightforward. According to uSwitch, Orange, Three and T-Mobile as well as landline provider Virgin Media all charged a flat rate of 20% on usage over the December-January period.


By contrast, O2, BT, Sky, Vodafone and TalkTalk have split customer bills, charging 20% VAT on all calls made from 4th January and 17.5% for anything before the rise came into force.

Check your bills!

[Cathus]

if some companies can split the bills correctly it makes you wonder what excuse the others will come up with.

[amk1977]

I'm sure "a problem with our computer systems resulted in this billing error", or words to that effect, will be their explanation.

It will be interesting to see if those companies automatically generate a credit on all their customers' bills or whether people will have to phone up to query it.

[ap4a]

If they mess people about a quick call to HMRC to enquire why a fraudulent VAT rate is being used would help I'm sure.

[KeithT]

We truly are in economic melt down when companies have to steal from the needy this way.

[Balenciaga]

I am always asrtounded how much phone bills are..I barely use either the phone at home or my Iphone but the bills are horrendous..I am asahmed to say I dont contest them or ever bother to question them and I wonder if I and a few million others started to gripe what would happen..surely they would have to take notice..

As for the VAT change over I wonder how many people will be able to notice if things are incorrect..I know I for one wouldn't be able to spot an error..I strongly suspect that the phone companies are just waiting to see who kicks up a stink... I sincerely doubt that many people will and they (the phone companies) will rake it in..we only have ourselves to blame if the truth be told..

It does seem tha we are getting conned at every corner, it has become part of our daily lives and we like sheep go along with it..

Personally I'm tired of getting conned and given the state of peoples purses I suspect that people will start to vote with their feet..Times is ard for everyone at the moment..

Bal

Bal

[OldBoy]

It doesn't go to the company, as any vat charges have to go to the taxman.

[ap4a]

Originally Posted by ap4a

If they mess people about a quick call to HMRC to enquire why a fraudulent VAT rate is being used would help I'm sure.

After checking further, it's not a fraudulent rate. When billing from the 4th onwards they can "choose" to charge 17.5% on continuous supply services delivered up to the 4th on bills for services that span that date. Otherwise they can just charge 20%. Given that it doesn't profit them to do so the only reason for charging 20% for pre-rate-rise services is laziness and a disregard for their customers.

Someone asked what can you do if you've been charged 20%, essentially nothing. Other than leave the supplier if it's a big enough issue to you.

[HinFrance]

We've just had a VAT change on 'phone contracts here in La Belle too - and a similar approach. We changed from VAT of 5.5% on half the bill and 19.2% on the other half (nothing's simple here) to 19.2% on the lot. So a €40 bill should have gone up €2.74, but has somehow managed to go up an even €4.00.

That'll be for the improved service I expect

[Stormsong]

Well talk about rip off - what a lot of companies have done, is to increase prices dramatically under the pretext that it is the VAT increase (up 2.5% to 20%). Sainsbury's, six weeks ago, charged 49p for a 1kg bag of their basics frozen vegetables. They are now 72p for exactly the same product. Do the maths . . . B*stids.

I have written to their head office to complain, because that is extortionate let alone exhorbitant, but will probably get the usual 'sorry about the inconvenience and here's a £5 voucher'. I'm sorry, my loyalty is worth more than that.

Regards
Denise