The British Government is planning to instantly penalize those companies that exploit their faithful customers. A lot of firms are overpricing their loyal clients with this so-called “loyalty penalty.” Various consumer groups have found out that customers pay more than £4 billion every year for this loyalty penalty.
How much do these companies charge for loyalty penalty?
Customers that keep their trust to their respective mobile, internet, or insurance providers are being charged as high as £1,000 each year. This is even higher than those who frequently change between numerous service providers. This is according to the research done by a charity called Citizens Advice. It is also the same charity that started the “supercomplaint” just last year. This forced the Competition and Markets Authority (CMA) to perform an investigation about the complaint.
The CMA has found out that it is the clients who are much affected by this unjust charge.
Aside from that, constant customers are also forced to conned contracts and using a service that is not worthy of what they pay.
Measures being done to stop the loyalty penalty charges
The government is currently exploring the option to enforce penalties on these exploiting companies. This will be enforced by the CMA. This would mean that the competition organization doesn’t have to go through the troubles of the courts. Instead, they have the authority to just step in and take action quickly.
Government officials believe that this will inculcate fear to these companies. This is because these companies are used to take advantage of their customers by means of false claims, unjust terms and conditions, and agreements which are hard to withdraw. They are also planning to put a stop to phone companies that force their clients in paying the same price per month even the customer has already done paying for their respective cellular phones.