MSE News: Beware 'hidden APRs' of up to 48% on mobile contracts this Christmas

Former_MSE_Helen

"MoneySavingExpert.com is today calling for new rules to force mobile phone providers to display clear APRs on smartphone..."

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Beware 'hidden APRs' of up to 48% on mobile contracts this Christmas




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Rafter

Should be sold in two parts so people know how much the device costs.

Really poor consumer outcome where people are paying APR's well above the cost of getting a loan. Also when they don't realise the true cost of the device and get it insured properly.

R

minislim

had the argument with o2 regards their "0%" finance when they first introduced their split contract and phone packages.

at the time the iphone 5 was over £100 more on the 0% offer than on their payg phone they offered.

when i challenged them on their pricing they said it was a completely different pricing structure.

i asked why it was different? its the same phone. why charge more when they make out they're giving the finance at 0%?

they couldn't give me an answer.


one of the reasons i left them.

its dirty tricks like this that destroys the trust in companies that i held as being pretty good up to then.

if a business wants to play dirty, then it deserves no more money from me now and ever again in the future.

anythingbutordinary

The hidden APR is one thing, but even worse is that they are quite happy to leave the less-savvy amongst us on that same contract long after the phone is paid off. It should be a requirement that they drop you to a SIM only deal unless you upgrade your phone.

pepdavies

Maybe it's just me, but if you can't do some pretty basic maths you shouldn't be signing any financial agreement. I know people will argue about this but it's common sense isn't it? I don't want anybody to get ripped off. If you find it confusing, ask a friend to help.

callum9999

pepdavies wrote: »

Maybe it's just me, but if you can't do some pretty basic maths you shouldn't be signing any financial agreement. I know people will argue about this but it's common sense isn't it? I don't want anybody to get ripped off. If you find it confusing, ask a friend to help.

I'm not sure this is the site for you. People aren't expected to think before making a purchase on here, merely buy blindly then moan about it afterwards.

gycraig_2

I don't get it ? 9 times out of 10 it's gonna be cheaper to get a sim only and buy a phone. People don't buy contracts because there cheap and get tricked. They want a smart phone they don't wanna pay 3-400 for one so they get a contract.

If course there is gonna be some extra profit in contracts for the networks otherwise what's the point. People don't get a loan because they are disposable goods and they will want a new one in 2 years so can upgrade for "free"

grumbler

Tara_Evans wrote:

Some networks quote inflated APRs

We also found that while some networks do state APRs of 0%...

Is it just me?

Is 'deflated' not a correct term to be used?