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Citizens Advice launches 'super complaint' over £4 billion loyalty penalty - MSE News
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Former_MSE_Callum
Posts: 696 Forumite



in Energy
Citizens Advice has lodged a 'super complaint' with the competition watchdog after finding that customers who remain loyal to firms are overpaying by £4 billion a year...
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'Citizens Advice launches 'super complaint' over £4 billion loyalty penalty'

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'Citizens Advice launches 'super complaint' over £4 billion loyalty penalty'

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Comments
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Sorry, what? So, you don't pay attention to what you're paying and don't shop around, and it's the company's fault?urs sinserly,
~~joosy jeezus~~0 -
JuicyJesus wrote: »Sorry, what? So, you don't pay attention to what you're paying and don't shop around, and it's the company's fault?
Don't assume that everyone has the same level of ability or capability that you have.
Just because you and I have the knowledge and equipment to search the internet, doesn't mean everyone out there does!0 -
JuicyJesus wrote: »Sorry, what? So, you don't pay attention to what you're paying and don't shop around, and it's the company's fault?The charity also found the loyalty penalty is disproportionately paid by vulnerable consumers, such as elderly people and those with mental health issues – groups that are particularly likely to struggle with switching
If everyone paid a fair rate for their services, and didn't have to spend large amounts of time shopping around, then they could concentrate on doing their jobs well, volunteering, caring for others, and enjoying life to the full.
You hear that 'it doesn't take much time to shop around'. That may be true of you and me, but what about those people including vulnerable customers who don't find it so easy?
Of course to promote the development of good, efficient companies who provide services there has to be an element of competition. But the current system of penalising the loyal is all about rewarding companies who are able to extract as much money as possible out of people, for example by ripping off loyal customers, rather than those companies that can efficiently provide services.
So if we want to change what is a pretty rotten system at the moment, rather than start again, then action is needed.
So well done to Citizens Advice for launching the super-complaint :TI came, I saw, I melted0 -
In the 'olden' days before t'internet, old folks like my parents used to pick up the phone and call three insurers etc to get comparative quotes. In truth, nothing has changed other than the method of communication.
Looking back over the last 6 years, I have alternated my home insurance between two companies to secure cash back etc. That said, I would agree that 1st year savings bonuses are a bit of a pain, and it does require the setting up of annual reminders.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
Let's just call it what it is, there's no loyalty involved, just laziness. Anybody who can't be bothered to make a note of when a discount ends is almost asking to pay too much under the laziness penalty.0
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Let's just call it what it is, there's no loyalty involved, just laziness. Anybody who can't be bothered to make a note of when a discount ends is almost asking to pay too much under the laziness penalty.
'Horses and water' come to mind. Recently, I tried to help a neighbour get a cheaper energy deal. She doesn't have an internet connection or mobile phone and pays for everything in cash. Switching suppliers proved to be a step too far, so I provided her with details of her supplier's cheapest tariff and a telephone number to call. I even offered to listen in to the call. The issue for her is one of confidence - not laziness. Despite my best efforts, she is still on a SVT.
I have, though, had one success. When she wants to buy something she knocks on my door to see if it is cheaper on Amazon. If it is, she will let me order it for, and she pays me in cash! I am sure that there are 000s of people out there just like her.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
It's not just large businesses that have loyalty surcharges, small businesses do it too.
My local "friendly" window cleaner charges my neighbour £15, which apparently went up from £10 about a year ago, then £12.50 six months ago. I phoned to get a price and he wants £10 from me, for the same size house.
Same with my local "friendly" garage. I booked a service online through a comparison site for £109, but when I phoned they wanted £179 for the same thing.0 -
This latest Citizens Advice super-complaint covers 5 essential markets:- mobile, broadband, home insurance, mortgages and savings.
The Energy industry is NOT included in the super-complaint.
So well done to them and keep up the good work I say; :beer:
....come on folks, let’s hear it for the Energy companies!...hip-hip....hooray!...hip-hip....etc etc.0 -
'Horses and water' come to mind. Recently, I tried to help a neighbour get a cheaper energy deal. She doesn't have an internet connection or mobile phone and pays for everything in cash. Switching suppliers proved to be a step too far, so I provided her with details of her supplier's cheapest tariff and a telephone number to call. I even offered to listen in to the call. The issue for her is one of confidence - not laziness. Despite my best efforts, she is still on a SVT.
I have, though, had one success. When she wants to buy something she knocks on my door to see if it is cheaper on Amazon. If it is, she will let me order it for, and she pays me in cash! I am sure that there are 000s of people out there just like her.
My mother was exactly the same.
It was only when she was diagnosed with dementia that I took over the running of her finances, etc and sorted it all out, otherwise she would've been on BG's SVT probably paying twice as much.
These people need to have some kind of automatic protection. The energy price cap is a step in the right direction.0 -
The_Big_Bamboo wrote: »This latest Citizens Advice super-complaint covers 5 essential markets:- mobile, broadband, home insurance, mortgages and savings.
The Energy industry is NOT included in the super-complaint.
So well done to them and keep up the good work I say; :beer:
....come on folks, let’s hear it for the Energy companies!...hip-hip....hooray!...hip-hip....etc etc.
Although not part of the Super Complaint, the energy companies still allow vulnerable people to remain on high SVT's so I think it is only right that they should be included in this discussion.0
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