WENDY KNOWLER: Unexpected charge at end of phone contract? Push back!

Pippa Hudson interviews consumer journalist Wendy Knowler.

Listen below.

If your cellphone contract is nearing its end, you might be reluctant to sign another two or three-year agreement, given that an out-of-contract plan allows you to cancel with just a month's notice. 

However, you might assume that with your device fully paid off, your subscription would decrease. 

Unfortunately, this isn't always the case.

"What we've learnt through this case, and I've seen quite a few coming through, is people's subscription amount when they're out of contract and let it roll over, doesn't just go up a little bit, it goes up a lot."

- Wendy Knowler, Consumer journalist

For instance, two weeks ago, Abduraghman Allie shared his experience with MTN.

He had a SIM-only contract, paying R500 per month for a good talk and data package, with no device payments. When his contract ended, MTN offered him an upgrade for R999 per month.

"I found it weird and didn't really pay attention as I was being offered a contract that was more than what I was actually paying and declined," Allie told Knowler.

To his surprise, his April bill showed a charge of R1218. When he inquired, he learned that the special rate of R500 per month had expired.

Knowler asked Allie if he had received any notification – by email, SMS, or call – between 40 and 80 days before his contract ended, informing him of his options:

• Upgrade
• Roll over to month-to-month
• Cancel

According to the Consumer Protection Act, companies must provide such notifications since contracts do not automatically cancel.

Allie said he received no such communication.

RELATED: MTN fails to apply contract discount: 'I'm outraged!' – Wendy Knowler

"This is an obligation that's placed on companies that sell fixed-term contracts."

- Wendy Knowler, Consumer journalist

After Knowler contacted MTN, the company responded: "Once the contract, which is often sold on promotion, ends, the charges revert to standard charges as per clause 12 of MTN Subscriber agreement terms and conditions."

Knowler says that, if MTN cannot prove that the notifications were sent regarding his options, Allie should be refunded the difference between his original R500 per month rate and the R1200 charged from April onwards.

This recommendation extends to anyone else facing similar issues, says Knowler.

The networks often exploit the CPA provision allowing them to continue charging higher fees if subscribers fail to cancel a month before their contract ends.

"Push back and ask for the proof. It's totally in your right to do so."

- Wendy Knowler, Consumer journalist

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