Dear LPG readers,

I feel that it is time to tell you a story,

Once upon a time, there was a pensioner who spent much of the lockdown learning to use his smartphone. He would never have said he was an expert, but he was able to call people in all parts of the world without any problems and was slowly learning about WhatsApp's powers.  

It got to that time when the telephone company sends that text telling you that your contract is coming to an end, and, having read it, our pensioner made a trip to the phone shop and prepared for a lengthy chat with one of those very friendly but young and trendy assistants after a relatively long wait. He thought that this would make a lot more sense than trying to understand all the jargon that gets spouted at you if you try to do it by phone. 

When he finally reached the front of the queue, there was a lot of talking once he explained that he needed to renew his contract. Most of the conversation after that went over his head, but he did ask that fundamental question, 'So how much a month will I need to pay now?'  He left the shop somewhat overwhelmed by the explanations he had been offered and having signed this and that, but in the secure knowledge that all would be well for the next two years, mobile-phone-wise.

A few days later, he happened to call a younger friend and, during that call, he mentioned his mobile phone situation and asked why the new contract needed to cost so much.   The person on the other end of the phone thought that, since only a few days had passed, it might be worth calling the company to find out precisely what this new contract was all about. 

It turned out that he was paying an ad on' charge to be able to telephone people abroad, and also that he had been talked into a second sim-only contract. 

His friend telephoned the service provider and established that he indeed had an extra SIM card, still in its packet, but it would cost him an extra £11.00 per month. There seemed to be no real logic as to why he was talked into having it, and the worst news was that the 'few days ago' when he visited the shop and signed the contract amounted to 16. The legal cooling-off period, where you can change your mind about a contract, is 14 days. He was well and truly locked in! 

At this point, the telephone company have done nothing wrong except not understand what was wanted, while our friend really did not understand what he was getting into.  

Our friend's friend spoke with the phone company about getting out of that second contract. Still, to do that, he would have to pay a contract cancellation charge of about £250.00 immediately, which would mean that, even if he found all that money now, it would only save him about £30.00 in the long run.  

There was one good thing to come out of that phone call. It was established that while the amount he has to pay for his telephone calls and data is locked for two years, the extra 'add-on' fee is not and does not have to be paid for the full 24 months. So his friend advised him to learn to use WhatsApp with his foreign friends if they have the capability, so that he can cancel that £14.00 'add-on' fee with a month's notice and capitalise on the Data he has already paid for to make contact overseas.

And now for a question, some advice and the Moral…

Did you understand all the mathematical details and jargon in my simple version of the story?

Advice: -     If the answer is 'no', please don't do anything about a contract, particularly one to do with your mobile phone, without taking someone who has a better idea of what is going on (or at least as much knowledge) than you. It is likely that, between you, you will get a better idea of what is being explained.

The Moral…

This is a costly example illustrating why 'two heads can be a lot better than one'. And just in case you are wondering… The man in the story was me. But I suspect that I am not the only one who is financially worse off while the telephone company is doing really nicely out of the ignorant.   The saddest thing is that I suspect that many people don’t even know how much extra money they are paying. 

One more thing…

If you do phone abroad a lot, check if the people you are talking to use WhatsApp and get rid of that international 'add-on' if you can.

JL, Bellingham.