UK's Largest Mobile Companies Facing £3 Billion Lawsuit Over Alleged Overcharging of Loyal Customers

UK's top mobile providers face a class action lawsuit seeking over £3 billion in compensation for allegedly overcharging millions of customers.

Vodafone, EE, Three, and O2 are accused of not reducing bills after customers finished paying off their phone contracts, as claimed by former Citizens Advice executive Justin Gutmann and the law firm Charles Lyndon.

Up to 28.2 million contracts are said to have been affected by this issue, potentially allowing affected individuals to receive up to £1,823 each if the lawsuit succeeds. The case has been filed at the Competition Appeal Tribunal in London, and eligible consumers will be automatically included unless they opt out.

This legal action follows a 2018 super complaint by Citizens Advice, urging an end to the practice of charging for handsets after the cost is covered.

In response to the lawsuit, O2 highlighted their early adoption of split contracts to prevent overcharging, while EE contested the claim, emphasizing tariff variety and competitive pricing in the UK market. Vodafone is currently reviewing the claim details.