Seven in ten consumers (70%) have been overcharged on at least one household bill in the past year – over a third (33%) were overcharged more than once
On average consumers were overcharged by £196 and had to wait almost 2 months (53 days) to get their money back again
Most common causes of overcharging: charges added that shouldn’t have been (42%), wrong tariff or product details (32%) or a special offer or discount not being applied (25%)
Over one in ten (12%) are still trying to get the issue resolved, while 6% never got their money back again
95% of those who have been overcharged in the last year spotted it themselves – now crucial that all householders get into the habit of checking their bills says Uswitch.com.
Consumers are being warned to check all household bills thoroughly after new research from Uswitch.com, the independent price comparison and switching service, revealed the extent to which companies have been getting their sums wrong. Seven in ten consumers (70%) have been overcharged on at least one household bill in the past year, with 95% of cases identified by the customer rather than the bill provider.
The findings suggest that companies responsible for essential bills, such as utilities, telecoms and mortgages, may have overcharged customers by as much as £6.7 billion in the last year alone. Worryingly, a third of consumers (33%) have been overcharged more than once – with one in ten (10%) falling victim more than three times in the past year. The average amount people have been overcharged by is £196 – although over one in ten (11%) have been overcharged by £400 or more.
The most common causes of overcharging were: charges added that shouldn’t have been (42%), incorrect tariff or product details being used (32%) or a special offer or discount not being applied to the bill (25%). However, in the past year a quarter of consumers (25%) have simply had a household bill that didn’t add up.
Despite the potential hardship it can cause, those who were overcharged in the past year had to wait 53 days or almost 2 months on average to get their money back again. More than one in ten (13%) had to wait between two to six months. However, more than one in ten (12%) are still trying to get the issue resolved, while 6% never got their money back again.
As well as the pressure that overcharging can place on finances, consumers also have to waste time trying to get it sorted out. In the last year, consumers estimate that they were forced to spend an average of 8 hours and £23 on phone calls and correspondence trying to sort out overcharging. Just 7% were automatically refunded these costs by the company involved.
While many were prepared to forgo these costs, 45% asked for them to be refunded with more than half of these (25%) successful in getting a refund. A further one in ten (13%) received a ‘goodwill gesture’ from the company or supplier who had overcharged them in an attempt to make amends.
Ann Robinson, Director of Consumer Policy at Uswitch.com, says: “Overcharging on household bills is rife and yet it still seems to be down to the customer to spot it. Consumers have to keep their wits about them and ensure that they check all their household bills carefully – if you are not checking then the chances are that a mistake will have slipped through and this could be costing you dear.
“At the same time I would urge companies to do as much as possible to help their customers by making household bills simpler, clearer and easier to understand. This is a foundation stone in building trust and confidence, and a vital step towards putting consumers in control. With 95% of overcharging spotted by customers rather than the bill provider, it’s imperative that people are able to spot and resolve any mistakes quickly – nobody can afford to be left out of pocket because a company didn’t quite get its sums right.”
All research referred to in the notes below was conducted with the Uswitch.com Consumer Opinion Panel amongst 1,020 respondents in May 2013.
In response to: ’Thinking about your household bills (gas/electric, home telephone, broadband, water, DTV, bank/building society, mobile phone, council tax, credit/store card, mortgage etc) have you been overcharged in the last year? 37.1% said ‘yes – once’, 17.2% said ‘Yes – twice’, 5.7% said ‘Yes – three times’ and 10.0% said ‘Yes – more than three times’. These add up to 70% who have been overcharged at least once in the last year.
In response to: ‘In total, by how much were you overcharged in the last year? (If overcharged on more than one occasion please add up the amounts). The average was £196. £6.7 billion calculated as 70% of 49 million consumers (34,300,000) in the UK multiplied by the average amount overcharged in the last year.
In response to: ‘How long did it take from the date that the overcharging took place to the date the money was repaid to you? (If you have been overcharged more than once, think of the last time it happened).
In response to: ‘Thinking about the occasions when you were overcharged on your household bills in the last year, how did this happen?’
In response to ‘Who spotted any overcharging, you or the supplier? (If more than once, think of the last time it happened’) 95.2% said ‘You’ and 4.8% said ‘The supplier’.
In response to: ‘How many hours did it take you to sort out in terms of phone calls, emails, letters etc? (If overcharged on more than one occasion please add together the total number of hours it took to resolve all the cases).
In response to: ‘How much do you estimate that this cost you in terms of charges for making calls from a mobile or landline, postage, making copies of correspondence etc but not your time. (If overcharged on more than one occasion please add together the total cost to resolve all the cases).
In response to: ‘Did you ask the company/supplier to refund these costs to you? 24.6% said ‘Yes, and they did’, 20.4% said ‘Yes, but they wouldn’t’ – these are the 45% who requested a refund.
In response to: Did you get any compensation or a ‘goodwill gesture’ from the company/supplier that overcharged you? (If you have been overcharged more than once, think of the last time it happened).
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Uswitch is the UK’s top comparison website for home services switching. Launched in September 2000, we help consumers save money on their gas, electricity, broadband, mobile, TV, and financial services products and get more of what matters to them. Last year we saved consumers over £373 million on their energy bills alone.
Uswitch is part of RVU, a new business that also owns Money.co.uk and Bankrate.
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