“Mobile phone networks like Vodafone, EE, Three, and O2 are facing a £3 billion legal claim for allegedly overcharging millions of UK consumers.

The claim, known as the ‘Loyalty Penalty Claim,’ accuses these companies of continuing to charge customers for phones even after their contract ends.

The lawsuit, seeking damages for 4.8 million people, is led by Justin Gutmann, a former Citizens Advice executive.

If successful, affected consumers could receive payouts, and the claim covers contracts from 2007.

The companies deny the allegations, calling the claim ‘speculative.’ This legal action follows concerns raised by Citizens Advice in 2018 about existing customers paying more than new ones.

Gutmann believes this lawsuit will prevent companies from taking advantage of loyal customers in the future.

It’s an ongoing issue despite regulatory efforts, and the claim could take several years to go to court.” (Credit: BBC)

https://www.bbc.com/news/business-67649539

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