Tourists Face "Extortionate" Charges
Millions of Britons set to go abroad this summer may face financial problems before the implementation of caps on mobile phones costs, a price comparison website has claimed.
View as PDF
 Print View
July 2, 2007 (FPRC) -- According to moneysupermarket.com, some six million tourists travelling to the United States and Europe over the course of July could have their attempts at debt management squeezed as telecoms providers delay limiting their tariffs. Despite the European Parliament voting that a maximum of 33p per minute should be charged for calls made within the European Union as of June 30th, the website suggests that companies are not legally required to integrate this into their call packages until at July 30th.
However, moneysupermarket.com went on to claim that this could be "spun out" as late as September 30th. Consequently, tourists could witness call costs at a total of £6 million per minute before the cap is rolled out in full, a figure which could impact upon many consumers' ability to make repayments on personal loans, credit cards and overdrafts.
Rob Barnes, head of mobiles for the price watchdog, said: "In the meantime, costs for Brits using mobiles abroad are amongst the highest in Europe, so travellers should look at ways to cut costs. Contact your network directly to see what they can offer you." He added that telecoms providers are looking to "maximise their profits" by not introducing the cap until they are absolutely required to do so. As a result, Mr Barnes claimed that many tourists are "in danger of being stung by extortionate roaming charges during their summer break".
Overall, those customers on a pay-as-you-go deal with mobile network 3 are reported to face the most expensive charges in Europe with costs of £1 per minute. Meanwhile, tourists using O2 pay-as-you-go who are travelling outside of Europe currently have a "staggering" charge of £1.49 a minute. Research from the price comparison website also indicated that T-Mobile holidaymakers are currently on the cheapest rates to either make or receive calls in Europe. However, with a tariff of 55p a minute this was still reported to be 66 per cent higher than the new capped rates.
To help combat financial problems caused by phone charges, Mr Barnes recommended that those who go away once or twice a year on holiday to consider their network's "roaming bundles". Meanwhile, "frequent travellers" should look to purchase a global Sim card as the devices allow consumers to make calls from countries across the world and are a "cost-effective option".
The announcement by the price comparison website could well be indicative of increasing debt management difficulties caused by going on holiday. According to research by financial charity Credit Action, about 12 million Britons claim that they are willing to take on debt through avenues such as credit cards and loans to pay to go away. Some six per cent of those surveyed added that while on holiday they frequently go into the red. Meanwhile, consumers were reported to be saving to go abroad (49 per cent) rather than putting money away for their retirement (46 per cent), which consequently may lead to debt management difficulties in later life.
Essentially Home Loans providing you with breaking Home Loans News.
Send an email to Abbi Rouse of Essentially Home Loans
01481 701350
Keywords:
loans, Home Loans, Home Loans News
Recent Press Releases By The Same User Britons Fearful Of More Energy Rises In Times Of Hardship (Tue 7th Oct 08)
World Cup Glory Will Come At A Price (Mon 6th Oct 08) Older Generations Face Pensions Pinch (Thu 2nd Oct 08) Changes In Car Usage More Than A Health Benefit (Thu 2nd Oct 08) Avoiding The Money Mule (Wed 1st Oct 08) Parents Scrimp To Help Kids (Wed 1st Oct 08) | 
