3 Steps on how to Avoid your mobile phone bill shock !!!

Confused about mobile phone charges? Here's how to keep them in check.

Have you suffered from "bill shock"? If you have recently opened your mobile phone bill and stared in horror at the extra charges you've racked up, then you may be one of the 1.4 million people that the Government's telephone regulator says has been hit with extra charges in the last six months.

The regulator, Ofcom, is turning white knight crusader for those of us who barely understand how our mobile phone bills work, and is promising to tackle a number of problems. It announced last week that it is planning a series of measures to "reduce consumer harm" from mobile phone companies.

If working with the industry doesn't produce results, the regulator says it will consider "mandatory options" to deal with the problem.

Since it will take a while for any changes to be implemented, it is sensible to try to mitigate your own ''bill shock'' by understanding how your mobile phone contract and billing works, and what to do if things go wrong. Here are ways to tackle the most pressing issues identified by the regulator.

Confusion and lack of awareness
For many of us, the biggest cause of ''bill shock'' is simply that we have no idea how our bills are calculated. Ofcom's review found that many consumers do not know what they are being charged for calls, bills and voicemail, and that the large number of tariffs makes this trickier.

"Some consumers told us that they had difficulty finding information about data charges or were given insufficient or incorrect information by the providers," the regulator said. Ofcom added that customers should be provided with a description of key charges on their mobile phone contracts.

It's not surprising that people are confused. Britain's mobile phone providers have millions of tariffs - which on the plus side means that individuals can find a price plan that suits them. However, on the minus side it is hard to keep track of what you have and what you need.

What Ofcom is going to do Ofcom has written to mobile phone providers to remind them that they need to make tariffs transparent. It will also review the information that these providers put on their websites. The regulator is monitoring complaints about mobile data mis-selling and will consider taking action if issues of concern are uncovered.

What you can do: Review your contract. Check you know which tariff you are on and what it covers in terms of data, calls and text. Does it match your current usage? You can work this out by using monthly statements to see how you make calls and when, and if you are over or underusing your allocation.

The website Billmonitor.com can help you to work out which contract is right for you. When selecting a new plan, it pays to have a slightly higher monthly call or text allowance than you normally use, as charges can be costly if you exceed the limit.

Those in the middle of a contract won't be able to switch providers without paying a penalty – which is likely to outweigh potential savings. But if you contact your provider it may move you on to a more appropriate tariff.

Data downloading at home and abroad
Data downloading is a confusing issue for customers – particularly those who are relatively new to the concept of ''smartphones''. You use up your data allowance every time you send and receive information from a website, but for many of us who are not familiar with the idea, it is difficult to know when you are doing this, and how much it is costing you.

Every time you connect to the internet and do something like check an email or Facebook page using 3G, rather than a wireless connection, it will use up your data allowance.

Even if you have an ''unlimited'' data contract, or think you have plenty for your own use, you can still get stung with extra charges. Unlimited contracts come with a fair usage policy, meaning that they have an effective cap. If you go over this, bills can mount up quickly. Also, if you go abroad, data downloading is usually not included.

Ofcom identified data downloading as one of the biggest causes of bill shock, because many customers do not realise what they are using. The problem is greatest when people are travelling outside the EU, where there is no cap on how big a bill you can run up; but it exists everywhere.

What Ofcom is going to do: Ofcom is supporting proposals to extend the EU Roaming cap to the rest of the world. At present, once your mobile internet bill reaches 50 euros in the EU you will be cut off until you call the operator. You must also receive an alert when you reach 80 per cent of your limit. If this were to apply worldwide then truly terrifying phone bills could be a thing of the past.

Ofcom also wants providers to develop ways in which customers can set their own financial caps and alerts, so that they know more about how big a bill they are running up.

What you can do: Understand how your data download limit works and keep an eye on it. Many mobile companies allow you to track your data usage online.

There are also free apps you can use such as Onavo, which works on Android and iPhones, and will tell you how close you are to your data limit as you use your phone. Use wireless hotspots wherever you can, especially abroad, and make sure you understand just how much data downloading will cost you if you are travelling.

Lost or stolen phones
Having your phone stolen is bad enough, but if a thief runs up a huge bill as well, the consequences can be devastating.

A consumer can be liable for the full amount – unlike if your cash card is stolen and used – and this may run into thousands of pounds. The Telegraph ran a story recently about a honeymoon couple who ran up an £8,200 phone bill from Vodafone and had to pay half of it (the rest was cancelled as a ''goodwill gesture''), illustrating just how scary this can be.

What Ofcom is going to do: Ofcom intends to work with providers to see if they can limit the amount consumers would be liable for if their phone was stolen.

What you can do: Take basic security steps such as locking your phone, and understand the serious consequences were it to be lost and used by someone else.

Mobile phone insurance may pay out toward a fraudulent bill but may not pay it all – check the limit on your policy if you have one. Also check what cover you have if you are going on holiday. Never leave your mobile phone or SIM card unguarded.

www.chargezone.co.uk
The Public Smartphone Charging Media  with Brand Focused Advertising

Follow @chargezone