Citizens Advice has lodged a ‘super complaint’ with the competition watchdog after finding that customers who remain loyal to firms are overpaying by £4 billion a year.
The charity says the practice of overcharging loyal customers is ongoing and widespread, and has called on the Competition and Markets Authority (CMA) to “act now to stop people being exploited”.
Research by the charity has found that British consumers are losing £4.1 billion a year across the mobile, broadband, home insurance, mortgages and savings markets to the so-called ‘loyalty penalty’. It says eight out of 10 consumers pay a significantly higher price to at least one of their providers for remaining with them.
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What is a ‘super complaint’?
A super complaint can be made by a Government-designated consumer group to ask a regulator to investigate an issue or a market that it believes is working against the public interest.
The regulator must publicly respond to the complaint within 90 days saying if it believes it is an issue, and how it intends to deal with it.
This is the fourth super complaint Citizens Advice has made since being given the power to submit them in 2002.