The Telecommunications Industry Ombudsman (TIO) has issued a warning to pre-paid mobile phone account holders that they may be paying more than they bargained for.
"We are concerned that many young people with pre-paid accounts may not have read the terms and conditions of the account and are not aware that they could run up a bill they can't pay," Ombudsman John Pinnock said.
The warning is in response to complaints received by the TIO where mobile phone customers are able to continue making calls beyond their pre-paid amount. Users are unaware their limit has been reached, consequently running into debt.
According to the regulator, it is a particular problem with SMS messaging charges.
"Young people are especially affected by this problem. They have pre-paid accounts to limit their liability and are big users of SMS messages," Pinnock said.
Although service providers are required by law to make it clear to customers they will be liable for calls beyond the pre-paid limit, the TIO argues that the word 'pre-paid' is misleading.
It says "pre-paid" has a particular meaning to consumers which is contradicted by the terms and conditions attached to pre-paid products.
"We are also concerned that young people may not know that the TIO might be able to assist them," he said.
