Citizens Advice super-complaint to CMA on the injustice of loyalty payments

super-complaint has been lodged today by Citizens Advice with the Competition and Markets Authority (CMA) calling for the regulator to investigate the loyalty penalty in a number of essential markets: mobile handsets, broadband, mortgages, home insurance and savings.

Research by Citizens Advice has found that consumers lose over £4 billion a year to the loyalty penalty, with 8 in 10 people paying a significantly higher price for remaining with their current supplier in at least one of these markets.

This practice is considered unfair by 89% of people, and certain vulnerable groups – such as those on low incomes, older people and people with mental health problems – are likely to experience the financial impact of the loyalty penalty disproportionately.

Citizens Advice is calling on the CMA to undertake a thorough market study to investigate all markets where the loyalty penalty may occur, and to propose remedies that can be implemented by the CMA itself, sector regulators and the government.

The CMA has now invited submission of evidence at The deadline for doing so is 14 October 2018.

The CMA now has 90 days to investigate and publish its response to the super-complaint. More information can be found on the CMA’s webpage.




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