Are you paying the loyalty penalty?
- AuthorTim Field
Citizens Advice has taken a super complaint to the Competitions and Markets Authority (CMA) to protect those loyal customers that are paying over the odds.
As much as consumers may be told that they should shop around and change provider when it comes to banking, insurance and other such arrangements, many consumers are either too lazy or feel that their ‘loyalty’ is serving them well.
Citizens Advice has put forward a wide range of proposals aimed at protecting those ‘loyal’ customers, to ensure that they do not continue to pay over the odds. Some of these proposals include:
- Reviewing the automatic renewal of subscription services and the way in which such renewal notifications are issued to consumers
- Publishing data relating to specific customers showing the additional amount a ‘loyal’ customer would pay over a new customer
- Introducing pricing regulations, similar to the gender pay gap, to show the difference between the price a new customer pays and the price a ‘loyal’ customer pays, and introducing legislation to reduce the gap
- Provide price matching data to show potential savings that are available to consumers
The CMA will provide an update in 6 months’ time and review what progress has been made in 12 months’ time. Hopefully during this period big businesses will take steps to reduce the loyalty penalty so many are currently paying.