{"id":944,"date":"2018-12-21T10:31:15","date_gmt":"2018-12-21T10:31:15","guid":{"rendered":"https:\/\/www.competitionlawyers.co.uk\/blog\/?p=944"},"modified":"2018-12-21T10:31:15","modified_gmt":"2018-12-21T10:31:15","slug":"loyalty-penalty-cma-investigation-concludes","status":"publish","type":"post","link":"https:\/\/www.competitionlawyers.co.uk\/blog\/loyalty-penalty-cma-investigation-concludes","title":{"rendered":"Loyalty penalty CMA investigation concludes"},"content":{"rendered":"

The massive loyalty penalty CMA investigation \u2013 deemed a ‘super complaint’ \u2013 has resulted in a set of reforms to stop the issue affecting people.<\/p>\n

The investigation found \u201cdamaging practices by firms, which exploit unsuspecting customers\u201d. This issue is estimated to equate to a cost to the consumer in the region of \u00a34bn per year. There are thought to be millions of people affected by loyalty penalties.<\/p>\n

The loyalty penalty CMA investigation looked at five markets: savings; insurance; mortgages; mobile phone contracts; and broadband. New regulatory rules are set to be introduced to stamp out the loyalty penalty endemic.<\/p>\n

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About the loyalty penalty CMA \u2018super complaint\u2019<\/strong><\/h3>\n

In short, the loyalty penalty CMA investigation that\u2019s classed as a \u2018super complaint<\/a>\u2019<\/strong> is about companies penalising people for loyalty. Customers who have been there a long time are being charged more than new customers, who are often attracted by short-term offers.<\/p>\n

Not only that, but some companies have costly exit fees, hidden price hikes, and some make the cancellation processes difficult for the consumer. The aim, it seems, is to keep the consumer with the company while charging them more.<\/p>\n

The CMA has called firms out for using damaging practices to exploit their customers. The elderly and people on low incomes are said to be hit the hardest.<\/p>\n

What the loyalty penalty CMA investigation means now<\/strong><\/h3>\n

The loyalty penalty CMA investigation has led to recommendations for regulators and the government to stop people being exploited.<\/p>\n

These include:<\/p>\n