Stephen Jensen usually has a mobile phone bill of around £35 a month. So he was shocked to see that Vodafone had debited £644 from his account in September – but that was only the start of his woes. Unknown to him, his phone had been stolen and used to make huge numbers of calls, almost entirely to Pakistan. He reported the phone as missing, but Vodafone mobile phones was intransigent: he was liable for all calls, and the bill would be more than £7,000.
Jensen is the latest person to be chased by debt collectors appointed by a mobile phone company following the theft of a handset. His case demonstrates the unlimited liability that consumers face in the event their phone is stolen, but not reported. But it also raises questions about the behaviour of mobile phone companies, which are able to spot unusual patterns of activity but say they have no formal responsibility to alert customers or block calls.
Jensen, a London-based businessman who is setting up an alternative energy business, quickly cancelled his direct debit to stop any more money being taken from his account when he discovered the problem. He says he thought his phone was at his flat, although he admits he "can't be sure". "I tend to use Skype and a laptop when I'm away. I don't use my phone much, and was unaware it had been stolen."
Like millions of other mobile users, he was also unaware that the terms of contracts make users responsible for all calls made on their handset until it is reported missing. His phone was being used round-the-clock.
Jensen accepts that he has to take responsibility for some of the calls, as he should have been aware of his phone's whereabouts. But he's angry that Vodafone did not block it after the extraordinary pattern of calls became apparent – just as banks suspend credit and debit cards when they discover unusual patterns of spending.
"At no time, prior to suspension, did Vodafone contact me via email, which they were using each month to send me statements, or otherwise question whether it was me making these calls.
"If they had looked at usage pattern they would have seen my typical usage is entirely within the limits of my network plan. I've been with them a decade and I never make calls abroad."
He says initially Vodafone told him the matter was "under investigation", but later decided that he was liable for all the calls made. Eventually, the company, through its debt-collecting company, Fredrickson Internal Ltd, offered to reduce his balance by 20% – but this still left him with a huge bill.
"Its best offer settlement is £5,409, provided I pay immediately. They have been calling me daily asking how and when I intend to pay this money. They have said that if I don't pay it will jeopardise my ability to gain credit in the future. It's all hugely worrying, especially as I'm setting up a business and don't have £6,000 to pay Vodafone for calls I didn't make," he says.
We asked Vodafone to look at Jensen's case. The "chairman's office"' looked at the facts, but said that as Jensen had not reported the phone stolen he was still liable for all calls.
Jensen is the latest person to be chased by debt collectors appointed by a mobile phone company following the theft of a handset. His case demonstrates the unlimited liability that consumers face in the event their phone is stolen, but not reported. But it also raises questions about the behaviour of mobile phone companies, which are able to spot unusual patterns of activity but say they have no formal responsibility to alert customers or block calls.
Jensen, a London-based businessman who is setting up an alternative energy business, quickly cancelled his direct debit to stop any more money being taken from his account when he discovered the problem. He says he thought his phone was at his flat, although he admits he "can't be sure". "I tend to use Skype and a laptop when I'm away. I don't use my phone much, and was unaware it had been stolen."
Like millions of other mobile users, he was also unaware that the terms of contracts make users responsible for all calls made on their handset until it is reported missing. His phone was being used round-the-clock.
Jensen accepts that he has to take responsibility for some of the calls, as he should have been aware of his phone's whereabouts. But he's angry that Vodafone did not block it after the extraordinary pattern of calls became apparent – just as banks suspend credit and debit cards when they discover unusual patterns of spending.
"At no time, prior to suspension, did Vodafone contact me via email, which they were using each month to send me statements, or otherwise question whether it was me making these calls.
"If they had looked at usage pattern they would have seen my typical usage is entirely within the limits of my network plan. I've been with them a decade and I never make calls abroad."
He says initially Vodafone told him the matter was "under investigation", but later decided that he was liable for all the calls made. Eventually, the company, through its debt-collecting company, Fredrickson Internal Ltd, offered to reduce his balance by 20% – but this still left him with a huge bill.
"Its best offer settlement is £5,409, provided I pay immediately. They have been calling me daily asking how and when I intend to pay this money. They have said that if I don't pay it will jeopardise my ability to gain credit in the future. It's all hugely worrying, especially as I'm setting up a business and don't have £6,000 to pay Vodafone for calls I didn't make," he says.
We asked Vodafone to look at Jensen's case. The "chairman's office"' looked at the facts, but said that as Jensen had not reported the phone stolen he was still liable for all calls.
Source:guardian
