Millions of mobile phone users could be unknowingly overpaying every month for handsets they’ve already fully paid off. Martin Lewis, founder of MoneySavingExpert, has exposed a common “dirty trick” used by some mobile providers—especially smaller reseller networks—that keeps customers locked into high monthly charges with no automatic reductions or warnings.
In a recent TikTok video, Martin highlighted the issue, which centers primarily around reseller networks. These smaller providers often piggyback on major networks and attract customers with appealingly low upfront prices. Martin himself had recommended some of these deals in the past, which makes his warning even more important.
He explained the key difference between main network contracts and reseller ones. “If you go for a main network, you typically pay a separate airtime tariff, plus a handset cost spread over two years. Once the handset is paid off, your monthly bill drops to just the airtime cost," Martin said. This is what most people expect.
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However, reseller contracts work differently. “Many resellers charge a combined monthly fee that includes both airtime and handset costs. But even after you’ve paid off your phone—usually after two years—that monthly amount doesn’t reduce. You keep paying the full amount indefinitely,” he warned. What’s worse, customers rarely receive any notices alerting them that their handset is fully paid, meaning they unknowingly overpay for months or even years.
Martin illustrated how costly this can be: “You might be on a SIM plan worth just £6 or £7 per month, but paying as much as £30 because the handset cost is included. That’s over £270 wasted each year on a phone already paid for!”
Is it possible to challenge these charges? Martin admits it’s difficult. “It’s not illegal—even if it feels unfair—and providers clearly state the total you owe. So getting any reimbursement is unlikely.”
His advice is clear: when your reseller contract ends, get off that deal immediately. The reason these reseller deals appear so cheap upfront is because providers count on many customers continuing to pay full price past the contract expiry, without noticing.
If you’re on a reseller plan, check your contract end date carefully and make sure you switch away before or as soon as it expires. Even one or two months’ delay means overpaying for a phone you no longer owe money on.
For those who have already passed the contract end date, switching now can unlock significant savings. Martin points out that unlimited minutes, texts, and data plans can be found for as little as £10 per month in today’s market, potentially saving hundreds annually compared to expired reseller plans costing £25 to £30.
Financial experts at vettory.org emphasize that mobile bills often become “set and forget” expenses that providers rely on. Knowing your contract end date and taking timely action to switch plans is one of the easiest ways to slash your monthly costs. The savings Martin reveals are real—don’t let them slip away through inaction.