UK mobile operators have agreed to implement a £100 liability cap to protect customers who have had their mobile phone stolen from facing massive bills.
EE, O2, Vodafone, Three and Virgin Mobile have signed up to the cap, which will limit the amount customers can be charged if they have their device taken by thieves.
The cap will become active when a phone is reported lost or stolen within 24 hours of it going missing and has been secured by the department for culture, media and sport.
Minister for the Digital Economy Ed Vaizey said: “By working with the mobile operators, we have secured an agreement that will provide consumers with real benefits as well as offer peace of mind.”
According to the Citizens Advice Bureau, customers regularly contact them after receiving massive bills following the theft of their phones, with some as high as £23,000.
The CAB estimates that between April last year and February this year, users have lost as much as £140,000 because of bills on stolen mobile phones.
The new measures also include introducing clear and transparent pricing information and alerts for out of bundle charges and information on how to turn off data roaming to avoid roaming charges.
The operators will also be required to provide barring functions so consumers can protect against unauthorised access to premium rate services.
According to figures from the National Mobile Phone Crime Unit, around 300,000 mobile phones are reported stolen to the UK police every year.
Three were the first network to introduce the measures, with a cap announced in January. EE will introduce the cap in the coming weeks, whilst O2 promised to introduce the measures by September. Vodafone said it will introduce the cap in the summer. Finally, Virgin Mobile promised the measures will be in place by July 1.
Tesco Mobile, on the other hand, already implements a £50 cap for stolen phones.
