Should There Be Credit Checks For Mobile Phones?

Do we now need credit checks for mobile phones?

A recent experience in the UK surprised - and angered (just a little) - your author.

Some time ago (mid 2007) I took out a new mobile phone contract in the UK. For those that are not aware, in the UK, the actualy handset is often given away free if a monthly calling plan is taken. How the mobile telephone operators make any money is beyond me. These contracts often have a set number of free SMS / text messages each month and a set number of free minutes of 'talk time'.

Since the handset was free, the company credit scored me at the time to ensure I was 'able' to have the phone. Since they were essentially gifting me the phone, I could see why they might want to run a check. However, I was surprised that they could do this without me signing for a thing. The potential for a system like that to go wrong worried me. The identity theft possibilities could be significant.

Obviously, these freebie calls and messages come with catches - they must be made to certain types of numbers, and often within the geographic constrains of the United Kingdom.

It is widely known that calls to - or made when - abroad are much more expensive. In fact, this practice is so widespread that at the time of writing, the European Commission is investigating the market looking for anti-competitive or monopoly pricing practices.

Back to the story...

After taking this new contract - I won't say with which company, but they are a number if that helps - I went for a short trip to mainland Europe. This is something that I do with some frequency.

My mobile phone, whilst 'abroad' would not work.

It seems that with this particular network, calls from abroad need to be essentially cleared in advance. The company carries out an on the spot credit check to decide whether or not they are willing to allow your mobile phone to make or receive calls!

In other words, your credit may have deteriorated since taking the contract - but you monthly bills are up to date - and the company has the power to effectively switch the phone off whilst outside of the UK. Is it just me, or is that shocking?

For regular travellers, it could mean that lots of credit checks for mobile phone calls need to be made.

This is another area in which it seems that a spotless credit report needs to be maintained if normal life is to continue. Heaven help the vicitms of identity theft!