Mobile phone giants charging for handsets that customers have already paid off could face a flood of PPI-style compensation claims.
Campaigners want networks to give refunds – that could total £500million – in the way that banks settled over payment protection insurance.
The move comes ahead of new industry measures designed to cut phone bills.
More than 1.4 million users will be switched to cheaper deals when their contracts end from next month.
It follows concern that people on ‘bundled’ deals have continued to pay the original price after the minimum contract period ends.
Phone regulator Ofcom says the rip-off contracts are costing customers on average £11 extra a month, or £132 a year.
New guidelines will mean they automatically roll on to a cheaper sim-only plan, where they pay for airtime only, at the end of their contract.
Networks must also itemise each part of the package at the point of sale.
Martyn James, from complaints handling website Resolver, said: “If people have been overcharged, they should be refunded.
Ofcom’s new rules will undoubtedly make things better for millions, who might have been overcharged in the future. But that still leaves the millions who have already been overcharged.”
A Citizens Advice report in 2018 estimated four million users had paid £500million for sets they owned.
Ernest Doku, from price comparison site uSwitch.com, said: “While the introduction of end-of-contract notifications is great news for consumers, if they are out of contract they should act not wait around for a letter.”
Ofcom does not have powers to force companies to set prices or tariffs.
Similarly, there is not a legal requirement for customers to be refunded as they are not in breach of existing rules.
Banks were forced to repay more than £50billion over mis-sold PPI.
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