Watch out for mobile cashback offers
Published On 7 February 2007
Consumer charity Citizens Advice has today warned the public to be aware of mobile phone retailers who do not honour cashback offers.As a financial incentive to choose their shop, some retailers have been offering a refund as part of the consumer's contract with phone retailers, which can make it seem like they are getting a cheaper deal. The offer has nothing to do with the mobile phone providers.
But details hidden in the small print of these contracts mean that it is hard for consumers to receive the cashback with some consumers losing hundreds of pounds, either because they could not claim the refunds or because the company offering cashback had gone bust.
In some cases, Citizens Advice found that the consumers had been cold-called by the retailers.
While the charity refused to confirm whether or not their investigations have involved looking at high street retailers, it is known that one of the companies that caused the most problems was Mobiles 4 Free, which has now ceased trading.
Susan Marks, the charity's Consumer Affairs Officer, said: "Some cashback deals work well for mobile phone users who sign up to them. But we are seeing growing numbers of people who lose money.
"In some cases people find the company concerned has vanished into thin air when their refund is due. Citizens Advice is urging anyone who has problems with mobile phone contract cash back deals to contact the telecoms regulator Ofcom and Citizens Advice," she concluded.
