We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Press release from MP Roger Godsiff re cashbacks.
alnsv1000s
Posts: 407 Forumite
in Mobiles
The following press release has just been made by MP Roger Godsiff, with regard to his meeting with the networks last Tuesday, and his recomendations.. This has just been sent to the founder of the Independant Mobile Phone Dealers Association, and he has given me permission to post this.
Roger Godsiff has pledged to continue the fight on behalf of the victims of Dial a Mobile cashback deals following a meeting with the 'Big Five' airtime providers.
Dial a Mobile, the Bordesley Green retailer, went into administration recently owing £12million in cashbacks. Many of its customers affected, estimated to be about 90,000, live in Birmingham. Another retailer also went into administration recently, with estimated debts of between £4million and £10million.
Speaking after the meeting with the airtime providers- Orange, 3, 02, Vodafone and T-Mobile - Roger said "The airtime providers, whatever they might say, are complicit in the collapse of Dial a Mobile and there is mounting proof that in order to get a steady stream of new connections they were prepared to tolerate retailers operating unsustainable cashback schemes which would lead to insolvency if more than 40% of customers applied for their cashbacks. Ofcom, the industry regulator, must outlaw these cashback schemes because they are nothing more than 'scams' and when the retailer goes bust and cannot pay the cash back the airtime providers are still sitting on highly lucrative contacts and are pursuing customers through the Courts to pay-up the contracts!"
"I believe that, providing customers return the phones they were given, the airtime providers should tear up the contracts because many people were misled into signing them and were promised cashback money which they have never received."
Roger Godsiff has pledged to continue the fight on behalf of the victims of Dial a Mobile cashback deals following a meeting with the 'Big Five' airtime providers.
Dial a Mobile, the Bordesley Green retailer, went into administration recently owing £12million in cashbacks. Many of its customers affected, estimated to be about 90,000, live in Birmingham. Another retailer also went into administration recently, with estimated debts of between £4million and £10million.
Speaking after the meeting with the airtime providers- Orange, 3, 02, Vodafone and T-Mobile - Roger said "The airtime providers, whatever they might say, are complicit in the collapse of Dial a Mobile and there is mounting proof that in order to get a steady stream of new connections they were prepared to tolerate retailers operating unsustainable cashback schemes which would lead to insolvency if more than 40% of customers applied for their cashbacks. Ofcom, the industry regulator, must outlaw these cashback schemes because they are nothing more than 'scams' and when the retailer goes bust and cannot pay the cash back the airtime providers are still sitting on highly lucrative contacts and are pursuing customers through the Courts to pay-up the contracts!"
"I believe that, providing customers return the phones they were given, the airtime providers should tear up the contracts because many people were misled into signing them and were promised cashback money which they have never received."
0
Comments
-
Three or four years ago, 100% cashback was possible on some contracts, where the commission to the dealer actually exceeded the line rental, the network hoping that the customer would use more than the allotted minutes. But presumably commission levels have since been reduced to the point where 100% cashback is no longer realistic.
So Mr Godsiff is right that the networks are complicit, as they've seen this happening for plenty of time, and the codes of practice they supposedly set up in response clearly aren't working.
So I don't think that they should necessarily be totally outlawed, but the networks should get their act together, either support cashback schemes at a sustainable level or just reduce line rentals and pay commission separately, and help the customers who have fallen victim to those schemes that have failed.0 -
The only problem i can foresee is that to clean up the industry, which many decent Dealers want, will mean a lot of casualties along the way and a lot of unhappy customers.
I would advise anyone to not take up a cashback offer by redemption from any company at the moment, unless it is either upfront, or paid in full on receipt of the first bill.0 -
I agree generally - and have advised people for a while not to unless they know exactly what they're doing. However, IF they do and stick with a company not at all likely to go bust it's still possible to do these deals. Just must make sure they get the "if"s and "stick"s right!! Most still get the "if"s wrong and many others the "sticks"!0
-
mobilejunkie wrote: »I agree generally - and have advised people for a while not to unless they know exactly what they're doing. However, IF they do and stick with a company not at all likely to go bust it's still possible to do these deals. Just must make sure they get the "if"s and "stick"s right!! Most still get the "if"s wrong and many others the "sticks"!
I suppose thats what people thought when they placed thier orders through Rumbelows, Courts, Rover and many more.
The bigger they are, the harder they fall..0 -
Phew!
I thought the first line of the OP read "Dial a phone"!
I have just received my first cashback from them for both contracts. They were not quite as slick as they have been in the past and I had to chase up the cashback for the 2nd contract, which is very unusual - both are on one invoice.
I think in future I will be looking at their free gifts. Its a shame I've already bought Christmas presents.Behind every great man is a good womanBeside this ordinary man is a great woman£2 savings jar - now at £3.42:rotfl:0 -
alnsv1000s wrote: »I suppose thats what people thought when they placed thier orders through Rumbelows, Courts, Rover and many more.
The bigger they are, the harder they fall..
Maybe. On the other hand then you wouldn't buy anything from anyone - not even a network (although presumably if one of those went down at least your contract WOULD have been with them so you COULD stop paying! lol!).0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.3K Banking & Borrowing
- 253.2K Reduce Debt & Boost Income
- 453.7K Spending & Discounts
- 244.2K Work, Benefits & Business
- 599.4K Mortgages, Homes & Bills
- 177.1K Life & Family
- 257.7K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards