Phones 4U collapses into administration

azzcobb

i took my mobile in on saturday to be repaired and it was never sent off so i have a broken mobile stuck in a locked store.

called P4U and they said they could do nothing.

called EE same response

so 24 month contract and no phone

Lesleyanne

Hi everyone,

I'm hoping someone can give me some advice. Basically on the 01/09/14 I ordered a mobile phone from p4u but I accidentally ordered the wrong model in error (oops!)

I contacted p4u and arranged to have the phone sent back and the correct model sent out after. They advised me that as soon as the first phone was received they would send out the correct one (was literally in the warehouse awaiting dispatch)

Anyway, I've contacted P4u several times as I have been charged for the contract I took out but no phone to show for it - and I keep getting different responses. One person says the exchange will be honoured, others telling me they have no idea...

I'm just wondering if it's likely I will get send the correct model or if it will be cancelled? I'm now being told to ring up next week to check...

Thank you in advance. Lesley.

gjchester

Lesleyanne wrote: »

I'm just wondering if it's likely I will get send the correct model or if it will be cancelled? I'm now being told to ring up next week to check...

Unfortuantly thats the only answer. Until the administrators determine what the state of the business is, and what the future steps will be all business activity will be on hold.

Report the charge to your bank or card company on the grounds the phone has not been recieved (its not clear if it was the iniital phone or the one to be swapped with) and ensure they understand that P4U are in administration. You should be able to do a charge back and just walk away in this case.

mobilejunkie

Phones4u's Bond holders proposed a rescue deal involving re-negotiation with Vodafone and EE and a reduction in what they are owed. PwC rejected it saying it had little chance of success.

Shortypie89

Hi all,

Would appreciate advice

I have a 24 month contract with Dial a Phone and have 12 months left. I receive cash back. So far I have only received it twice - with the second cheque being returned to me this week, meaning I've only got it once. Every cash back amount is for £36.

Obviously I took out my contract because of the amount I'd end up paying with the cash back.

Without it I am paying far more than is appropriate for my phone (iPhone 4) and contract (basic).

What are the options open to me? If I was able to cancel my contract now I'd still have paid more than I should have, as my cash back only covers 3 months not 12, but if I continue to pay I'll be really out of pocket.

Thanks!

Shortypie89

SuperOxford wrote: »

I received a cashback cheque from Dialaphone on Friday but havent banked it yet. Do I try it and see what happens? Its for £28.80 so not exactly a huge amount!

I cashed a cheque last Saturday. My account now says it's been returned - after being accepted!!!! So, I guess not :mad:

DCFC79

Here is the Q&A for P4U going into administration.

gjchester

Shortypie89 wrote: »

Obviously I took out my contract because of the amount I'd end up paying with the cash back.

Without it I am paying far more than is appropriate for my phone (iPhone 4) and contract (basic).

What are the options open to me? If I was able to cancel my contract now I'd still have paid more than I should have, as my cash back only covers 3 months not 12, but if I continue to pay I'll be really out of pocket.

Thanks!

The cash back is offered by the retailer, and you have a minimum term with the network. That does not change.

You can try calling the network and asking for them to consider a reduction (unlikely but no harm asking) but ultimatly the cashback was an inducement from the dealer, and the liability to pay that remains with the retailer.

You will join a long list of creditors but unfortunalty you have no recourse to break the contract.

I had this a long time ago with CoolNewMobile, and eventually I just wrote it off and got nothing. Sorry its not better news.

mobilejunkie

It is unlikely we'll see any of our cashback (according to them). As I expected, you can now only apply as a creditor to the administrators:-

http://www.pwc.co.uk/en_UK/uk/business-recovery/administrations/Phones4U/phones_4u.jhtml

You'll find the relevant forms on that site.

d123

Shortypie89 wrote: »

Hi all,

Would appreciate advice

I have a 24 month contract with Dial a Phone and have 12 months left. I receive cash back. So far I have only received it twice - with the second cheque being returned to me this week, meaning I've only got it once. Every cash back amount is for £36.

Obviously I took out my contract because of the amount I'd end up paying with the cash back.

Without it I am paying far more than is appropriate for my phone (iPhone 4) and contract (basic).

What are the options open to me? If I was able to cancel my contract now I'd still have paid more than I should have, as my cash back only covers 3 months not 12, but if I continue to pay I'll be really out of pocket.

Thanks!

It's just bad luck and one of the dangers of relying on cash back to subsidise a contract. The network will not discount your line rental because you can't get your cash back. They have paid P4U their commission and are expecting you to honour your contract.

Your argument would be with P4U, and unfortunately they are no longer liable.