Phones 4U collapses into administration

charleem_2

MataNui wrote: »

You are safe. The authorisation was for P4U who are no longer trading so it would be illegal for them to take the money (even if it was still pre-authorised). If the money was taken now it would be by PWC who you have no agreement with and have absolutely no legal right to debit a penny from your account. To do so would be fraud. This situation is different from people who already have had money taken.

Thank you very much for replying! This has put my mind at ease a bit more!

As for the question about Carphone Warehouse and their iPhone 6 and iPhone 6 Plus refunds, it is indeed only for people who have pre-ordered with a contract, it doesn't cover anyone who purchased it sim-free.

http://www.carphonewarehouse.com/phones4u?intcmp=newHP_p4ustrip_170914

Mrbaker

Hi people,

I have 2 jump contracts with phones 4u will these be affected? I've tried to speak to p4u but no one there has any idea......

charleem_2

Mrbaker wrote: »

Hi people,

I have 2 jump contracts with phones 4u will these be affected? I've tried to speak to p4u but no one there has any idea......

From what I can make out the Jump contracts will become invalid as you're no longer able to jump.

I'm not a lawyer, but they can no longer uphold their side of the jump contract (ie new phone every 6 months) so after the minimum term you've served is up then that part should become null and void.

For example, if you can upgrade every 6 months and you upgraded 3 months ago, you'll have 3 months to run before you can upgrade again, you're contractually obliged to pay them the next 3 payments, however, after 3 months they become obliged to let you upgrade but because of the situation they're in, cannot, so therefore can't keep their side of the contract and it'll become void. I'm sure this will be on their long list of things to do but it won't be making them much money so it'll be wwaaaaay down at the bottom, just above paying people back!

Mrbaker

Thank you, I upgraded well over 6 months ago on both contracts so I'm actually thinking of canceling my direct debits tonight, but I am slightly worried they might chase me for the money debt collectors etc

charleem_2

Their terms and conditions for jump are still up, and it does appear that after 6 months you can upgrade, but it does go on to say that you have to pay the balance, if it's a long time since you upgraded anyway it may be the case that you don't owe them much anyway.

Saying that, it appears that the finance for the phone was provided directly with p4u. Depending upon how many people had these Jump contracts may see another private firm with a credit licence take over these contracts or at least the monetary part of the contract.

It's a very grey area. I'd be tempted to cancel the direct debit and see what happens, if they chase you for it you could apologise and say it was a mistake then re-instate them, if they don't chase you for it you've always got the phones as equity anyway, if you're wanting a new phone you could sell the old phones and put that towards any money left on the jump contract.

When companies like this go bust they're very good at not paying anything they owe, but when it comes to having money owed to them, it's a different ballgame!

charleem_2

I forgot to add the links...

http://www.jump4u.co.uk/images/Jump/JUMP-welcome-2D1.pdf

https://www.jump4u.co.uk

mobilejunkie

Having looked at that link it seems that when you upgrade you enter a new 24 month contract with the network (as I suspected). The phone is a separate contract with Phones4u. That actually means that should anyone cancel their direct debit to the network they have breached their contract and will end up owing the full term value unpaid element AND wreck their credit records for the next six years (whether it ends up with debt collectors, as is likely,) or not.

charleem_2

mobilejunkie wrote: »

Having looked at that link it seems that when you upgrade you enter a new 24 month contract with the network (as I suspected). The phone is a separate contract with Phones4u. That actually means that should anyone cancel their direct debit to the network they have breached their contract and will end up owing the full term value unpaid element AND wreck their credit records for the next six years (whether it ends up with debt collectors, as is likely,) or not.

Yes but it's split into 2 parts, like the o2 refresh tariffs. You have a sim only contract with the network and then a separate credit agreement for the phone. However, unlike the o2 refresh contracts p4u supplied the phone so you paid that part of the contract to them and the other part of the contract to the network.

Mrbaker

Just checked the pdf and it says whenever you upgrade your jump contract it starts a new 24 month contract

Mrbaker

The 2 network parts of the contracts have already been upgraded with the carrier ie Vodafone, so I'm just paying 55£ a month to p4u for phones I don't even have anymore....