Chatterbox (merged threads)

SCRIBES

Just heard on the radio that CHATTERBOX.com has gone bust. Apprarently they didn't expect some many people to claim on time! :eek:

W1zz

There was a piece on Radio 5 business news this morning (6am) about cashback deals and Chatterbox was mentioned as one such company struggling. Apparently their business model was based on only 40% of customers remembering to make their cashback claims. They've been getting 80%.

At no time did it mention that Chatterbox had gone bust, but they read out a statement from them saying that they will be doing all they can to fulfill current cashback claims and apologized for any delay.

Are you sure they've gone bust ?

Having a quick look around - It looks like Radio 5's article was based on one here http://www.mbmagazine.co.uk/index.php?option=com_content&task=view&id=2692&Itemid=62 posted 26 September.

matthead

I took out a cashback offer with chatterbox in March this month, I presented them with their 6 months of phone bills as requested in the cashback over a month ago, I emailed them asking where is my cashback and this is the response I got.

We can confirm we have received claim which has been approved and is awaiting payment. There is currently a delay in this process.

Below follows a letter that explains the delay:

Dear Customer,

Firstly thank you for your custom which is much appreciated and valued.

Recently there has been a serious delay in cash back payments. For this we apologise unreservedly. In well over 10 years in this business it is the first time that we have not been able to pay cash backs.

We believe that you are entitled to know why these delays have occurred and this letter is being sent to you so that you will know what has happened. For many years chatterbox.com worked on, and budgeted for 100% redemption of cash backs in relation to all cash back promotions with customers. However, in recent years, there has been a change of emphasis by telecom operators (and by one operator in particular). As a result we were put in a position whereby we adopted a 40% redemption model. This model was based on the business assumption that only 40% of all customers would claim their cash back. This model, however, proved to be wrong as the redemption actually was approximately 80%. As a result the company’s financial resources were drained. We believe that the problem which we have faced has been caused by the large corporations which introduced the 40% model. We are taking legal advice as to whether we have a claim against these companies. As you will appreciate, we are not at liberty to disclose a great deal about these issues at the present time.

In addition, commission due us from a particular network for significant quality business introduced to them has not been paid to chatterbox.com. This has caused us further difficulties.

We are now looking for ways to recover our position. For over 3 months our policy, deliberately taken, has been to cease any cash back business.

chatterbox.com was and still is facing a huge problem as a result of the actions of certain networks. These networks were warned by us about dealers making customers offers that were uneconomical and unsustainable. They did not listen to us. The outcome has been losses for customers and chatterbox.com.

Please also be aware that we have ourselves have voluntarily been to Trading Standards to present our case.

Our overriding purpose over the past few months has been to get our customers’ cash backs paid. Please note that over the years we have paid well over £6 million in cash backs. Over many years chatterbox.com has always acted ethically, morally, legally and has established a strong brand. We are not a multi-national conglomerate, but a small private business that has always put the customer first. It still has excellent relationships with major networks and manufacturers at a very high level.

If circumstances permit, it is our intention to find some method of rewarding customers for their patience.
Our proposed steps going forward are:

· Seek payment to customers via negotiation with Networks
· If the above fails, pursue legal proceedings
· Seek the involvement of OFCOM, OFT, and the media

Please be patient in pressing us for your money, our sole objective is to get you paid. If you insist on immediate payment we will have no choice but to cease trading. If you give us time we will not rest until these cash backs are paid in full. If not, regrettably there will be nothing. Please, once again, sincerest and deepest apologies.

Yours sincerely,

Management Team
chatterbox.com

Kind Regards,

Cash Back Department

This is criminal, I am prepared to consider legal action against the company, could anyone advice where I stand.

matthead

I would never take a cashback again...

Old_Gold

matthead wrote: »

This is criminal, I am prepared to consider legal action against the company, could anyone advice where I stand.

I think they have told you where you stand. They will cease trading so you will get nothing. This was always the chance that was taken about paying anything upfront and a company going bust.
However if they said they are in talks withs Trading Standards then why not contact them.
What I do have is sympathy for them as regards the networks go who are the ones who are really creaming in the profits especially as the market has been expanded by cashback deals putting people on contracts who may not have taken them without the incentives.

alnsv1000s

See Watchdog tomorrow night.

cv65user

i am stil owed 80 quid , any one applied to mcol online ?

grayme-m

alnsv1000s wrote: »

See Watchdog tomorrow night.

Chatterbox specifically mentioned on Watchdog.

dov

Any updates on the state of cashback with Chatterbox as I am about to send in my first voucher.

One way they could prevent the masses from suing is by paying people in smaller instalments like £10/month until they have sorted their cash flow problems. In addition they could get an independent audit to verify their story. At least chatterbox's claim seems more plausible and honest than mobileshop's 'technical problems' and Mobile Affiliates denials.

DaveyWavey_3

dov wrote: »

Any updates on the state of cashback with Chatterbox as I am about to send in my first voucher.

One way they could prevent the masses from suing is by paying people in smaller instalments like £10/month until they have sorted their cash flow problems. In addition they could get an independent audit to verify their story. At least chatterbox's claim seems more plausible and honest than mobileshop's 'technical problems' and Mobile Affiliates denials.

You could have 'fun' (read no luck :mad:)
Going down the Money Claim Online route for my cash-back and it turns out that Chatterbox's Director (Kevin Patel) may well have mis-registered his Company with Companies House.

I'm posting via another well known consumer web-site:

• MoneySuperMarket.com

• • http://www.moneysupermarket.com/comm...x?PageIndex=22

And will be trying to get hold of the BBC Watchdog & Daily Mirror team who have both also reported on this issue:

• The Daily Mirror:
  • 20th September 2007
    • http://www.mirror.co.uk/news/investi...9520-19817817/
  • 11th October 2007
    • http://www.mirror.co.uk/news/investi...9520-19932181/
• BBC Watchdog
  • 17th October 2007
    • http://www.bbc.co.uk/consumer/tv_and...20071017.shtml