Cashbacks to be Declared illegal

AbsPhone

Everyone should listen to the interview which took place at 8.04am on 20 Oct 2007 Radio 5:

I cannot see any of the Cashback companies surviving-The networks now realise that the position is wholly untenable and corruption is rife

Note these two articles and tear up your bills

http://www.fairinvestment.co.uk/cut_your_bills-news-'Most-mobile-cashback-deals-are-a-con'-18322538.html

http://www.mobiletoday.co.uk/content/17097.asp?men=2&sub=6:T :cool:

AbsPhone

Dear Sir/Madam,

RE: Mobile phone retailers and cashback deals, Mobile Connections and Dialamobile Plc

A number of my constituents have been in touch with my office concerning the apparent collapse of a company called Dialamobile Plc, which has left many of them having to fund excessive contracts with airtime providers without the cashback provided by the company with whom they originally signed. Not surprisingly, these developments have caused considerable financial hardship to a number of families, many of whom have taken out more than one contract.

I understand that Birmingham Trading Standards are attempting to meet with the airtime service providers and yourselves to try to find a resolution to this problem and I would be grateful if you would be kind enough to update me on any progress made.

I am led to believe that this is not the first time that a mobile phone retailing company offering cashback deals has ceased operation in this manner and that the practice of offering cashback deals continues with the tacit approval of airtime providers. In many cases the airtime providers do not even insist on copies of contracts being supplied to them by the retailers who are selling on their behalf.

Please can you clarify what you consider to be the legal position in relation to these particular contracts as I have read that Consumer Direct, set up to complement the work of Trading Standards, argues that the mobile network provider shares a responsibility under a 'collateral contract'. It points out however that there are no precedents here because no one can afford to take the network providers to court. If neither customers nor airtime providers have copies of contracts can the latter legitimately insist on payment?

My latest information is that airtime providers are currently insisting that these expensive contracts be honoured. I think however that the customers of this fixed retail company might legitimately ask where they can seek redress in this matter as the regulatory framework seems not to have provided the necessary safeguards and they are left to rely on the 'goodwill' of the airtime providers.

Perhaps the solution is to restrict contracts of this nature or to ensure that the airtime providers build in greater safeguards. Either way I would be grateful if you would be kind enough to update me on the present situation and any progress in addressing the more immediate concerns of the customers involved in this situation.

With thanks for your assistance in this matter.

Yours sincerely

Roger Godsiff MP

BigDaddyBlue

i'd like to see how this goes but i can see most of these companies squirming out one way or another.

AbsPhone

Don't be so pessimistic :mad: Noone is above the law. If everyone on this website all wrote to their MPs rather than pontificate on a forum read by geeks, something would have been done about it years ago:j

AbsPhone

'Most mobile cashback deals are a con'

Many cashback offers from mobile phone companies are not what they seem and are best avoided, it has been claimed.

Actually getting the cash from the company once a deal has been signed can be a battle through complex contract terms, according to moneysupermarket.com.

The price comparison site advises consumers to avoid redemption cashback offers and plump for guaranteed cashback deals instead.

According to a survey undertaken by the site, one in four people with cashback deals have had difficulty obtaining their money.

And one in ten have not received any money at all, despite some being due under the contract term.

Moneysupermarket.com identified a number of practices which may make it difficult for consumers to get their money back under a cashback scheme.

These include only allowing claims on certain months of the contract, requiring paperwork to be faxed or posted and taking up to 45 days to process claims.

BigDaddyBlue

i'm not being pessamistic, (sorry if it seemed that way) I looked at a few of thes types of deals when i was looking at getting my last mobile contract, but just got bamboozled my the t&c's and when you had to send off what bills and when and all the various conditions attached to the contract.

personally when i get my next phone i'm gonna go to a store and get a phone where i get a free gift there and then be it cash back or a gift but actually walk out of the shop with it as well as the phone.

AbsPhone

Voda breaks rank on cashback crisis


Vodafone has broken ranks with the other networks and moved to address consumers' lack of confidence in mobile contracts, following the collapse of cashback retailer Dialamobile.

Vodafone said Dialamobile customers who do not have enforceable contracts are being allowed to discontinue their contracts at no charge.

In a further move to appease frustrated customers, Vodafone is letting those who are five months into their contracts reduce their monthly line rental to £5, while still keeping the same amount of bundled minutes and texts.

But other operators are standing firm. Orange said: 'Customers are bound by their contract's terms and conditions.' Earlier this week, T-Mobile reinforced its position on cashback to its independent dealer channel. On Monday, the operator sent a memo to its dealers stating that cashback deals must not exceed the value of the dealers' commission, and they have to adhere to Ofcom's guidelines on sales and marketing of subscriptions. It also recommends that cashback offers be underwritten by insurance agreements.

T-Mobile said that failure to meet obligations in relation to cashback deals is 'extremely damaging to the relationship T-Mobile has with its customers'.

The operator has refused to ban cashback completely, despite theoretically being given the green light by Ofcom.

Ofcom's guidelines, which were signed by all five networks in July, state: 'Operators may forbid a particular mode of selling altogether or set out terms and conditions in their contracts with third-party dealers.'

A T-Mobile spokesman said: 'We need to see what recommendations Ofcom makes. We don't want to impede our dealers, but we don't want dealers to take part in any practices that affect our relationships with customers.'

AbsPhone

I've sent a petition with 83,184 names to my MP. I've also got proof that bthese companies knowingly mislead their customers. It's even worse than the ITV and BBC frauds-This involves billions of pounds when one considers the phone revenue ensuing from those gullible enough to commence contracts via the devil

Merlin139

I have had 4 phones of Dial a Phone over the last 3 years a succesfully claimed all of the cashback due on each one. I would recommend them to anyone. My latest deal gives me a brand new Nokia N73, 400 anytime mins 500 texts all for £16.67 a month net. I do have to pay £35.00 each month on a 12 month contract but claim back £220 split between months 6,9 and 12

My daughter has the same deal with a cheaper phone and only pays £12.50 a month net on a 12 month contract.

They both suit us down to the ground. Network O2

Always make a note on when cashback claims are to be made and then make sure you claim it.

thesaint

Cashbacks to be Declared illegal

So the government are going to pass a law (Illegal)?

Lynsey

Note these two articles and tear up your bills

You tear yours up first !!!!!!!!!!!!!!!!!!

Lynsey