Samsung Trade in phone locking threat

savvyst

Hi all,
Hope someone can help with my issue.
Bought a new Samsung mobile from Cash Converters that was factory sealed and have the receipt as proof of purchase. Gave it to my sister as a gift and she has used it with no issue for few weeks now. She registered the device with Samsung recently and got a message last Friday stating phone will be locked in 72 hours as it is linked with an incomplete Trade in order. Contacted Samsung trade who can't do anything as purchased from a 3rd party! Spoke to Cash Converters shop who are happy to give a refund but my question is what right do Samsung have to lock a phone as I have had no dealing with them and am simply a Samsung customer via a 3rd party retailer. Any one with some helpful advice appreciated. This is besides the inconvenience of buying a new phone and the threat of my sisters phone being locked anytime soon. Requested Samsung to hold off the lock for a few days so I can sort this out but they simply won't help!

TadleyBaggie

I think Samsung have every right to lock the phone, if they have effectively reduced the price of a new phone based on the assumption they were going to receive the handset and never did. 

400ixl

So you don't believe a retailer has the right to block a phone which has been part of a fraudulent transaction. Essentially stolen in all but a term and then sold on to another trader. They technically still own the phone, which is why they have the right to lock it.

This is a big risk of buying any secondhand phone. Cash Converters are doing the right thing in refunding you and taking the hit (they are not going to get their money back).

Be grateful you are getting a refund. Take it and get another phone (remembering you have the same risk with another second hand one).

savvyst

I agree a retailer has the right to block a phone but it was not stolen as the Cash Converter guy said they check for these. Seems to be a new type of fraud where you claim a discount on a new phone and send details of another phone for a trade in where you have obtained the IMEI number etc. I feel Samsung should block the phone of the person who falsely traded it in and ask them to pay the discounted price, chase them up. The CC guy admitted this type of fraud is a new thing. My point is I could get a phone's IMEI number, use it for a trade in and that phone will be locked when Samsung don't receive it, whoever rightfully owns it. Imagine if this was your phone and you get a message that it will be locked in 3 days and they can't help at all.

finbaar

The phone was clear at time of selling to Cash Converters. But it's very easy to either stop paying for it or (if on a monthly holiday plan) or report stolen after getting cash for selling. 

PHK

savvyst said:

I agree a retailer has the right to block a phone but it was not stolen as the Cash Converter guy said they check for these. Seems to be a new type of fraud where you claim a discount on a new phone and send details of another phone for a trade in where you have obtained the IMEI number etc. I feel Samsung should block the phone of the person who falsely traded it in and ask them to pay the discounted price, chase them up. The CC guy admitted this type of fraud is a new thing. My point is I could get a phone's IMEI number, use it for a trade in and that phone will be locked when Samsung don't receive it, whoever rightfully owns it. Imagine if this was your phone and you get a message that it will be locked in 3 days and they can't help at all.

You've got it a bit back to front. It's the new phone that gets blocked. 
The new phone doesn't become property of the recipient until the trade in has taken place and they are not therefore able to sell it and if you bought it you wouldn't rightfully own it. 

400ixl

Its not new at all, been going on for years.

You buy a discounted phone with 14 days to send in the trade in. Sell the new phone before that date and there is no flag for more than the discounted value and never send the trade in. The next step is for them to block the IMEI as they don't know it has been sold on.

Its that or a pay monthly renewal that they sell which is still owned by the provider until the credit is paid off, but they just stop paying for it and the onward buyer is left with a blocked phone. 

Risk you run in buying a new conditioned secondhand phone. Probably the riskiest state of a phone to buy.

savvyst

400ixl said:

Its not new at all, been going on for years.

You buy a discounted phone with 14 days to send in the trade in. Sell the new phone before that date and there is no flag for more than the discounted value and never send the trade in. The next step is for them to block the IMEI as they don't know it has been sold on.

Its that or a pay monthly renewal that they sell which is still owned by the provider until the credit is paid off, but they just stop paying for it and the onward buyer is left with a blocked phone. 

Risk you run in buying a new conditioned secondhand phone. Probably the riskiest state of a phone to buy.

Thank you for explaining how this scam works. Sister has ordered a new phone and am hoping they don't lock it before she has transferred all her stuff to the new one. I was comforted that I was buying from a high street retailer and the phone was brand new with the factory seal on the box still intact. 

TheSpectator

savvyst said:

400ixl said:

Its not new at all, been going on for years.

You buy a discounted phone with 14 days to send in the trade in. Sell the new phone before that date and there is no flag for more than the discounted value and never send the trade in. The next step is for them to block the IMEI as they don't know it has been sold on.

Its that or a pay monthly renewal that they sell which is still owned by the provider until the credit is paid off, but they just stop paying for it and the onward buyer is left with a blocked phone. 

Risk you run in buying a new conditioned secondhand phone. Probably the riskiest state of a phone to buy.

Thank you for explaining how this scam works. Sister has ordered a new phone and am hoping they don't lock it before she has transferred all her stuff to the new one. I was comforted that I was buying from a high street retailer and the phone was brand new with the factory seal on the box still intact. 

Ask yourself who would sell a sealed brand new phone at well under it's true value to a shop like Cash Converters.

savergrant

savvyst said:

400ixl said:

Its not new at all, been going on for years.

You buy a discounted phone with 14 days to send in the trade in. Sell the new phone before that date and there is no flag for more than the discounted value and never send the trade in. The next step is for them to block the IMEI as they don't know it has been sold on.

Its that or a pay monthly renewal that they sell which is still owned by the provider until the credit is paid off, but they just stop paying for it and the onward buyer is left with a blocked phone. 

Risk you run in buying a new conditioned secondhand phone. Probably the riskiest state of a phone to buy.

Thank you for explaining how this scam works. Sister has ordered a new phone and am hoping they don't lock it before she has transferred all her stuff to the new one. I was comforted that I was buying from a high street retailer and the phone was brand new with the factory seal on the box still intact. 

The thing you've got to remember is cash converters have sold that phone to you at a profit. Soneone has taken an unopened new phone to them and accepted less than half its value in all likelihood. It's questionable why someone would do that. Apart from the very cheapest smartphones there's almost certain to be some sort of finance agreement but cash converters have no way to check the phone is fully paid up, only that there is no registered default....yet. it's taking it on trust that the person selling the phone is going to keep up any repayments.
As with anything else if you buy something which, somewhere along the line, the person who sold it didn't legally own it then it diesn't become yours.
You will be inconvenienced but it is cash converters who will lose out unless they can trace the seller and recover their money.