Advice needed.. firstcontact mobiles postponed cashbacks

DocHants

I am rather annoyed at having received a letter this morning, saying that due to distributors not payimng them their commision, that they cannot procces any further cashback claims.. they are apparantly seeking legal advice...

Where could this leave me?, over the next 6 months, I am due nearly £700, with 2 phone contracts with them... Ive had one successful payment from them, and are due to claim again shortly...

Their T&Cs state:

10.4 All the cash backs are funded by the commission that we receive from the network on your account. In case network reduces the commission for the tariff plan chosen by you, we have full right to alter the cash back scheme. This will happen only if the change in commission takes place before we connect your mobile phone handset to the network. In case the change in commission takes place after we have connected your handset to the network it will have no impact on the cash back scheme applicable for the order placed by you.

Providing they dont go bankrupt.. will I have a case to take them to small claims court...??? I cant write off this amount of cash!!!

mobilejunkie

Of course. However, if they have/do go under (as most of the riskier dealers have or are in the process of) you will simply be throwing more costs after cashbacks lost. Your call. Don't choose silly dealers and don't do cashbacks AT ALL if you aren't an "expert" at it. Read all the threads on numerous threads; I suggest The Mobile Outlet and 3G. Those should keep you busy for a few days.

DocHants

Ive been doing cashbacks for 3 yeats now, and never had a problem... although I did stray fromt he mainstream dealers on my latest one... doh!!! They seemed to be genuine enough, but then dont they all!!!.. I did my research and found nothing negative about them.....

mobilejunkie

No, they don't "all"! And the "mainstream" dealers aren't the same now either. Forget what you did before; it's a new game now.

I recommend you read my thread:-

http://forums.moneysavingexpert.com/showthread.html?t=558661&page=1

magic

Yes, I'm in the same position with this company. They used to be quite good, I would go into their shop in Leeds to hand over my bills and usually get the money straight into my account within a month.

It sounds like they are going under to me. The letter and explanation given about the problems didn't make too much sense to me though. And unfortunately it isn't possible to get through to them on the phone as they have a recorded message.

If they do go under and are not able to pay cashbacks then I am down about £500 over two contracts. Will see what happens in the coming few weeks, if I can't get through to them and there is no change then I will most likely reduce my tariff to save some money.



http://firstcontactmobiles.co.uk/

DocHants

Keep me posted, an I the same....

Im prepared to take this as far as I can, but if they go under then there will be little we can do... gutted!!!

I know that at the end of the day our contracts, despite being bought through them, are with the networks - but we should be able to cancel them! Afterall, it does sound like it is the networks who are not paying the shop their commission...

It doesnt take a genius to work out that companies cannot expect to hold up to 12 month free deals for long...

magic

well thats the confusing thing about the letter they sent. they kinda blame the network, kinda blame the distributors and then say one of the ways forward could be to negotiate with the network?

unfortunately it is a risk when you go for a cashback deal with any company. i think it is pointless taking them to small claims as they say their "financial resources are drained".

if they ARE trying to sort this out (and i hope they are as they did seem genuine but i'm too convinced) then I hope they give some feedback very quickly. with the information they have given so far i don't expect to get any money from them. unless that changes before i have to pay my next months line rental, i will calling the network to go onto the lowest possible tariff (it is worth trying to get them to cancel the contract but i don't think they will).

DocHants

As far as Im concerned... and according the rheir T&Cs, which state that even if their distributers alter the commision, FCM will still pay what is contracually owed...

Just because they say their finances are drained, doesnt necessarily mean they are, unless they have gone into liquidation... they are probably just trying to put people off...

Im going to apply as normal, and if I dont receive anything by the date I should, I will be going to small claims... I cant write of £700!!!

Unless they go bankrupt, Im fighting it all the way...

magic

DocHants wrote: »

As far as Im concerned... and according the rheir T&Cs, which state that even if their distributers alter the commision, FCM will still pay what is contracually owed...

Just because they say their finances are drained, doesnt necessarily mean they are, unless they have gone into liquidation... they are probably just trying to put people off...

Im going to apply as normal, and if I dont receive anything by the date I should, I will be going to small claims... I cant write of £700!!!

Unless they go bankrupt, Im fighting it all the way...

i agree with you. it sounds like they are going bankrupt sooner rather than later and putting in a small claims now (which i'm guessing will take a few months to go through) will just be throwing away money. as will staying on the contract i'm on if they do go bust.

hmmm, i'm stuck between biting the bullet, accepting that they will go bust and try and save around £120 by going onto a lower tariff or sticking it out and potentially lose out on this money. because of the way they are dealing with this (not taking any calls or replying to any emails) suggests they will go bust and it isn't helpful at all. they have broken the contract as you say, but without giving any definite answers it places us in a difficult situation as to what to do next.

magic

Well Orange won't let me go down to the lowest tariff because the company is still trading according to their details. I can only go down one tariff level a month. oh well, only 3 months to go.