Carphone Warehouse flexible leasing

in Mobiles
7 replies 2.4K views
Has anyone else been miss sold the flexible leasing option at Carphone Warehouse? Below is a summary of what I have experienced...

On the 22nd September 2017 I walked into a branch of Carphone Warehouse with a view to purchasing the New Iphone 8.

I had the funds available to purchase the phone outright however after spending time discussing options with the sales advisor I was sold a “Flexible Leasing” option on the basis that if I wanted a new phone every year this was the best way to do this.

I was told that I would pay a set fee every month and then after 12 months I could give my phone back and this would offset any payment needed to upgrade my phone.

On the advice and detail given to me by the sales advisor I went ahead with this option.

A couple of days before the anniversary of the start date of this contract I went back into the same branch of Carphone warehouse and asked what my options would be at this when it came to year post purchase.

The advisor told me he wasn’t sure as he didn’t know about the flexible leasing but he thought I would have to pay around £400. Upon questioning him further he told me “I have just told a customer not to bother taking this out as it doesn’t really make sense.” He then told me if I wanted to know the full details to call Carphone Warehouse Customer Services.

Carphone Warehouse Customer Services informed me they didn’t deal with flexible leasing and I needed to speak to someone in store – upon me telling the operative of my recent experience in store I was told that they would be able to help me and then told me that I was eligible for an upgrade and they could arrange a new phone with them. I made it clear several times to the operative I had taken out the Flexible Leasing plan but they assured me it would just be cancelled if I upgraded with them.

I was not confident that this was the case so did not proceed over the phone.

On 23rd September I went back in to the Carphone Warehouse branch and asked to speak to the manager – he listened to my questions and then said he would look into I he said he wasn’t sure about the plan as I was the first customer to reach the 12-month point of the contract. He went through the process of reviewing the deal and old me to upgrade I would need to pay £270 plus a £50 admin fee (Total of £320) – he then said “But you just offset this when you hand the phone in.”

He entered details on the computer and then said that the system was showing the value of my phone as £0

He said that can’t be right as if it was it made no sense to him as it would be a very poor deal for the customer – he told me he would contact Think Smart and come back to me over the phone the next day.

I waited 2 days and got no response so called the store on 26th Sept – I was told that he still hadn’t had confirmation back but he thought that the upgrade cost of £320 was correct and that you couldn’t off set this cost with the phone.

He said “It wasn’t made clear to us when we started selling these contracts” and then told me “Since your complaint the whole business has been sent E Learning Modules as no one knows how these contracts work.”

He said he would call back as soon as he had final confirmation – as I still hadn’t heard anything on 30th September I went back into store and was told that a confirmation email about the terms had only been received that morning and actually the fee was correct and I would need to pay this if I wanted to upgrade.

Without me saying anything he then immediately told me that Carphone were unable to deal with complaints about this and I would have to contact Flexible Leasing Direct.

I said I was shocked at how bad this deal was for a customer – he agreed and apologised saying that it doesn’t make sense for a customer to buy into it. He said Carphone were pushing them to sell this product but he as a manager could not do this as he knew there was no benefit for the customer in doing so.

He said they had been mis informed last year as they were told they could off set phone against the cost of upgrade and he himself said the literature an detail around the 12 month period was “Grey”

He said I would be the first of many to complain and they were getting training on the product and would make everything clear to customers that this would probably not work out for them.

I am shocked and appalled at the lack of knowledge Carphone employees have about this product and I was absolutely miss sold the product at point of purchase. The pivotal piece of information that led me to take the contract was incorrect – I.e. offsetting the upgrade cost with the return of the phone was completely inaccurate.

My key complaints are;

I was miss sold the product at point of purchase as per above as I was told any cost of upgrade could be offset by the return of the phone
How can carphone warehouse employees be given E Learning training about the product 12 months after selling it to customers?
The product makes absolutely no financial sense and miss leads customers by stating “Get the Latest Smart Phone Every Year” “Keep Control of Your Finances” – buried in the T’s and C’s are the points around Upgrade Fees and there is no definitive cost associated
The customer service of carphone warehouse is not joined up – with the phone line tolling me one thing and Instore being told another
If Carphone Warehouse Employees are now advising customers NOT to take this product how can this have ever been offered as an option?


  • SystemSystem Forumite, Community Admin
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    How much did you still owe on the phone after paying those initial 12 months?
  • My experience echoes John22's experience with Carphone Warehouse's Mobile Flexible Leasing.

    Last year I was on Apples upgrade programme but when the Assistant at Carphone Warehouse explained the Flexible Leasing deal they offered i.e.Pay £49.99 up front Admin fee and after my 12th monthly payment, provided the phone is not damaged and in good working order can upgrade to any brand of phone-simply hand in the phone and pay another £49.99. I thought this was great and not tied to one particular brand of phone, so my Wife & Myself took out the Flexible Leasing agreement-our 12th payment is due on 15 November 2018. So in readiness, we popped into the same store-only to be told the bombshell news that there's also a final settlement figure from the finance company! The assistant said the same and that they were not aware of this when they were advising customers and of course makes absolutely no financial sense whatsoever and no way would I have signed up to! The 'Final financial settlement' -especially being such a 'grey area'-who in their right mind would sign up to! So, today I called Carphone Warehouse Customer Service and explained. I was told because this was done in store, I need to take up with the manager in store-my response being but he represents Carphone Warehouse and as far as I'm concerned been totally mis-sold this Flexible Leasing agreement with no mention of a final settlement. The assistant again saying they knew nothing of it, my response to the assistant is that I hold Carphone Warehouse totally responsible for misleading me to sign what is basically a totally impractical, unviable agreement that only the Finance Company gains considerably. I wish I just purchased my phone outright! I will be back to Carphone Warehouse after my 12th payment before lodging my formal complaint and pursuing a complaint with OFCOM-Very, very unhappy being totally mis-sold!!:(
  • Good luck with that. Nowadays it's almost impossible to sell any kind of finance package with hidden charges unless the customer doesn't read it carefully beforehand.
  • What happened did you get anything back the same has happened to me
  • What happened did you get anything back the same has happened to me
  • Did you ever get this resolved? Has I’m in the same position.
  • Long story short, the exact same thing happened to me. I took out my policy in April 2018 and have no idea why I didn't just get a normal contract phone. Flexible leasing has had no financial benefit to me at all. I sent them a very long winded complaint letter saying that it was mis-selling and Carphone Warehouse upheld my complaint. They said when the policy first came out, it wasn't very clear to staff about the upgrade fee and so staff hadn't give the full information out to customers. They gave me a £500 refund to buy me out of my lease which was the main thing that I wanted, to get out of that contract. And they also gave me enough to make the additional payment on top so I can keep the handset. Winner winner.
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