Mobile Phone Cashbacks

Many third-party mobile phone retailers are offering attractive-looking cashback schemes to induce new customers into entering contracts with mobile phone providers. Many of these companies go out of business or are unable to fulfil their financial obligations. This can often leave consumers with expensive, lengthy contracts with their network provider that they are unable to get out of. Read here for some advice on how to avoid such schemes.

Watch out for mobile phone cash back scam

Mobile phone customers are being warned to be aware of a scam that involves an offer of cash back when signing up to a fixed-length and often expensive contract.

We have seen a significant increase in the number of complaints relating to such deals.

The scam involves a customer signing up to, for example, an 18-month contract with the mobile phone operator with the promise of £350 cash back after a year.

Once the year is up, they then find the company has either ceased trading or there are so many terms and conditions attached to the offer that they find they do not qualify for the money.

After interventions by our trading standards officers, complainants have received refunds totalling in excess of £1,000 as well as reduced mobile phone premiums and early release from fixed-length contracts.

The problem arises when the major mobile operators subcontract to companies to find new customers. These subcontractors in turn use a third tier of companies who operate by telesales or in mobile phone shops. These companies then break their cash back offers or cease trading.

Anyone who has had similar problems or would like to discuss any consumer-related issues can contact Consumer Direct on 08454 04 05 06 or 01622 626520 (standard and local call rates apply) or visit the Direct Gov website.