Call to ban mobile cashback schemes

Posted on 21 December 2007 by Charcol

Be the first to comment


Mobile phone cashback schemes have been strongly criticised in a report by consumer group Which?.

The controversial schemes, which offer money back at a later date to those who sign up to mobile contracts, have led to thousands of consumer complaints to both Which? and the telecoms watchdog Ofcom.

The most frequent complaint from customers is that they have been unable to claim their cash back as easily as they were initially led to believe.

In the summer, major mobile phone providers signed up to a voluntary code of conduct aimed at clarifying terms and conditions, and reducing consumer dissatisfaction.

However, the study by Which? claims that in October, six out of ten mobile phone dealers' websites still contained offers that breached the code.

"We think mobile phone cashback deals that make customers jump through hoops to get their money should be banned" said which.co.uk editor Malcolm Coles. "If cashback is offered, it should be automatic."

"Thousands of people have already lost money through these dodgy deals, so don't touch them with a bargepole. Ring in the new year with a cheap mobile phone deal that doesn't include cashback."

According to BBC News, mobile phone companies have stressed that they take their responsibilities seriously. Both Vodafone and Orange are reported to have said that they take action against any mobile phone dealers who fail to abide by the code.



Post a Comment

Please keep your comments relevant. Charcol reserves the right to edit or delete comments.

Terms & conditions

Your initial mortgage consultation is obligation free. There will be a minimum fee for our mortgage service of £450, of which £150 is payable when you apply, and we will retain the commission from the mortgage lender. Alternatively, you can choose the fee only option which is typically 0.65% of the amount borrowed. The precise amount will depend on your circumstances and mortgage loan amount, and will be discussed and agreed before you make a mortgage application.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY DEBT SECURED ON IT

Legals

John Charcol is a trading style of Towergate Financial (West) Ltd, which is authorised and regulated by the Financial Services Authority; our registration number is 147692. John Charcol Associates LLP is an appointed representative of Towergate Financial (West) Ltd, which is authorised and regulated by the Financial Services Authority.  Registered office: Towergate House, Eclipse Park, Sittingbourne Road, Maidstone, Kent ME14 3EN. Registered in England No: 02292688.  This mortgage site is only directed at persons within the UK.   The FSA does not regulate some investment mortgage contracts.  Calls may be recorded for training and monitoring. Max call charge from a BT landline is 3.9p per minute. Calls from other networks may vary.