Call to ban mobile cashback schemes
Posted on 21 December 2007 by
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.
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