Wednesday, December 19, 2007

Mobile phone cashback 'rip-off'


Mobile phone cashback schemes are still letting down too many consumers, says the telecoms regulator.
Ofcom continues to get hundreds of complaints every month about the controversial deals, despite a new industry code of practice.

The consumer organisation Which? wants cashback schemes banned, after research found a number of deals were in breach of the rules.

Mobile phone companies insist they take the code very seriously.

Cashback deals are offered to customers who take out new contracts, and promise to refund some or all of their upfront costs at a later date.


Thousands of people have already lost money through these dodgy deals, so don't touch them with a bargepole
Malcolm Coles, Which?

Often funded by commissions from the phone network, cashback can help persuade customers to sign up to expensive price plans.

But the deals have proved controversial because the terms and conditions can be difficult to understand, and even harder to meet, meaning thousands of people fail to claim.

In many cases retailers have gone bust before consumers have received their cash.
Source: http://news.bbc.co.uk

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