Mobile phone cashback ‘rip-off’
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.Minimum standards By March 2007, Ofcom was receiving 500 complaints about mobile phones every month, with half referring to cashback deals.In July it brokered a voluntary code of practice with the five mobile phone networks.This set out minimum standards for the marketing and administration of cashback deals, and listed terms deemed “unreasonable”.If we see that offers are non-compliant with the code, then we will take action to rectify the situation Vodafone.
Ofcom supported the industry code on the basis that it would lead to a “significant” reduction in the volume of cashback complaints.That has not happened.”We believe the number of complaints is still too high,” said an Ofcom spokesman.”We are now talking to both the mobile operators and the retailers and are looking at implementing other measures to give consumers more protection,” she added.Further announcements are expected in the new year.
Source : http://news.bbc.co.uk
