These companies have now ceased trading, contact your network provider immediately to request a downgrade or contract discount. These will be dealt with on an individual basis if you are owed cashback....

Statements received from the networks today:

Vodafone

Vodafone UK has been made aware that the Mobile Media Group (also trading as Cool New Mobile and Phone Box Direct) has gone into administration. Vodafone UK will be working with the distributor, Dextra Solutions, and the administrator to ensure all consumer enquiries are dealt with as a priority.

In the current case, Vodafone UK believes that it has enforceable airtime contracts with these customers. If Vodafone customers have a query about the impact on their airtime contract then they should call 191 from their Vodafone phone.

As this is a recent development, Vodafone UK will be working with the administrator and Dextra Solutions to ensure any impact on the consumer is minimised. Vodafone believes that it has enforceable airtime contracts with these customers and will consider offers to customers on a case by case basis.

As Vodafone UK believes the affected customers have enforceable airtime contracts in place, Vodafone UK does not expect customers to leave before the minimum contract term expires.

General cashback info:

Vodafone UK is following the industry Code of Practice for the sales and marketing of subscriptions to mobile networks recently introduced by the Mobile Broadband Group and supported by Ofcom. We will continue to communicate with our dealers and distributors and remind them of their responsibility to follow the Code. We take our obligations to follow the Code seriously.

We believe that our tariffs are attractive enough not to need further reductions.  There are many other factors to consider such as network quality and services, handsets etc when devising packages for customers. However, Vodafone UK encourages competition in the mobile industry and dealers and distributors are at liberty to devise their own offers to attract customers as long as they do so within the industry Code of Practice. We continue to communicate with our dealers and distributors and remind them of their responsibility to follow the industry Code. We take our obligations to follow the Code seriously.

O2

In general terms, we don’t encourage cash back. The majority of our consumer contract business is done directly through our own O2 high Street shops and our online website (o2.co.uk). Where we do such business through a reseller, it is via a handful of trusted partners so the volume of cash back deals is low. That said, there is nothing wrong with cash back in principle. Consumers can and do benefit from these deals.

The problem comes when a cash back deal has complicated or unclear redemption terms.  If we find any reseller offering cash back to connect to O2 where the terms do not follow the operator code, we will contact them to get them to change their terms. We will cease to do business with any reseller unwilling to fall into line with the code.

The operator code (the code of practice for the sales and marketing of subscriptions to mobile networks) can be found on the Ofcom website.

Regarding Phoneboxdirect and Coolnewmobile, we have no direct relationship with either of these companies.  We do, however, have a relationship with a company called Dextra who we believe have done a small amount of business with these companies in the past.  We are not aware of any instances of customers being connected to O2 through either of these companies with an unfulfilled cashback deal. 

Orange

Orange advises customers affected by the closure of a third party to contact Orange directly. We review each case on an individual basis and will offer the package most suitable to the customer’s needs with Orange talk plans starting at £20 per month. As Orange is not party to third party cashback arrangements we cannot accept responsibility for non payment

Orange recently reissued strict terms and conditions on cashbacks and we are working with our dealers to ensure high standards of customer service are met. Any retailer not conforming to our standards will be removed from our roster of distribution partners and will be stopped from selling Orange phones. We have already stopped working with over 100 dealers in the past 12 months who have not met our expected service standards

3

3 has introduced the most stringent cashback terms in the industry in a bid to protect consumers and limit cashback deals

Cashback is an arrangement between the retailer and the customer, and 3 is not liable for any

arrangements entered into between the retailer and the customer.  However 3 is concerned

by the number of cashback related complaints it continues to receive and has issued stringent

minimum business terms which if contravened will result in 3 ceasing to trade with the retailer.

3 will require retailers to submit their cashback offers, and associated marketing and

advertising of these offers for approval to 3.

3 has an established process through which all cashback complaints are dealt with. 

Customers affected by liquidation will have their complaint examined through this process on

a case by case basis.

T-Mobile

·          T-Mobile do not feel cashback deals are in the best interest of the customer, the deal is between the customer and the retailer not the network.

·          In the cases of dealers closing down, T-Mobile will look at each case on an individual basis. There is usually only a small percent in any difficulty.

·          Their policy is not to cancel contracts, they would rather negotiate a cheaper tariff. However, they are sensitive to customers predicaments and will look into each on individual basis.

·          They make sure that all dealers adhere to the Ofcom code and they will scrutinise the books of dealers to make sure they are able to offer cashback to customers.

·          If a retailer is not complying, T-Mobile will cease trading with them.

Well, I am going to have a heart-attach through "Not Surprised"

This is just typical of the networks. They KNOW that their agents (those reprobates who deal in cashback scams) are doing something that is fundamentally flawed and financially unworkable. Instead of actually coming out and saying "We will revoke any reseller's licence to sell our airtime if they are involved in any cashback process whatsoever" they are using their full muscle to tell consumers that they will enforce the terms and conditions of the contract and that's the way it goes. SHAME ON THEM.

I believe that MS should place a simple addition on this site to say that all cashback schemes should be avoided at all costs as they are merely a totally discredited and often unworkable discount system.

If people take out an airtime agreement with say Vodafone through an accredited Vodafone agent, and that agent sells the contract with unworkable terms and conditions appended to it, then Vodafone (et al) are jointly and severally liable for the contract and therefore a consumer would be justified in telling the airtime provider to shove their contract where the signal doesn't reach! 

It is high time that UK businesses and service providers started to become accountable to their customers once and for all. I am overjoyed that these tow iniquitous companies are in administration, but Dextra Solutions should be forced to pay up and then close down otherwise they will be back like a useless weed. Kill the root, kill the problem.

SHARK! 

Hi all,

Its important to remember that cancelling your mobile contracts Direct Debit without notifying the operator will affect your Credit File in a negative way.

You can get free access to your credit file online from either of the three UK credit reference agencies (Experian, Equifax and Callcredit), I recommend the Privacy Guard service. as it gives you 30 days access for just £1, plus you can see your credit score an unlimited ammount of times.

Moderator - Link removed, to comply with MS terms of service.

Hope this helps, 

Mark H.