Call for ban on "dodgy" phone cashback deals

[y2krog2000]

Many mobile phone cashback deals are a rip-off and should be banned, says consumer group Which?
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It branded the deals -- where customers pay upfront for a handset and contract and then try to claim back some or all of their money -- as "dodgy".

Which? said thousands of consumers had contacted it after they were unable to claim the promised cashback, either because the terms of the deal made it too complicated or the phone dealer had gone bust.

Earlier this year, Britain's five mobile phone networks -- O2, Vodafone, 3, Orange and T-Mobile -- signed up to a voluntary code of practice, designed to stamp out misleading sales and marketing practices in the mobile market.

But research carried out by Which? in October found that six out of 10 mobile phone dealers' Web sites breached the code.

Malcolm Coles, editor of which.co.uk, said: "Mobile phone cashback deals that make customers jump through hoops to get their money should be banned.

"Thousands of people have already lost money through these dodgy deals -- so don't touch them with a bargepole."

Industry regulator Ofcom saw a surge in mis-selling complaints in first half of this year -- to around 500 per month from 200 to 250.

They included complaints about cash-back promotion schemes and "slamming" -- where consumers are cold-called and switched to a different network or expensive, long-term contract against their will.

It is now considering taking action against mobile phone operators, as the new code has only led to a slight dip in the number of complaints -- to around 400 to 450 per month.

"Our work on mobile mis-selling is one of our priorities," said a spokeswoman. "We haven't so far seen the significant reduction (in complaints) that we wanted."

The body plans to announce new measures in 2008.

Call for ban on "dodgy" phone cashback deals - Yahoo! News UK