Mobile phone contracts can be a huge pain in the rear...
...where do we begin?
Hmm, how about the fact that thousands of you have lost money through dubious mobile phone cashback deals?
A new report from consumer group Which? said it receives hundreds of calls each month from customers complaining they are unable to claim their money back and they now want cashback schemes banned altogether.
Cashback deals allow you to pay upfront for your handset and contract and then claim a portion of your money back over a certain period of time. Often funded by commissions from the phone network, cashback persuade many of you to sign up to expensive price plans.
However, the deals have proved controversial because the terms and conditions can be difficult to understand, (and even harder to meet) meaning thousands of you fail to claim. Also, many firms often go bust before you are able to reclaim your money.
By March 2007, Ofcom, the telecoms watchdog was receiving 500 complaints about mobile phones every month, with half referring to cashback deals.
Clearly they were not proving popular...
So, in July Ofcom brokered a voluntary code of practice with the five mobile phone networks, which said they should not use unreasonable terms for customers trying to claim their money back. It also said customers should have at least 60 days to post bills in support of their claims.
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 though has it?
An Ofcom spokesman said:
"We believe the number of complaints is still too high. We are now talking to both the mobile operators and the retailers and are looking at implementing other measures to give consumers more protection."
Which? cited one customer who had to send
30 emails before receiving their £223 cashback, while another
lost more than £600 when his mobile phone dealer collapsed before paying out.
When Which? checked ten dealers' websites in October, it found offers on six of them breached the industry code.
The e2save.com website, which is part of Carphone Warehouse, gave just 30 days for bills to be returned instead of the recommended 60 days, Which? found.
Which? editor Malcolm Coles spook about their findings:
"We think 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."
Naturally, the mobile phone operators insist they take their obligations under the code very seriously;
Vodafone said it continues to communicate with its dealers and distributors, and remind them of their responsibility to treat customers fairly.
Orange said it has recently reissued strict terms and conditions on cashback deals to ensure high standards of customer service. A spokesman said the company had stopped 100 dealers selling Orange phones in the past 12 months because they failed to comply with the rules.
Which? said it had told the five mobile phone networks about the findings of its October investigation.
Now, we'll just have to see if they are going to do anything about won't we?
Have you been ripped off by a mobile phone cashback deal? Why not let us know?