Mobile cashback 'problematic'

By Editorial Team (Friday, 25th January 2008)

Consumer Direct has highlighted potential problems with mobile phone contract cashback schemes, following similar concerns raised by consumer group Which? at the end of 2007.

Spokesperson for the company Frank Shepherd has spoken about the problems of businesses ceasing trading, as well as consumers failing to read smallprint which could mean they do not get the money they are expecting.

"Other people have taken out cashback offers and found it extremely difficult to claim - some of the terms and conditions are very onerous, making it difficult for consumers to successfully claim the cashback," Mr Shepherd explained.

It was reported by the BBC in December 2007 that Ofcom and Which? had received complaints over cashback deals on mobiles, resulting in the latter calling for the deals to be banned.

Consumer Direct is an advisory service operated and funded by the Office of Fair Trading, in partnership with the Local Authority Trading Standards Services.

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