How to avoid being conned when recycling old mobile phones

Some are being ripped off when recycling their old mobile phones, with plummeting valuations once the firm receives the phone. Here's how to ensure you get a fair price.

It's a pleasure to recycle and get paid for it, which is why many people like to get cash for their old mobile phones through one of a very large number of websites that buy them and then re-sell them, or at least parts or materials from them.

However, for some people the whole experience just leaves a nasty taste in their mouths.

Consumer Action Group has revealed another story about a person who had been promised £51 for his phone. But when he sent it in, he was told he's be paid just £17 instead.

He was sent photos, apparently of his phone, showing that it was in a state of great disrepair, with a huge scratch on the screen and a cover that had been crudely glued on. Yet, as far as he was concerned, the phone was in pristine condition when he sent it.

He was offered the choice of £17 or he could pay £9 to have the phone returned to him. He claims the company did not mention the return charge on its webpage detailing how the scheme works or in the FAQs, although he admitted it was in the terms and conditions.

After his description of some appalling customer service, he's decided to make a case in the small claims court. Although he did not take photos of his phone before sending it – a warning to all of you – he's hopeful that the judge will rule he's most likely in the right when he takes swathes of evidence from the internet showing many other customers who have had similar problems with the company. He's probably got a good chance of success.

You might also be told that you will receive less money because there is a PIN or password lock on your phone. Some discussion board users complain that this happened to them even though they know it is not true.

Which website appears to be the worst offender?

The website that appears to receive more than its fair share of complaints is cash4phones.co.uk. By my count, this website has received far more critical comments in forums and at the bottom of articles than any other company I have seen.

It has an average customer-review rating of 1.3 out of five at the Review Centre, whereas Envirofone, Mazuma Mobile, Cash My Fone, Money For Your Phone and Fonebank all have between four and five stars.

What you could do instead

It makes a lot of sense to me to put your old phone on eBay. There are likely to be enough bidders there that you get at least a fair price for it, even if “fair” for a very old or worn phone might be very little. The buyer can't say later that they're going to pay you less either, but make sure you describe the phone and its condition accurately, and use good photos.

Alternatively, charity shops will often gratefully receive mobile phones, so check out some in your area. Ask if the shop allows Retail Gift Aid. This allows it to sell the phone on your behalf, so that you can donate the cash received from the sale in order to benefit from the Government's Gift Aid scheme. This is a legitimate scheme approved by Revenue and Customs.

You can part-exchange to get a new phone, but beware that two-layered deals like this can easily bamboozle. You could be quoted a high cash value for your phone to entice you in, but the cost you're charged on the new phone or phone deal could be inflated too. You might also be told that the offer is only valid if you accept it right away (a pressure tactic that is now specifically banned by law, but still widespread).

If you go for part-exchange over the internet instead of in a shop, you have the additional disadvantage that these websites could, too, pay you far less than you expected after they receive the phone.

In addition, you'll probably find that shopping around for a new deal on the internet and doing the exchange separately will give you a better overall return.

If you're going to send your phone in to one of the websites that pay cash, at least check out the reviews first. Read the terms and conditions carefully and take lots of photos of your phone before sending it and include a letter stating the condition of the phone and that there is no PIN or password lock on it.

Finally, if a company is offering twice what everyone else is, be very suspicious.

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