Many mobile phone cashback deals are a rip-off and should be banned, claims consumer body Which.co.uk.
Cashback mobile phone deals have been branded a rip-off by one of Britain's leading consumer bodies.
Which.co.uk has joined a growing consensus that many cashback mobile phone deals fail to honour their side of the bargain when it comes to handing out cash owed. Even when they do fork out, many companies will often make you jump through hoops in order to get the deal you signed up for.
Which? has reported thousands of calls from its members complaining that they are unable to claim their cashback, either because the terms and conditions of the deal have made it complicated to claim, or in some cases, that the firm goes bust.
The Fool has already highlighted some of the major pitfalls of these deals, some of which simply turn out to be too good to be true.
Customers are often enticed by cashback deals which in some cases offer you a contract for next to nothing. These deals often require you to pay upfront for a 'deal' that costs £30 to £40 a month, and claim the cashback later.
Inevitably, some customers forget to claim their cashback, while those diligent enough still need to claim during specified months, such as the 3rd, 6th and 11th months of the deal.
Often, if you don't claim within the company's allotted time frame, which in some cases can be as little as two weeks, you lose out. Some firms will also refuse to pay out any more cashback should you miss just one of the windows to make a claim.
This July saw the big five mobile phone companies: Orange, Vodafone, O2, T-Mobile and 3 sign up to a voluntary code of practice in an attempt to reduce the number of people missing out on their cashback deals.
However, when Which checked 10 mobile phone dealers' websites, they found that offers on six of the sites breached the code. For example, e2save.com, part of the Carphone Warehouse gave just 30 days for bills to be returned, half the recommended 60 days.
When they presented their findings to the phone networks, the response varied. Orange and O2 said they would change their terms immediately, while Vodafone said the code was still in its infancy, and claimed that its terms wouldn't have changed yet.
So what can you do if you've got one of these deals and don't want to be caught out?
Firstly, do your research. That way you can ensure that you're dealing with one of the trustworthy retailers. Check out our Mobile Phones and PDAs discussion board for some hints and tips.
As Neil Faulkner pointed out in 8 Cashback Mobile Phone Tips, Carphone Warehouse, e2save and onestopphoneshop have all received positive comments on our discussion boards.
However, although Carphone Warehouse has generally been the most praised when it comes to reputation, the biggest downside is that its deals aren't as attractive as some of the no-name websites. You can expect to get about half your money back with Carphone.
Secondly, stay organised. By keeping all of your phone bills in one place, and marking a calendar at home to remind you of when you need to be sending off your bills, you can ensure you don't miss out on any money.
Also, when it comes to sending off your statements, make sure you send them by recorded delivery so you have proof that your statements got to their intended destination. This way, you can be sure that you won't get caught up among the many creases the mobile phone industry still needs to iron out.