Ofcom call for mobile phone cashback schemes to be banned after complaints customers are being ripped off.
Thousands of people have been hit by mobile phone cashback schemes that are not all they claim to be. Aggressive and dubious sales tactics are to be subjected to strict rulings after a large number of complaints that customers are being misled.
Cashback deals allow you to pay upfront for your mobile handset and contract and then claim the money back after a certain period of time, usually 60 days. These schemes often persuade customers to sign up to expensive price plans in the hope of having their money reimbursed.
The deals have proved controversial because the terms and conditions are difficult to understand and with the majority of network providers going 'bust' before you are able to reclaim your money, often leaving customers with expensive, lengthy contracts that they are unable to get out of. Naturally, mobile phone operators such as, Vodafone and Orange insist they take their obligations under the code very seriously and any breach of policy would not be tolerated as pointed out by moneyhospital.co.uk.
A new report from consumer group Which? claim that they receive over hundreds of calls everyday from unhappy customers unable to claim their money back from these so called cashback schemes. Which? editor Malcolm Coles, stated that, "mobile phone cashback deals that make customers jump trough 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."
The regulator Ofcom aims to investigate sales practices after receiving more than 700 complaints a month. Ed Richards, the chief executive of Ofcom, said that he could have "no choice but to set mandatory standards backed up by the full weight of Ofcom's powers". They are now calling for these schemes to be banned.
