Bit of Mobile help please
Discussion
Hi guys, got a bit of a problem and was just wondering what the best way to go forward is.
Basically my mum had a mobile phone contract on one of these cashback schemes. When this was coming to an end she was called up by the company offering her another deal. She took up this offer and recently sent of the relevant bits and bobs for the cashback on the new contract, however nothing came back.
She chased it up and has recieved an email basically saying their new business model was wrong and they only did it because of pressure from the networks. They say they are not paying out cashbacks but are working on a solution to resolve the situation however if people demand payment now then they will seek insolvency.
TBH them using crap business strategies is nothing to do with us, so we are wanting our cashback now as there is little chance that they will sort things out and pay up in the future.
So was wondering about the best way forward?
1. They have a couple of retail stores so I could go into one of these
or
2. Could threaten and then initiate small claims court proceeding for breach of contract.
So which one is the best idea or any other suggestions?
PS: also finally do you think it is possible to cancel the contract with the network after 6 months, as future cashbacks are doubtful, on the basis that it was missold by an authorised reseller who adopted the business model suggested by the network?
Thanks in advance for your help!
Basically my mum had a mobile phone contract on one of these cashback schemes. When this was coming to an end she was called up by the company offering her another deal. She took up this offer and recently sent of the relevant bits and bobs for the cashback on the new contract, however nothing came back.
She chased it up and has recieved an email basically saying their new business model was wrong and they only did it because of pressure from the networks. They say they are not paying out cashbacks but are working on a solution to resolve the situation however if people demand payment now then they will seek insolvency.
TBH them using crap business strategies is nothing to do with us, so we are wanting our cashback now as there is little chance that they will sort things out and pay up in the future.
So was wondering about the best way forward?
1. They have a couple of retail stores so I could go into one of these
or
2. Could threaten and then initiate small claims court proceeding for breach of contract.
So which one is the best idea or any other suggestions?
PS: also finally do you think it is possible to cancel the contract with the network after 6 months, as future cashbacks are doubtful, on the basis that it was missold by an authorised reseller who adopted the business model suggested by the network?
Thanks in advance for your help!
Edited by H_Kan on Sunday 2nd December 21:28
I'm not expert but It sounds like a breach of contract to me...
unfortunately as I understand it your contract for ongoing services is with the network.
The contract for the supply of the handset is with the retailer.
The cashback is part of the retailer contract not the network contract - i.e you still would have the contract with the network which isn't in breach.
I'd expect the retailer to up sticks and vanish as they say if their liability was too great - you're left having paid too much for a phone and/or having an expensive contract with a promise of Jam tomorrow.
I tend to think these retailer cash back offers based on regular cheques in future months must inherently be a risky model as they must be using future commissions from sales to fund future cashbacks - and used your comission to fund someone else's. If they don't sell enough (or the network cut's their comission) in the interim and don't get the money back from the networks how can they fund the cashback?
It might cost me more but I prefer dealing with the networks directly.
Simes.
unfortunately as I understand it your contract for ongoing services is with the network.
The contract for the supply of the handset is with the retailer.
The cashback is part of the retailer contract not the network contract - i.e you still would have the contract with the network which isn't in breach.
I'd expect the retailer to up sticks and vanish as they say if their liability was too great - you're left having paid too much for a phone and/or having an expensive contract with a promise of Jam tomorrow.
I tend to think these retailer cash back offers based on regular cheques in future months must inherently be a risky model as they must be using future commissions from sales to fund future cashbacks - and used your comission to fund someone else's. If they don't sell enough (or the network cut's their comission) in the interim and don't get the money back from the networks how can they fund the cashback?
It might cost me more but I prefer dealing with the networks directly.
Simes.
Lots of phone companies offer these cashback deals and ultimately default.
The phone networks just distance themselves from it.
Its a con.
Unfortunately you have been conned.
If you are on a contract where you were offered cashback and it didn't materialise then that was a part of the contract so they have broke it.
You are free therefore to stop your direct debits etc and get a phone contract with someone else.
You are unlikely to get your cashback as this is a very well known scam with many people prosecuted for performing it.
seek legal advice about stopping your payments first..
a bit of naming and shaming wouldn't go amiss either.
http://business.timesonline.co.uk/tol/business/industry_sectors/telecoms/article2933839.ece
The phone networks just distance themselves from it.
Its a con.
Unfortunately you have been conned.
If you are on a contract where you were offered cashback and it didn't materialise then that was a part of the contract so they have broke it.
You are free therefore to stop your direct debits etc and get a phone contract with someone else.
You are unlikely to get your cashback as this is a very well known scam with many people prosecuted for performing it.
seek legal advice about stopping your payments first..
a bit of naming and shaming wouldn't go amiss either.
http://business.timesonline.co.uk/tol/business/industry_sectors/telecoms/article2933839.ece
i had a never ending problem with a well known phone store once with a mobile phone they where messing me about with.
took 4 months to get what they where trying to wriggle out of.
long story but in the end I called the manager (had his mobile and direct landline number by this point) at 9:15 one morning and said ive been in work 15 mins and todays already become a bad day for me, so, im coming down to give you a hard time and you will sort out the problem im having or ill scare every customer out of your store and stay untill you've given me what was promised originally (cash back as it happens), I also mentioned it is a very good idea to tell the police to be on stand by at 1:00 becuase im going to kick off big time.
then put the phone down.
got to the store, mike wasnt around apparently, so I started shouting why the hell are you promising me things then your top man is running away without paying etc etc.
5 mins later, store was empty and mike appeard from the back of the shop and sorted everything out.
i said thanks, called him a chicken shit and was on my way.
took 4 months to get what they where trying to wriggle out of.
long story but in the end I called the manager (had his mobile and direct landline number by this point) at 9:15 one morning and said ive been in work 15 mins and todays already become a bad day for me, so, im coming down to give you a hard time and you will sort out the problem im having or ill scare every customer out of your store and stay untill you've given me what was promised originally (cash back as it happens), I also mentioned it is a very good idea to tell the police to be on stand by at 1:00 becuase im going to kick off big time.
then put the phone down.
got to the store, mike wasnt around apparently, so I started shouting why the hell are you promising me things then your top man is running away without paying etc etc.
5 mins later, store was empty and mike appeard from the back of the shop and sorted everything out.
i said thanks, called him a chicken shit and was on my way.
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