Think carefully about cash-back contracts, consumers advised

25 January 2008

Consumers considering switching to a new mobile phone tariff have been advised to considering cash-back deals carefully before signing a contract.

Consumer Direct, the government-funded telephone and online service offering information and advice on consumer issues, said cash-back deals have been "one of the big problems" for mobile phone users in recent months.

Spokesperson for the service Frank Shepherd said: "Some of the companies offering these deals have gone bust, so what's happened is people have been left with their contract, but they aren't able to reclaim that cash back."

"Other people have taken out cash back 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 cash back. That's been a big reason for why we've seen such a big rise [in complaints]."

He said that in light of such issues consumers should consider whether they can afford the monthly contract without the cash-back offer before committing to the deal.

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