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Phones 4U: Contract cashback payments at risk?

Phones 4U: Contract cashback payments at risk?

Phones 4U customers who opted for money-saving cashback deals may face a struggle to claim back what they’re owed, a report suggests, amid uncertainty over the company’s future.

The ailing retailer went into administration on Sunday, after every major UK network opted not to renew their contracts in the last year.

The move, which came despite Phones 4U returning a profit of over £100 million last year, is intended to clear the way for carriers to reduce the amount they pay in commission to retailers.

Phones 4U has already pledged that contracts taken out before the announcement will be honoured and that iPhone 6 pre-order customers will be refunded.

However, the fate of thousands of consumers who are still owed money from cashback contract is a lot less certain. The same goes for people who bought a Phones 4U smartphone insurance policy, who may or may not now be covered.

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This is because although the contracts were with the networks, the cashback part of the contracts and insurance were the responsibility of Phones 4U.

According to The Guardian, “a significant number of people” took out cashback deals with the retailer in the weeks leading up to its announcement. One such was still up for grabs last Saturday and offered customers £50 if they switched from O2 or Three to EE or Vodafone.

Gauging the sums owed seems to be tricky. But it seems that in some cases, the amount owing could be hundreds of pounds.

Phones 4U has yet to comment on the situation. But it’s thought that in the worst case, those affected could effectively become the company’s creditors, leaving them having to make claims in a bid to recover some or all of what they’re owed.


Phones 4U

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