Hope for mobile phone 'cash back' victims

Staff at Rochdale Council's trading standards department are hoping that there may be some light at the end of the tunnel for the hundreds of local victims of mobile phone 'cash back' deals.

Over the last year, the council has been contacted by many angry residents who have entered into costly mobile phone agreements after being promised 'cash back' on their monthly bills. When the 'cash back' companies disappeared or collapsed, these consumers were left with monthly bills of up to £40 a month for the remainder of the contract, in some cases 18 months. Some customers have even been pursued by debt collection agencies.

However, earlier this month an important decision was made by the Communication and Internet Services Adjudication Scheme (CISAS), which settles disputes for Orange and T-Mobile customers. CISAS ruled that a customer could end his contract because of 'significant changes' from his original agreement. Mobile operators have always maintained that 'cash back' is a separate arrangement between the customer and the retailer, but this latest ruling acknowledges customers' reliance on 'cash back' payments to pay airtime bills.

Rochdale Council's trading standards team is now urging Orange and T-Mobile customers who have not received the 'cash back' promised to them to contact CISAS on 020 7520 3814. Customers who have airtime contracts with the other major networks can contact Otelo on 0845 050 1614, but there is no guarantee that Otelo will make the same decision.

Date article online: 31/03/2008