'Beware' cash back deals on mobile phones

Consumers have been warned they should be careful with cash back deals offered by mobile phone companies.

Cash back deals allow users to claim a portion of their monthly fee back at designated times in their contract, but have been the cause of many complaints, Consumer Direct has said..

The problems are coming from "onerous" terms and conditions or service providers going out of business resulting in many users not receiving the money due to them, according to one expert at the organisation.

Commenting on the issue, Frank Shepherd, spokesperson for Consumer Direct, 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."

He added that in light of the amount of complaints these issues are causing, it is important that customers calculate whether they can afford the monthly tariff before the cash back reductions.

Funded by the Office of Fair Trading, Consumer Direct is the government-funded telephone and online service offering information and advice on consumer issues.

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