Birmingham MP, Roger Godsiff, today welcomed the news that Westminster would debate the issue of cash back refunds on mobile phone contracts.

Mr Godsiff, who became involved in this issue when local mobile phone retailer, Dial a Mobile, went into receivership late last year leaving thousands out of pocket commented: “The collapse of Dial a Mobile left many of my constituents with out the refunds they expected and were entitled but still locked into expensive contracts with the network providers who in many cases expected payment in full. A debate on this issue is long overdue; the customer deserves a better deal.”

As things currently stand, customers have no protection whatsoever and are at the mercy of the network providers in respect of the contract that they have taken out. Debt collection agencies and negative credit references are very often the first port of call for the network providers. Many former customers are facing genuine financial hardship.”

Mr Godsiff continued: “Since last year the number of retailers going into administration has accelerated rapidly. There are no official estimates of the numbers affected but it must be running close to the million mark with unpaid cash back refunds of between £55 and £75 million. The network providers have a voluntary code of practice which was meant to address issues such as these but it has proved not to be worth the paper it’s written on.”

The debate will take place in Westminster Hall on Wed, 5^th March starting at 09.30am and is scheduled to last for 1½hrs