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Ofcom called to Outlaw Cashback Deals

Roger Godsiff has pledged to continue the fight on behalf of the victims of Dial a Mobile cashback deals following a meeting with the 'Big Five' airtime providers.

Dial a Mobile, the Bordesley Green retailer, went into administration recently owing Â£12 million in cashbacks. Many of its customers affected, estimated to be about 90,000, live in Birmingham. Another retailer also went into administration recently, with estimated debts of between Â£4million and Â£10million.

Speaking after the meeting with the airtime providers- Orange, 3, 02, Vodafone and T-Mobile - Roger said "The airtime providers, whatever they might say, are complicit in the collapse of Dial a Mobile and there is mounting proof that in order to get a steady stream of new connections they were prepared to tolerate retailers operating unsustainable cashback schemes which would lead to insolvency if more than 40% of customers applied for their cashbacks. Ofcom, the industry regulator, must outlaw these cashback schemes because they are nothing more than 'scams' and when the retailer goes bust and cannot pay the cash back the airtime providers are still sitting on highly lucrative contacts and are pursuing customers through the Courts to pay-up the contracts!"

"I believe that, providing customers return the phones they were given, the airtime providers should tear up the contracts because many people were misled into signing them and were promised cashback money which they have never received."

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Message from the Chairman IMPDA

On behalf of the IMPDA and its team I would like to wish all UK dealers/distributors/networks a very Happy New Year 2009.

We wish all dealers good luck for 2009 and that their business continues to survive in 2009 after what has been a very difficult last quarter of 2008. Dealers this year need all the help they can get, and we hope that Mobile Network Operators will help to keep the independent dealer alive and well in 2009 and maybe offer special deals which will help to bring more business to the independent sector.

The future for dealers this year may be more difficult due to the economic climate, however dealers are tough and many will survive this difficult time. Despite the gloom, consumers are using their mobiles more and more, and although their may be a slight downturn, it;' not as bad as some sectors. That does not mean that dealers can be complacent. If anything diversification is the word this year, with more dealers taking on additional products to sell, and not just mobiles. Suppliers can also help dealers achieve additional sales, If suppliers would like to help UK dealers then please contact us to discuss.

Happy New Year to you all

Chris Caudle

Chairman IMPDA

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