Things certainly move quickly, with the meetings the IMPDA has had with Ofcom which was positive and constructive, to the meetings with MP’s at the House of Commons, it is encouraging for UK dealers as the move for change has well and truly begun.

An early day motion started by MP’s quickly rose in the number of MP’s signing in support, and our campaign for change is well underway with support from all quarters.  We would ask ALL dealers in the UK to email us so that we can keep them informed of events and updates.  If you feel that you would like to help us with donations then you can go to www.impda.co.uk to do so.

As widely reported Ofcom will be considering all options, and will be reporting back in March when they will answer our concerns detailed at the meeting with them on the 11^th January.  The IMPDA is also pushing for support for Roger Godsiff to get an adjournment debate on the subject on the floor of the House of Commons.  Dealers have taken the first steps for change of the industry and its important that dealers all over the country join together, whether you are a small villiage shop to a large retail store, or just a web based company, you can help us to help you by joining the IMPDA now.  It’s simple and free to join, just go to www.impda.co.uk and register.

We were very disappointed with a report from Charles Dunstone CEO of Carphone Warehouse on Mobile today mag who should know better, where he accused businesses who run cashback of setting up offering cashback and then collapsing the company to avoid payment.  This is an affront to all UK mobile dealers and such a person as Mr Dunstone should really look to their own company’s reputation and how they operate before making such a rash and unjustified statement.  He said:

Carphone Warehouse has defended its cashback deals in light of greater scrutiny on cashback promotions from Ofcom and bad publicity surrounding cashback.

CEO Charles Dunstone said: 'Cashback deals are a reflection of the aggression people have to get new connections. Subsidies are now significantly higher than the cost of the phones and the margins people are looking to make, so the residuals are given away as cashback.'

Several thousand customers were left with unpaid cashbacks after Dialamobile and Mobile Media Systems collapsed last year. 'Although Ofcom is looking at it, it is an issue for customers who have bought from very small outlets, and been promised cashbacks and [the companies] have gone bankrupt. It's an issue of fraud of people setting up a business, promising cashbacks and then collapsing the business rather than coming from networks or reputable businesses like ourselves.'

Dunstone added: 'It [cashback] will continue because that's the way the market is. If it was to stop we would make a lot more money, but I can't see that happening.' 

We have replied by letter to Mobile Today as follows:-

We as the IMPDA refute Mr Dunstone’s statement, firstly it is far more significant than several thousand customers who have been owed cash-back payments.  Secondly we do not agree that they have all been very small outlets, certainly they are not the size of Carphone Warehouse, but many including a reputable company like Chatterbox have been in business for 10 years and they are certainly not a company set up promising cash-backs, then deliberately collapsing the business. 

As he will know Chatterbox has evidence as to why they have been placed in the position they have, and it is not only an affront to those companies but to dealers in general to suggest such a wild accusation. 

I find it very hard on behalf of UK dealers to take Mr Dunstone seriously, especially when his own company has reported (BBC 7^th September 2006) £250,000 for mis-selling Insurance by the FSA, and now the latest reports (WHICH) 17^th January Carphone Warehouse 'broke data laws' involving setting up customer accounts and in the wrong names breaching the Data Protection Laws, I hardly find that reputable.

If Ofcom ban cash backs then Mr Dunstones own company will also be affected as they will not be allowed to operate cash back so I fail to see his statement of making a lot more money as if he thinks all other dealers will be barred except for his.  Only time will tell until Ofcom make its decision, however we would say this, if Dunstone would concentrate on getting thing’s right in his own company and making E2Save comply with Ofcom guidelines on the 30days which they are still have not complied with, then the UK dealer community would take him seriously.

The IMPDA do not support or condone companies that blatantly offer very high cash backs knowing that they cannot pay it.  We have already had meetings with Ofcom and will be meeting MP’s on the 30^th January.   We are committed to help solve this cash back situation for the good of the consumer and the UK dealers, we would hope that Mr Dunstone will support us in this but to imply that all uk dealers not the size of his company are acting in a way designed to deliberately to deceive customers has no place in the debate.