Holy smoke, start the car!, the IMPDA letter calling on networks to bar cash backs and for the industry not OFCOM to solve this, was designed to get the industry to deal with this issue, it has certainly stirred what was thought to be sleeping dealers on forums.  The dealers have come out with all guns blazing, well on one forum anyway.  It has to be said mainly aimed at the IMPDA by some high street store owners angry against what the IMPDA has and is doing in relation to cash backs, the question is WHY!, when there are many of them that don’t offer cash backs

So why are dealers afraid of change?  Why are they so protective of cash backs when it is damaging the industry?  We’ve heard arguments against banning cash backs and doing nothing, but many many more supporting our stand. All dealers should be concerned to the perception of consumers of dealers not being trustworthy, and the networks attitude toward dealers.

The networks issued directives from Ofcom of  60 days for customer claims, yet CPW and e2Save are blatantly ignoring networks and ofcom, sticking with 30 day claims, so who is keeping them in check – Answer no one.  THAT is NOT a level playing field when small dealers are complying.  Click Mobile closed, Mobilerepublic, Mobiles 4 Free, now Mobile Communications, went down the results of which damaged the industry. Some dealers on some forums are not bothered that the industry should sort this out; it is we the industry that needs to resolve this or else OFCOM could impose severe regulations that make life for the dealers harder. 

To those who decried the IMPDA letter, take note and digest, because, we are now backed in what we have been saying, by the words of OFCOM themselves on the 14^th.  quote “Ofcom is monitoring cashback and mis-selling and is threatening regulation if the industry does not get its act together. Ofcom chief Ed Richards said: 'Consumers must trust those that sell to them. we will not hesitate to step in to protect consumers”   We have received support from many sides, a small number however just rant and rave over our actions.

Well! Dealers! prepare yourselves. Following on from our letter but no necissaraly the result of it,  3 network is the first network who is reported to be going to make changes next month. Dealers will be banned from discounting line rental, ending the 'overlays', such as '99p-per-month line rental' when it is actually cash back.

Dealers offering cash back will have to open escrow accounts where the cash back is stored. Distributors will have to do the same on behalf of their dealers offering cash back.
Dealers must declare cash back promotions in advance.
Failure to do any of the above will result in immediate termination.

The schemes are aimed at discouraging cash back promotions. 3's dealer and distributor chief, Bernie O'Beirne, said: 'We would love to ban cash backs, but legally we can't” We can only wait for the rest of the networks to put forward their regulations. But again dealers have no input, which is why it’s more important than ever for all dealers/distributors to join the IMPDA so everyone has a say in shaping our industry.

If any dealers have a story or problem which is affecting them or the dealers in general please email us at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it or you can join at www.impda.co.uk