UK mobile customers 'misled by refund offers'

Rising numbers of UK mobile phone users are being caught out by offers of “cash back” which they never receive, a charity warned today.

The promised refunds make the contracts seem much cheaper than rival deals, according to the British Citizens Advice service.

But the cash back offers come with so many conditions attached that customers often lose out on the money, the charity said.

The refunds – which are part of contracts with phone retailers, not the mobile phone companies – make the monthly phone bill payments seem much cheaper.

But the offers have complex terms and conditions “buried” in the small print which means claiming the money back can be difficult, Citizens Advice said.

The charity warned that some consumers ended up hundreds of pounds out of pocket – either because they couldn’t claim the refunds or because the company offering cash back had gone bust.

Citizens Advice consumer affairs social policy officer Susan Marks said people were attracted to the cash back offers because they seemed much cheaper than other deals.

She said: “Some cash back deals work well for mobile phone users who sign up to them. But we are seeing growing numbers of people who lose money.”

Citizens Advice is urging anyone who has problems with mobile phone contract cash back deals to contact the telecoms regulator Ofcom and Citizens Advice.

Its warning comes during Scams Awareness Month, which is run by the UK Office of Fair Trading to alert people to common scams.