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    Cashback Company Gone Bust - T-Mobile - How Do I Cancel My Contract! :-(

    I went through a cashback company who seem to be on the verge of going bankrupt, my contract would have cost me £9 a month after cashback but now I'm paying £35 a month, £220 worth of useless cheques upstairs which I can't bank and I've got until 16th August to end my contract.

    Call centre staff won't downgrade my services or cancel my contract for free but they want a early cancellation fee of £76, two future months bills won't add up to that!

    I'm with T-Mobile, pay by Direct Debit, is there anyway I can get out of this without paying any more money?

    34 Comments

    don't think so, you might have to sell your BM

    you signed a contract, you have to fulfil it or pay it off ....... never depend on a cashback site for cost, and always use a reliable one such as quidco / rpoints / cashback kings

    This is why I don't like signing up with companies that offer redemption schemes, as you honestly don't know if they'll still be operating throughout the terms of your contract.

    Unfortunately, the third party company sets up your contract with T-mobile and then it's passed over to them, on there own terms of the contract i.e flext 35 contract at the full rate.

    Original Poster

    I never wanted to take this contract out, my first ever contract!

    My sister used them for a year or two and paid all the bills and I kept using her phone so she said to me when her latest contract finished that I should take out a contract.

    If I was to cancel my direct debit, what effect would this have?

    Only once in my life I went through cpw & those B***ards stole my hard earned money. Made up my mind that even if the cashback makes my contract free, I will never go with them. Imagine if cpw being the biggest of them can cheat, then anyone can. Unless they pay cashback upfront.

    ninj4z;5320255

    I never wanted to take this contract out, my first ever contract!My … I never wanted to take this contract out, my first ever contract!My sister used them for a year or two and paid all the bills and I kept using her phone so she said to me when her latest contract finished that I should take out a contract.If I was to cancel my direct debit, what effect would this have?



    Unfortunately, I think they can eventually chase you up via debt collectors and it'll damage your sisters credit rating.

    ninj4z;5320255

    If I was to cancel my direct debit, what effect would this have?



    You would get letters from the mobile phone company, and eventually a day in court for not fulfulling your legal obligations, or they would pass on your debt to an agency who would come round and take your belongings to pay the debt.

    If I was to cancel my direct debit, what effect would this have?



    i assume they will start to harrass you with letters asking you to pay, they will then start threatening action against you until you do pay them. Not sure how far they will take it

    realfriendlyman;5320269

    Unfortunately, I think they can eventually chase you up via debt … Unfortunately, I think they can eventually chase you up via debt collectors and it'll damage your sisters credit rating.



    It's got nothing to do with his sister, he was just using her old phone. The contract is in his name.

    Banned

    what do you mean on the verge of? who is the company and why have you got £220 of cheques you cannot cash

    Banned

    1. you cant cancel unless you pay your contract up in full
    2. you can cancel the DD but they will take you to court for the cash and your credit rating will be ruined
    3. shouldnt rely on cashback redemptions
    4. i will give you £100 for that PM in your avatar - that way you can pay the £76 off and have enough for a few happy meals

    Sure this thread was on here a month or so ago?

    sassie;5320340

    what do you mean on the verge of? who is the company and why have you … what do you mean on the verge of? who is the company and why have you got £220 of cheques you cannot cash



    It's a redemption deal, so they say something like "send in your invoices 3 times over the course of the next 12 months and we'll give you cashback of £220"

    This means that if they don't receive the invoices (or lie about it), they have no obligation to pay you.
    In this case, there is no one to send the invoices to and the redemption contract is with that company, so the T-mobile contract is just for the standard deal.

    I contemplated this offer myself on different terms but decided against it since there's so many companies going bust.

    dmc direct i presume

    Same happened to me about two years ago. Contract should have cost me nothing, ended up costing me £35.month for 18 months after the cashback company went bust. Unfortunately your contract it with the mobile phone company and not with the cashback company and therefore you have to honour the contract. As mentioned before, it is for this reason that I would never ever use a cashback company again no matter how reputable they are. I simply look for the cheapest deal now without any redemption being involved.

    Banned

    Benjimoron;5320409

    Sure this thread was on here a month or so ago?



    it seems so hotukdeals.com/ite…em/

    Banned

    realfriendlyman;5320421

    It's a redemption deal, so they say something like "send in your invoices … It's a redemption deal, so they say something like "send in your invoices 3 times over the course of the next 12 months and we'll give you cashback of £220"This means that if they don't receive the invoices (or lie about it), they have no obligation to pay you.In this case, there is no one to send the invoices to and the redemption contract is with that company, so the T-mobile contract is just for the standard deal.I contemplated this offer myself on different terms but decided against it since there's so many companies going bust.



    well i assumed that but also presumed if he only had two months left then he would have done some of the cashbacks already :?

    Babbabooey;5320273

    You would get letters from the mobile phone company, and eventually a day … You would get letters from the mobile phone company, and eventually a day in court for not fulfulling your legal obligations, or they would pass on your debt to an agency who would come round and take your belongings to pay the debt.



    Nope i doubt that very much:thumbsup:

    The worst thing which will happen is probably a bad credit rating and no company will let you take out a contract again. Thats if you stop paying the bills etc.

    sassie;5320433

    it seems so … it seems so http://www.hotukdeals.com/item/380402/dmc-anyone-got-a-contract-with-them/



    lol, one month and a week!

    Banned

    t-mobile have changed their t&c twice ver the last month, you could try that route

    Original Poster

    sassie;5320501

    t-mobile have changed their t&c twice ver the last month, you could try … t-mobile have changed their t&c twice ver the last month, you could try that route



    I've tried that route but they won't budge.

    It is with DMC, the shop is still open but I got a letter from them before the cash in date for my second last cheque of £100 stating they are in financial difficulty and to contact a number for more information.

    Everytime I ring, I get the same answer stating they are not in liquidation at present, they are looking for buyers to take on the company but nothings been sorted yet.

    Banned

    why dont you just cash the cheque, and even if not it still works out you havent paid £35 a month for a phone and minutes, texts, etc, etc

    Original Poster

    sassie;5320621

    why dont you just cash the cheque, and even if not it still works out you … why dont you just cash the cheque, and even if not it still works out you havent paid £35 a month for a phone and minutes, texts, etc, etc



    Thought of cashing it in but what happens if the cheque bounces, do I have to pay any charges?

    I'm sure DMC would be clever enough to wipe out the account's balance of which the cheques cashed in would be taken from?

    sassie;5320501

    t-mobile have changed their t&c twice ver the last month, you could try … t-mobile have changed their t&c twice ver the last month, you could try that route



    All the big 4 have changed their T&C, but wont cancel the contract.

    Banned

    ninj4z;5320664

    Thought of cashing it in but what happens if the cheque bounces, do I … Thought of cashing it in but what happens if the cheque bounces, do I have to pay any charges?I'm sure DMC would be clever enough to wipe out the account's balance of which the cheques cashed in would be taken from?



    if they are still trading, i dont see how they can bounce it, also you where told this a month ago on your other thread

    Banned

    KOGONAI;5320667

    All the big 4 have changed their T&C, but wont cancel the contract.



    i have seen a fair few on here who have managed it, so it was a thought

    sassie;5320681

    i have seen a fair few on here who have managed it, so it was a thought



    Sorry didnt mean to be rude, but I agree thats the best bet of all :thumbsup:

    Banned

    KOGONAI;5320689

    Sorry didnt mean to be rude, but I agree thats the best bet of all … Sorry didnt mean to be rude, but I agree thats the best bet of all :thumbsup:



    you didnt come across as rude:thumbsup:

    the op asked a month ago about this, and the most sensible thing to have done was ignore the leteer and cash the cheque

    Original Poster

    sassie;5320705

    you didnt come across as rude:thumbsup:the op asked a month ago about … you didnt come across as rude:thumbsup:the op asked a month ago about this, and the most sensible thing to have done was ignore the leteer and cash the cheque



    Had doubts of cashing it in, read somewhere that sometimes banks incur a charge for bounced cheques.

    The letter from DMC states this:
    This may delay certain payments, in particular cheques for cash-back on phone contracts. However it is in the full intention of the company to honour all payments and agreements originally entered into. :?

    If the cheque bounces, then DMC will get a charge, not you - why don't you check with your bank instead of leaving a cheque sitting at home for the past month? :thumbsup:

    Yes, get the cheque cashed asap. I think you can file a legal case against them if it bounces.
    Go to Watchdog or just threaten the cashback company that you will. Not that it will affect them if they are selling, but worth a try.

    Original Poster

    KOGONAI;5320973

    Yes, get the cheque cashed asap. I think you can file a legal case … Yes, get the cheque cashed asap. I think you can file a legal case against them if it bounces.Go to Watchdog or just threaten the cashback company that you will. Not that it will affect them if they are selling, but worth a try.



    Thanks for all the replies, will give it a try now, should have done so earlier :?

    Banned

    realfriendlyman;5320243

    This is why I don't like signing up with companies that offer redemption … This is why I don't like signing up with companies that offer redemption schemes, as you honestly don't know if they'll still be operating throughout the terms of your contract.



    Agreed. In the past I ALWAYS used to use them. Each year, I would get a new contract and my phones and minutes would cost me virtually zero.

    I nearly got caught out when one of the first companies went under. Wasn't their fault to be fair (C&E decreed they were giving back VAT they weren't entitled to be doing!) And they used to give the FULL contract refund after 30 days of the contract starting.

    I just get my cheque in time, but my sister who bought her phone on the same day, didnt. Paying £35 a month for 250 minutes with a crap phone is no fun. She just became a creditor - and got back about 8p in the £ of what she was owed. I've never touched one since.
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