Cashback mobile phone warning

People signing up to a cashback mobile phone deal might never get their money returned, Citizens Advice is warning.

The charity reports more and more Britons are signing up to mobile phone contracts promising they will be able to claim back most of the money they are charged in monthly bills.

But in many cases the promised discount does not materialise.

"Some cashback deals work well for mobile phone users who sign up to [them]," said Susan Marks of Citizens Advice.

"But we are seeing growing numbers of people who lose money."

Citizens Advice points out the cash back offer is not part of the contract signed with the service provider, but a separate contract with the shop selling the package.

Mobile phone cashback deals can have complex terms and conditions in their small print, the charity points out, and claiming cash back from them may not be as simple as it seems at first.

Additionally, some of the companies paying the cash back have gone bust, leaving consumers with an expensive contract which ties them in for a minimum period before they can switch out of it.

"People are attracted to these deals because they appear to work out much cheaper than other mobile phone packages, but once the money is handed over it can prove impossible to get it back," said Ms Marks.

"In some cases people find the company concerned has vanished into thin air when the time comes that their refund is due."

To try and avoid being stung with large charges you thought you would avoid - Citizen's Advice recommends customers pay at least as much attention to the fine print on contracts as they do to the shop assistant's sales pitches.

"Above all remember that it is much harder to get money back once you've handed it over, so don't be tempted to pay up front on the promise of cash back in the future unless you're prepared for the possibility that you may never see that money again," Ms Marks said.

"Some of the deals which look a little more expensive at first sight may work out cheaper in the long run."