Onecompare

Joined: 01/06/2006
Posts: 194

CoolNewMobile and PhoneBoxDirect
Posted on: 15/11/2007 @ 16:23

It has come to our attention that Phoneboxdirect and Coolnewmobile – both trading names of Mobile Media Systems and Mobile Affiliates Ltd have gone into liquidation. This means that unfortunately customers of these two retailers are unlikely to receive their cashback.

In the three and a half years of OneCompare.com’s existence this is the first such instance of a featured company going into liquidation.

All retailers featured by OneCompare.com have been checked prior to inclusion in the results and both of these sites have been featured on OneCompare.com since its inception. The companies in question have been in operation for over 4 years and showed no outward signs of trouble. Over the last few months the companies have reduced the commission it pays to third parties such as OneCompare.com, reduced the amount of cashback they offer customers, planned expansion into offline mobile phone retail and hired high level former employees from Phones4u/Dextra. All of these actions should have increased their profit margins.

This problem affects us just as it affects our customers as we are unlikely to receive any outstanding commission owed for directing people to these websites.

We are actively pursuing advice on the best course of action for customers who have outstanding cashback claims with either Phoneboxdirect or Coolnewmobile and will let our customers know what we discover.

Consumer Direct's advice for customers affected by this is that they can try to retrieve their cashback from the liquidator of the company but that the main creditors will have priority over any cashback claims, for example buildings and utilities. The liquidator must be named to Companies House within 21 days but has not been submitted as yet, however when we have this information we will publish it. As it is a limited company not a sole trader the company directors cannot be contacted or held liable for outstanding cashback claims.

We would advise customers affected by this to contact their network directly to see if they are able to reduce their tariff to a more acceptable level or to cancel the contract due to the circumstances. Networks have reduced tariffs or cancelled contracts in the past due to cashback problems, however this is at the networks discretion. Another situation which may arise is if a network changes the terms of its contracts in a significant way, as this can sometimes be used to terminate your contract. We will keep on top of any such changes to contracts that may allow affected customers to cancel their contracts.

Please note that your mobile phone contract and your cashback contract are from separate companies. Your mobile phone contract is with the network directly and though they may offer help they are not obliged to. We strongly advise customers not to cancel their mobile phone direct debit as this will affect your credit rating.

I would like to reiterate that such a situation is extremely uncommon, especially since many companies featured on OneCompare.com are trading names of Carphone Warehouse (e2save, onestopphoneshop, phonespot) or Phones4u (mobiles2yourdoor) which are incredibly financially sound.

Please accept our sincerest apologies, and be assured that we are doing everything possible to discover the best course of action for customers affected by this.

Enceladus

Joined: 15/11/2007
Posts: 1

RE: CoolNewMobile and PhoneBoxDirect
Posted on: 15/11/2007 @ 21:21

Can Onecompare please check if we have any protection due to equal liability under section 75 of the Consumer Credit Act 1974?​

Both CoolNewMobile and PhoneBoxDirect made a charge of £2.50 at the time of order to your credit or debit card where the phone was free. See below extract from the terms and conditions. The customers were also liable for further credit / debit card charges for breach of the T&​C's in certain circumstances.

My understanding is that section 75 protection might apply if any part of the contract was paid via a credit card.

"By placing each order, if the phone you are purchasing is free, we administer a charge of £2.50 which will be charged to your credit/debit card for the purpose of verifying that your card details are correct, that your card has not exceeded its limit and to ensure the card has not been reported stolen, the card must be registered in your name at your current address."

Thanks,
Enceladus

Onecompare

Joined: 01/06/2006
Posts: 194

RE: CoolNewMobile and PhoneBoxDirect
Posted on: 16/11/2007 @ 09:37

Hi Enceladus,

We have looked into this and it seems that customers would not be covered under the Consumer Credit Act due to the following:

- Payments made on debit cards are not covered
- Cash price of goods must be over £100. As the ongoing payments are a seperate credit agreement with the network it is unlikely that section 75 could be invoked
- There is also an issue when a different business charges the card than the one who provides the goods and services as explained in the following excerpt.

Onecompare

Joined: 01/06/2006
Posts: 194

RE: CoolNewMobile and PhoneBoxDirect
Posted on: 16/11/2007 @ 16:10

Quote as taken from CNM and PBD websites (16/11/2007):

Mobile Media Systems Limited – t/a Phoneboxdirect and Mobile Affiliates Limited t/a Coolnewmobile and Phones2yourdoor.

These companies were placed into administration on Wednesday 14 November, the joint administrators being Philip Lyon and Steve Wood of Mazars LLP.

Phone Box had been actively marketing via the internet mobile telephones which offered cash-back incentives to customers, providing certain conditions were met by those customers.

Unfortunately the number of customers that were able to comply with the terms and conditions and hence became eligible for the cash-back payments exceeded the company’s expectations. The company is therefore no longer in a position to meet its ongoing liabilities to those customers.

It had been hoped that negotiations with the supplier of the telephones and the networks involved would have enabled a “rescue package” to be implemented to assist those customers affected.

Unfortunately it has not been possible to achieve that objective within the timescale available to the company.

The company has insufficient money available to enable payments to be made to employees and therefore it will no longer be able to answer any individual telephone enquiries. In addition, it follows of course, that email communications will remain unanswered.

We are in the process of obtaining the company’s records of the email addresses of all customers. Any future communication will be by email or posting to the company’s website (www.phoneboxdirect.com) or (www.coolnewmobile.co.uk).

We anticipate that customers main queries will be regarding cash-back claims. Our initial investigations show that these liabilities may be between £4-10 million. There is no possibility that the company will be able to make any meaningful payment to any creditor, whether consumer or supplier.

The second query from customers is in connection with their ongoing contracts with the network suppliers. We are unable to advise individually on this point and would suggest you to contact your network supplier direct or you may wish to take legal advice or contact your local Citizens Advice Bureau or Trading Standards Office.

Useful Contact Information

Vodafone

Customer Services: 07836 191 191

From your Vodafone mobile: 191 (free call)

Opening times: 24 hours

Website: www.vodafone.co.uk

O2

Customer services: 08705 860 860

From your O2 mobile: 100 (free call)

Opening times: Mon-Sun: 08.00-21.00

Website: www.o2.co.uk

T-Mobile

Customer services: 0845 4125 000

From your T-Mobile mobile: 150 (free call)

Opening times: Mon-Sat: 08.00-22.00 Sun:08.00-20.00

Website: www.t-mobile.co.uk

3 "Three"

Customer services: 08707 330 333

From your 3 mobile: 333 (free call)

Opening times: 24 hours

Website: www.three.co.uk

Orange

Customer services: 07973 100 150

From your Orange mobile: 150 (free call)

Opening times: 24hours

Website: www.orange.co.uk

Manfacturers Information

LG

Customer Services: 0870 607 5544

Website: www.lge.co.uk

Motorola

Customer Services: 0870 9010 555

Website: www.motorola.com/uk

NEC

Customer Services: 0208 9938 111

Website: www.nec.co.uk

Nokia

Customer Services: 01480 43 43 43

Website: www.nokia.co.uk

Panasonic

Customer Services: 08705 357 357

Website: www.panasonic.co.uk

Sagem

Customer Services: 0207 5365 400

Website: www.sagem.com

Samsung

Customer Services: 0870 2420 303

Website: www.samsungelectronics.co.uk

Siemens

Customer Services: 08705 33 44 11

Website: www.siemens.co.uk

Sony Ericsson

Customer Services: 08705 237 237

Website: www.sonyericsson.co.uk



edited by Onecompare on 16 November 2007 @ 16:10

Leo29

Joined: 21/11/2006
Posts: 68

RE: CoolNewMobile and PhoneBoxDirect
Posted on: 18/11/2007 @ 21:16

I knew it! I KNEW IT!

Just like I said several months back, aviod these companies at all costs and the signs were there months ago.So yet again more retailers going bust due to these unrealistic, unsustainable cashback deals. Another wake up call to the industry. Is this going to be the start of the decline in these many cashback deals?​

Racer

Joined: 23/09/2006
Posts: 642

RE: CoolNewMobile and PhoneBoxDirect
Posted on: 18/11/2007 @ 23:26

OneCompare,

I don't wish to seem impolite but in regard to the recent and entirely predictable demise of "Mobiles@yourDoor.com" an explanation by you of the anomaly between this posting of yours on 15 November:

Onecompare

Joined: 01/06/2006
Posts: 194

RE: CoolNewMobile and PhoneBoxDirect
Posted on: 19/11/2007 @ 09:47

Hi Racer,

Mobiles2yourdoor is a company owned by Phones4u. Phones2yourdoor is another trading name of Mobile Media Systems and Mobile Affiliates Ltd which has never been featured on Onecompare.com

The two are websites are not related in any way.

Thanks

OneCompare

Leo29

Joined: 21/11/2006
Posts: 68

RE: CoolNewMobile and PhoneBoxDirect
Posted on: 19/11/2007 @ 10:09

My prediction is that mobileshop.com is also heading in the same direction. They too have been struggling to pay peoples cashbacks since January this year and its only a matter of time until they also file for administration as well.

mobinfo

Joined: 22/11/2007
Posts: 4

RE: CoolNewMobile and PhoneBoxDirect
Posted on: 22/11/2007 @ 11:34

Mobile shop are a big outfit also and alot of their deals are powered by Vanilla mobile who are owned by the Carphonewarehouse. So any cashback deals put through (Virgin) will be paid by them so pretty safe I think!

Onecompare

Joined: 01/06/2006
Posts: 194

RE: CoolNewMobile and PhoneBoxDirect
Posted on: 29/11/2007 @ 11:50

For anyone affected by the liquidation of CoolNewMobile and PhoneBoxDirect please see the following article from the MoneySavingExpert website:

http://www.moneysavingexpert.com/phones/
coolnewmobile-phoneboxdirect-help

It explains the problem well and provides advice for customers.

OneCompare.com Team.

redmonkey

Joined: 30/08/2007
Posts: 44

RE: CoolNewMobile and PhoneBoxDirect
Posted on: 05/12/2007 @ 13:10

Hi,

I just wanted to say that I called Vodafone last night to see if they could do anything to help me (called soon after all this happened but they said they couldn't do anything!).

They passed my details onto a special team - who just called me back &​ offered me either half price til the end of my contract or for a further full 12 months. Went for the remainder as I like my new phones every 12 months :)

Very happy with this (know others have been given £5 line rental - but it seems this has been stopped now!) will definately look favourably on Voda from now on! They seem to be offering the most help :)

redmonkey

Joined: 30/08/2007
Posts: 44

RE: CoolNewMobile and PhoneBoxDirect
Posted on: 05/12/2007 @ 13:10

Hi,

I just wanted to say that I called Vodafone last night to see if they could do anything to help me (called soon after all this happened but they said they couldn't do anything!).

They passed my details onto a special team - who just called me back &​ offered me either half price til the end of my contract or for a further full 12 months. Went for the remainder as I like my new phones every 12 months :)

Very happy with this (know others have been given £5 line rental - but it seems this has been stopped now!) will definately look favourably on Voda from now on! They seem to be offering the most help :)

I just wanted to pass this on in case anyone else hadn't tried calling their network yet - DO IT ;)

edited by redmonkey on 05 December 2007 @ 13:11

HAOHAO

Joined: 13/12/2007
Posts: 3

RE: CoolNewMobile and PhoneBoxDirect
Posted on: 13/12/2007 @ 12:25

Hi!
i got a 12months contract with ORANGE!
I discover the liquidation of Phoneboxdirect by myself because i was waiting more then 45days for the cashback(exactly on the date of the liquidation)
I went to the CitizenAdviceBureau Ladbroke Grove(London)speacialized in consumer issues and the lawyer spoken directly with a Orange supervisor.
They were really worried the call are being recorded(was actually a good idea)
ORANGE totally ignored the request for a goodwill gesture or closing the contract a special condition.
The lawyer was very concerned about the matter the only option for me was paid silently.
I call my bank and disconnet the Direct Debit.
I am well informed about the credit rating system but i don't want live hostage by the computer evrything i am doing.
There are 30.000 people affected by this, unless your multimilionare network considering your situation a little, if most of the people following this way, in the future they will be more careful before
dealing with other companies and a way to getting a better customer service.

HAOHAO

Joined: 13/12/2007
Posts: 3

RE: CoolNewMobile and PhoneBoxDirect
Posted on: 13/12/2007 @ 12:30

CARPHONE WAREHOUSE E2SAVE

After the liquidation of Mobile media sytem
E2SAVE owed by Carphone Warehouse changed the Term of the cashback adopting the same system of the companies owed by Mobile Media Sytem.
A coincidence?​!
The customer service of O2 now deal directly with the issues regarding your contract.
Seems Carphone Warehouse drop the customer service relation.
Better or worst?​!
I prefer like this honestly.

HAOHAO

Joined: 13/12/2007
Posts: 3

RE: CoolNewMobile and PhoneBoxDirect
Posted on: 13/12/2007 @ 12:37

EMAIL FROM MAZAR LiQUiDATOR

After more then one month finally the email of the liquidator seems to arrive to all customer.
Nothing new, nothing helpful, nothing good for the consumer.
As said before unless your network showing goodwill i advise to adopt a hard line towards them.

Onecompare

Joined: 01/06/2006
Posts: 194

RE: CoolNewMobile and PhoneBoxDirect
Posted on: 18/12/2007 @ 16:09

Please follow the link below for more details on PhoneBoxDirect/CoolNewMobile.

http://www.phoneboxdirectinformation.com/

Although it states on the website that it is very unlikely that cashback payments will be made to customers, you can register your cashback claim at http://www.phoneboxdirectinformation.com/register-claim.asp.