Deals with 12 months free line rental via cash back have been popular for years. The first thing to understand is that you'll be paying your monthly line rental to the mobile network and your refund will be paid by the retailer who supplied your phone.
When you sign up to a new contract the retailer will receive a large commission from the network. For a typical tariff costing £30 per month a retailer might receive £300 commission. If the phone cost £85 plus £5 delivery then the retailer could probably afford to pay £150 instant cash back and still come away with a respectable profit.
However, if the retailer paid cash back by redemption in four or five stages and customers had to send off their bills in order to claim then the figures would be very different. Most customers would claim the first refund. Some might claim the second and most would probably forget to claim the rest.
Retailers know from experience that the more stages involved, the more likely it is that customers will fail to claim all of it. They can estimate (reasonably accurately) the percentage of claims expected to be paid and calculate their deals accordingly.
A deal with £150 instant cash back could be increased to £375 cash back, if the retailer offered the cash back by redemption in five or six stages and estimated that on average about 40% would be claimed.
Some customers will be smart and organised. They will send off the correct bills and successfully claim 100% of their cash back.
Choose a deal with as few redemption stages as possible
The fewer claims you have to make the better. It will be less work and you'll reduce the probability of encountering any problems.
Print or save a copy of the retailer's terms and conditions
If you buy online then print or save a copy of the T&Cs you are presented with at the online checkout. The T&Cs are very important. They explain exactly what you need to do in order to claim your cash back. Read them carefully and then read them again. Make sure you fully understand everything.
Keep a file or folder in which you can safely store all your paperwork
You'll need a copy of the terms and conditions, all documentation supplied with your phone and a copy of each monthly bill. If your cash back is worth £360 then treat your documents as you would £360 in cash. Keep them somewhere safe.
Check your delivery documents
Are you on the right tariff and deal? Does the promotion supplied with your documents match the deal you ordered? Check your terms and conditions and if you have to send off a despatch note or a voucher with your claim(s) have you received them? It's important to make sure you have everything you need right now. If you're not happy then you have 7 working days in which to return the phone and cancel your contract.
Are you porting your number?
Check the terms and conditions to see if this will affect your claim. It can sometimes cause problems as the number on your bill won't match the number issued with your original order. You will need to keep proof that your number has been ported. One way to do this is to wait until your first bill arrives from the network before you arrange the number port. This will show the temporary number associated with your new account. After you have ported, subsequent bills will show your ported number associated with the same network account. Whenever your send off a claim include a brief cover letter explaining that you have ported your number and also enclose a photocopy of your first bill, which will show the original number issued with the phone.
Know where to send your cash back claims
Your phone might not be delivered by the same company you ordered from and the address for cash back claims is usually different. Refer to your terms and conditions and make sure you know where you'll be sending your cash back claims. Write out the envelopes now so you don't have to find the address several months later.
Know when to send your claims
You'll need to know exactly which bills to send off. It's best to work this out once you've received your first bill from the network as you'll then know your billing date. If the retailer is asking for bills 4, 8 and 12 then you can number each bill as it arrives. If you receive your first bill on 10 th March then that is bill number 1 and you can expect to receive your fourth bill on about the 10 th July. Again, read the wording of your terms and conditions very carefully as some companies (such as e2save) ask for the bill dated month 4, which might not necessarily be your fourth bill received. For example, if your phone is connected in March then March will be classed as month one, your first bill might arrive in April and so your bill dated month 4, June, will actually be your third bill received. When you're sure which bills you're going to need you should write out a schedule and keep this with your paperwork. You could also add the dates to your diary and also to the calendar on your phone.
Send your claims by Royal Mail Special Delivery
It's easy for a not-too-honest retailer to say they never received your claim and if you sent it by first or second class then it could genuinely be lost in the post. Send it by Special Delivery and you'll have proof of delivery and receipt. If you also add consequential loss insurance and your claim is actually lost in the post then Royal Mail will compensate you for the full amount. |
