Demise of ‘cashback king’ hurts distributors

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Distributors Dextra and EBS also found themselves facing huge clawbacks from the networks after customers of Dialamobile, which was referred to last week as the “king of cashback dealers”, were left stranded. T-Mobile, which had a direct sales deal with Dialamobile, also faces angry customers, caught short on cashback promises.

The Dialamobile Group, which operated subsidiary businesses Dialamobile and Everplus, as well as online retailer Mobile Connections and half-a-dozen franchise website brands, went into administration at the start of September. It lured customers on full-term cashback deals on 12 and 18-month contracts, requiring customers to submit up to five reclaims during the term of their contracts. The value of its cashback offers ran to more than the commission received for connections.

Dialamobile was connecting up to 2,500 customers per month to Vodafone, via Dextra, claimed sources. EBS’s Dialamobile connections, to Orange and 3, ran to 5,000 per month.

Dextra sales director Angie Simpson said: “Dialamobile was connecting through us for a couple of months. We are working with Vodafone to take care of customers.”

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