Cashback collapse leaves 46,000 customers out of pocket

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Around 46,000 customers have been affected by the collapse on November 14 of Mobile Media Systems and Mobile Afilliates, trading as online mobile retail brands The Phone Box, Coolnewmobile and Phones2yourdoor.

Mobile News understands 58 per cent of those affected were Vodafone customers, 90 per cent of whom were connected through Dextra Solutions. The estimated debt to customers in unpaid cashback is between £4 million and £10 million.

The companies went under after the number of cashback redemptions from customers wildly overshot their projected figure. The business model was predicated on a 40 per cent redemption rate. As it went into administration, 70 per cent of customers were claiming cashback from the business.

Vodafone is working with Dextra to assess affected customers on a case-by-case basis, but said the cashback deals were between customers and the companies.

 

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