Phoneboxdirect and Coolnewmobile in Administration

[muddyfox470]

Just thought I better post this here, as I only just found out about it today, they went into administration on Wednesday 14th. As quite a few people must have bought contracts through them.

Basically the company Mobile Media Systems/Mobile Affiliates Ltd thought that more people wouldn't be able to submit their chequeback claims as per their T+C's and they are owing up to £10 million to various creidtors.
I'm quite annoyed as I am owed a few cheques from as early as august that I have been continually chasing up and been told they have been reissued numerous times...

Anyway discuss...

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 (Index.asp) or (Index.asp).

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.

News Article here: Phonebox Direct shuts shop

Other discussions over at MSE and HUKD, It just seems that they have cheated so many customers from so early on, basically cheating the system for such a long time. On top of this there are the 40 or so employees that were made redundent with effect from wednesday.

Also someone has started their own site (with info) here: KenFrost.com "The Living Brand" The Worse Than Worthless Award

[muddyfox470]

Also onecompare posted the following to it's customers (as they vet each of the retailers they are affiliated with):

"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."

PS. The website is still working behind the front page of their adminsistrators notice which is a bit worrying: Free Mobile Phone - Orange, O2, T-Mobile, Three (3) and Vodafone Mobile Phones - phoneboxdirect.co.uk

[TooNice]

O-M-G. This is going to be my harshest 'if it looks too good to be true...' lesson yet.

[Steve B]

O-M-G. This is going to be my harshest 'if it looks too good to be true...' lesson yet.

QFT.
After I was messed about years ago by a company such as this, I now only deal with contracts arranged by the network provider. Imo, it's not worth the hassle.

[muddyfox470]

QFT.
After I was messed about years ago by a company such as this, I now only deal with contracts arranged by the network provider. Imo, it's not worth the hassle.

I have had a contract with them in the past and I had no problems with chequeback (for a totally free contract).

However luckily I managed to get my current tariff with three (VTT1100) for < £3 per month direct with three, after signing up as a new customer via quidco and taking advantage of their other offers (and keeping my existing handset).

I just thought I'd post the info here for people affected to be notified and to have all the info they really need at hand

Regards

Ian

[muddyfox470]

If you did sign up to one of Three's new mix and match packages via either of these companies you can legally end your contract without obligation/charges

see here: Changes to the T&C's on 3 Mix & Match - end your contract in a month - HotUKDeals Forum

So it could save you a bit of money

Ian

[adam1701]

i always wondered how these companies survived ...

i have 2 contracts with themobileoutlet ...

[gansbab]

Hi Guys,

I am also one of the affected customer.

I have not received any cashback claim. I stand to lose &#163;420....

Any way this could be regained?

[peterb]

Hi Guys,

I am also one of the affected customer.

I have not received any cashback claim. I stand to lose &#163;420....

Any way this could be regained?

You could register a claim with the administrator of the company (or if they are in receivership, with the official receiver) but it is likely that you will be at the bottom of a long list of creditors - so in practice the chances of getting anything are unlikely.

[adam1701]

anyone heard anything about the mobileoutlet, both of their phone lines ring and then go dead ...

[swasi]

phonebox direct and themobileoutlet being the fraudulant representatives of the network providers............ if you bought ur contracts with these compnays. the best is to cancel your direct debits str8 away so network providers can not even steel more of your hard earned money. the network providers are basically reponsible if the company got liquidated as they allowed and promoted the companies to sell the mobile phones and contracts in such a fashion. if all those effected will stop making payments and put pressure on network providers for refunds they will be bound to refund all the cashbacks dues to the customers. ------------ cancel the direct debits and ask for refunds ---------- fraudulant sales representatives of networks---------------not my problem-----------if every body does it ------------- for &#163;100 or so nobody will be taken to court -----------. huge losses for netwrok providers...............so act now cancel the direct debits immidiately .i have already cancell all mine.

[Lucio]

phonebox direct and themobileoutlet being the fraudulant representatives of the network providers............ if you bought ur contracts with these compnays. the best is to cancel your direct debits str8 away so network providers can not even steel more of your hard earned money.

That's a really really bad idea....

You have a legitimate contract with the network provider, to be provided a service in return for a monthly fee, cancelling your payments can result in legal action and will have an adverse affect on your credit ratings. Not to mention your mobile phone will get cut off and you won't be able to get another one on contract anywhere...

You chose to sign up for "easy money" and got taken in, it's your mistake not the network providers and the best way to try and resolve it is to talk to your network provider, not try and weasel your way out of it. From what I understand, most of them are being generous with the situation and letting people change their contracts to ones that are more suitable.

[muddyfox470]

phonebox direct and themobileoutlet being the fraudulant representatives of the network providers............ if you bought ur contracts with these compnays. the best is to cancel your direct debits str8 away so network providers can not even steel more of your hard earned money. the network providers are basically reponsible if the company got liquidated as they allowed and promoted the companies to sell the mobile phones and contracts in such a fashion. if all those effected will stop making payments and put pressure on network providers for refunds they will be bound to refund all the cashbacks dues to the customers. ------------ cancel the direct debits and ask for refunds ---------- fraudulant sales representatives of networks---------------not my problem-----------if every body does it ------------- for £100 or so nobody will be taken to court -----------. huge losses for netwrok providers...............so act now cancel the direct debits immidiately .i have already cancell all mine.

I CATEGORICALLY ADVISE THAT YOU DO NOT DO THIS ^^^

Mobile Affiliates and all subsequent companies operate independently of the operators, and aren't really affiliated with the network operators, and are just basically resellers. The contract is with the operator and not with PBD, CNM etc.

If you cancel your direct debits without informing the operator you are in breach of the terms and conditions you agreed to and as such are liable to pay any amount remaining for the minimum term. Also cancelling direct debits like this can have a harm your credit reference (which can impact on subsequent applications for loans, credit cards etc).

Ian

[adam1701]

obviously just some guy who doesnt like those companies ...

[vinnyT]

Just in case anyone is still interested in this, Martin Lewis of the moneysavingexpert site (and often on tv, radio, etc) has some good info and help related to this thread, offering advice and explaining what you can do if you are affected by the closure of the 2 sites.

Phoneboxdirect and Coolnewmobile Help Guide: How to fight to get your money back...

[cv65user]

arghhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh i jus sent off my second claim, never recived my first claim... now lost 420 .... was on voda 35 a month = 500 xmin + 250 txts