Cashback crisis claims another mobile dealer

Another mobile phone dealer has bitten the dust after failing to honour its cashback pledges.

It is unknown how many customers will be left out of pocket by the collapse of Mobile Media Systems, which owns Phonebox Direct and Cool Mobile. The company was placed into administration last week, according to Mobile.

Both of Mobile Media Systems' businesses were removed from price comparison site Moneysupermarket.com after complaints began filing in over missing cashback payments.

The news follows the folding of Dialamobile, which left behind around £12 million in unpaid cashback.

One company affected by the demise of both companies is Dextra. James Browning, managing director of the company, admitted its fingers had been burned.

"After Dialamobile, we consciously reduced the number of connections we put into that kind of business," he said.

"From a Dextra perspective, it heralds the end of us supporting the cashback business, unless there are stringent safeguards in place."

Consumers looking for a new mobile deal might be better advised to choose simpler, straightforward deals instead of cashback offers in the current climate.

For example, there is a staggering choice of mobile phones and latest phone deals for business or personal use offered to buy, at internet-cheap prices, at mobilesplease.co.uk.