free? mobile phones

[erniemorton]

if free line rental, a free handset and free minutes and texts are offered for the FULL duration of a mobile phone contract, (12 month/18 months, etc), with a 'cashback' deal, how the hell do the phone companies make their profit?
I know the cashback terms and conditions are often difficult to decipher, but surely people aren't THAT lazy not to claim their cashback?
have i missed something here......or is that the only reason?

[Oneeyedvic]

Funnily enough I was looking at a phone yesterday and saw a lot of these offers. I did a bit more digging and found that with all the companies offering money back, they were all with out exception, new start businesses limited by guarantee.

To my mind, I guess that they will say that you can get your money back in 4 months time, (and wait the prescribed 45 days after that) but that in that period they would have disappeared with their money. Of course, your contract is with a main service provider, so you can't cancel your contract.

[bednobs]

i think they rely on you not send in the cashback or to use the phone more than you alloted minutes. i bet loads of people dont send the bills in

[TEAK36]

Watchdog mentioned this type of deal months ago. The problem seems to be actually getting your money back, and many customers were having to spend ages on the phone (a premium rate I imagine), and if they were persistent enough, they often got cheques that bounced.

I would steer well clear of these deals.

If it sounds too good to be true, it usually is.