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Phones4U: no iPhone 6 pre-order refund 4U

Phones 4u

Phones 4U, which went into administration earlier this month, has confirmed that those who pre-ordered the iPhone 6 will not have their deposit refunded. So what can you do if you’re left out of pocket?

iPhones are an enduringly popular phone and the excitement around the iPhone 6 was no exception. But for some customers that excitement is quickly dissolving into annoyance.

On 15 September, Phones 4U announced it was going into administration, pledging to refund customers in full for any order that had not yet been dispatched.

However, the story has taken a turn as Phones 4U has since said that it will not be refunding those customers any longer. So is there any way you can get your deposit money back?

How to get an iPhone 6 pre-order refund

The former phone supplier is now encouraging customers to contact their credit card providers, under Section 75 of the Consumer Credit Act – which makes the credit card company jointly responsible for breach of contract (here, the failure to supply the phone).

To claim under Section 75, the item (in this case, your iPhone 6) must cost over £100. However, the card company is liable even if you made only part of the payment (a deposit, say) on your card.

Your rights if you’ve paid by debit card

What happens if you didn’t use a credit card to make a payment? Well, if you used a debit card you may be able to make a claim using chargeback, as long as you act within 120 days.

The difference with chargeback is that it isn’t enshrined into law in the same way as Section 75 is. Instead it’s provided by the relevant card network eg. Visa or Mastercard.

Sadly, this is a situation we’re all too familiar with when companies go into administration. Last year saw a spate of stores, including HMV, Jessops and Blockbuster, heading for the chopping block.

Of course, you might remember that HMV managed to pull itself back from the depths. And it now looks on course to overtake Amazon as the UK’s biggest music and DVD retailer.

Did you pre-order an iPhone 6 or another phone from Phones 4U before it went into administration? Are you going to attempt a Section 75 of chargeback claim? Let us know how you get on.

Comments
Member

The information on the Phones4U website makes depressing reading for anyone who has lost out because of the failure of the company.

Is it not time that all companies should be required to contribute to a fund so that savers can have their money refunded if a company fails? The Financial Services Compensation Scheme provides savers with reassurance that their money is safe, at least up to £85k.

This would be a good selling point because who would want to risk losing their money if other companies could guarantee that it was protected?

Member

That should read: Is it not time that all companies should be required to contribute to a fund so that CUSTOMRS can have their money refunded if a company fails?

Member

Does making a chargeback affect your credit rating?

Member

Cynical poly from the administrators who will no doubt be getting their pay in full. They’re alright Jack.

Isn’t it about time that companies were made to keep pre-order, gift card money etc in a secure account that could then be drawn upon to either pay for what’s been bought or return in full in cases like this.

Member

I’m one of the unlucky 136 people who received the email stating we would not be getting a refund, I paid £699 and currently trying to claim back the money via direct debit chargeback. Carphone warehouse have pledge to refund people if they take out a new contract with them! They won’t refund sim only deals I.e. Pay as you go. We are encouraged to spend to try and revive the current downturn in this country and companies can get away with this!!! We are not taking thousands of people here to refund just 136 which where all copied in on the e-mail. Data protection breach maybe?

[This comment has been edited to align with the Which? Conversation guidelines, thanks mods]

Member

If you think they knew, you can try filling in a form

http://www.actionfraud.police.uk/report_fraud

Member
Wayne says:
6 October 2014

Successfully received £699 refund today by using visa chargeback 🙂

Member

Brilliant, well done Wayne! I’m really glad you managed to get your money back 🙂