Chris Caudle, chairman of the IMPDA (Independent Mobile Phone Dealer Association), has sent Mobile a response to Charles Dunstone's defence of cashback deals. Here is the letter in full:
We as the IMPDA refute Mr Dunstone’s statement, firstly it is far more significant than several thousand customers who have been owed cashback payments. Secondly we do not agree that they have all been very small outlets, certainly they are not the size of Carphone Warehouse, but many including a reputable company like Chatterbox who has been in business for 10 years and it's certainly not a company that set up promising cashbacks, then deliberately collapsing the business.
As he will know Chatterbox has evidence as to why they have been placed in the position it has, and it is not only an affront to those companies but to dealers in general to suggest such a wild accusation.
I find it very hard on behalf of UK dealers to take Mr Dunstone seriously, especially when his own company has reported (BBC 7 September 2006) £250,000 for mis-selling Insurance by the FSA, and now the latest reports (WHICH) of 17 January where Carphone Warehouse 'broke data laws' involving setting up customer accounts and in the wrong names breaching the Data Protection Laws, I hardly find that reputable.
If Ofcom bans cashbacks then Mr Dunstones own company will also be affected as they will not be allowed to operate cashback so I fail to see his statement of making a lot more money as if he thinks all other dealers will be barred except for his. Only time will tell until Ofcom makes its decision, however we would say this, if Dunstone would concentrate on getting thing's right in his own company and making E2Save comply with Ofcom guidelines on the 30 days which it still has not complied with, then the UK dealer community would take him seriously.
The IMPDA do not support or condone companies that blatantly offer very high cashbacks knowing that they cannot pay it. We have already had meetings with Ofcom and will be meeting MP’s on the 30 January. We are committed to help solve this cash back situation for the good of the consumer and the UK dealers, we would hope that Mr Dunstone will support us in this but to imply that all UK dealers not the size of his company are acting in a way designed to deliberately to deceive customers has no place in the debate.