Another struggling online dealer has written to customers to tell them it is unable to pay them their cashback.
The Mobile Outlet, which claims to have 30,000 customers and to have already paid £4m in cashback payments says it has run into trouble because sub-dealers and distributors are withholding commissions and payments owed to them.
In a letter to be sent on Friday the management team states: ‘We would like to stress that we are attempting to resolve matters and the utmost will be done to ensure all customers receive any cashback due.
‘We ask our customers to remain patient over the next few weeks whilst we are dealing with the non-payment of commissions. We will send out an email keeping customers informed and updated as and when we have anything to report.’
In a statement accompanying the letter, the management team at The Mobile Outlet claim they started their own cashback incentives following ‘visits which were made by network dealer managers, who openly promoted and encouraged us as a company to run with a 40% business model, even though our model was a lot higher.’
Mobile understands the retailer is owed in the region of £200,000 from a distributor and another retailer.