mercredi 26 août 2009

12 Months Free Line Rental: To Be Trusted?

By Katy Mccuen

Ever heard of a 12 months free line rental deal? Do you want to know how you can run a completely cost free mobile phone? If so, read on!

First off, what does a free line rental deal give you? Well, as the name suggests, a free line rental mobile gives you a free mobile phone handset, and free line rental, and free text messages. That means that your entire contract will not cost you a penny!

By now you will have smelled a rat, it is not possible for retailers to give away free phones on free 12 month contracts and still make a profit, is it?

So, here is where it gets complex! With a free line rental deal you actually have to pay your phone bill as normal for the first 6 months or so. So, at this point it is not 12 months free line rental at all!

At a later date, often 9, 10 or 11 months into the contract, you have to submit a claim for cashback. Assuming you have done everything the retailer asked you to when you took out the mobile contract, the retailer will refund your money, via instant cash back which will cover the entire cost of your phone contract. Thus, the retailers are able to advertise these as free line rental deals.

So how do the retailers make money? Surely retailers lose money on free line rental deals? Absolutely, but, only if the customer successfully makes their claim for cashback! If the customer forgets to make that claim, then they end up paying their line rental as normal, and the retailer makes their money. You see, it is a battle of wits!

To make a profit the mobile phone retailers have to make sure a lot of people on free line rental deals do not get their money back. So, the first thing they do is say that you must make the cashback claim on a particular date. They know that some people will miss this date. Then they ask for obscure pieces of documentation, knowing that some people will have lost this, and so it go's on. By the end of the process they have tripped enough customers up to make their profit!

So, in summary, it is possible to get a 12 months free line rental mobile contract, and the deals are legitimate, legal and above board. But, they are also too good to be true. There are a lot of strings attached, and only the smart customer is likely to walk away with a free phone. The rest will pay their line rental as normal!

If you take out a free line rental deal, just make sure that you organise yourself. That you know when you have to make your claim, and that you also know where all the necessary paperwork is!

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