Consumer Association slams UK phone outfit

THE Consumer Association has issued a warning against a UK mobile phone seller after a story appeared in the INQ.

A spokesperson for the Association, Ceri Stanaway said that consumers should think twice before signing up for a mobile phone using www.phonesonfinance.com.

As we reported, the outfit was flogging phones for between two to four times the book price with an interest rate of between 92 to 100 per cent.

Stanaway said that phonesonfinance was aiming "incredibly expensive phones" at those who can least afford it and could not afford to pay for the latest handsets up front on a PAYG basis.

The Association's own Which magazine investigators found that the cash strapped can buy a Nokia 6111 for about £109 at Carphone Warehouse but the same phone would cost a total of £482.59 from phonesonfinance.

Stanaway said that the outfit used some calculations to get its final price that were confusing and had an APR that was extremely high, higher than even the most expensive credit cards.

The Association said that if someone has such a poor credit rating, and is strapped enough for cash that they could not afford to buy the handset it would recommend "extreme caution about tying themselves into this sort of deal".

Stanway said that it was possible to buy budget PAYG handsets for as little as £30 these days, which is less than the initial deposit you would have to pay on a Nokia 6111 from Phonesonfinance.

"If someone particularly wanted a more expensive handset, such as is available on the website you're writing about, they should look carefully at other options for financing rather than paying hundreds of pounds over the odds," Stanway said.

We are still waiting for a comment from phonesonfinance. See here. µ