Phones 4U customers refused iPhone 6 refund

Phones 4U

Phones 4U customers who pre-ordered the new Apple iPhone 6 through the troubled retailer are to be refused a refund, it emerged today. It means many customers could lose as much as £699 with no hope of getting it back.

The retailer was forced into administration on 15 September, after mobile phone networks cancelled their contracts with the firm. Even though it had no new iPhones in stock, in the days before it went bust Phones 4U took pre-orders for the device.

After it entered administration the firm initially said it would allow anyone who had pre-ordered the Apple device to cancel their order and receive a full refund.

But the administrator, PricewaterhouseCoopers, has now issued an update in which it admits this is no longer the case and people who pre-ordered (and never even received) an iPhone 6 will not receive a refund.

"Unfortunately we do not have any iPhone 6's therefore customers who have pre-ordered an iPhone 6 through Phones 4u will not receive their purchase," the administrator said in a statement today.


It urged customers in this situation to contact their credit card company and invoke their rights to a refund under Section 75 of the Consumer Credit Act. But those who did not use a credit card to purchase the iPhone 6 will have to join the list of creditors awaiting payment from the collapsed retailer.

"Your claim (to the extent you have one) will rank as an unsecured claim in the Administration," PWC admitted in the statement.

However, the administrators acknowledged that there is a long list of secured creditors waiting first in line, meaning any payment, "if made at all, would not be for many months and is likely to be negligible."

It effectively means many iPhone 6 customers could lose the entire amount they paid. The cheapest iPhone 6 (the 16GB version) costs £539, rising to £619 for the 64GB model and £699 for the 128GB version.

If you are owed money by Phones 4U (such as any unpaid supplies, faulty goods, iPhone 6 refunds, cashback/free gifts etc), you should register an unsecured creditor claim with the administrators using the following as soon as possible:

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Could it be that the Administrator's charges prevent repayments to customers who applied and paid in good faith?  Another example of the unacceptable face of capitalism.  Administrators always do well at the expense of creditors.  There ought to be a law agin it!