Phones 4u administration: your rights

Phones 4U in administration

When Phones 4u went into administration last night, it wasn't just a blow for the thousands of members of staff, tens of thousands of Phones 4u customers were also left shocked by the news. So what does administration mean for them?

Existing customers

If you bought your current phone and package through the chain, then you won't be affected by the company's woes. Essentially it was just acting as a middle man, so your relationship is with the network. The networks will carry on providing services, so you can continue as normal.

Phones 4U also ran a discounted deal for some customers, offering £5 a month off the cost of a standard package. The BBC says that these will still be honoured until the current contract ends.

If you have phone insurance that you bought through the chain, and an ongoing claim, it will be honoured. The helpline is currently open, and can be reached on 0844 871 0535. There hasn't been an announcement yet as to whether those with Phones4u insurance will be able to make a claim in future. A spokesperson told the Telegraph that it would be up to the administrator to make decisions of that nature.

If your phone was out for repair, the BBC says that the repair will be completed and then the phone will be sent back to you direct at your home address. If you have any questions about this, you can reach the repairs team on 0844 871 2269. There has been no announcement yet on what will happen if your phone is fine right now, but develops a fault before the end of its contract.

This is likely to be decided by the administrator later. However, in the interim Sky News has claimed that Dixons Carphone could offer to underwrite warranties and honour any upgrade commitments made by Phones4U staff in stores. No announcement has been made on this yet.

New customers

If you have ordered a new phone and it is already in the post, then when it arrives you'll be treated in the same way as any other existing customers.

If your phone is on order, but not yet dispatched, then you will have the order cancelled and you will get a refund automatically. This is the situation facing anyone who ordered an iPhone 6 with the firm. It's an inconvenience, as you will have to make alternative arrangements, but you shouldn't lose out financially.

Customer services

If you have any queries for customer services, don't try to visit a store today because they are closed. The business is in the hands of the administrators, who will make a decision about what will happen to the stores in the future.

The customer services phone line is still open on 0844 871 2253. However, if you're going to call this number, there are two vital things to bear in mind. The first is that it's going to be having a busy day so you might have to wait.

And the second is that the staff manning the phones aren't exactly having a great day either. The media team issued one final tweet this morning saying: "To our customers, following the unexpected news we are now offline. Thank you, The heartbroken Phones 4u Team."

Dixons Carphone has issued a statement saying it will be offering some staff jobs at their stores. However, not everyone will be able to find a new role, so if you call, it might be a good idea to be gentle.

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