Cash4phones goes bust leaving hundreds out of pocket

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Multiple cell phones on table

How to claim compensation if you're been affected by the Cash4phones.co.uk liquidation.

The website Cash4phones.co.uk, which offered cash in return for old mobile phones, has filed for insolvency.

This has potentially left hundreds of customers, who had sent off their phones but not yet received cash for them, out of pocket.

The website has now been removed, the phone line for the company has stopped working and insolvency company Capital Books has taken over.

Troubled history

When you upgrade your mobile phone, there are lots of ways to make cash from your old one and sending it off to a website such as Cash4phones is one of them.

It would pay out a sum of money in exchange for an old phone, but only after the phone had been sent to the company. The problem with Cash4phones was that often customers were paid a lower amount than the sum originally quoted and sometimes not at all, leading to a deluge of complaints towards it.

Little information has been given about what will happen to the company but a creditors' meeting took place on Monday.

What to do if you're affected

The company is no longer contactable so the best thing to do is get in touch with Capital Books, which is now handling the liquidation process.

If you're waiting for a phone to be returned, or for cash to be paid, get in touch and ask about getting your money and/or phone back. You can either call the company directly on 01622 754 927 or email them at: mail@capital-books.co.uk.

Action Fraud and Citizens Advice are also worth contacting and will be able to give advice on how to claim back your money or phone.

Where to sell your mobile phone

The internet is flooded with places to sell your old mobile but the prices can vary dramatically. The price of an old iPhone 4S, for example, ranges from £123 at fonebank to £141 at Moneyforyourphone.com.

Therefore it's worth doing some research and checking several different websites before you decide on one.

Always read the reviews for the website and customer ratings before parting with your phone and check there is nothing dodgy about it by entering the company name into a search engine. Not only will this potentially save you money, it could also give you some security against losing everything.

Websites such as eBay and Gumtree can be used for selling your old phone. If you're going down the online auction route make sure you check out the associated fees as these could knock quite a bit off the final amount you pocket.

Read How to avoid being conned when recycling old mobile phones for more tips.

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