Free Line Rental deals became popular several years ago and were bourne out of regular cashback deals and is a type of offer where you can get a free phone and free calls for 12, 18 or 24 months!
Yes, thats right, you can get a free phone contract and effectively pay nothing for it.
- Pay nothing for the phone / hanset
- Pay nothing for the calls
All free! Sound too good to be true? Well for some it is, for others these deals really do deliver a free phone.
So How Does it Work?
In short, you take out your contract. You pay your bill as normal. At a later date (or rather later dates) you make a claim to the retailer who will give you a cheque for the amount of your bill.
By the end of the contract the amount of cash back paid to you should equal the amount you paid in line rental, meaning that you essentially paid nothing for your contract.
Be aware, with these deals you still have to pay your bill, and you pay it before receiveing any cash back from the retailer.
What is the Process?
A Free Line Rental Deals is actually an offer of “cashback by redemption“, not to be confused with automatic cashback or instant cash back.
Cash Back By Redemption essentially means “cash back with strings attached“!
You have to “redeem” your cash back at a later point in time, and there are always, always a set of terms and conditions attached to doing that.
Typicall these terms will look something like this:
- You are given three dates on which you must make your claim
- You must provide all phone bills for the period in question
Sounds reasonable? Yes, but consider this:
- Forget to make your claim on time and you lose your money
- Lose one of your phone bills and you lose your money
On top of this less scurpious companes add some very draconian rules to their terms and conditions like:
- Fail to make one claim and lose all subsequent claims
So if you forget to make your first claim, or lose one of your earlier phone bills then you lose not only the cash back for that period but all subsequent periods too. We would strongly recommend you avoid any company that has this clause in their contract.
So why Do Companies Make these Rules?
Well, they will say it is to ensure you have paid your bill with the network provider and have kept to the terms of your contract, but that is not really the case. The same principle would apply to instant cash back deals, but clearly it doesnt. Furthermore the contract you agree to with network providers is binding, and the retailer will already have received their commision for it.
The real reason is this:
If you give away free phones and pay the customers bills for them, then you will go bankrupt within 12 months!
So, in order to offer “Free Line Rental Deals” and stay in business retailers put together contracts which are not entirely straight forward.
They know that some people will
- lose their phone bills
- forget to make their claim on time
Those customers then forefeit the cash they could have claimed, which essentially pays for the customers that get it right.
So, a Free Line Rental deal:
- Is Genuine (you really can get a free phone)
- To a point a gamble (you are not guaranteed the money)
- Requires a little thought, and careful interpretation of the terms and conditions before ordering
Tips for Successfully Claiming against a Free Line Rental Offer
If you want to try your luck and see if you can get one of these too good to be true 100% free phones, then we have the following tips for you:
- Read the contract carefully prior to ordering
- Consider the overall cost of the contract if you fail to make your claim. Is it too expensive, would it leave you paying over the odds? If so walk away and just go with a regular contract.
- Do not use a company that holds all subsequent claims in forfeit if you fail to make one claim
- Write down the dates you need to claim by in your calendar / diary, add the dates to the organiser in your phone. Set reminders a week or two early to make sure you have time to complete the process
- Ensure you keep all bills somewhere safe
- Take copies of bills just in case and consider using registered post when returning the originals to the retailer
If you take our advice and are careful with what you sign up for, and diligent in making sure you follow the process outlined by the retailer then there is a good chance you will walk away with the bargain of bargains!