When you buy a mobile phone you should be wary of any calls you receive soon after from companies offering you insurance cover (these companies may call it a warranty). You should also be wary if you are an existing mobile phone customer and receive a similar call out of the blue.
Various unauthorised providers claim they are linked to shops and mobile phone providers but they may not be who they say they are. They may be trying to scam you out of your money and you will only find this out when you try to make a claim on your insurance and it fails.
How to stay safe
Make sure you know who you’re dealing with.
Firms who sell insurance must be regulated by the FSA (Check FSA Register to make sure they are before doing business with them). If you don’t and things go wrong you won’t have access to the UK complaints procedures and compensation scheme. See How to solve problems with your insurer or broker ?
However, some callers may use the names of firms or individuals from FSA Register to make you think they are legitimate, so don’t just assume they are who they say they are. It’s unusual for firms to call you out of the blue, so be wary if you’re not expecting a call. Most mobile phone retailers don’t sell their insurance by cold calling you after you have bought a phone.
If you are in any doubt:
- Ask for the contact details of the person calling you; and
- Check their identity with the firm they claim to work for, using the contact details on FSA Register.
Don’t listen to excuses about the caller using a direct line – if the call is genuine a trustworthy firm won’t mind you being careful.
If you think you have been targeted
Report any suspicions to us by calling the FSA helpline on 0300 500 5000 (calls should cost no more than 01 or 02 UK-wide calls, and are included in inclusive mobile and landline minutes). FSA is working with Trading Standards to combat this scam. Please also contact your local Trading Standards to make a complaint.
