Phones 4U will not refund customers who pre-ordered an iPhone 6 leaving some £699 out of pocket

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Collapse: Phones 4U went into administration last week and 362 stores have closed permanently

• Customers may never see their money again
• Those who paid with a credit card should be able to get a refund from their credit card company
• Anyone owed a gift or cashback as part of an order will not receive it 

Phones 4U will not refund customers who pre-ordered an iPhone 6, its administrator said today. It means many customers who paid upfront could lose as much as £699.

The administrator PwC said that it does not have any iPhone 6s and therefore customers who have pre-ordered through Phones 4U will not receive them. 

Customers who paid using a credit card should contact their credit card company to ask for a refund.

But anyone who did not pay with a credit card will have to join the queue of Phones 4U creditors wishing to make a claim.

These customers may never see their money again.

Phones 4U, which had more than 700 outlets and 5,500 staff, collapsed last week after mobile phones EE, Vodafone and other networks declined to renew their contracts.

Some stores have been saved, but PwC said this week it will close 362 stores permanently with the loss of 1,697 staff.

EE has agreed to buy 58 stores on the cheap, saving 359 jobs, while Vodafone has bought 140 stores that employed 900 staff. 

Phones 4U was taking pre-orders for the iPhone 6 right up until it was forced into administration. At first, the high street phone trader said it would allow anyone who had pre-ordered a phone to cancel their order and receive a refund.

But today the administrator revealed this was no longer the case.

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Disappointing: Phones 4U customers who pre-ordered an iPhone 6 will not receive them - and may not get a refund either

Those who placed an order using a credit card should be able to make a claim under a term in the Consumer Credit Act 1974, which means both the credit card provider and the trader are jointly responsible for compensating you if anything goes wrong.

Any purchases between £100 and £30,000 are covered under this rule.

You don’t need to have paid the total cost by credit card to be covered. For example if you have paid part in cash, part by credit card, you will still be eligible for a refund.

Anyone who paid by debit card could also try to get their money back through the Chargeback scheme, providing their card provider has signed up to it.

Under the scheme you can ask your bank to ask the trader’s bank to reverse the transaction and refund the money into your account.

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Covered? Those who paid by credit card should be able to claim a refund - and customers who paid by debit card can try to claim through the Chargeback scheme

Chargeback offers cover if you there has been a breach of contract, for example if ordered goods are not delivered.

Phones 4U customers who signed up to a deal involving cash back or a free gift will also not receive them.

PwC said: ‘We do not have any Samsung tablets, watches or other such gifts in stock. If you wish to register a claim, your claim (to the extent you have one) will rank as an unsecured claim in the Administration’.

It added that some customers posted their phone or left it with one of the Phones 4U stores for repair before the firm went into administration.

PwC is currently working out where these phones are in the repairs process and is trying to get them returned to customers as soon as possible.

Which? executive director, Richard Lloyd, said: 'It's disappointing that Phones 4u now won't be refunding their customers but if you're affected you may still be able to get your money back.

'If you paid using a credit card then you will have more protection and can make a claim
to your credit card provider under Section 75. If you used a debit card you may be able to make a claim using the chargeback scheme, as long as you act within 120 days.'