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"Two of the biggest cashback websites, Cashback Kings and Rpoints, are set to go bust, leaving many people who use them out of pocket.

 Going bust: Cashback Kings and RPoints have 250,000 members

Money Saving Expert has reported that the parent company which owns the two websites, Rpoints Limited, is facing a court winding-up petition that it will not fight and has stopped customers redeeming money from the sites.


The two websites, however, are still running and you can sign up to be a member, but no links to deals exist.


Anyone who is owed money by the two websites is unlikely to see it, as cashback sites are not covered under any finance protection scheme.


Cashback sites have grown in popularity in recent years, with users earning money by purchasing goods via the sites and then receiving a percentage back.


It is believed that Cashback Kings and Rpoints combined had in the region of 250,000 members.


Rpoints Ltd director Richard Yendall told Money Saving Expert: 'Rpoints Ltd is in financial difficulty. Options to rescue the company have been explored but today it has become clear this is not possible and I have now suspended the redemption facility.


'The company is the subject of a winding-up order and it is unlikely members will receive payment in full for any transactions generated up to midday today. I am unable to make further payments from the company's accounts.


'I expect the company will enter into liquidation in the near future and members who are awaiting cashback will be treated as creditors along with other company creditors."



http://www.thisismoney.co.uk/bargains-and-rip-offs/article.html?in_article_id=518136&in_page_id=5

Thanks for the warning in time

How do they go bust?

Do they not only pay when they get paid from the merchants?

Is going to start a worrying trend of cashback sites going bust?