Basics Purchasing Credit Goods Services Guarantees Complaining Links
Basics ————————————————————————————————————————–
The best piece of advice for any consumer is: ”If it sounds too good to be true, it probably is”.
Before committing to a purchase or contact, always ask for an explanation of anything you don't understand.
Take your time before making decisions.
Only give your personal and financial details to companies you know and trust; doing so helps prevent against credit fraud and identity theft.
Take notes of conversations; including names, dates and what was said.
Pay less attention to what people say and more attention to what is written in the contract.
Don’t believe everything that you’re told; research / check-up on claims made to you.
Don't judge the credibility of a company or sales person by how 'professional' they seem.
Keep all receipts and documentation relating to your purchases and contracts.
Purchasing —————————————————————————————————————-
The most problematic goods and services for consumers are: second hand cars; mobile phones (service agreements or hardware); general building work; car repairs and servicing; furniture; electrical and gas appliances / services.
If you purchase goods or services over a distance (i.e. on the phone, internet, or from catalogues) then you have a legal right to change your mind and cancel the order within seven working days (from the date the goods are received or from the date the service agreement is made).
A cancellation of an order of good or services purchased over a distance should put in writing, either by letter, fax or email; a telephone call not being sufficient to cancel the agreement.
When ordering goods for delivery by a specific date, once that date has passed, if the goods have not been delivered, you’re entitled to cancel the order, without any financial penalty.
If you order goods at an agreed price, but the retailer / trader later says that the price has gone up, you only have to pay the price given at the time the order was placed; alternatively, you can legally cancel the order.
Reputable doorstep sellers should: present personal identification; make it plain from the start if they are selling something; not expect an immediate decision; provide written information on cancellation rights and cooling off periods; leave as soon as they are asked to do so.
Always ask for the name of the person you are speaking to and who they represent.
Most contracts that you enter into as a result of a visit by an unsolicited trader can be cancelled, without any penalty, within seven days of you signing the agreement.
To cancel a contract with an unsolicited trader you should send either the cancellation notice or a letter (stating that you’re cancelling the contract in accordance with your legal rights) to the trader by recorded delivery.
When buying goods from a private individual, you don't have the same rights as you do when buying from a business / trader.
Goods bought from a private individual don’t have to be of satisfactory quality or fit for the purpose intended; however, they must be ‘as described’.
The prices of goods in shops (high street or online) are not fixed and if a retailer makes a pricing mistake you can’t insist that they sell you something at the marked price; though they normally do out of goodwill.
When shopping online: make sure you know the trader's full address and contact details; take into account the postage costs; look for websites that have a secure way of paying (these show a padlock at the bottom of the screen); check what the company will do with your personal information.
Be wary of buying goods from abroad; if you have problems such as faulty goods or non-delivery, it can be very difficult to get the issue resolved.
In theory, you can sue foreign companies though your local court, but, in reality, getting money out of a company based abroad will be difficult.
If you decide to buy goods from abroad, paying by credit card is the safest method as the credit card company may be liable to you in the case of any problems arising.
When paying for a purchase using a credit card, and the transaction totals more than £100, both the retailer and the credit card company may be liable if the goods or services turn out to be defective or substandard.
If your credit card is lost or stolen, you're only legally liable for £50 of any purchases that someone else uses it for.
If someone else uses your credit card details to buy goods on the internet or by mail order, you’re not liable for (i.e. you don’t have to pay) any of the purchases made.
Credit ————————————————————————————————————————–
Questions to ask yourself before buying something on credit: How much do you have to pay each month? For how long will you be making repayments? Will the interest rate stay the same? What's the total amount that you have pay back? Consequences of missed payments? Is your home being used as security? Do you fully understand all of the terms and conditions?
Once you sign a contract, you’re legally committed to all of it; even the terms that you didn’t realise were in it.
Credit agreements that are signed at a trader's premises can’t be cancelled once the documents have been signed.
If signed away from a trader's premises, credit agreements can be cancelled up until 5 days after you receive notice of your cancellation rights.
The ‘creditor’ provides the credit under a credit agreement (e.g. a bank or finance company) and the ‘debtor’ is the individual who receives the credit.
Banks and finance companies don’t have to give reasons for refusing to give you credit.
If your application for credit is rejected, you can check with a credit reference agency as to what negative financial information has been set against your name.
Before using store cards, consider what other forms of credit are available to you; interest free credit cards or personal loans will likely be a better option.
The best way of comparing different different credit options is to compare the APR (annual percentage rate) on them.
The APR is the interest charged per year, expressed as a percentage; the higher the APR, the more expensive the loan.
The most common type of credit agreement is a ‘credit sale agreement’; this is an agreement for the sale of goods where the purchase price is payable in installments.
With a ‘credit sale agreement’, in the event of missed payments, the creditor (i.e. the retailer / trader) can sue you for the outstanding amount but they can’t reclaim the goods from you.
With 'hire purchase agreements', you don’t legally own the goods until the end of the agreement; this means you can’t re-sell them before making the final payment.
With 'hire purchase agreements', until one third of payments have been made, the finance company has a right to repossess the goods if payments are missed.
Goods ————————————————————————————————————————-
Retailer and traders have a legal obligation under the 'Sale of Goods Act' to provide you with goods that match their description and are of satisfactory quality.
Descriptions of goods given verbally, in writing, by illustration and in adverts must not be misleading.
Factors determining whether an item is of satisfactory quality: fitness for purpose; freedom from minor defects; appearance and finish; durability; safety.
If the condition of the goods (i.e. nature or cause of a defect) is disputed, it may be necessary to obtain an expert opinion; who this expert is should be agreed upon by both you and the retailer / trader / supplier.
If you purchase defective goods, you could claim against the: retailer; manufacturer; credit company (if the purchase was financed by credit).
The retailer / trader is always liable to you for faulty goods and must rectify those faults, or offer an alternative remedy, if you ask them to do so.
A manufacturer is only be liable to you if the goods are covered by a guarantee (and that guarantee covers the fault in question) or if you are injured by an unsafe product.
If the goods that you buy are not of satisfactory quality or are not as described, you're entitled to either a refund, a replacement or a repair.
Shops can't refuse to give you a refund if the goods that they sold you were faulty or didn't match their description; they're not legally allowed to exclude this obligation to you.
You can seek a full refund if the defect(s) have meant that you have had no use or benefit from the product, or a partial refund if you’ve have had some use or benefit from it.
If a repair is ‘disproportionately costly’ compared to a replacement, or vice versa, then the retailer or supplier can legally choose the cheapest option as the remedy.
If you purchase goods that are reduced in price because of a fault, you can’t later get a refund, replacement or repair on the basis of that particular fault.
You’re not entitled to a refund, replacement or repair if you caused the damage yourself or you have simply changed your mind about the goods.
It’s not necessary for a fault in an item to become apparent immediately; so long as it was there at the time of sale, the item is not of a satisfactory standard.
The longer you've had an item, the more difficult it is to prove that the fault was there at the time of sale.
You have legal rights for more than 30 days after the date of purchase.
Depending on the circumstances, after 30 days it may be too late to get all of your money back, but the retailer or supplier will still be liable (in terms of damages, repairs or a replacement) for the goods being faulty.
There's no precise time limit in place as to how long you have to ask for your money back for faulty goods; legally, you have a ‘reasonable time' depending on the circumstances.
As a guide, a ‘reasonable time' for a pair of everyday shoes may only be a few days, whereas a longer period would be allowed for a pair of shorts purchased in a winter sale.
Depending on the type of goods in question, you can seek damages, repair or replacement, for up to six years after the date of purchase.
If you request a repair or replacement, for the first six months you don't need to produce any evidence that a product was already defective at the time of sale.
You don’t have to produce a receipt in order to seek a remedy for a faulty item.
If you have no receipt, and the item is also sold elsewhere, you may have to provide a cheque stub, bank statement, or credit card slip, as evidence that you did deal with that particular retailer / trader.
If you have no receipt, and the item have been sold at various prices, the seller is entitled to only offer you the lowest sale price unless you can prove the date of purchase.
You have the same rights when hiring goods as you do for goods that you buy.
If goods you have bought or hired cause personal injury or damage to property (in excess of £275), you can make a compensation claim under the Consumer Protection Act.
Services ———————————————————————————————————————
The ‘Supply of Goods and Services Act’ requires a supplier of a service to carry out that service: with reasonable care and skill; within a reasonable time; for a reasonable charge.
If a supplier of services fails to carry out work with reasonable care and skill, they're legally obliged to repair or replace the work they've done.
To make a claim against a supplier of services, you must prove that any problems are due to the work not being carried out properly or the goods or materials used not being of satisfactory quality.
If you receive services that you feel are defective or substandard, you may have to prove that the problems are not a result of accidental damage, misuse and abuse, or normal wear and tear.
Any goods supplied in the course of services to you must be: as described; of satisfactory quality; fit for their purpose.
The supplier of a service is responsible if the goods used in the carrying out of the service are faulty; they, and not the manufacturer of the goods, are required to offer you a remedy.
You can seek a remedy (i.e. repairs, replacement or compensation) against a supplier of services for up to six years.
Before undertaking any corrective work to remedy services that were poorly supplied to you, you should take photo or video evidence of the work done by the original trader.
If a supplier of a service fails to carry out the work ordered, you have a choice to either continue with the contract and claim compensation from the supplier, or to cancel the contract.
If you have agreed to certain work being done, but a trader goes ahead with additional work without your authorisation, you don’t have to pay for that extra work.
An estimate is typically taken to be a rough guess, and can be changed after it's been agreed to.
A quotation is a fixed price for a job which can’t be changed after it's been agreed to.
Guarantees —————————————————————————————————————–
A guarantee is an agreement to provide some benefit (usually free repairs) for a set period of time in the event of goods or services being defective or substandard.
A warranty provides the same sort of cover that a guarantee does, but often you have to pay extra for it.
If a manufacturer, trader or supplier of services provides a guarantee or warranty, they're legally obliged to honour it; this applies even if you didn't pay for it.
Both guarantees and warranties are extra to your standard legal rights.
A guarantee can't legally be used to exclude liability for selling goods that are defective or providing services that are unsatisfactory.
If a guarantee has expired, it doesn’t automatically free a manufacturer, trader or supplier of services from their obligations to you; they may still be liable to you under the Sale of Goods Act or the Supply of Goods and Services Act.
Reputable companies will offer insurance-backed guarantees; these allow you to make a claim under the guarantee even if the company has gone bust / no longer exists.
If the provider of a guarantee or warranty doesn’t keep the promises they made, you can sue them.
Complaining —————————————————————————————————————-
If you have problems with goods that you've purchased you should: stop using them; find proof of purchase; take them back to the retailer / trader; ask to speak to the manager or owner; explain your problem calmly but firmly; ask for a full refund, compensation, a repair, or replacement.
If a manager / shop owner refuses to offer you a remedy: write a letter to them stating that you’re considering legal action; set a deadline for them to resolve your complaint; keep a copy of the letter.
If you have problems with services that have been supplied to you, you should: locate all of your documentation; collect any evidence that you can use to support your claim; speak to someone in authority at the company; set a deadline for them to resolve your complaint.
When writing a letter of complaint to a trader regarding services that they've provided you with, you should: set out the work you asked the trader to do, when it was done and how much you paid; detail the nature of the problem and what has happened since the problem occurred; state what you want the trader to do and by when.
Whenever you have a query or complaint about an agreement where you have used an agent (i.e. someone who is acting on behalf of another company), always contact the person or firm that the agent is acting for.
'Trading Standards' offer free complaint letter templates that you can use when contacting retailers, traders or suppliers about faulty goods or services.
If you telephone a business or organisation to complain: make a note in advance of what you want to say; have receipts, contracts and any other documents at hand; get the full name of the person you speak to; note down the date, time and what is said during the conversation; consider following up your call with a letter.
Be firm, but also be realistic, in what you will accept as a remedy from a retailer, trader or supplier, for defective goods or services; you may not get a better offer by going to court.
The ‘Citizens Advice Bureau’ offers free advice on how to make a claim against an individual or company in court.
The Courts Service’s 'small claims track' provides the means to bring a claim for faulty goods or poor services (for up to £5000) at a modest cost and without the need for a solicitor.
If the value of your claim is above £5,000, you should seek the advice of a solicitor as you will probably need representation in court.
It isn’t worth suing someone who doesn’t have any money; you can find out if a person is bankrupt, or if a company is in insolvent, by contacting ‘The Insolvency Service’.
If a person or company has been sued before, lost the case and failed to pay, it may not be worthwhile taking court action against them; you can find out this information by contacting ‘Registry Trust Limited’.
Purchasing Credit Goods Services Guarantees Complaining Links
www.adviceguide.org.uk : In-depth consumer information and advice. Download consumer fact sheets.
www.tradingstandards.gov.uk : Download advice leaflets. Problems with goods. Problems with services.
www.consumerdirect.gov.uk : Consumer advice. What to think about before you buy. Your rights after you buy. Scams.
www.which.co.uk : Consumer rights and problems. Ripoffs, scams and fraud.
www.bbc.co.uk : Consumer FAQs.