Aug/091
Consumer Credit Act 1974 - Explained
According to Google and other accurate sources, ‘Consumer Credit Act’ is an increasingly common search term on search engines. We at Consumer Help have decided to break it down so that it is as easy as possible for the average consumer (not business) to understand.
The Consumer Credit Act of 1974 is one of the largest pieces of legislation that exists in the UK and has become an increasingly important document to refer back to when discussing and arguing what a consumer and/or company are entitled to do in any given situation.
We appreciate that the Consumer Credit Act 1974 is very difficult to understand because of its length and also its terminology so we have abbreviated the whole legislation whilst including the most important parts and put it in Lehman’s terms for you.
Firstly, as a consumer, ask yourself this: What type of credit agreement do you have? Credit Cards, Store Cards, Personal Loans, Overdrafts, Mortgage, Secured Loan on Property, Short Term Agreements, Charge Cards, Credit Sale Agreements, Hire Purchase, Hire Agreements and Conditional Sale Agreements.
Conditional Sale Agreements
Here, the consumer may pay a large initial deposit or pay nothing at all for the first couple of years. Whatever the deposit, the consumer will still rightfully own the purchased goods by law the second the credit sale agreement is signed regardless of how many payments you have made. If an interest free credit option has been taken out, a specified time to pay the balance back will be given otherwise the consumer is liable to be entered into a longer contract where interest can be charged against you.
Hire purchase (HP) agreements
Under this arrangement, you will pay monthly instalments to hire the item, but will not legally own it until the final instalment has been paid. This type of agreement may also give you the option to buy with a lump sum at the end of the period, such as with ‘balloon payments’ on car finance.
Hire agreements
This is simply the hire of goods at a (usually low) monthly fee. You will never own the item, but must keep up the payments for the term of the contract to avoid having the goods repossessed and being sued for the outstanding debt.
Conditional sale agreements
This is very similar to the HP agreement described above. Even though you will be in possession of the goods in question, you will only own them on the condition that you have paid all the instalments. However, the agreement may also specify other conditions to be met before ownership can take place.
In what way was the contract made?
Basically, this refers to where you signed the contract. Was it in the presence of the creditor at their place of business? Was it in the presence of the creditor but away from their place of business? Was it at home? Or were you with a broker – either in their office or at home? This will have important implications for your cooling off rights, the information which must be supplied to you and the way in which it must be presented. We will look at cooling off and required information in the following two sections.
Jul/090
House of Commons transport committee: Higher ticket fares on the way
The House of Commons transport committee has criticised privately owned rail franchises for increasing ticket prices, up to 11% in the recession. The consensus amongst the committee was that the current relationship between rail companies and commuters is unfair, with passengers being treated unfairly. The franchising system means companies bid to run trains on a particular route and those that bid the highest premium payments win the contracts. The rise in ticket costs on regulated rail fares including all season tickets rose on average 6% which is contrary to negative inflation and disproportionate to the real economy.
Lord Ardonis, Transport Secretary reiterated that the report backed a policy by the government to limit fares to no more than 1% above inflation. The consequence being lower fare rates by January 2010. In reply to the criticism the Association of Train Operating Companies stated that the existing system offers a punctual service and that passengers are satisfied.
Jul/090
New Bill to stop Shares Short Selling
The Short Selling and Bank Accounts Bill is being brought to the commons for debate in June, and is hoped will stop short selling and under hand tactics by lenders. Those who sell shares in a bid to later buy them back at a cut price will hopefully be banned if the bill is brought in. Ministers who are backing the bill say that short selling is an immoral practice, and if the bill is brought in it will require banks to offer retail customers current and savings accounts free of charge for holding the accounts when they are in credit.
Jun/090
Not all on-line shops abide by consumer rights regulations
On-line shopping is becoming more and more popular, as it takes out the stress of having to visit shops, try things out, stand in long queues etc. however, research has shown that not all on-line retailers are sticking to the regulations of Consumer Rights.
Around 31% of on-line shops do not refund the full cost of the item returned, 40% of sites had hidden costs, 14% did not provide a land address and 15% did not make it known to consumers that their order could be cancelled 7 working days after they have received the goods.
Consumers who shop on-line are covered by the Distance Selling Regulations, who enforce their rights and the OFT are urging on-line retailers to check their sites and make sure they abide by the regulations there to protect the consumer.
Jun/090
Your Rights as a Consumer
As a consumer, you have certain rights that retailers must comply with. For example, if you are buying a product it must explain on the packaging what the product is, what it does, date of expiry if it is food, the colour of the product and the size. If the product doesn’t ‘do what it says on the tin’ so to say, the retailer has a “legal obligation” to rectify the problem. This also applies to the “28 day rule”, where as the consumer has 28 days to bring back the product in exchange for their money back, or an exchange, if the product is not what they expected or it doesn’t fit etc.
Another right that the consumer has that they are to be charged the price that is indicated. So if they get to the till and the product is more expensive than was clearly stated either on or by the product, they have the right to challenge the retailer then, or taking it to the local trading standards office, as this is false advertisement. Credit cards are also liable to for faulty goods and services if they have cost the consumer over £100.
Services provided by a plumber, joiner, electrician etc are covered by the Supply of Goods and Services Act 1982. This states that the work they do has to be done within a “reasonable time, price and skill”. If this is not the case the consumer has every right to ask them to rectify the problem, or go to their employer if they won’t to claim back the costs.
Jun/090
Which Product Labels to go with?
The FSA will reveal on the 6th May which front of pack labelling the consumers have decided should be used. The FSA back the traffic lights scheme where the product is labelled red, amber, green depending on whether it is high, medium or low in fat, while the food industry favour the nutritional values scheme. Either way, it is the consumer that ultimately decides and the FSA are set to reveal which one was favoured.
Jun/090
Broadband as essential as Electricity and Water
Communications consumer research panel have announced that 73% of Britons claim a fast connection, and access to it, is as important as electricity and water. The survey which showed these results also showed that most consumers believe that those who don’t have broadband are losing out as more companies become web based.
As a result, the research panel have said that there is demand for broadband to be universal so that everyone has access to it, and the government should help those who either cant afford it or find it difficult / impossible to get it in their area.
Jun/091
Ombudsman for Estate Agents bring in New Rules
The Ombudsman for Estate Agents has brought in some new rules to make their trading fairer for consumers. The rules now state that the estate agent must now confirm in writing to the potential buyer that their offer has been made to the seller. This was in fact an old rule, but has been reiterated within the new rules.
Also, if an offer has already been accepted on the property, the estate agent must now inform any other potential buyers, rather than letting them view the property none the wiser. And any higher offer must be passed on to the seller.
Also, if the estate agents fees are based on a percentage of the selling price this must be clearly stated to the seller, the percentage must be shown as an exact amount rather than a percentage and the seller must be aware that a change will be made to the estate agents fee should there be an offer higher or lower than the asking price.
Jun/090
New laws equals better protection but mediums and fortune tellers are NOT happy!
The new rules regarding consumer protection will mean better protection for consumers and hopefully banish rogue traders. It is set to ban 31 types of unfair sales tactics and enforce the new regulations on traders such as double glazing salesmen.
There will be no more loopholes for rogue traders, and those who do try to exploit vulnerable consumers could face prison sentences. This will be people who are aggressive in their sales pitches, and those using misleading statements such as phony closing down sales or limited time offers that go on and on and aren’t really ‘limited’ at all.
All that said, one of the leading groups who are opposing the new regulations are mediums and fortune tellers saying it will lead to the end of their business because they will have to tell consumers that their work isn’t experimentally proven” and is “for entertainment only”.
Jun/092
Research Throws up Suggestions for ‘Outreach’ Improvements
A new consumer focus group, formed when Energywatch, Postwatch and the National Consumer Council merged, has made almost 40 recommendations that it would like the Post Office to carry out in order to enhance and improve ‘outreach’ services in the way they operate.
Outreach services can usually be found in temporary mobile units or village halls and community centres. The target amount to be created was 500 and so far 433 have been setup and have begun operating.
It is a popular opinion that these outreach centres are a ‘robust’ solution to the Post Office shortages experienced throughout the UK but currently a lack of marketing to raise awareness on what these are for and where they can be found is proving an obstacle in its success.
Other problems highlighted by its research of about 40 outreach services include equipment failure, lack of planning for staff sickness and inadequate privacy for some users.
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