Consumer Information » Consumer Guides

Good Food Guide Iphone

Clare — Sun, 07 Feb 2010 17:06:48 +0000

Lovers of good food everywhere in the UK have been depending on the Good Food Guide for nearly sixty years now, to guide them in their quest to find the best places to eat. Moving along with the age of mobile technology, the Good Food Guide has now launched an iPhone application that will make it even easier for people to locate the best restaurants no matter where they are in the UK. The new app will also allow iPhone users to provide valuable feedback on each of their dining experiences.

This exciting new app uses the iPhone’s highly advanced GPS technology to determine the user’s location anywhere in the UK, and then finds and lists all of the restaurants that are relative to that particular location. IPhone users will now be able to use the Good Food Guide while they are on the move, to quickly find the best dining establishments and choose whether they would like them to be sorted according to cost, type of cuisine, distance away or by the restaurant’s Good Food Guide Rating. Once users have selected a restaurant, they can call them for reservations, visit the restaurant’s website or use Google Maps to get directions.

The app can also be used to email or tweet others about the restaurant as well as send feedback to the Good Food Guide. The Guide plans to use the consumer feedback gathered by the app to update future editions to help keep information current.

According to Elizabeth Carter, The Good Food Guide’s Consultant Editor, the launch of the new app marks another important milestone in the history of the Guide as its 60^th birthday draws near. Whether food lovers are looking for a fine dining establishment or a pub with good prices, they are going to find the new iPhone app absolutely indispensable as well as an exceptional value for the money.

The Good Food Guide iPhone app is going to be priced at 59p for a limited time. It can be found in the iTunes app store . The new iPhone app is complete; it is not a shortened version of the Guide. Like the printed version of the Good Food Guide, the app contains more than 1200 restaurant reviews, and users of the app will have full access to all of the reviews.

Faulty Playstation 3 Rights

Tony — Sun, 20 Sep 2009 17:43:13 +0000

We have received many complaints regarding the so-called YLOD (Yellow Light of Death Fault) that is affecting a number of Sony Playstation 3 (PS3) owners and have created this guide to help them get their consoles fixed for free.

In the UK consumers have statutory rights that give them six years from the date of purchase to make a claim (five years Scotland) and these are in addition to any warranty provided by Sony. The Sale of Goods Act 1979 is fundamental and says that goods including the Sony PS3 must be:

Of Satisfactory Quality
This includes fitness for purpose and life expectancy taking into account the price paid and the nature of the item purchased. We believe that it is reasonable to expect a high-end consoles such as the Playstation 3 to last 5 – 8 years when used in the home environment with reasonable usage.

Get your faulty Playstation 3 fixed for free

If you have just got it then you could reasonably expect your money back or a replacement rather than a repair.

If the PS3 was bought less than six months ago it is assumed to have been faulty when it was delivered and the shop has to prove otherwise.

However, when it is more than six months since you made the purchase then you have to prove that the console is actually faulty and the retailer may ask for an engineers report. In practice, this is only likely to happen once the Sony warranty has expired.

After the warranty has expired it seems to be normal practice for retailers to simply shrug their shoulders and say they cannot do anything. There is no mention of your statutory rights! In these circumstances you need to stand firm and state that the PS3 is not of satisfactory quality and you are making a claim for a repair under the Sale of Goods Act and this is nothing to do with the warranty. Here is a letter that you can use:

Dear Sir/Madam,

On 06/12/07, I bought a Playstation 3 60GB from Acme.com for £450 (including game) which is not of satisfactory quality.

The problem is the device goes into standby a few seconds after it is switched on.

Sony have quoted £145 to replace the Playstation 3 console with a refurbished model.
I wish to claim a replacement from Acme.com as my contract of sale is with you and it is reasonable to expect goods of this nature and cost to last longer than this. This is one of my statutory rights as described in the Sale of Goods Act 1979.

A copy of the proof of purchase is attached.

Please arrange for my Playstation 3 to be repaired or replaced or send me £145 within 14 days from receipt of this letter.

Yours faithfully,

Joe Bloggs

In response to this they are likely to ask for an engineers report to prove that the item is faulty, which is reasonably and to be expected. All you need to do is find a local reputable computer repair shop and ask them for a report. If the engineer concludes that the fault was caused during manufacturing, the retailer should reimburse you for the cost of the report and should agree to a repair. If it is not economical for them to repair the console they can offer a replacement or a cash refund taking into account your usage.

Without an engineers report this is the type of response you will get:

Dear Sir,

I represent the Executive Customer Relations Group within Acme.co.uk and in this capacity, your correspondence has been brought to my attention.
I am sorry to hear of the difficulty experienced with the Sony Playstation 3 Console (60GB Version) received in December 2007 from your order #25484662.

The European Directive 1999/44/EC allows for a claim to be taken (under certain circumstances) for a period up to two years in accordance with European Law, and up to six years under UK law.
This does not imply that an item has a warranty of two years or six years respectively. It merely permits an individual to make a claim under certain circumstances within that time period, e.g. should a fault be proven to have been inherent in the first six months.

Acme do not provide the warranty. We do, however, cover our obligations under the relevant legislation such as the Sales of Goods Act 1979 in the UK. Under the Sale of Goods Act, a consumer is granted recourse against a seller of goods if those goods were defective at the time of purchase. This may include, in certain circumstances, repair, refund or replacement but only to the extent that doing so is not disproportionate to the value of the goods, having regard to the use the customer has already had of the goods and the nature of the goods.

You purchased your product approximately 20 months ago and, until recently, have used it successfully and reported no fault with the product. Given your satisfactory use of the product for a period of time which exceeded the manufacturer’s warranty period, it is not established that the product did not conform to the contract (i.e. was defective) at the time of purchase.
In the absence of any additional evidence indicating that this product may have suffered an inherent defect, Acme.co.uk is not in a position to offer any additional assistance in repairing or replacing your product.

However, although we do not have any obligation to do so under the Sale of Goods Act or otherwise, in this circumstance as a measure of good will we would like to offer you a choice of the following resolutions:

An Acme.co.uk gift certificate to the value of 42 GBP.
A refund of 30 GBP.

Please note that gift certificate funds are only applicable to items being dispatched from and sold by Acme.co.uk.

Please reply directly to this letter to confirm if you wish to accept either of these offers as a full and final settlement in this matter and I will make the appropriate arrangements.

Please note that the manufacturer is often in a better position than the retailer to deal with technical problems affecting their products. We would therefore encourage you to contact the manufacturer to see if they are able to provide you with any further assistance. The manufacturer’s correspondence details are below, should you wish to pursue this matter further:

Manufacturer: Sony
Phone: 08705 111999

Yours faithfully,

John Doe
Acme
Customer Services

If the retailer won’t agree to repair or replace your PS3 and it is less than six years since purchase (five years in Scotland) then you will have to take them to the Small Claims Court.

It is worth bearing in mind that if you have paid by credit card, the credit card company is equally liable under Section 75 of the Consumer Credit Act. This is especially useful if the retailer is being unresponsive or has gone out of business.

Credit and Debit Cards, Part 2

Catriona — Mon, 06 Apr 2009 13:11:50 +0000

Increasing the APR

The hundreds of complaints What Consumer receives each year about a well known credit provider all relate to the same thing. The hiking of interest rates to astronomical levels at the end of a low or 0% APR introductory period. Card providers are quite within their rights to make these increases, but will often do so in response to accounts which have not been significantly reduced, or where the card holder has incurred late payment penalties (even if on only one occasion). This may seem very unfair, especially when we are talking about APRs of around 34%. But what makes it worse is these hikes can put immediately put people over their credit limit (which will incur further charges) and usually only with less than a month’s notice.

Allocation of repayments – credit cards

Your credit balance will consist of fees, interest and debt. The credit provider will separate these out in layers according to how soon they will be paid off. At the top of the pile you’ve got your fees – these will be paid off first. Underneath you’ve got your interest, and under this your debt – this is usually last to be paid off. Now, here’s the really sneaky thing. Cash advances will be shoved right to the bottom of the debt pile, to be paid off last. And we all know (or should know) that cash advances have higher rates of interest attached. So let’s say you have a balance transfer debt of £2000, a spending debt of £1000 and a cash advance debt of £50. That £50 will not be paid off until the other £3000 is first cleared, and for all of that time you will continue to pay the higher rate of interest on that sum. Not all credit cards will do this, but it’s worth looking at the ‘allocation of payments’ section in the Ts and Cs to see whether this is the case.

Moving the goalposts

Credit providers have the right to make changes to your account at any time. Provided you are not on a low or zero interest introductory fixed rate, they can increase your interest rate, reduce your credit limit, demand immediate repayment and withdraw any associated benefits of services. Moreover, they can do this with less than one month’s notice. As mentioned above, their action may result in you suddenly finding yourself over your credit limit and liable for a penalty. But as we have also pointed out, you should be able to get this reduced or waived if you feel the card provider is unfairly profiteering.

So why do they do this? It’s often due to their concerns over your credit-worthiness – you may not have been paying very much off the debt, or you may have been late paying. So to avoid the credit provider pulling the rug out from under your feet like this, ensure you are paying back more than the minimum amount each month and doing so on time.

Your rights

You have certain rights under the Consumer Credit Act in relation to cooling off, equal liability and protection against fraudulent activity. See our section on the Consumer Credit Act for more on this. Visa debit cardholders also have consumer protection rights. Refer to our section on Visa debit Chargeback for more on this.

Payment Protection Insurance (PPI)

Payment Protection Insurance, or PPI, is a policy which covers your monthly repayments in the event that you are unable to work due to accident, ill health or unemployment. It is usually offered by the card provider on the application form, but you would be advised to shop around for a more competitive deal from the dozens of available stand-alone policies on the market. See our section on PPI for more on this.

Using your card abroad

Using your debit or credit card to pay for foreign goods and services will be subject to an exchange rate fee of around 2.75% of the debt, plus transaction fees of between £2 and £5. So it is not advisable to pay for small amounts on credit or debit card where you could be paying the same amount again in bank charges! In the case of credit cards, the bank charges you pay are offset by the protection you get for sums of money over £100 under S.75 of the Consumer Credit Act. Therefore use it only for large purchases of goods where you can take advantage of this protection should anything go wrong – such as electrical items which could break down.

Taking a moderate amount of currency and then withdrawing sums with a debit card from local ATMs is a popular and low risk choice for most people, as the exchange rate fees are slightly less for ATMs than for card purchases in shops. However try to make fewer larger withdrawals rather than smaller frequent ones, as you would do in the UK. In addition to the exchange rate fee, banks will charge a transaction fee for every withdrawal, but there is usually an upper limit on the amount that can be charged, so for larger amounts it may be proportionately less. Best to check the Ts and Cs of the bank / card provider before you go to be sure.

As we keep hammering on about, Using your credit card to withdraw cash should be avoided where possible. Not only will you be subject to exchange rate and cash advance fees, but you will be charged interest at elevated rates from the moment the cash is withdrawn.

Holding your card details

Many people are alarmed that their credit or debit card details can be retained for seemingly indefinite periods by a website or trader. There is no law requiring them to destroy card details (although the 3 digit security number shouldn’t be retained) only the requirement to comply with the Data Protection Act which states that personal information must be fairly and lawfully processed, secure and not kept for longer than necessary. Some transactions are termed Recurring Transactions (formally known as a continuous authority transaction). This entitles the trader to keep card details so they can take regular payments or debit the account as they see fit without the permission of the card holder, although obviously the card holder must be notified. Examples would be car hire, hotels or subscription based accounts. You have the right to see what details a company has on file about you at any time by doing a Subject Access Request. Refer to our section on the Data Protection Act for more on this.

What about card security? The law is very clear on this. You are automatically protected by your credit and debit card provider against fraudulent transactions which you have not authorised. Unfortunately this protection does not extend to transactions which you have authorised, where, say, the goods have not been delivered or are of poor quality. However, you can claim your money back under S75 CCA (equal liability of the credit card provider) or via the Visa Debit chargeback scheme provided certain conditions are met.

Back to:

Credit and Debit Cards Part 1

See also:

Credit and Debit Cards

Catriona — Fri, 03 Apr 2009 23:10:07 +0000

An increasing number of us are routinely paying for goods with plastic. Using credit and debit cards has undeniable benefits: It allows us to track and manage our spending, it provides automatic proof of purchase, it enables us to collect rewards or points, and perhaps most significantly it gives us some protection against dodgy traders or misuse. However, while we are becoming increasingly aware of consumer rights in relation to credit, many of us forget that card providers still reserve the right to allocate repayments as they like, make changes to your agreement, impose penalties and demand immediate repayment. And this can often come as a big surprise to many people.

Charges

Most people at some point have had to pay a charge for late payment or for exceeding the credit limit. While this used to be as high as £25, the OFT have recently capped it at £12, saying it was unfair and disproportionate. However, this is not to say that £12 is fair either. The OFT have stated that any fee must reflect any costs incurred on the credit provider’s behalf – if you are only slightly late or only slightly over the limit and you feel it is unjust, phone the card provider and politely request the fee be scrapped. In practice however, it is better to avoid these situations by setting up a direct debit. Late payment or exceeding your credit limit more than once can affect your credit rating, and may result in the credit provider increasing your APR with very little notice (read on for more on this).

Reclaiming bank charges – the latest

In February of this year, the banks lost their appeal in the high court, leaving the OFT free to investigate whether their bank charges were unfair. The results of the investigation are expected later in the year. While the reclaiming process is still on hold, a positive ruling by the OFT will clear the backlog and make it quicker and easier to file a claim in the future.

Other fees

In addition to penalties for late payments, unpaid direct debits and exceeding your credit limit, there are also fees levied for cash advances, balance transfers, money transfers, handling cheques, foreign currency fees and duplicate statements. Although these fees are roughly similar between all card providers, it’s always worth having a quick read of the Ts and Cs to find out what they are. Another thing to be aware of is whether there is an annual fee for your card. In practice however, only the more exclusive cards tend to have annual fees.

Interest

By law, any application for credit card must include information in relation to the interest payable. For most cards this is usually a monthly rate of around 1.5% and an annual rate of around 20%, but there will be a lot of variation. In addition, the rate will differ according to whether it is for purchases, balance transfers and cash advances. Some cards will offer you an introductory rate of 0% for a fixed amount of time, it may include purchases as well as balance transfers, but it will never include cash advances. In fact, getting cash out on your credit card is probably the worst thing you can do – not only will you have to pay a handling fee, you will also have a higher rate of interest AND (worst of all) you will pay this higher rate from the moment you take the cash out, to the time the entire balance is paid off. Not the amount of cash you took out – the ENTIRE balance. This is due to the way card providers allocate repayments to your card. Read on to find out more.

Credit and Debit Cards Part 2

See also:

Paypal Consumer Protection Inadequate

Tony — Mon, 23 Mar 2009 19:04:09 +0000

Astute UK consumers shouldn’t rely on the Paypal’s Protection for Buyers. This includes Paypal Buyer Protection for eligible ebay sales and their Buyer Complaint Policy.

A quick search of the internet will confirm that Paypal has a tendency to close disputes for reasons only known to themselves. In addition, their Protection for Buyers imposes over-restrictive time limits, has significant exclusions and has some major limitations:

Over-Restrictive Time Limits

If you have a problem you need to be quick off the mark. You must start the dispute process within 45 days payment and if need to escalate, you have to do so within 20 days of raising the dispute. This is not enough time. For example, you might not discover that the item you bought is fake until it goes wrong after several weeks, or you may be advised that the item will not be delivered until back in stock, which may take a month or so.

Significant Exclusions

It is important to realise that not all purchases are covered by Paypal’s Protection for Buyers. There are exclusions and this isn’t always clear.

Paypal Buyer Complaint Policy Limitations

The Buyer Complaint Policy which provides protection for transactions outside ebay also has two significant limitations:

Paypal will not make a decision on whether an item is “not as described”. For example, if you buy a new CD and it turns out to be used or is damaged, you can use the process to make a dispute, but you are on your own. Paypal will not get involved and won’t make a decision either way.
For items that are not delivered, Paypal will only refund your money if they can recover this from the seller.

If you have to use Paypal then follow our advice to make your Paypal transaction as safe as possible.

Five-Step Financial Health Check

Tony — Wed, 18 Mar 2009 19:27:44 +0000

NS&I has launched , The Five Questions, with Sir Alan Sugar, to help the British public to give their personal finances a health check.

Research from NS&I has revealed that 40 per cent of us have no long-term financial plan and 17 per cent don’t seek information on managing our money because it is too confusing. The need for a quick, simple way to help us review our current financial situation was clear to the NS&I.

The Five Questions prompt individuals to consider important aspects of their financial management, including how much debt they have and what their cash and assets are worth. Each question is designed to ensure that everyone, regardless of age or situation, really thinks about their current financial situation and plans accordingly for a secure financial future.

John Prout, Director of Customer Sales and Retention at NS&I said the questions help focus the mind and help people make an honest and straightforward appraisal of their financial situation.

Once answered, the five questions link to specific information on NS&I’s You and your money website. This is an impartial website launched by NS&I in 2008 as part of an ongoing drive to improve the public’s understanding of personal finance. The site has a dedicated financial jargon-buster guide and sections on key life stages, such as planning for a family or retirement. Just like The Five Questions, it is simple and easy to use, even for those who find finance difficult to understand.

John Prout also said that most people are very familiar with the healthy eating model of ‘five portions of fruit and veg daily’ and the NS&I want to encourage a similar mindset about financial planning to ensure people review their finances on a regularly.

Nick Cann, Chief Executive at the Institute of Financial Planning commented, “Asking the key questions to help you get your finances in better shape needn’t be hard work. Through basic planning techniques, individuals can then make the first step to improve their overall financial ‘fitness’. We welcome this initiative, and it aligns well with the IFP’s development of a national Financial Planning Week – scheduled for September 2009.”

You and your money has a range of useful links and tools to help people decide what action they should be taking. These include:
-pensions and personal inflation calculators
-FSA online tools
-Government online tools and calculators

Buying Broadband Top Tips

Tony — Wed, 18 Mar 2009 19:10:29 +0000

It has never been more important to get expert advice prior to signing a broadband contract.

The Daily Mail reported this week on the story of Will Pierce who took his son on a skiing trip for five days and came home to a £22,000 mobile broadband bill from Vodafone. He had used his Vodafone dongle to download a relatively small amount of TV programming at £300 per minute. So one eighteen minute TV programme cost him a shocking £5,000.

As Mr Pierce rightly points out: ‘There’s no warning when you log on how much it will cost a minute, or a counter on the screen telling you what it is costing. If you ran up such a bill on your credit card while overseas you’d get a call checking that it is you who is spending so much.’ So this is a serious situation – not only is there no warning message as you download of impending “bill shock” – but also customers’ awareness of these enormous potential charges is very limited.

People recognise that if they use their mobile phone abroad it costs more, but not hundreds of times more. So as mobile broadband subscriptions become ever more popular, many more mobile broadband users will fall into the same trap as Mr Pierce. And there are plenty of other “hidden costs” to be aware of before taking the plunge with a long term broadband deal.

Earlier this month TalkTalk the home phone and broadband provider complained to Ofcom about BT’s use of “rolling contracts”. February marked the first birthday of BT’s rolling contract scheme, meaning that unless BT customers notify BT that they no longer want BT’s service – they will automatically be signed up to a new full term contract and be forced to pay up to £180 if they then want to leave.

This is contrary to the usual practice that a contract expires at the end of the contract period, leaving the customer free to leave from that point on.
The high cost of broadband technical support lines can also lead to unexpected bills. Earlier this month a Which? survey of 45 companies including many ISPs found that while some offer free technical support (including O2, BT and Sky), many are using premium rate numbers. Key broadband culprits include Tesco Broadband, Supanet and Roxio who all use premium rate 090 numbers.

As a result, Tesco Broadband customers were paying £5 for a 10 minute call to Tesco’s help desk. Tesco have already responded to the criticism, and have said that it is moving the fee to a local rate.

Charlie Ponsonby CEO of the digital TV, broadband and home phone price comparison service Simplifydigital.co.uk said: “We believe that it is very important to talk to an impartial expert before signing up to a broadband, home phone or digital TV provider – we spend a great deal of time explaining to customers the hidden costs that they need to be aware of before taking the plunge”.

Simplifydigital’s research shows that other hidden charges that typically surprise customers include: charges for paper billing; poorly communicated install charges; and early termination charges.

Top Broadband Buying Tips

Not all advertised deals, will be available in your area. The deals available in your area depend on whether a supplier has put their own equipment into the BT telephone exchanges in order to provide their broadband services (a process known as local loop unbundling’). This enables them to provide better value deals. So a cheap looking deal advertised in national press for example, may not be available to you.
Watch out for price hikes at the end of the introductory period. Many suppliers offer introductory period discounts in order to entice you in, but it’s important to calculate the value of the package over the contract length to ensure that you’re getting the best deal.
Watch out for overly long and rolling contracts. Some suppliers offer deals that are only available if you commit to an 18 or 24 month contract and leave you unable to switch within that time (without paying a penalty). And watch out also for rolling contracts as per the BT example described above.
Ensure the cost of line rental is included in the headline deal price. Most home broadband or home phone packages require a BT land line and landline rental is typically about £10 per month.
Make sure you know the cost of technical support. If you broadband service does go wrong, you can quickly rack up a significant amount of time talking to technical support. O2, BT and Sky offer free technical support, but many providers do not

Debt Management Companies

Catriona — Wed, 11 Mar 2009 23:18:42 +0000

In the current climate, debt management is big business. Dozens of debt management companies (DMCs) have sprung up over the last few years, having found a way to capitalise on this growing market, while at the same time claiming that they can help you out. There are two questions to ask yourself when thinking about involving a DMC: Firstly, do you really need one? Maybe you can formulate your own debt management plan and deal with creditors yourself. Secondly, under what terms do they operate? It may appear to be a free service, but all too frequently you will get talked into signing up to debt management service which is not free.

Debt Counselling

There is a huge selection companies offering debt counselling over the phone, nearly all of whom offer a free service. There are publicly funded organisations such as Citizens Advice Bureau and National Debtline, as well as not-for-profit charities such as Payplan and the Consumer Credit Counselling Service. There are also a host of other organisations who also offer debt counselling via a freephone number. The important thing to note about any of these companies is that they may advise with a view to getting you to agree to one of a range of a debt solution services. And these services are likely to incur a fee.

Debt Solutions

Debt management companies (DMCs) will offer the following options as debt ’solutions’:

Debt management plan
Individual voluntary arrangement (IVA)
Debt consolidation

Some companies, such as Payplan, get their fee from the credit industry rather than from you. The majority however are not offering the service out of the goodness of their hearts and must recover their fee somehow. This may be done in a number of ways – an up-front or set-up fee, a monthly management fee, or as a sum which is incorporated into the new debt. It is something to be aware of before you commit, although this information may not be immediately obtainable.

As a first step, you may want to deal with your own debts rather than involve a third party. National Debtline can send you a self-help pack which will enable you to do this (there is a link at the bottom of this page). The process involves assessing your income, expenditure, priority debts and non-priority credit debts. You can then choose to deal with your creditors yourself, by using the forms and letters in the pack to make offers of payment to them, in line with your personal budget.

Debt Management Plan (DMP)

A Debt Management Plan or DMP will be managed on your behalf by a debt management company (DMC) who will negotiate with your creditors to reduce your payments and potentially freeze interest payments. In turn you must pay them one monthly fee, which they will divide up and divide amongst your creditors for you. Additionally, if you are being pursued by debt collection agencies (DCAs), you can also request they deal with the DMC rather than with you. However, this is not a free service and the fee you pay will usually be integrated into your monthly fee. The reduced payment may seem like a good option, and it can be, but there are implications of managing your finances in this way:

DMPs are suitable for smaller, short-term debts and for individuals who own their own home and have a regular income.
The lowering of monthly payments will extend the repayment period of the debt as a whole. And a longer term means more monthly fees payable to the DMP agency.
Despite assurances from the agency, they may not be able to get your creditors to agree to the reduced payments or freezing of interest. Therefore they cannot guarantee that your creditors won’t take action against you.
DMCs usually only deal with non-priority debts, leaving you to deal with more serious debts such as mortgage or council tax arrears
Your credit file will contain details of your DMP, which will affect your ability to get credit in the future.

Individual Voluntary Arrangements (IVAs)

An IVA is similar to a DMP but involves more serious sums of long term debt (more than £15,000). This option involves commissioning the services of an IVA provider, who will negotiate with creditors and manage the debt on your behalf. The IVA provider must first get your creditors to agree to write-off a portion of your debt, so that you can make monthly repayments you can afford. The repayments will be spread over 5 years and the arrangement will take the form of a legally binding agreement. The agreement will be presented to you in the form a proposal which will agreement will then be legally binding. An IVA is a good alternative to bankruptcy for those suffering under major longer term debt, although there are some significant implications:

The potential for disproportionately high arrangement fees payable to the IVA provider which are added on to the overall cost. Shop around.
Because it is a legally binding agreement, your failure to keep up the repayments may lead to bankruptcy
Your credit file will contain details of your DMP, which will affect your ability to get credit in the future.

Debt Consolidation

Unlike a DMP or an IVA, a consolidation loan is the borrowing of more money to pay off existing debt. It is frequently offered as a solution to the problem of a having debts are spread across a variety of sources such as loans, credit cards and unpaid bills. While a consolidation loan will tie up all your existing debt and reduce the amount of money you have to pay as a whole, it is important to be aware of the following:

Consolidation loans are only offered to homeowners, which means it is secured on your home. This has two implications: firstly it is not a regulated credit agreement and you will not have the benefit offered by the Consumer Credit Act. Secondly failure to keep up repayments may mean repossession.
The lowering of monthly payments will extend the repayment period of the debt as a whole.
You will have additional fees to pay to the loan provider which will increase the total amount you have to pay back.

How to avoid being scammed?

Tony — Fri, 27 Feb 2009 00:04:12 +0000

This short guide has been produced to help people avoid being scammed and to help carers protect the elderly and vulnerable.

OFT Scam Video – Tricks of the Trade

This section is presented by Angela Rippon who warns consumers about lottery scams. Scammers tend to target the vulnerable such as the elderly, but not exclusively – 3 million people a year fall for these scams. Some are very sophisticated and scammers will often keep coming back for more. They use human psychology to their advantage: there is an irresistible prize that stops you from thinking logically; they often use the voice of authority such as the president of a bank; they use of fake testimonials; many of the prizes are personalised and there are often fake deadlines.

OFT Scam Video – Four Tips to Avoid Being Scammed

1. Don’t send money off straight away always talk it through with a friend.
2. If it sounds too good to be true, it probably is.
3. You never have to send money off to claim a legitimate prize.
4. Never give people you don’t know your personal details, including bank account information.

OFT Scam Video – Protecting the Vulnerable

The support of carers is absolutely vital and your support is essential.

Warning signs:

1. The house is full of junk mail, perhaps 20-30 items received every day.
2. They have lots of cheap low quality goods and miracle health cures.
3. They are secretive about their finances.

What you can do about it:

1. Encourage them to get advice from CAB or Consumer Direct, speak to a friend or neighbour.

2. You can also get all their mail forwarded to a trusted neighbour or a member of the family.
3. You can get them to sign up for the Mail Preference Service (0845 703 4599) and the Telephone Preference Service (0845 070 0707). These will cut out a lot of the junk mail and unwanted calls.

Debt Collection Agencies

Catriona — Wed, 25 Feb 2009 11:51:50 +0000

Debt collection is big business. As the use of Debt Collection Agencies (DCAs) increases, so have the number of complaints from the general public regarding the underhand, intimidating and often unlawful practices they are resorting to. Complainants also cite frequent examples of being mixed up with debtors who used to live at the address where they are currently living.

While there are still no laws governing what DCAs can and cannot do, the OFT have produced guidelines in relation to acceptable and unfair practices, breach of which may result in revocation of their licence. The OFT regard the following practices to be unfair practices:

Frequent and / or threatening phone calls
Being contacted at unreasonable times
Refusing to deal with the debt advisor and contacting the debtor directly
Failing to investigated disputed debts
Threatening court action and not describing the process accurately
Pressurising debtors to pay in full, in unreasonably large instalments, or to increase payments when they are unable to do so
Requesting the debtor takes on further borrowing to finance a repayment

Remember that DCAs are not bailiffs and have no right to enter your home or visit your place of work. You are within your rights to ask them to leave and they must do so. They may only visit you at home where you have been given reasonable warning of a visit and have been given the opportunity to take legal advice beforehand. Where you have engaged the services of a debt management company to manage your debt and negotiate with creditors on your behalf, you can insist that DCA deal only with them, and not with you directly. If you query or dispute a debt – and remember it is your right under s 77-79 to request to see your credit agreement and statement of debt from the creditor, then the DCA must not continue with debt recovery activities during this time.

How to report DCAs for unfair practices

If a representative from a DCA approaches you in a threatening or inappropriate manner, if he/she gives you misleading information, or make unreasonable requests, or if they communicate with you in a way which has been communicated to them as being against your wishes, then they may be engaging in unfair practices. The creditor is responsible for ensuring that the DCA they use are professional, ethical and fair. You are able to report both the creditor and the DCA to the OFT via their complaints form. If your complaint is upheld and the OFT find them to be engaging in unfair practices, they can revoke their licence to prevent them from trading any further.