Consumers caught out as number of rogue letting agents gets hire!

 

In the week that saw the lowest level of home owners in 25 years with the rapid increase in rental, particularly in the private sector, the BBC were investigating consumer fraud involving letting agents. The BBC Newsbeat team sent Freedom of Information requests to Trading Standards teams across the country asking about complaints regarding lettings of flats and houses. Their findings uncovered a number of complaints, around three quarters received by the Trading Standards Officers, that were not followed up and it would seem that the problem of rogue letting agents is on the increase.

Radio 4 You and Yours consumer programme spoke to a single mother who had visited a property to rent with a letting agent and in good faith handed over £2,500 she struggled to get, for a deposit and two months’ rent. The day before she was due to move in with her children, the supposed letting agent started to make a number of stalling excuses. Suffice to say, she did not get the flat and her money has gone along with a dream of finding a decent home in which to bring up her children.

Bidding war on rental deposits led to prosecution for fraud

You and Yours interviewed a Trading Standards Officer from Barking and Dagenham who had received a complaint about a lettings agent and followed this through. They soon found out they were dealing with fraud and in one case, discovered six families who had all, unknowingly, paid £3,000 each for a deposit on the same property. Fortunately the rogue trader involved, was prosecuted for fraud and is now serving a three year prison sentence. The Barking and Dagenham Trading Standards Officer has seen an increase in this type of fraud, particularly around the London area, where several families could be involved, unwittingly, in a bidding war when it comes to the deposit for a rental property.

Legislation due to change but still does not fully cover the consumer

There will be a change shortly in the law that will offer consumers additional protection but it still does not go far enough. Soon all letting agents will have to become a member of a “redress” scheme but if they don’t join, at the moment it is not a criminal offence. For better consumer protection and confidence in the lettings industry, then the penalties of not joining a redress scheme, needs to be more severe. Otherwise, as renting property becomes the norm for those who cannot afford to get on the housing ladder, we could be hearing about more and more people getting ripped off.

In the meantime, the advice for consumers who are starting out looking at renting is first of all check to make sure the letting agent you use is part of a redress scheme. These can be the Royal Institute of Chartered Surveyors or the Property Ombudsman Service for example, and the next important step is to find out exactly who the landlord is that owns the property. If you go on line and carry out a land registry search this will cost you £3 which will be money well worth spending. Finally the old adage, if it looks too good to be true, then it probably is so if the rent is lower than you would expect for the area or the flat or house you are looking at, then just be wary.

If you have had a problem with a rogue letting agent or even reported a problem to Trading Standards that has not been followed up, let us know – we’re listening!

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Train delays could see consumers making tracks for compensation

One of the funniest train announcements of all time had to be, not one that was heard by commuters from the station announcer who reported to all and sundry, “due to unforeseen circumstances, this train is running on time - we'd like to apologize for any inconvenience this may cause”, but a hand written sign placed by one quick witted soul on the Gatwick Express train service which said, “For a more efficient service, please alight at the next stop where a team of heavily drugged sloths will drag you to your destination.”

Sadly having to wait for a train to arrive whilst running late for work or an appointment, or a delay that costs you money and time is not so funny. It is understandable if there are problems with the signals or rail tracks, which mean the safety of your journey would be compromised, for delays to take place. However, it came as a surprise to read this week that consumers who are subject to delay, might be eligible to claim some compensation.

Study by the Office of Rail Regulation provokes a train of thought

Apparently I am not alone in realising this fact as a report from the Study for the Office of Rail Regulation (ORR) just out confirmed that around 75% of rail passengers in the UK were also unaware as well. If your rail journey has been cancelled or there is a delay and you decide not to travel then you might still be eligible for some form of recompense in the form of a full refund. This is certainly worth investigating as rail fares are not cheap, even just for a short journey.

It also set me thinking about the number of times I have arrived at the train station to be met by an announcement of delays and one or two cancellations on noticeboards and over the tannoy, but never saw any notice regarding my right to claim some money back. There is nothing printed on the ticket, to the best of my knowledge, and I have just been onto the National  Railways website to “Ask Lisa” in the Help section about this only to be referred to a list of train operators whilst stating I may be entitled to compensation but I had to contact the rail provider direct.

So I can fully understand why three quarters of rail users surveyed were in ignorance of their rights to compensation and applaud the 25% of you who were aware and obviously are a lot more observant than I am. I suggest at this point you go and put the kettle on whilst I share my findings with my fellow passengers.

Consumer information on compensation due to delay or cancellation of trains

The first point to note is that compensation may not be paid out in the event of bad weather or vandalism. However if a train is an hour late, not due to the two events just mentioned, then you can claim a minimum of 20% refund on your single ticket. You have to submit your claim within 28 days and the compensation is normally paid out in the form of vouchers which are valid for one year.  If the train is delayed or cancelled and you choose to travel, you might still be entitled to compensation and it is worth checking if the rail company you use offer “delay repay”. Delay repay means that compensation can be available even if the delay is only for half an hour, so it is worth checking on the company website or via their customer service helpline.

If you have experienced train delays and got compensation then let us know or if you think you should have had something back due to unforeseen cancellations then contact us – we’re listening!

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A flood of concern as consumers await news from insurance clear up summit

Since before Christmas the news has been following the victims of the floods on the Somerset levels as well as reporting on other areas of the UK. The rain may have stopped but the water is still destroying people’s homes and livelihoods, and it is not just water damage they have to contend with but raw sewage and bacteria that is contaminating many properties. 

The politicians have been meeting this week with the insurance industry this week in what has been touted as the “clear up summit”, but we’re pretty sure what will happen next – an increase in the insurance premiums of those unfortunate to be affected by the floods.

Seven years ago the people of Hull in the East Riding of Yorkshire, woke up to a similar flood damage problem. In 2007 when floods left over 30,000 people homeless across the country, 10,500 of those homes were in Kingston upon Hull, which got around a sixth of its annual rain falling in 12 hours. The damage in Hull was caused by the surface water being unable to escape rather than the rivers bursting their banks and the drainage system was not able to cope. Insurers put the cost of the total damage bill at around £1 billion as about 400 billion tonnes of water fell in Yorkshire.

One flood victim still paying extra £500 per year for insurance premium

This week one of the victims of the 2007 Hull flood was interviewed on the Today programme on Radio 4 speaking about her experience and what happened afterwards. Her home sustained a lot of damage and the builders had to be called in and extensive repairs carried out, and her insurance premiums, went from around £400 per year up to £1200. Seven years later it is down to £900 per annum, which as she said, is difficult to find but she has no choice but to pay. She tried to move to other insurers but they wouldn’t take her on any cheaper, so her only choice was to stay with her original company.

She had no choice but to claim from her insurance company but there are times, and we have all been there, when we are faced with the decision to claim or not. It is a very tricky business because when you have paid in your premiums for all those years then you feel it is right to get some of that money back. On the other hand you are faced with the uncertain feeling of the premiums increasing following a claim and it could be cheaper in the long run to pay for the damage yourself.

Consumer choice is limited to one

In some cases we have no choice and we have to take out the insurance policy, but it does leave you feeling a little rankled when you get the next annual premium quote following a claim. There is a lot of talk about consumer choice and shopping around for the best price, but as the consumer from Hull found out, in reality you don’t have a choice and you are left up waterlogged creek without a paddle.

If you have had experience of exorbitant insurance premiums following a legitimate claim or are currently awaiting help following the recent flood damage, then not only are our thoughts and sympathy with you but we would like to hear of your experiences – contact us now – we’re listening!

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Increasing cost of child care leaves a parent needing a holiday

The average cost of bringing up a child from birth to age 18 has been estimated at around £150,000, and increasing around 4% per year. I was surprised it was a low as that but then I am still recovering from the cost of sending one child through university and supporting another through an apprenticeship scheme. 

Thinking about it I would have said that total of telephone bills they have run up over the years would amount to around a tenth of that £150k estimate but I have been known, by both daughters, to exaggerate at times. However, one of the joys of parenthood is seeing them grow up and fly the nest even if there is a delayed “failure to launch” and a boost is required. Another reason for celebration is the fact that I don’t have to pay for them to go on holiday anymore and I can take my vacation during the statutory UK term time, when prices are cheaper and there are not a lot of young children hogging the resorts swimming pool and water chute.

School holidays+annual leave=rising costs to consumers’ pockets

However, it is galling as a consumer, to see the hike up in prices as soon as the summer holidays, Whitsun and half term dates are announced. I can fully empathise with the fact that parents need a break, and it is expensive when you have children to pay for as well. I used to keep a calendar with school terms dates on the side of the refrigerators but now all I need to do is glance at a copy of any large tour operators brochures and price lists and I know when the schools are going to be closed. Perhaps this may be soon to change under pressure from both consumers and central government.

The holiday companies have been coming under a lot of pressure recently to review this charging policy and now Parliament are debating the issue. An online petition from a disgruntled father went viral as thousands of consumers signed up to it but there is a formal on line petition set up by HM Government. Some people would say that even if Parliament decided to pressurise the travel industry sector into capping their prices at peak times, would it have much effect considering the laws of supply and demand? Parents cannot take their children out of school in term time these days for family holidays without the risk of a fine, and so will have to take their leave within the dates set by those who oversee the education in England and Wales.

E-petition available for consumers to have their say

There are of course ways in which cost conscious consumers can make the most of their money and get a good deal on their holiday package, but if you are interested in making your voice heard, the link to the e- petition is as follows but it closes on 7^thMarch 2014 at 2.40 pm:

http://bit.ly/HolCap
Or you can get in touch with us and let us know the best holiday deals and tourist providers you have dealt with recently – as always – we’re listening!

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Phony phone calls start alarm bells ringing for consumers

Meeting up with several friends for the importance task of distributing essential news over a chilled bottle or two of fermented grape juice, I heard from two different sources about the latest ongoing consumer telephone scam. This relates to cold calling people who have recently acquired a computer or bought updated software, and the caller represents themselves as technical support from an IT firm. My colleague who is an extremely astute business woman, readily accepted the call as she thought it was a follow up from her recent IT purchase. It wasn't until she had followed their instructions and saw she was about to access unknown online software that she started to smell a very large rat.

Logging out immediately, she started to run a virus scan on her pc whilst the scammer was still on the phone, he then became very insistent that she continue to follow his instructions whilst she then repeatedly asked for his name and company details before hanging up on him. Fortunately her computer wasn't accessed remotely because this is what the software he was suggesting, would do, giving him access to personal details and financial records.

Consumers taken unaware with ongoing computer scam

Her immediate concern was how he knew she had just upgraded her computer but it would seem this is a line they are using through random cold calling. Their other gambit is to start the conversation by stating they are technical support from Microsoft and stating this is a routine maintenance call because they have been told there is a virus on your machine. And they are very plausible which is why many people are being taken in.

Microsoft have issued clear guidelines and advice about what consumers should look out for, and the following list of companies the scammers say they are from:

·         Windows Helpdesk

·         Windows Service Centre

·         Microsoft Tech Support

·         Microsoft Support

·         Windows Technical Department Support Group

·         Microsoft Research and Development Team (Microsoft R & D Team)

Consumer helpline offers help and advice in dealing with scams and fraud

If a scammer does gain access to your computer then they can get online banking information, credit card details, passwords stealing your money and your identity. Microsoft are very clear that they do not make cold calls or unsolicited calls and their advice, like that of Trading Standards, is to put the phone down and report the call to either the Citizens Advice consumer helpline on 08454 04 05 06 or via their online reporting form or contact your local Trading Standards Officer. Otherwise, if you have a problem with this type of cold calling then let us know – we’re listening!

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Inflation charges added to O2 mobile bill could cause users to hyperventilate

Ofcom publish data every three months about the bigger telecom providers and up until now O2 have attracted the lowest number of complaints, but all that could be about to change. For quite some time now consumer groups have been lobbying to ensure consumers get a fair deal when signing up to mobile phone contracts, in particular signing up to a fixed deal contract only to find that prices kept increasing. So Ofcom brought in new regulations that basically states, if a consumer enters into a contract after 23 January 2014, the mobile phone provider is not able to put up their prices unless they made it clear to you this was the case when you entered into the contract. The operators are also only allowed to do this with recurring monthly charges. If they didn’t, then you should be able to pull out of your contract without attracting any hefty financial penalty clauses.

Consumers receive text to inform them of price increases

Sounds all fine and dandy but this week O2 customers were on the receiving end of a text that took many by surprise as they were told their March 2014 bill, for their air time plan only, would increase from £22 to £22.59 due to the increase in inflation. Furthermore, calls and texts over the consumer’s monthly allowance, MMS and International Calls will change also. O2 had been able to manifest this increase because they had revised the terms and conditions of their contracts, but were very careful to make sure customers knew about it.

Increases not “in the spirit” of what consumer watchdog Ofcom intended

On today’s Radio 4 You and Yours programme, telecom consumer experts discussed whether this increase was really “in the spirit” of what Ofcom had intended. As Ofcom intended to set out regulations to protect consumer interests, this is debatable, plus what happens if inflation goes back down? Will O2 reimburse their customer base?

Consumer champion Winifred Robinson, presenter of You and Yours was on the case and tried to find out if, like the energy companies, the rest of the big telecom providers were going to follow suite. Only three of them told the programme they wouldn’t be doing the same, (no names given at this point) but the others hadn’t at the time of broadcast, amended their terms and conditions. Consumer watchdog Ofcom were not asked for their response so it is not clear whether they will be taking action against O2, who have released a statement explaining the reasons behind the increase. Ofcom are supposed to be focusing on quality and value offered to the consumer by the telecom industry and it was put forward on the programme, that if they felt companies were not being transparent with their customers regarding this change, then they might take action.

If you signed up to a fixed term contract after 23 January because of the changes to regulations and now have been told you have a price increase and you feel your mobile phone operator was not transparent about this then let us know –we’re listening!

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The Great British Fake Off

When serving up a hearty breakfast Continental style, it might be worth just checking the ingredients of your fruit juice, because following checks by the Trading Standards staff in West Yorkshire, you might be getting more just a healthy dose of Vitamin C. In fact, out of 24 samples they checked out, 9 of them were not what they said they were and included additives more commonly used in flame retardants and that have been found to affect the behaviour in rats if swallowed in large enough doses. The county council tested a number of products for sale in the shops to see exactly what consumers were consuming, and the results were a little worrying.

Consumers could be biting off more than they can chew

These ranged from sliced ham that didn’t contain any actual ham, to cheese that was not cheese but a form of vegetable oil cum whey product, and worst of all, bits of plastic on cupcakes that were reportedly edible glitter. There was also a herbal slimming tea, which didn’t contain herbs and wasn’t a tea and that has, fortunately, been taken off the market because of side-effects. Other foods that were tested including the exorbitantly expensive saffron which turned out to be bits of flower waste, however doctoring saffron has apparently been something that has been around for years so nothing new there then.

Lewis Carroll was writing about Mock Turtle Soup in the 1800’s and it was invented as a cheap imitation of green turtle soup substituting calf’s head and calf’s foot instead of the hard shelled aquatic tortoise. However, at least the producers and the recipes of the day were good enough to tell you it wasn’t the real deal with the name of the dish. In the war, cafes and housewives were encouraged to serve up mock crab when they couldn’t get hold of a tasty crustacean (mainly chopped boiled eggs and Worcester or plum tomato sauce and cheese)

These days we are encouraged to read the labels on the food we consume, to take note of the fat and sugar content in order to maintain a healthy and balanced diet. Unless you have a degree in bio-chemistry, then names of some of the additives don’t mean an awful lot to the average consumer. We have to trust that the food that finds its way onto the shelves of our supermarkets, are as described and fit for purpose.

Powers of the Office of Fair Trading devolved to other consumer watchdogs

Whilst there has been a push for local foods and produce, and for some products to keep their name, e.g. Cheddar Cheese from Somerset, Cornish Pasties from Cornwall and so on, we now have to turn our attention to prepared products and manufactured foods. As the Office of Fair Trading closes its doors for the final time on 31 March 2014, and the Trading Standards Offices, the Citizens Advice Bureau and the newly formed Competition and Markets Authority (CMA) take over the OFT’s responsibilities, as consumers we need to lobby for continued sampling of the food we eat.

Otherwise we could be munching on Sham and Mustard Sandwiches, Frosted CupFakes and washing it all down with a hefty dose of fruit juice with a twist of illegal additives. If you have had a problem when food shopping then let us know – we’re listening!

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Rain, Rain go away as consumers have to pay

It is cold and wet at the moment with no foreseeable let up in the rain, which for people living around coastal areas that suffer erosion and those on flood plains like the Somerset levels, must be an even more daunting prospect. Trying to keep their homes dry and in one piece, let alone warm, is an uphill struggle.

Everything must seem to be conspiring against them at present, the force of nature as well as the Environment Agency or government departments dealing with sea defences and rivers that need dredging, so it is not surprising that from time to time people take matters into their own hands. For several years one man has fought a battle against the North Sea, and has brought in quantities of aggregate and other materials to one part of the Eastern coastline to prop up the crumbling cliffs and keep his property intact. He battles on against the local council, Mother Nature and criticism from a range of other agencies.

Consumers faced with 25% increase in insurance costs

It will take months to clean up around the areas that have been flooded and already there are talks about rising costs to consumer’s insurance bills. Not only have there been claims in the news last week that prices will increase by around 25% for some people, but insurance companies may charge more for their flood surveys, these can already cost customers nearly £500 at present. This is the second year running that UK residents have had problems with flooding but it is not until 2015 that a new deal will come into being to cap costs for consumers living in the worst hit areas. It is difficult to understand that as a nation we are very quick to react to some issues, yet it takes nearly 2 years to pass legislation that will at least put a limit on how much people pay out to keep their homes intact.

Consumers budget could be all at sea!

It may be argued that people know the risk they are taking on if they move into areas that can be affected by erosion or flooding, but many on the Somerset levels for example, have lived in the same village for years as did their parents and grandparents before them. For others who bought homes by the sea as a retirement plan, they could not have foreseen the drastic erosion that has occurred along the eastern cost of England over the last few years. Plus, it may be that they could not afford a home elsewhere. Whatever the reason, not only do they have to try to rebuild their lives and homes but at the same time many will be trying to work out how they can pay an inflated insurance bill they had not budgeted for this time last year.

If you have been affected by the floods and had an excessive increase in your insurance premiums as a result which you don’t think is justified– we want to hear from you, we’re listening!

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Politicians labour in vain over May 2015 manifesto

Having woken up this week to the news that Labour are setting themselves up as “the party of the consumer,” I checked my calendar to see how long it was before the next General Election. For now we are entering a period of Election Promise Fever, a well-known condition suffered by all elected members of Parliament that tends to strike round about 15 months prior to the county going to the ballot box. Once in power, or so Labour tell us, they will bring in laws so that consumer forums such as Which? and the Citizens Advice Bureau will be involved in setting the agenda of the Competition and Markets Authority. Is that what consumers have been asking for?

Labour are also going to reintroduce their 50% tax banding for anyone earning over £150,000, listening to the man and woman on the street there was a mixed reaction, some thought the wealthier should be taxed at a higher rate, others were not so sure. Some people see this 50 pence in the pound tax as one for the millionaires but out of the 320,000 in the UK who will earn over 150k per year, only 18,000 of them are millionaires. So in fact the so called millionaire’s tax will only affect 6.3% of the highest earners.

Are we cutting our nose to spite our face?

Those who do earn over 150k, and live in this country have more spending power than most of us, and this money goes back into the economy. If someone was thinking of setting up in the UK as an entrepreneur then paying a high level of tax may just make them reconsider. If they take their business elsewhere, the country and its residents lose out on that source of wealth.

If existing businesses and higher tax payers decide to move out of the UK and set up elsewhere, the Tax Office ends up with trying to tax a bigger slice out of a smaller pie of tax payers and therefore the Treasury have to find the deficit in the UK’s bank account from somewhere else – no prizes for guessing who will have to cover this loss.

Are we actually saying to the rest of the world that we want to be seen as a high tax bracket country? Surely we want to encourage new wealth and industry to come into the country, and a country doesn’t get wealthy by forcing heavy taxes on its biggest employers, investors and the top achievers.

What promises have been made to help the lower paid in the country?

Taxation has to be paid to cover a number of services that we have come to expect such as education, health, and housing, the emergency services and social services for example, and all are valid and appropriate recipients of public money. I note that Labour are aiming to tax the rich amongst us but I am not sure how this money will then find its way to the poorer in the community. Ed Balls has been saying the income generated by this 50 pence tax will go to paying off the UK deficit, which will take up until 2020. Business leaders are out in force stating this does not make economic sense particularly as the economy is starting to make a slow recovery.

I am still not sure how this can benefit the consumer at the end of the day who wants to have a reasonable quality of life, with some disposable income, safe neighbourhoods, good schools for our children but I shall continue to monitor all the pledges, lip service and promises up until May 7th 2015,and we would like to hear your thoughts as consumers on what you want from the people in power – we’re listening!

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