Know How Guide

How To: Light Paint with your camera

2012-08-29T02:32:00.001+01:00

Light Painting is infact super simple once you know what you're doing. I learnt how to do it in 20 minutes. An hour later and I've got 4 shots I'm happy with and edited (saturation, ambience and a little contrast)

So you will need -
An area that can be in darkness,
A subject
A light, or two, three, whatever
Your camera.

Here's an indepth of what to do.
In the light, set up your camera either on a table or on a tripod so it can't move. Set up your subject, get your manual focus right and then adjust your camera settings.

Settings I used - Manual, ISO 100, f18, shutter speed 20 seconds.

Now get your area in darkness, get your torch or light source ready. Press down your shutter button and start with your painting.
Random movements work well but so do precise movements, it's all child's play really.

Make sure you don't get your hands in the shot too much as this will affect the outcome.
Your shutter will close. And your done! Turn back on your lights and see what you've done.

My 4 shots taken on the canon 600d with kit lens of a diesel aftershave bottle using the iPhone flash as a torch with the app iTorch.

Happy painting!

How To: DIY DSLR Pop Up Flash Snoot , Diffuser & Filter

2012-08-27T18:50:00.001+01:00

Following on from the DIY DSLR Pop-Up Flash Diffuser made from a milk bottle at a zero cost, I've now made a pop up flash snoot, diffuser and a filter all in one.

The total cost of this is nothing again!
(depending on what you have in your cupboards of course)

Pictures follow the post

Gather your materials: You will need:
A ruler, a marker pen, some foil, scissors, sellotape / glue, your camera, a gravy granule tube (Bisto), the Bisto lid or pringles lid and some kitchen roll or ripstop nylon or any diffusing material.

Step 1- Cut out part of the base rim out of the tub (this is so it fits better onto your pop up flash)

Step 2- Line up your flash, mark the edges, and cut out of the base of the Bisto.

Step 3- Now cut a square of foil big enough to line the tub. Scrunch it up to get more reflection. Then tape this down at the ends, trim to size.

Step 4- Cover your clear Pringles lid with your diffusing material, I used kitchen roll. And tape it down.

Step 5- Attach your lid to the Bisto tub, and voila! Your done!

Remove the lid and you've got your snoot.
Attach the diffused lid for your diffuser.
Attach the red Bisto lid for a red filter (no picture, but it works!)

Thanks for reading!

How To: DIY DSLR Pop Up Flash Diffuser

2012-08-27T00:32:00.001+01:00

I've seen a great deal of DIY flash diffusers on google, all ranging in cost, some made from foam, some cardboard, some bubble wrap even! But typically you can only find DIY diffusers for external / hotshoe flashes.

However if you're like me and stuck with the pop-up flash for the time being, but still want a diffuser, then read on!

The DIY pop up flash diffuser - costs NOTHING!
(Pictures in sequence below)

What you'll need:

An empty milk bottle, ruler, sharpie / marker pen & scissors (and of course your camera)!

Step 1 - Mark out the bottle as per picture below, repeat on both sides, and link up your marks (behind bottle handle)

Step 2 - Cut it out, (If you're young, please get an adult to do it for you) you should be left with something looking like the picture.

Step 3 - Measure + mark the lens size as per picture. Then cut this out with your scissors (I also cut an extra notch to fit inside where the flash pops up from - see picture)

Step 4 - Cut the long piece of plastic - so that you can make a latch, you'll have to measure this yourself (you'll see what I done in the picture)

Step 5 - Make a slit in the plastic for your little latch to go through, this will act as a lock to stop it falling off.

And you're done! A totally free DIY DSLR pop up flash diffuser made from a milk bottle.
Happy snapping!

How To - Reclaim PPI for FREE

2012-06-18T13:31:00.001+01:00

You can reclaim £1,000s on PPI yourself, easily, for free. Don't hand 30% to a no-win no fee claims handler. Everyone who's got or had a loan, credit or store card, catalogue or car finance should check now if they were flogged these policies.

The banks lost in court after years of systemically mis-selling PPI. Now they've put up to £9 billion aside to pay out. This is a step-by-step DIY guide including a full FAQ and free template letters on how to join the millions who've complained and been paid back money wrongly taken from them.

STEP 1. CHECK YOUR POLICY

Not got your paperwork?

While it isn't always necessary, as you can start a reclaim without it, if you don't have a copy of your agreement or T&Cs you can contact your lender to ask for a copy (make sure T&Cs date back to the time of your agreement as terms will change over time).

Lenders can ask for £1 to provide this but not all do so you could include a £1 cheque (don't send cash, though) to speed it up a little. It may not provide the agreement if your account is closed but you can then ask for a full breakdown of your whole account (this can cost £10).

STEP 2. THE PPI MIS-SELLING CHECKLIST

Now it's time to go through the checklist below. Sellers of PPI have a responsibility to ensure you understand the nature of the product, and that it's appropriate for you. All policies will have exclusions, and you should have been told about them. As most policies are bought alongside a financial product rather than on their own, the key issue is:

... what was said at the point you were sold the product.

Here are the key mis-selling categories. If you fit one or more of these you probably have a case:

Were you told it was compulsory?

It's a common complaint that consumers are told they must buy a policy from the same provider as the loan in order to be accepted for the product. This is mis-selling.

Any company that subscribes to the Lending Code (see list) agrees it won't insist you buy an insurance product from it. Therefore if the salesperson:

Didn't make it clear the policy was optional or tell you about any cooling off period
Implied or stated it would be more expensive if you didn't take the insurance
Implied or insisted you take out their policy to qualify for the product or help with your application
Was very pushy when selling the product, so that you felt you could not say no
Would not let you continue with the application if you did not sign the insurance agreement as well

Didn't realise you had cover?

Have you just checked your loan agreement to find that you've been paying for insurance, but didn't realise until now that you had it, or what it's for?

Some old agreements (pre-July 2007) may have used pre-ticked boxes so you had to opt out of the insurance rather than opt in, which is unfair. Always check this, and if you're paying for insurance you didn't know you had

Were you told or sold the wrong thing?

This covers anything from the fact you were already covered through work or your partner, the policy not being what you agreed to, the insurance term is shorter than your loan and you didn't realise, or if you thought it was a joint policy but in fact it was only in one person's name.

Self-employed, unemployed or retired?

If you were unemployed or retired, check if the policy included unemployment cover. If it did, the unemployment cover's worthless – this should've been pointed out.

If you were self-employed, check whether you were eligible for a payout if your business went bust (usually not) – if not, and it wasn't pointed out, you may have a case.

Had any medical problems in the past?

Most policies exclude existing medical conditions, meaning you're unlikely to be covered for any medical problems you've had in the past. You should've been asked about this, and informed the policy could be affected.

Has your provider already been fined?

The regulator, the FSA, has said it wants to see better practice. Many major providers, including Alliance and Leicester, Liverpool Victoria and Capital One have been fined for "not treating customers fairly". If yours has, it's very likely you've a case.

STEP 3. WRITE TO YOUR LENDER

Write the company that sold the policy and ask for a refund. In the old days this often meant following a dance - thankfully it's much easier now. (You can easily find guides online)

The most important thing to understand is: don't be put off if you're rejected. You may also need to go to the Ombudsman later, but you need to have written to the lender first.

STEP 4. WRITE TO THE OMBUDSMAN

If you still haven't reached a satisfactory conclusion, it's time to make a formal complaint to the Financial Ombudsman Service.

This is the official independent service for settling disputes between financial companies and their customers. The Ombudsman is completely free to use, and will adjudicate on whether your complaint should be paid out.

It'll decide whether your policy was sold unfairly or unreasonably (see some examples). It can only do so once eight weeks have passed from the date of your first complaint letter (between June and Dec 2011 banks had 12 weeks to deal with complaints), unless your case was put on hold by the lender and it specifically suggests you go to the Ombudsman (although this should no longer be happening).

While the process of using the Ombudsman is simple, and the amount of money you could receive is massive, it's not usually quick. Your case may take over a year to be settled, so don't count on the cash now.

How to make a complaint

Just contact the Ombudsman and ask it to take on your case. You can either do this via the Financial Ombudsman Service website or by calling 0800 0234 567 (or 0300 123 9123 from a mobile). It will look at each case individually, so if yours is a matter of you saying one thing happened but the company disagrees, the Ombudsman will decide if it thinks the company acted fairly.

As the party with responsibility to provide full details of the insurance, the lender is expected to have more evidence on what happened to back up its case.

In the last six months, of the cases that needed to go as far as the Ombudsman, 88% were awarded in consumers' favour. And even if yours isn't, there is no penalty for losing - it just means you don't get the money back.

The Ombudsman will then send you a confirmation letter to say it'll look into your case and get back to you if it needs any more information.

Sometimes this will take a long time, usually around a year but may be even longer as the Ombudsman deals with huge numbers of complaints. But don't worry - you can leave the matter to the Ombudsman to resolve and it will contact you with any offers from your lender.

If you think the Ombudsman wrongly turned you down

The Ombudsman's decision is usually made by an assigned case worker, but if you disagree with the result you can ask for a formal decision to be made by one of the 41 actual Ombudsmen at the service. This usually takes several months as it involves a detailed investigation into your case, but don't be afraid to push your complaint further if you think the initial decision isn't right.

After that, while the finance company must accept the Ombudsman's decision, you still have the right to take the company to court. It's also worth noting that if you feel the Ombudsman hasn't handled your case correctly, eg, there have been unnecessary delays, you can refer it to the Ombudsman's Service Review Team.

If that doesn't resolve it you've a right to go to the Independent Assessor, though this is only about quality of service, not the actual decision made.

Misleading Commercial Practices: Unfair Trading Regulations 2008

2012-06-18T13:15:00.002+01:00

The practice of incorrect or misleading descriptions, statements, marketing and pricing was made unlawful under the both the Consumer Protection Act and the Trade Descriptions Act. This legislation has now been replaced in large part by the Consumer Protection from Unfair Trading Regulations 2008. The regulations outlaw three specific practices:

Misleading actions.
Misleading omissions
Aggressive sales tactics.

1. Misleading Action

If false or inaccurate information has been used in relation to a product or a service, and this information has induced you into a purchase you would not have otherwise made, you can claim that the action was misleading. It also covers assertions made about the company selling to you. If, for example, the company makes untrue claims to have certain qualifications, or that they are members of an approved trade organisation, this is a misleading action. This is also the case if they claim to adhere to a code of practice which they then do not follow.

2. Misleading Omissions

The problem may be not what is stated but what is not. Therefore if information is omitted or hidden, presented in an unclear, unintelligible or ambiguous way, or given too late to the consumer, then it can be found to be misleading and in breach of the regulations.

Companies are required by law to include certain information about themselves , about performance of their contractual obligations, or in relation to consumer rights where there is a cooling off period. If they do not, then this is also misleading.

Incorrect Pricing

Incorrect or misleading pricing information is a common cause for complaint and is covered in these regulations.
Firstly, you should be clear that shops are not legally obliged to sell you their products and reserve the right not to do so if they wish. This means that if you pick up something which is wrongly priced, you do not have a right to buy it at that price. Having said this however, it is still unlawful for shops and suppliers to display an item at a price which is different to the price requested at the point of sale. Exceptions to this are obvious mistakes where, for example, a TV is priced at £8.99 instead of £899.00. An action is also misleading if it includes the manner in which the price is calculated and whether the item is being marketed as ‘discount’ or ‘for a limited time only’ – when in fact it is not.

Where the price given does not include taxes, delivery charges or any additional surcharges such as handling or admin fees, this is considered to be a misleading omission.

3. Aggressive Sales Tactics

When buying an electrical product we are frequently confronted with the option to buy additional insurance policies in the form of extended warranties. Sales staff can get generous commission for convincing us to part with more cash through the sale of these policies and this has led to aggressive sales tactics. The regulations aim to stamp out such practices if they are considered to impair your freedom of choice or limit your ability to make an informed decision. This includes harassment, coercion, persistence, threatening or abusive language, exploitation of misfortune or specific circumstances. It also includes retailers’ standing in the way of your contractual or consumer right to terminate a contract or switch to another product. However you must also prove that the way you were treated led you to make a purchase decision you would not otherwise have made.

Taking action against retailers

The regulations referred to here are within the scope of criminal law. What this means for the consumer is that you cannot take direct action against retailers if you find them to be in breach of any of the above. Instead, you would need to report the matter to the enforcement authorities (Trading Standards), who will investigate, and perhaps even prosecute. A prosecution would not be carried out on the consumer’s behalf but on the state’s behalf, and so you will not yield any personal benefit from this process (unless perhaps a feeling of satisfaction!).This is not to say that you cannot threaten to inform the authorities if they do not resolve the situation to your satisfaction within a reasonable time period.

Gym Membership Advice

2012-06-18T13:13:00.002+01:00

For years, the OFT have been keeping a close eye on health and fitness clubs with specific reference to the fairness of their gym membership contracts. Typically, consumers have been required to sign agreements which commits them to a 12 month minimum term, which absolutely ties them in to making the monthly payments for that period. Many consumers have complained that gyms will not release you from this obligation under any circumstances, even in cases of serious illness, redundancy or relocation. Other complaints relate to long notice periods for cancellation and disproportionately high cancellation penalties.

The OFT have focused on the following aspects of contracts for gym membership:

Claims that gyms will not be liable for death or personal injury, or for loss or damage to property
Lack of clarity concerning minimum membership periods and notice required for cancellation
Lack of clarity concerning cancellation charges, or the consequences of cancellation
Clubs permitting themselves to make changes to their service agreements with you

In addition, the OFT felt that many of the obligations and requirements of the consumer were hidden within complex legal language when they should have been more plainly and clearly expressed. And while gyms could be allowed to impose an initial 12 month minimum term, consumers should be in no doubt on reading the contract that this would be the case. What about long notice periods for cancellation? A three month period is commonly the length of time required, which may seem unfair as it then ties you into a further 3 monthly payments. The OFT recognise that gyms also need to protect themselves from sudden cancellation and don’t consider 3 months to be excessive where you have a ‘rolling’ membership (i.e. not a minimum term contract). However, as with the imposition of a minimum term, this must be plainly and clearly expressed in the contract.

So what is an unfair term and what just bad customer service? We have seen that some of the points above, although dubious are not necessarily unlawful. However, the following are are unfair terms and have been recognised as such as a result of the OFT’s investigation:

Limiting or excluding liability for death or injury, or for damage or theft of property (includes ‘at your own risk’ disclaimers)
Excluding liability for any breach of contract on the club’s part, even though you are obliged to fulfil your contractual obligations
Limiting your ability to take legal action against the club if they don’t comply with their contractual obligations
Excluding certain statutory rights such as your right to get a refund if the club is unhygeinic or unsafe
Financial penalties on cancellation, where this sum is disproportionately high. Loss of all monies paid in advance may also be unfair, where this cannot be justified by the gym
Allowing the gym to terminate or cancel the agreement without reasonable notice, legitimate cause (as per contract), and giving you the same rights.
An initial minimum term is permissible, but where this includes an automatic renewal to another fixed term, this is likely to be unfair. Similarly, automatic renewal without giving you reasonable opportunity to cancel is unfair.

In addition to the identification of unfair clauses, the OFT recognise that you may not have had the opportunity or the know how to read and fully understand the contract you are asked to sign. Consequently, contracts are required to be written in plain and intelligible language with a prominent warning that the member should read and understand the terms before signing them.

Take Care!

Despite the interest of the OFT, the situation still calls for buyer beware, and care should be taken before entering into such agreements. Bear in mind the following points, because there is no cooling off period!

Take the time to read through the Ts and Cs. Take it away if necessary – it is your right to have reasonable opportunity to familiarise yourself with the contractual terms before signing.
Take particular note of clauses in relation to tie-ins, notice periods and cancellation penalties. Do not mistake the notice period for cancellation with the length of the contract.
If the contract contains clauses which refer to automatic membership renewal, ask for this to be removed, or make a note of the date by which you should inform them.
By law, the contract must be presented in simple, jargon-free language. if you are unsure about anything ask for full clarification
A contract is a two-way process. Don’t be afraid to ask certain clauses to be struck out if they seem unreasonable or you are not happy.
Take extra care with introductory offers and special deals. Clubs may waive their joining fee but still charge you the equivalent as an ‘admin’ fee. Always read the small print.

Debt Collection Agencies

2012-06-18T13:12:00.003+01:00

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.

Debt Management Companies

2012-06-18T13:09:00.002+01:00

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 - Access Your Credit File

2012-06-17T13:21:00.001+01:00

If you have been turned down for a credit agreement such as a loan or a credit card, you have the right, under the Consumer Credit Act, to request that the lender provides you with details of the credit reference agency they used to access your credit file. You must do this in writing within 28 days and the lender must respond to your request within 7.

You can then write to that credit reference agency, to request a copy of your file, enclosing a fee of £2. As long as you have supplied all required information to the agency in order for them to verify your identity, they must send you your file within 7 days. If they hold no information about you, they must inform you but are under no obligation to return your fee. It is also their duty to ensure reports are in plain English and you are aware of your right to correct any wrong information.

The right to correct or amend any wrong information in your credit file

If an entry is incorrect and you feel this is likely to prejudice any decision against you regarding applications for credit, you can request this detail be corrected or removed. If the agency uphold your request, they must then write to you within 28 days telling you what has been done and (if applicable) send you the amended entry. Furthermore, the agency must notify each and every company which requested your credit file within the last 6 months that this has occurred.

The three main credit agencies in the UK are:

Equifax plc
PO Box 1140
Bradford
BD1 5US
Tel: 0870 514 3700

Experian Limited
Consumer Help Service
PO Box 8000
Nottingham NG1 5GX
Tel: 0870 241 6212

Callcredit plc
PO Box 491
Leeds LS3 1WZ
Tel: 0870 060 1414

Credit Agreements - Your Rights & Explained

2012-06-17T13:16:00.001+01:00

There is a wealth of ways in which retailers make high priced items affordable – you can choose to ‘buy now pay later’, or spread the cost in monthly instalments, or both. You may choose to get an independent loan or finance it through a new credit card. Whatever method you choose, you will be party to a consumer credit agreement, which may involve third party finance. The vast majority of credit agreements are regulated by the Consumer Credit Act, which has important implications for in terms of how financial information is presented, your rights under the Act and whether you are able to cancel the agreement.

In addition to credit and store cards, personal loans and overdrafts, a credit agreement will govern the following types of contracts:

Finance options for the purchase of goods and services (credit sale agreements)
Hire purchase agreements
Hire agreements
Conditional sale agreements
Credit sale agreements

This is the most common type of financing option when purchasing high-priced goods and services such as cars, electronic goods, or home improvements. It is basically a loan to over the purchase price of the item, with the loan paid back the loan in equal monthly instalments over several months or even years. The consumer (the ‘debtor’) may pay a large initial deposit (such as with the purchase of a car), or not pay anything at all for the first year or two. Either way, you will legally own the goods as soon as the credit sale agreement is made, even if you have paid nothing at all. Where ‘interest-free credit’ is advertised, you will have a specified time to pay back the outstanding balance, otherwise the due balance will automatically roll into a longer term credit agreement where interest will be payable.

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.

Look at the figures

In order to see exactly what you will end up paying and so that you can compare the cost of different agreements over different timeframes, the Consumer Credit Act requires companies to clearly present key financial information, including:

The loan amount
The charge for credit
The total amount payable
The monthly instalments
The Annual Percentage Rate (APR)

As this example shows us, by opting to buy now pay in 12 months in 36 monthly instalments you could be paying a good 80% more (£540 extra) on the original price. The APR must also be shown to illustrate how ‘expensive’ the credit is. It also enables you to shop around for the best deal.

Order Value £750.00
Deposit £75.00
Loan Amount £675.00
Total Charge for Credit £544.76
Total Amount Payable £1294.76
Arrangement Fee £42.00

Can I get out of the agreement?

Whether or not you have a cooling off period depends how the contract was made. Where you have been presented with the paperwork to sign on trade premises, it is legally binding from the moment they are it is signed. If you entered into the contract at a distance – over the phone, via the internet, by post, or if you dealt with a broker, then you will have a cooling off period of 14 days (30 days for some products).

Terminating and early repayment

You can terminate an HP or conditional sale agreement at any time before payment of the last instalment, provided you have paid at least one half of the total price and you have taken reasonable care of the goods to be returned. For hire agreements you can only terminate the agreement after 18 months (unless an earlier date is mentioned on the contract).

The Consumer Credit Act gives you the right to repay the debt early and complete the payments ahead of time, as long as you provide written notice to the lender of your intention to do so. You will also be able to get a statutory rebate for the charge for credit. The rebate must also be calculated according to regulations set out in the Act – not of the lender’s choosing!

If you default on payments

If you have missed (defaulted on) at least two or more payments (i.e. you are in arrears), the lender will, within 14 days, send you a notice of default which will explain fully your obligations and risks. It will tell you how behind you are in your payments, what action you must take and when, and whether any additional sums of money (default sums) have been incurred as a result. It also informs you of the consequences of ignoring the notice and what the lender is entitled to do, which may involve any or several of the following:

To terminate the agreement
To demand early repayment of any sum
To repossess the goods
Enforcement of security in lieu of what you owe (possible involvement of bailiffs)
The supplier cannot repossess goods without serving you with this notice and waiting for the required time to enable you to respond (14 days).

If you cannot afford the repayments

If you are already in default and you have received a notice to this effect, or the company has started proceedings against you, you can apply for a ‘time order’ from the courts. If successful, this will give you a longer amount of time to pay, in the context of your personal situation. To avoid further action from the lender in the meantime, you must write to them advising them of your intentions.

If you are not yet in default but feel that you will have difficulty meeting the monthly instalments, you are advised to contact the lender (the supplier or the finance company) without delay informing them of the situation. Also seek help from one of the numerous debt advice agencies such as National Debtline who will be able to set up a Debt Management Plan (DMP), negotiate with creditors on your behalf to help you get back on track with your repayments and avoid potential legal proceedings.

How To - Claim at The Small Claims Court

2012-06-17T13:13:00.001+01:00

If you are in dispute with an organisation or an individual and wish to recover specific sums of money you feel you should not have paid, then you can issue a claim at county court level against that individual or firm. If the claim is for less than £5000 (or £1,000 or less if the claim is for personal injury or housing disrepair) then the small claims system is set up for you to use cheaply, quickly and easily, without the involvement of lawyers or other legal professionals. For claims over £5000, you will be referred to the fast track or multi-track. Please note, this only applies to England and Wales.

Alternatives to court action

The procedure will require you to consider alternative dispute resolution routes such as arbitration, mediation and ombudsmen schemes (details for which can be found in the useful contacts page on this site). However, if it is clear that you will not get the desired result any other way, then you can pursue a claim issued through the county court. You can do this for any of the following scenarios:

- An unpaid debt
- Poor workmanship
- Non-performance of contractual obligations
- Damage to property
- Road traffic accidents;
- Personal injury
- Faulty goods or goods not supplied

First steps

Your application will include information on what steps you have already taken to try and recover the money. You would therefore be advised to write to them as a first step, explaining the reasons for your dissatisfaction, what you would like in return and a reasonable timeframe for doing this. You should also provide notice of your intention to take further action if they do not do as instructed. See our templates page for a model of how to structure your letter and what kind of information to include. Remember to send any correspondence recorded delivery and keep copies for inclusion in your claim.

Things to consider

You should also consider the capacity of the firm or individual to pay the sum. If they are unemployed, insolvent, on a low income or heavily in debt, this will be taken into account and you may not get anything. Therefore it is very possible that even though you will win your claim you will still not get any of the money which is owing to you.

How much will it cost?

To start proceedings, claimants must usually pay an initial court fee, and although it will not be as much as instructing a solicitor, the amount will depend on how much money you are claiming. If you are receiving benefits, pension or tax credits, or if your income is below a certain level, you will not have to pay this court fee. You can also get a partial contribution to the fees if you can prove that it would be difficult for you to pay.

Additional Expenses

If, once judgement has been made the company or individual still does not pay and continues to dispute your claim, you may have to pay additional fees, although these can often be added onto the amount they will eventually owe you if you are successful.

If you have witnesses you will have to cover their expenses / loss of earnings
If you need a report from a professional acting as an expert witness, you will have to pay for this
If you require a professional to attend the hearing to give their expert opinion, you will need to pay their charges and expenses
If you are suing for a specific sum of money, the case may well be heard in the court local to the firm or individual you are suing, therefore you will incur travel costs and suffer loss of earnings.
However, you may be able to claim some or all of these costs back if your claim is successful.

Representing yourself

For claims less than £5000 the system is set up for you to represent yourself. You would be advised to seek advice from a solicitor at the outset to get an understanding of legal aspects such as providing evidence, as well as court processes and putting realistic figure on how much to claim. However, they don’t need to be involved in the process itself, which will save you money. If you will have difficulty representing yourself you will also be allowed to take a friend, family member or colleague with you as a ‘lay representative’.

There are firms which can offer a claims management service on a ‘no win no fee’ basis for things like personal injury, accident claims, housing disrepair or recovery of bank charges. You must check these firms are authorised before you instruct them, as they will be acting unlawfully if they are not.

Filling online

For claims which are less than £10,000 and against not more than two people, you will be able to file a claim online. Go to: www.moneyclaim.gov.uk

Holiday From Hell - Your Rights

2012-06-16T17:29:00.003+01:00

The Regulations

If you have booked a holiday through a tour operator with travel and accommodation booked together as a package, you will be protected by the Package Holiday Regulations. Under these regulations, you are able to claim compensation from the tour operator in the event that something went wrong, was not as described or was not stated, which led to additional expense, disappointment, or mental distress of any kind. This means any problem with the flight, the hotel or the excursions, even if it could not have been the fault of the tour operator directly. It also includes situations whereby the reality was not what was depicted or described in the brochure or on the web.

Your complaint

In the first instance, your complaint should be taken to the tour operator, not the travel agent (unless your complaint is related to something you were told which turned out not to be the case). You will probably have to follow the complaints procedure required by the tour operator and certainly put it in writing. Any statement should be backed up where possible by supporting evidence such as photos, statements from other holidays-makers and receipts for additional expenses. The crucial thing is that you do it quickly – this means immediately after (if not during) the holiday.

Damages / Compensation

If your complaint is genuine, you have the right to claim compensation from the tour operator, although it must be seen to be reasonable and fair. If you are offered a sum of money which you feel does not reflect the distress suffered, you may reject it and press for more. If your complaint is not ultimately dealt with to a reasonable level of satisfaction, you can then contact the trade body – ABTA, who will look into it further via their dispute resolution service.

If the airline goes bust

This is a slightly different matter and one which you will need to turn to the CAA’s consumer protection scheme,ATOL for remedy. ATOL will ensure you are protected if your flight was booked as part of a package through a tour operator. This is also the case if the tour operator itself collapses. You will also be protected if you bought your ticket from a travel agent, but only if you DON’T receive the ticket within 24 hours. You should also ensure you are presented with an ATOL receipt which states that you are protected – best to check this with the travel agent before you buy.

Making a claim for those who are protected

If the airline collapses before your flight departure date, but you have already paid for the ticket, you should make a claim via the CAA (ATOL) website. If the airline collapses while you are at your destination, and cannot get home, the CAA will inform you as to whether they will put you on an alternative carrier, or whether you should purchase an alternative ticket and claim a refund once home.

Alternative remedies

If you are an independent traveller and have booked travel and accommodation separately or directly via the airline’s or hotels websites, you will not benefit from any of the above protection and should look instead to your travel insurance which may provide financial cover. If you have paid on credit card, irrespective of whether or not this is a package, you will also have the added protection of the Consumer Credit Act which imposes equal liability on the credit Card Company, in the event that something goes wrong and you need to make a claim.

For all travellers who experience flight delays are automatically entitled to monetary compensation for overbooking (where they are ‘bumped off), and compensation ‘in kind’ for delays due to late arrivals and technical faults – these are refreshments, free telephone calls etc. For further details on this go to the CAA website (www.caa.co.uk)

Dodgy Builders & Tradesmen - Your Rights

2012-06-16T17:28:00.000+01:00

If it hasn’t happened to us, it’s happened to someone we know. Dodgy tradesmen and cowboy builders took ages to do the work, did it wrong or simply didn’t do it at all. Everyone has a story, which is why it’s crucial to know your rights and remedies so you can be prepared at the outset.

Firstly, don’t be taken in by what appears to be goodwill on the builder’s part. You may be confident of a positive outcome, but this is a business arrangement and you must ensure you have a watertight contract that you are happy with. This would include specific clauses in relation to how much the job will cost and how long it will take. If you do not, then the assumption will the job should cost a ‘reasonable amount’ and take ‘reasonable time’ – which is subject to interpretation and may drag things out if you find yourself in dispute.

Your statutory rights

With contracts for Work and Materials where the main focus is labour and skill, you are always protected by three statutory terms, even if you have nothing in writing, or the contract you signed does not specifically mention them. They are:

1. Reasonable care and skill

As you are buying the services of a trained professional, there is the assumption that the builder or tradesman will act with ‘reasonable care and skill’. If he does not, you can claim a breach of your statutory rights and be entitled to terminate the contract and either pay nothing further or seek to get your money back through the courts. Where substandard work has been carried out, you may well have incurred greater potential costs to have the work put right, so it is not enough simply to ask for your money back. In such circumstances, it may be more appropriate to pursue a claim for damages. Remember that where the cost of the work is over £100 and you are able to pay by credit card, you would be well advised to do so. This would make the credit card company equally liable where you were not able to recover your costs from the builder.

2. Reasonable time taken

As mentioned earlier, if you have no contractual clauses specifically in relation to timeframe for the work, the assumption is that the work will be carried out within reasonable time. Once reasonable time has elapsed you would not be entitled to terminate the contract, but you would be able to give reasonable notice, providing a deadline at some point in the future and thereby making time ‘of the essence’. If the builder then fails to meet that deadline, you would be entitled to terminate the contract. If you did agree timeframe as part of your contract with the builder, and this timeframe is exceeded, then you can automatically move to terminate the contract if the deadline is broken.

For this reason, you would always be advised to specify a date for performance and make clear in the contract that ‘time is of the essence’.

3. Reasonable cost

Just like timeframe, if you have no contractual clauses specifically in relation to fees payable, the assumption is that you will be charged a reasonable price. However, problems tend to arise where a service is commissioned, exact price cannot be given and the buyer is then presented with an extortionate bill. Where this happens, and where you have little choice but to pay (for example an emergency plumber), but you must make clear your objections at the time of paying, so that you can take action at a later date. You can do this by writing “paid under protest” somewhere on their documentation or (preferably) on the back of a cheque, and by following this up with an immediate letter to the organisation in question to dispute the price you were charged including evidence of alternative ‘going rates’.

It may be that unforeseen additional work will be required and costs will go up. It shouldn’t be by too much and you could argue that the builder could reasonably have anticipated this when providing the estimate. In any case you should limit your liability by requesting that the tradesman or builder informs you if it is going to cost over a certain amount.

It is always advisable to pay the money in stages, leaving a significant amount until the end, when you are fully satisfied that the work has been completed to satisfaction. You may be required to pay money in advance for the ordering of specific goods, but never be afraid to ask for paperwork so you can check it for yourself.

The work is half done – where do we go from here?

With the purchase of a faulty good from a shop, you can simply return the item and get your money back – putting you back into the same position you were in before you bought it. You can’t say the same for building work, particularly if they have walked off the job with it only half done. The question is, is the contract severable? It very much depends on what you are having done and what payment plan you have agreed. Upon presentation of the finished item, can you simply say that you are not going to pay for it and you are not going to give them the opportunity to make it good? This may be a little unreasonable, but if you plan to cite a breach in contract due to an absence of reasonable care and skill, you must make it clear that you are rejecting the finished item. If you have accepted it, you may have to pay all or a portion of the price agreed in the contract.

What about work is taking place in phases? Let’s say you are having a conservatory built which involves the payment of four instalments. If after the second instalment it is clear that the work is substandard you can sever the contract at that point and ask them not to return. You can then pursue damages for monies paid and additional sums if any consequential losses have been incurred (the cost of putting right the poor workmanship). If however the builder offers to redo the work, then the reasonable response would be agree, as long as it can be done ‘in reasonable time’. But what if you have lost complete faith in the builders and do not want them back at all? This is also a reasonable response, although you would have to have good grounds to claim a loss of faith. For this reason, it is always advisable to take photos and keep a diary when having any long term building work done, so you have evidence should it ever become a dispute. Many trade bodies representing firms such as builders will offer a dispute resolution service – which is always cheaper and quicker than litigation! Therefore always choose a builder or tradesman who is accredited by a trade body, association or guild which can offer this service.

Junk Mail, Cold Callers & Telemarketing - Your Rights

2012-06-16T17:26:00.003+01:00

For those of us who work from home, the day can often be a non-stop round of interruptions – sales calls, salespeople and the daily wedge of junk mail to sift through. Even if you go out to work, your evenings are frequently punctuated by the same. The invasion of our privacy at home is becoming an important issue, which is why procedures are in place both to protect you and to allow you to opt out.

Unsolicited visits

All householders can expect, at some point, to be greeted by a cold-caller trying to sell them stuff – whether this be cleaning products, encyclopaedias or home improvements. It can be difficult enough to tell them you’re not interested, and it can be more difficult still to ask them to leave once they are inside the house and giving you the hard sell. For this reason, the Consumer Protection (Doorstep Selling) Regulations provides protection for anyone who may have entered into an agreement as a result of undue pressure, by allowing you a cooling off period of 7 days during which time you have the right to cancel. Although, there is another advantage in that it also enables you to go away and compare alternatives.

Junk mail and cold calls

If you have bought something or entered into an agreement as a direct result of having received a telemarketing call, a flyer, a brochure, or a catalogue, and there has been no face to face contact with any representative form the company, you have certain rights under the Distance Selling Regulations. One of the most important implications of these regs is the a ‘cooling off period’ of 7 days during which you have the right to cancel without charge. Read more about your rights under the Distance Selling Regs here.

I’ve been sent stuff I never ordered!

The Distance Selling Regulations are very clear on this. If you’ve been sent or given unsolicited goods, you are entitled to treat them as an unconditional gift and do with them as you choose. You are not required to keep them for any amount of time and you are certainly not required to pay for them. Any attempt to demand payment (by threatening means or otherwise) is unlawful.

Opting out

Marketing departments of UK firms must comply with the principles of the Data Protection Act in terms of how they deal with personal data. Nobody likes to receive excessive amounts of junk mail or get badgered by unwanted phone calls, and it is your right not to have to deal with this at all. In addition to your right to opt out under the Act, The Direct Marketing Association (DMA) runs the Mailing Preference Service and the Telephone Preference Service (see: http://www.dma.org.uk/content/Prf-introduction.asp). If you apply to have your details (and the details of anybody else living in your household) put on the list, most reputable firms will pay reference to this list before sending out marketing material.

Payment Protection Insurance ( PPI ) - Your Rights

2012-06-16T17:25:00.001+01:00

What is Payment Protection Insurance?

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 taken out when applying for a mortgage, loan or credit card, although policies can be bought separately from insurers and brokers. PPI has received a good deal of bad press over the last few months due to reports of extortionate rates, unfair policy exclusions, and unscrupulous selling practices of credit and loan providers.

Why buy PPI?

The policies work by covering your monthly mortgage, loan or credit card repayments for a fixed period of time (usually 12 or 24 months) if you become ill, have an accident or lose your job. They add a lump sum onto the amount you’ve asked to borrow which means you pay an increased monthly amount.

If you are the principle earner in your household, PPI offers you and your family reassurance and peace of mind against the threat of illness or redundancy. If the future is uncertain and a significant mortgage or loan is being taken out, it may be a responsible move, as long as the repayments are manageable and don’t push you further into debt. Don’t forget that not only will the amount borrowed go up, you will also be paying interest on the policy as well as the loan.

Read all about it

There have been claims of unfair exclusions to PPI policies, so it is important to read your policy documents when you receive them to find out what these exclusions are. You should bear the following in mind before you sign up:

Some illnesses will not be covered, ask for a list of those which are not.
The policy will not pay out where you have to stop working due to a pre-existing medical condition.
The policy will not pay out if you have resigned, taken voluntary redundancy or lost your job due to misconduct.
You are unlikely to be covered if you work less that 16 hours per week, if you are on benefits, or if you have been working for your employer for less than 6 months.
You may not be able to claim more than once in a specific time period, even if your circumstances are genuine.
It is important to check the named policy holder – only this individual may be covered and not the spouse or partner.
In the majority of cases it is optional, and you will not be refused credit where you decide not to take the policy.
Think about what other insurance packages you have (critical illness, income protection) which may overlap with PPI, making it unnecessary.

Cancelling your policy

If you have purchased the policy by ‘disatnce’ means, i.e over the phone, by post or via the internet, you will benefit from a 7 day cooling off period, during which time you may cancel your policy without charge. You should always ask the policy provider or your broker about the cancellation procedure, what administrative charges are made and what refund you would expect to receive. If you have opted for a single premium policy, you may get back less than you think. This is because as you will owe more at the start of the period and so the remaining sum will not be in proportion to the remaining period of the policy.

Additionally, it is advisable to know what will happen to the policy should you pay off the associated loan early. In the event of early repayment, you may find you still owe money on the PPI.

No obligation, shop around

PPI is not obligatory, unless the lender makes it clear that is it a condition of the loan. It should not automatically be included in the loan amount unless you are expressly made aware of it, and the decision to grant you credit will not be affected by your decision not to take the policy. Be careful when applying for credit online, as PPI may already be included as a default setting on the online form and you will need to ‘untick the box’ to have it taken off.

If you are considering a policy such as this, you do not have to take the one offered to you by the loan or credit provider. There is a good deal of variation between the various insurance providers, so shop around to find a policy which is best for you.

Making a complaint

If you feel you have been mislead, or the policy has been misdescribed at any point, then you should complain in the first instance to the credit provider or broker who sold you the policy. If you feel dissatisfied by their response, or they have not put matters right to your satisfaction, you can then escalate matters to the Financial Ombudsman – see:

http://www.financial-ombudsman.org.uk/publications/factsheets/payment-protection-insurance.pdf

Extended Warranties - Your Rights

2012-06-16T17:24:00.002+01:00

Extended warranties are a relatively new sales opportunity for the retailers and have not been without their fair share of bad press. Both the OFT and the Competition Commission have investigated claims of unfair terms, mis-selling and excessive profiteering. So the question is, are they worth it?

Your basic warranty

Let’s first define what a warranty is and what it does. When you buy an electrical item you will often be given a retailer or manufacturer’s guarantee or warranty for a period of time, usually 12 months, and up to 5 years for more expensive products. It is a myth that certain electrical products automatically come with a warranty – there is no legal obligation for shops or suppliers to provide them (although once they have, they are legally binding) – it is simply to enhance consumer confidence in their product and promote sales. It also provides the manufacturer with valuable marketing information which is why you will need to register your product by filling in a card with your personal and purchase details in order to activate it.

Warranties are basically a commitment to repair or replace defective parts within a specified time frame – usually 12 months for small electrical items. When this time is up, consumers are commonly told by shops that their responsibility is at an end and there is nothing further they can do. This is often not the case. The important point about warranties is that they should never seek to replace or take precedence over your statutory rights under the Sale of Goods Act, and even after your warranty has run out, you will still be protected by these rights which can run for up to 6 years after purchase.

Your statutory rights

In the absence of any warranty and as we have pointed out several times, the retailer is automatically liable for any faults which develop within the first 6 months. After this time, you may have to prove that the any fault was not down to misuse or wear and tear, although factors such as price paid, model specification, the length of time you have had it (and the length of time it should reasonably last) etc will also be taken into account. Therefore if you buy something which should last around 7 years but has broken down after a year or even after 3 years, the supplier has a duty provide a satisfactory repair – or if this cannot be done, a replacement. If neither a repair or a replacement can be agreed on then the shop can give you vouchers towards the cost of an alternative replacement or a partial refund. Whatever happens, whenever it happens, and whatever remedy you choose, your first and only port of call should be the retailer.

Misinformation

The following statements are frequently made by retailers and are untrue:

You can only return items if you have a valid, registered warranty
No longer our responsibility, you’ll have to contact the manufacturer
Your 12 month warranty has run out, nothing further we can do.
We’ll have to send it off to the manufacturer, there will be a charge for repairs / parts / shipping etc.

Your extended warranty

An extended warranty becomes valid after the basic one 1 or 2 year manufacturer or retailer’s warranty has run out and will then run for a further 2 or 3 years. It is the same as the basic warranty but will often cover damage in event of accident or misuse also. Some even cover loss or theft. In this sense it is basically an insurance policy for which you will either pay a one-off premium or a monthly fee. But are they worth it?

Having read the above you would probably wonder why you should be paying for an insurance policy you effectively already have under the Sale of Goods. The only difference with extended warranties is that they provide additional cover for damage cause by misuse and possibly loss / theft. However, in general, the feeling is that for retailers are tending to ‘hide behind’ warranties and using them to mislead consumers about their statutory rights. Moreover, the unfair way in which they are sold has also been under the spotlight. What consumers need to understand is that for the retailers, the sale of extended warranties is often more lucrative than the sale itself. So this, combined with large commissions was making for aggressive sales tactics just before the item was due to be paid for. For this reason, regulations have now been introduced to safeguard consumers against intimidation and provide them with all the knowledge they need to make an informed decision.

New regulations for extended warranties

There is now a requirement on retailers to ensure the following:

The price of the extended warranty is displayed alongside the electrical item instore or on press adverts.
The provision of information regarding the cooling off period of 45 days, cancellation rights, whether you would be protected in the event the warranty provider goes out of business, and whether the policy terminates if you make a claim.
The provision of information regarding consumers’ existing statutory rights
The fact that extended warranties are also available as ‘stand alone’ products from alternative sources.

The above information must also be presented in plain English – not legal jargon.

Worth it?

So, should you opt for an extended warranty? All we can say is consider it in the context of your existing statutory rights and read the terms and conditions very carefully – for example, do they offer ‘new for old’ or just a repair? Under no circumstances be bullied into accepting one at the point of sale and parting with even more cash than you’d like. If you decide you do want an extended warranty – shop around from the dozens of available providers, and remember your 45 day cooling off period.

Cooling Off Periods & Cancellations - Your Rights

2012-06-16T17:23:00.001+01:00

Contracts are, by definition, legally binding, therefore it’s difficult to cancel without financial penalty unless you can prove breach of contract. In many situations however, such as buying goods from shops, you are able to cancel the contract and get your money back. But unless the goods are faulty, this is not an automatic right, and you must refer to the individual shop or supplier’s returns policy.

Under certain circumstances, you are given the right to cancel over a specific period of time. This is referred to as your cooling off period and the duration of this period depends on what you bought and the manner in which you bought it. The following are situations in which the cooling off period applies

Buying online from shops or suppliers

The purchase of goods and services over the internet, by phone or by mail order generally is subject to the Distance Selling Regulations. One of the most important implications of these regulations is a cooling off period of 7 daysduring which you have the right to cancel. You must provide notice of cancellation in writing and it must be posted to, left at, faxed or emailed to the business address of the supplier, and you must ensure this is done no later than 7 working days after receipt of goods. Contracts for financial products sold by distance means are subject to different rules, see below for more on this.

Something else worth mentioning is that the supplier must have sent you written confirmation of your order no later than the time of delivery of the product or performance of the service. If they did not, then your 7 day cooling off period will not begin until they do, and may be extended by a further 3 months.

If you have commissioned a service under a distance selling contract and the work begins before the end of the 7 days cancellation period, then you must give up your right to cancel, but this must be clearly communicated and with your express agreement.

Does the right to cancel apply for all goods bought by mail order?

There are obvious exceptions and you will not have the right to cancel with the purchase of the following goods:

Goods made to a personalised specification
Perishable goods, such as foodstuffs and flowers
Audio/video recordings or software where the seal has been broken
Newspapers, magazines or other reading material (not books)
Gaming, betting, lotteries

Buying from a doorstep seller

If you have bought something costing more than £35.00 from a trader as a result of a visit to your home or place of work (whether or not the visit was requested by you), you will be protected by the Doorstep selling Regulations – or to give it its proper title: The Cancellation of Contracts made in a Consumer’s Home or Place of Work etc Regulations 2008. These regulations give you a cooling off period of 7 calendar days during which time you have the right to cancel and get a full refund. Just as with the Distance Selling Regulations, you must have been provided with a notice of your cancellation rights, otherwise the agreement may be legally unenforceable

Buying away from the trader’s normal place of business.

You may also invoke your 7 day cancellation rights for items over £35.00 where business is taking place away from the trader’s HQ or shop. This may include any of the following:

Your place of work
A trade fair
A one-day fair (such as a wedding fair) or a marketing presentation (such as overseas property)

It is also the case even when contracts are concluded at a later date, back at the trader’s shop or office – the fact that you have made your offer away from here is the important thing.

Timeshare agreements

There have been numerous problems to do with consumers who have signed contracts while under pressure from sales reps in the UK or as a result of a ‘free’ holiday provided by the company. For this reason, the Timeshare Act 1992 gives you the benefit of a cooling off period of 14 days if contracts are signed in the UK. If you sign abroad you will be subject to local laws, although most European member states have a cooling off period of 10 days. Check before you sign, although the company must provide you with the same notification of your rights as doorstep sellers.

Credit Agreements

You will only benefit from a cooling off period if the credit agreement was made in one of the following ways:

For agreements signed away from the creditor’s normal business premises – i.e. at your home, place of work or at an exhibition stand
For agreements made at a distance (online, by phone or by post)

For agreements which fall under (1), you will have a cooling off period of 5 days, which begins from the time you receive the second copy of the agreement (containing the cancellation form). For contracts which fall under (2) and (3), you benefit from a 14 day cooling off period. Unlike the cooling off period for goods bought under the Distance Selling Regulations (DSRs), the creditor may make a reasonable charge for any service (such as insurance cover) which was operating during this time.

There are specific guidelines on how you should cancel the contract, which must be notified to you by the creditor before or immediately after the contract is made. If the creditor does not make this information available to you, then your cooling off period will not begin until this happens.

Financial products and services

Financial products including banking, credit, insurance, personal pensions and investments, sold by distance means are subject to a 14 day cooling off period (this is 30 days in the case of life insurance and personal pensions). This includes renewals for insurance where the agreement has been sent by post. This 14 day cooling off period also covers situations where you bought a financial product from an intermediary or a broker, even if it was discussed and signed face to face. You must be sure to follow correct procedure for cancellation (see below). The insurer or broker must refund any monies paid by you within 30 days, although they have the right to deduct a reasonable admin charge, and a sum proportionate to the number of days cover you have had. If you have any related credit agreements, these will also be cancelled.

Extended warranties

These are effectively insurance policies and have a 45 day cancellation period with the right to a full refund if you have not made a claim in this time. Any cancellation after this time will entitle you to a pro-rata refund. See ourguide to extended warranties for more in depth information.

The correct procedure

With any contract or sale which is concluded away from the trader’s normal business premise, you must be sure you have been presented with clear written notice of your right to cancel, at or before the time the contract is made. If you have not, the contract is legally unenforceable. This notice, which cannot be in the form of small print, or otherwise disguised, must also provide a cancellation form and advise you on how and to whom a notice of cancellation is to be made. You can use the cancellation form provided or a simple written notice, as long as it is clear of your intentions. And as long as you have posted your notice of cancellation before the end of the cancellation period, it doesn’t matter when it is actually received. For this reason, it is always advisable to send it recorded delivery.

Refunds

The supplier must reimburse you within 30 days of cancellation, without charge, unless you have been informed that you will be liable for the cost of returning the goods. If you have any related credit agreements, these will also be cancelled.

Buying Clothing & Footwear - Your Rights

2012-06-16T17:21:00.003+01:00

Your statutory consumer rights with regard to the purchase of clothing and footwear can be found in the Sale of Goods Act. They refer to standards of quality and consumer expectations, and what you should do if these are not met.

Your statutory rights

Any item of clothing or pair of shoes you buy should be of reasonable quality, with no damage such as missing buttons, holes, stains etc. The items should be fit for the purposes intended – i.e. hiking boots should be tough and strong, and should also be exactly as described – if a rain mac is described as waterproof, it should be exactly that!

Any breach in your statutory rights

If any of the above are not the case, there has been a breach in your statutory rights and you would be entitled to a repair, a replacement or a full refund. Remember your port of call is always the shop or retailer – you should not be referred to anyone else and they cannot tell you it is no longer their responsbility. For most things, shops would usually allow you to exchange the item or give you your money back straight away. However, if the damage is minor and can be repaired easily, within reasonable time, at no additional cost to you and without causing any significant inconvenience, then the shop can insist on this as a first option, although this will not stop you from taking it back if the repair is unsatisfactory or there is something else wrong with it.

Where a refund is the only option, but you would like to keep the item anyhow, you are quite within your request a discount on the price paid.

Proof of purchase?

Shops will often tell you they will only give a refund on production of proof of purchase. Don’t be mislead into thinking this must be a till receipt. It can be a bank or credit card statement, although you may run into difficulties if it is for a different amount than that of the item you are trying to return.

If the item is damaged, then strictly speaking you don’t need your till receipt. However, it is always recommended you have it, to show that it was bought relatively recently and the damage wasn’t caused by continued use or wear and tear over time.

Where you have no rights
The following are common situations, but do not require the shops to do anything:

You simply changed your mind or the item was not appropriate due to colour, size or style
If you buy something expecting it to be a size 14, but it clearly isn’t your size, this does not mean you can get a refund, although you can usually exchange it or get a credit note.
If the item of clothing is dirty and the mark can be removed by washing, this is not the same as damage and shops are not obliged to give you any discount

Buying seconds or damaged items

If you are buying seconds, you are still entitled to an item of clothing which is undamaged and fully wearable. If you knowingly buy a damaged item of clothing or footwear, the specific defect must be pointed out to you before you buy, and although you cannot then return the item on the basis of that defect, it does not mean you cannot return the item if you discover something else wrong with it – even if they have reduced the price. Don’t let the sales assistant tell you otherwise!

Buying a Sofa - Your Rights

2012-06-16T17:20:00.003+01:00

If you have experienced problems buying a sofa or having one upholstered, then you are not alone. Complaints relating to sofas feature significantly in Consumer Direct’s top ten and the problem shows no sign of improving. So what do you need to watch out for and what are your rights?

Cooling off?

Buying a sofa is a big commitment, particularly if you have signed a credit agreement to spread the cost over several years. The first thing to be aware of is that any contract you make in-store will be legally binding from the moment you sign. You cannot simply wander back in the next day and tell them you’ve changed your mind. Cooling off rights only apply where you have bought the item by mail order – over the phone, or via the internet. And even then, it does not apply where sofas have been made to order – which is often the case.

Ordering and delivery

An approximate lead time will be given in your order. Although this is not legally binding, it shouldn’t take much longer than this. If you are experiencing what you would consider to be an unreasonable delay, you can make ‘time of the essence’ by writing to them, requesting they fulfil their contractual obligations within a specific time period (14 days), otherwise you will end the contract and request the return of any sums already paid.

As any sofa retailer will tell you, they cannot be held responsible if the unit is too big for the room, won’t fit through the door or up the stairs. Neither will they be liable for the cost of removing windows etc and are within their rights to charge an additional fee if they have to take it away again. It may seem like an obvious point, but the number of people who do not measure the doorframe in relation to the sofa is quite astonishing. Similarly, those in three-storey homes with a first floor lounge, should make additional allowances for a winding staircase.

Your consumer rights

Any sofa you buy should be of satisfactory quality, fit for the purposes specified and as described. Therefore, if it is described as leather, that’s exactly what it should be. If it described as a particular colour or fabric, it should not differ widely from this. If it a sofa-bed, it should function as a bed as well as a sofa. It should also remain in good condition for a reasonable length of time without sagging, coming apart, or deterioration to the fabric. Just because you have had the sofa for some time, this does not prevent you from making a complaint on the basis of premature or excessive wear and tear.

If you are making a complaint, the retailer will always be your first and only port of call, and not the manufacturer. Retailers may also try to tell you that there is nothing they can do because you are outside your warranty period, or because you don’t have one. A warranty is irrelevant where quality and durability are concerned, and you have the right to a remedy under Sale of Goods.

The trader’s obligations

If the sofa which has been delivered is damaged, of poor quality, unfit for purpose or not as described, you have the right to reject it and claim a refund. However, where a repair is feasible, you must allow the trader the opportunity to do this in the first instance. The trader must cover the costs of the repair (including collection and re-delivery) and must not take too long. If a repair cannot be carried out, or has been poorly carried out, if it has taken an unreasonable length of time, or if you have experienced significant inconvenience, you are then within your rights to request a replacement. If neither a repair or a replacement can be effected, you can then ask for a discount on the purchase price or your money back.

Mobile Phones & Service Providers - Your Rights

2012-06-16T17:19:00.003+01:00

There is a bewildering choice of phones, packages and deals available when buying a new mobile phone. It’s big business. It’s also top of the list when it comes to consumer complaints!

When choosing a new mobile, you are not only selecting the phone (or the handset), you are dealing with the retailer and choosing a package from a network provider. In effect there are three separate entities – and you need to know which one of the three to go back to if there is a problem with any aspect of your purchase or agreement.

Choosing the right phone

Phones these days come with an array of mind-boggling features – cameras are virtually standard now, as is the ability to surf the web and play MP3s and video clips. You can also use your phone to access your emails, download digital media, supply sat nav info, make mobile video calls, organize your life and so on. But how many of us use all the facilities on our phones on a regular basis? If you only want to make calls, text and send the odd picture message, then there is no point paying over the odds for one with loads of bells and whistles. Always best to check out the websites for the individual network providers such as O2, Orange or T-Mobile, or the high street retailers such as Phones4u or The Carphone Warehouse – and do this before you go in. Then you won’t get talked into anything you’re not familiar with!

Pay As You Go or Pay Monthly?

When you buy a phone you will have the choice of a ‘pay as you go’ or a ‘pay monthly’ phone. Pay As You Go or Prepaid plans tend to be more expensive per minute than the monthly tariff, but they can be very useful for people who don’t use their mobile phone much, have limited budgets, or want greater control over their children’s mobile use. The Monthly plans are cheaper and offer a wider range of bells and whistles phones, but you will have to sign a minimum term contract with a network provider and pay a fixed fee each month – although you will probably receive an allowance of free minutes or texts within this fee.

Choosing the right network

The network provider you end up with depends on the type of phone you choose and where you go to buy it. If you opt for a Pay Monthly phone, you will be entering into a contract with this network provider so check the terms of the contracts carefully and ask the sales consultant to explain carefully what your obligations and liabilities are – this is their job, and not to do so or to gloss over such detail when requested is mis-selling. Pay particular attention to the length of time you are ‘tied in’ to the contract. If you simply change your mind, you will not be able to switch to an alternative network provider and may not be able to change tariff. Also remember that by committing to a particular network provider you also commit to their coverage area and fees. So you may find that your friend who is ‘on’ Orange can get reception while you can’t. Not much you can do about this.

Choosing the right deal

Again – there is a huge choice of packages to chosse from. If you agree on a minimum payment each month, you will receive a free number of minutes or texts, although these only may be off-peak, or to certain numbers, so don’t be mislead. So have a think about when you use your phone – during the day, evenings weekends? Choose a tariff that gives you a better deal based on when you make most of your calls. Remember also to bear in mind the cost of the following as they may well not be included in your ‘free minutes’

Peak time calls
Calls to those on another network
Calls to voicemail
International or premium rate numbers
Directory enquiry services
Downloading data from the web
Sending picture messages or video clips

When it all goes wrong…

You have certain statutory rights for the purchase of a product as provided for in the Sale of Goods Act. These rights refer to standards of quality you should expect and what you can do if it fails to meet these standards.If there is an obvious fault with the phone at any time within the first 6 months and it has not been caused by wear and tear or misuse, your first port of call must be the shop you bought it from. They have the responsibility to put the matter right, and should not evade this responsibility by referring you to the manufacturer in the context of a guarantee or warranty.

In the first instance the seller must offer to at least repair the phone. They must do this within reasonable time, at no additional cost to you and without causing any significant inconvenience. For this reason you should be given a replacement phone on a like for like basis (and not simply the cheapest and most basic model). Many consumer complaints relate to the length of time the phone is away being repaired – and although you must allow reasonable time for repair, the law does not say what ‘reasonable time’ is. Taking into account the nature and size of the product however, we would define this time as no more than two weeks.

If the repair is taking an unacceptable length of time to fix, if it can’t be fixed or if it develops the fault again, you are then within your rights to request a replacement. Again, this must be done within reasonable time, at no additional cost to you and without causing any significant inconvenience.

If the repair / replace remedies have been unsuccessful, you then have two further options. Firstly, you can then request they reduce the purchase price to an appropriate amount (although this does not affect your ability to take return the item if something else goes wrong). Secondly, and only after the repair/replace remedies have been attempted, you can request a refund. You should be aware however that if you have had the phone for several months, the refund given may well take account of any use you have had of the phone since you bought it.

Buying Online - Your Rights

2012-06-16T17:18:00.004+01:00

New Regulations have introduced greater consumer protection measures for the increasing number of people buying online and by mail order. Although the practice is still not without its problems due to the anonymity of the web and the regularity of card fraud.

The purchase of goods and services over the internet, by phone or by mail order generally is subject to the same consumer rights as if you had bought the item on the high street. However because you have not been physically face to face with the supplier, these types of purchases are also subject to the Distance Selling Regulations. If you have met the seller at any point (such as to test drive or agree the sale of a car), or if it is with a shop which doesn’t make a habit of selling in this way, you won’t be covered and should look to Sale of Goods legislation instead.

The supplier’s obligations

If you’ve ever ordered a product or commissioned a service over the internet, via email or by phone, then you are doing so under a Distance Selling contract. The supplier must provide you with specific information related to your rights and their obligations under a distance selling contract. This ‘pre-contractual’ information should include: identity of the supplier, description of the main characteristics of the product or service, price, delivery costs, arrangements for delivery, performance and payment, cancellation rights, cost of communication (for e.g. premium rate telephone line), period of validity of offer, information regarding substitute products. This information must be communicated clearly, but not necessarily in writing, before your order is confirmed so that you can be in possession of all the facts should you wish to change your mind. Remember also that the price you see when you ‘add to cart’ is often not the price you end up paying. Any additional costs such as VAT, shipping, handling or administrative fees, customs duties etc that you are responsible for should be clearly set out before you confirm payment.

if you have not received any pre-contractual information (outlining, among other things, your cooling off rights) before you buy, then you should do so before the goods have been delivered. if you haven’t been presented with this information at any time, then this will have important implications for your cooling off period.

Your right to cancel

One of the most important implications of the distance selling regulations is a cooling off period of 7 working days during which you have the right to cancel and get a full refund. The supplier must provide you with details of your cancellation rights, any duty to return the goods should you cancel, and whether you will have to pay for this. In return, you must provide notice of cancellation in writing, which this must be posted, left at, faxed or emailed to the business address of the supplier no later than 7 working days after receipt of goods.

The supplier must then reimburse you within 30 days without charge (unless you have been expressly informed that you will be liable for a charge) and if you have any related credit agreements, these will also be cancelled.

The work started before the 7 day cancellation period was up!

Unless you have agreed otherwise, goods must be delivered, or services performed within 30 days from the date you submitted your order. If you have commissioned a service under a distance selling contract and the supplier offers to start the work before the end of the 7 day cooling off period, then you can give up your right to cancel, but you must be notified of this and your express permission sought. If the work started with your permission and the supplier has not provided you with the compulsory pre-contractual information prior to their starting, you may still have your right to cancel and get a full refund even though the work has been completed!

Does the right to cancel apply for all goods bought by mail order?

There are obvious exceptions and you will not have the right to cancel with the purchase of the following goods:

Goods made to a personalised specification
Perishable goods, such as foodstuffs and flowers
Audio/video recordings or software where the seal has been broken
Newspapers, magazines or other reading material (not books)
Gaming, betting, lotteries

Getting your money back

Under the distance selling regulations, you are quite within your rights to change your mind at any time, return the goods and get a full refund. This means without financial penalty of any kind – such as a cancellation charge or a ‘restocking’ fee. The supplier must also refund any delivery charges paid by you, and any other costs related to the contract. Refunds must be made within 30 days from cancellation, whether or not the goods have been sent back. Any related credit agreements will also cease to exist.

You may be required to pay to return the goods, but you must have been informed of this as part of the pre-contractual information. if the goods are faulty, then under Sale of Goods, the supplier will always bear the cost of returning them.

Returning the goods

Unless you are required to return the goods, and you were informed of this, your only obligations are to make the goods available for collection and to take reasonable care of them while they are in your possession. This is called a duty of care. Where the supplier has made provision to collect the goods, this duty of care expires after 21 days, but where you have agreed to return the goods, your duty of care continues until you do this and could be for as long as 6 months.

Packaging

Under a distance selling contract, a supplier cannot make refunds subject to the goods being returned unopened in their original packaging. One of the principles of the distance selling regulations is to give you a chance to examine the goods at home, not having had a chance to do so in the shop. It would be impossible for you to do this without opening the packaging and trying the product out. Having said this, you will still be under a duty to take reasonable care of the goods while in your possession, and may be subject to certain instructions such as not to wear shoes outdoors, or remove hygiene seals. But you can never be penalised simply because you did not return the goods in their original packaging.

Card protection

For amounts of money over £100 it is always advisable to pay by credit card. This is because if you run into problems and you can’t get recompense from the supplier, the credit card company has equal liability. However for goods and services paid for specifically in a distance selling context, you are automatically protected against fraudulent use of your payment card – whether this is a credit or debit card. If you ever find an entry on your bank statement for a sum of money that you did not authorise, in relation to something you bought online, over the phone or by mail order generally, you are entitled to 100% of the fraudulent amount to be recredited to you by the card issuer.

Do take care however with advance or pre-payments as these are not protected against fraudulent use, and in any case, the supplier may become insolvent before your goods or services are delivered, leaving you with nothing, and little recourse.

Buying a New Build House - Your Rights

2012-06-16T17:15:00.001+01:00

Many people decide to ‘buy new’ from a housebuilder in the belief that it will be a much less troublesome experience than buying somebody else’s home. In reality however, these people go on to find the experience more stressful than they could possibly have anticipated. The reason for this is that the purchase of property is not subject to the Sale of Goods Act or the Supply of Goods and Services Act which cover the majority of purchases, with the result that there is a general absence of consumer rights and legal redress in what is a significant and high-risk purchase. Most consumer complaints relate to:

The time taken to finish building, despite promises of a much earlier completion date, having sold their old home and paid a significant deposit
Misdescription / misrepresentation of the property or the area. What consumers were led to believe in terms of the specification of their property or use of land surrounding their property have not been the case.
The contractual process after exchange of contracts – the 10 day notice period and the inability to claim breach of contract for poor workmanship
The inability to gain access to ‘snag’ the property before completion
The quality of finish on moving in and the time taken to come back and rectify the faults
Absence of customer care in the period after moving in, compared with the time leading up to completion.
No legal right to damages or compensation even if major problems with the property cause significant disruption and loss of amenity.
General dissatisfaction with the NHBC, the warranty provider for the majority of new homes.

Choice of housebuilder

In terms of the main UK housebuilders, no one organization can be said to be better or worse than any other with regard to quality of build. They are only as good as the contractors they use at the local level. However, there is a good deal of variation among them in terms of the after-sales care they offer, and it is a good idea to research this by talking to anyone who has moved in to that development. Small local housebuilders can often be said to provide better attention to detail, but it is important to establish what you can expect from them after handover with regard to addressing any defects or damage.

Buyer beware

The majority of new homes will have a warranty underwritten by the NHBC (The National House Building Council). Although this provides the more comprehensive coverage than other warranty providers, it does not guarantee a home without defects or the immediate resolution of any problems you encounter.

If your new home is ‘build complete’ but you haven’t yet exchanged, request a quality audit. This can be carried out by a professional snagging company such as New Build Inspections Ltd who will carry out a detailed inspection and provide you with a comprehensive snagging list of defects to be addressed. You can then insist this be incorporated into the contracts to be exchanged.

If your property is not build complete by the time you’ve exchanged contracts, arrange an inspection prior to legal completion. This will ensure the property is comprehensively snagged before you move in, and there won’t be any nasty little surprises awaiting you when you do!

Notice to complete

Once your property has been issued with its certificate of habitation by the warranty provider (usually the NHBC), the housebuilder will give you notice to complete, during which time your solicitor will draw down funds from the mortgage provider in order to transfer them on the day of completion. The exact number of days will be specified on your contract, although it is usually around 10 working days. The builder may ask you to complete sooner than the contracted number of days but you are quite within your rights to refuse.

During the notice period, your property should be fully completed and habitable. There may be one or two touch ups to do, but in general it should be finished to a reasonable standard of quality with no major faults, damage or unfinished areas. Unfortunately you cannot delay completion on the basis of snagging items, unless they are significant or numerous enough to render the property uninhabitable. Any attempt to delay completion will only precipitate threats of late interest charges from the builder.

After completion

After completion (or handover) of the property, what few consumer rights you have will be guided by the warranty provider (in most cases the NHBC), so refer to your handbook to see what you are covered for and what the procedure is for reporting a defect or making a complaint. In general, you should be contacting your builder in the first instance, but if it is taking unreasonable time or they refuse to respond, then should make a claim through your warranty provider and they will contact the builder on your behalf. As mentioned however, this will not necessarily lead to satisfactory and speedy resolution, and many people find their issues can drag on for months, sometimes years

Online Auction Sites - Your Rights

2012-06-16T17:13:00.002+01:00

The practice of buying goods from internet auction sites such as e-bay, and other online market places such as Amazon’s ‘Sell Your Stuff’ is becoming more and more mainstream. In these instances, you are not buying from the sites themselves, but from individuals who have put their possessions or products up for sale on those sites. This has risks in itself where those products cannot be verified, but it also has important implications for your consumer rights.

The Distance Selling Regulations

One of the major benefits of buying goods and services on the internet is the fact that you are covered by the distance selling regulations. Under the regulations, you have the right to a 7 day cooling off period and a full refund without financial penalty of any kind. However, if you have bought an item as the result of a successful bid on e-bay, the distance selling regulations (and hence your cooling off rights) do not apply. Neither will the regs apply if you have bought the item through a private sale with an individual who is not acting as a commercial entity.

If however you have bought the goods as a result of a ‘buy it now’ transaction, or from a commercial trader acting in the course of business, you will be covered, and can take full advantage of your cooling off period.

Your statutory right to quality

One of your statutory rights is that any item you buy from a retailer or manufacturer must be of satisfactory quality. However if you buy from an individual in the context of a private sale, this statutory right does not apply and you will have no legal redress if the item is unsatisfactory. This is a common cause of complaint. E bay offer lots of information on how to shop safely on their site including checking the seller’s feedback ratings, whether the item is covered by PayPal Buyer Protection, and what returns policy is offered. See:http://pages.ebay.co.uk/safetycentre/buying_safely.html In the event that you have received a misdescribed, poor quality or faulty product, or if the item was never sent, report the matter to e-bay who will then take steps to ban that seller from any further trading.

Do remember however that not all transactions from these sites are with private sellers. Many are established businesses (e-tailers), and any dealings with them will be subject to your full statutory rights as well as a 7 day cooling off period under the Distance Selling Regs

Regardless of whether you buy the item from a commercial trader or a private seller, it must still conform to the description given in any sales literature.

Second-hand Cars - Sample Letter

2012-05-31T20:50:00.001+01:00

To reject a second hand car that you bought from a dealer:

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[Your address]

Manager/ Owner
Dealership address

Dear Sir/ Madam

Ref: [registration number of vehicle]

On [date] I purchased, and took delivery of, the above vehicle [make and model] from you. On [date] I discovered that it was not of satisfactory quality: [describe the problem].

Section 14 of the Sale of Goods Act 1979 requires dealers to supply goods of satisfactory quality. However, the vehicle is clearly unroadworthy. You are therefore in breach of contract.

I am legally entitled to reject the vehicle and to be reimbursed for its full purchase price of [£xx]. I look forward to receiving your cheque for this sum within 14 days. If you fail to reimburse me I shall have no alternative but to issue a claim against you in the county court for recovery of the money without further reference to you.

Yours sincerely

[Your name and signature]
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Second-Hand Cars - Common Questions

2012-05-31T20:48:00.001+01:00

Misleading description of a second hand car:

I bought a second hand car from a private seller who advertised in the local paper. He said that the car was in excellent condition and had been serviced regularly but a week after I bought it, it broke down and now needs expensive repairs. What can I do?

Since it is clearly not true that the car was in ‘excellent condition’, you have two possible claims against the seller: ‘breach of description’ and ‘misrepresentation’. In either you can reject the car and get your money back, or keep it and ask for compensation (usually the cost of repairs).

Contact the seller, explaining what happened, and what you want done. If they refuse to do what you ask, you will have to take them to small claims court. However, you must have the seller’s address to be able to do this.

Repairs needed soon after buying
I bought a second hand car from a private seller and it needed new brakes two weeks later. Shouldn’t the seller have told me that the brakes needed replacing? And can I claim against the seller for repairs?

No. Unless the seller specifically told you that the car was in good condition, you don’t have a claim against him.

By law the car only has to meet the description that the seller gave you, and you don’t have a right to claim just because it needs repairs. There is no obligation that a seller must reveal everything about the second hand car – only that what they do tell you is true.

The car had been stolen:

Last year I bought a second hand car from a private seller. The police have just told me that it was stolen before I bought it. Now the original owner wants it back. What are my rights?

You will probably have to give the car back. The original owner from whom the car was stolen has the right to ask for the car back. If you refuse, they could take you to small claims court and the court might order you to pay the full cost of the car to the owner or give the car back.

You would have to go to court to recover the full price of the car from the person that sold it to you. And, in the case of a private seller, this might be easier said than done, because, even if the court found in your favour, you may have to take further steps to get them to pay up.