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31 Types Of Scam To End This Month!

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By Neil Faulkner | 6 May 2008

We already have legislation protecting us in many ways. We have protection with the Unfair Terms in Consumer Contracts Regulations and the Consumer Credit Act, to name just two of dozens.

So how much more protection do we need?

Well, from 26 May, we shall also have new and improved protection with The Consumer Protection from Unfair Trading Regulations 2008. If a business uses any unfair practice, it should be covered under these new rules.

These regulations will be in addition to old legislation, but in some cases they amend existing rules.

The new regulations are effectively in two parts. The first part is flexible, broadly covering the dodgy practices that a business might use, such as aggressive selling. Part two is much more specific, labelling 31 practices that will always be considered unfair.

Part one

What I'm calling 'part one' prohibits misleading actions and omissions. Therefore, companies can't miss out important facts about a product or service that would affect your decision to buy.

Part one also prohibits aggressive practices that make you buy something that you normally wouldn't.

A commercial practice is misleading if it contains false information or if its presentation is likely to deceive the average customer. Even if the information is factually correct, if it is misleading, it is now covered by this regulation.

Under this broader section, 'part one', it's difficult to write about individual instances where the regulations will be useful, because there are so many possibilities.

However, two hypothetical examples that leaps to mind are after-sale care and complaint-handling. If you were misled to believe that you could expect a certain level of care, then these laws cover that.

Part two

As I say, not all the above is new, but I think it will be more simple with these amended rules. And 'part two', which specifies practices that are unfair, should certainly give consumers more confidence to complain. Out of 31 practices listed in the new regulations, here are some of the highlights:

  • 'Bait' advertising is prohibited. This is when a business promotes, say, top-of-the-range DVD players for £10 a piece without admitting they just have five in stock.
  • It will be illegal to say that a product is available for a limited time only, just to get a quick sale.
  • It'll be illegal to make persistent unwanted sales calls or emails.
  • Pyramid schemes, where you're supposed to get more money from introducing other people to the scheme than actually selling something, will be illegal under these regulations now.
  • Describing a product as free when it isn't, although this doesn't include such things as the delivery costs.
  • Businesses can't falsely represent themselves as a consumer. This means, for example, that fake testimonials, or blogs by companies pretending to be happy customers, will be prohibited.
  • Salespeople can't visit us at our homes to sell us something after we've requested them not to.
  • When we want to claim on a policy, insurers can't require us to produce documents that aren't relevant to the claim, or systematically fail to respond in order to dissuade us from pursuing the claim.
  • Adverts can't exhort children to buy products, nor can it exhort them to persuade their parents to buy them.
  • Prize-draw scams are prohibited.
  • Fake closing-down sales are prohibited.

What does this mean to us?

As the weight of these regulations dawn on businesses, we should see a large reduction in the practices covered by both parts.

In terms of how we should respond to complaints about these practices, we should mostly behave in the same way we always have done, at least in the early stages of our complaint. As always, we complain to the company first. If that fails, we complain to any relevant ombudsman, who may be able to get us compensation.

Next, however, we are likely to be encouraged to complain to relevant self-regulating bodies, if one is appropriate, such as the Advertising Standards Authority.

Finally, we're supposed to complain to the enforcement authority, which in most instances will probably be the Office of Fair Trading, although other bodies may be relevant, such as the gas and electricity markets authority, OFGEM.

What those bodies can do is they can make the businesses change their ways. They can also fine them and get them thrown in prison. We get the satisfaction that they have been punished.

However, the enforcement authorities don't exist to ensure we're compensated. Sadly, and this is the biggest hole in these regulations, they do not yet include means of 'private redress', which means we can't use these regulations to take companies to court for breaching them. Even if an enforcing authority rules against them!

The reason given for this is, although the general feeling is that we should be able to do this, it seems politicians are concerned that us individuals will start suing every business that looks at us funny.

Currently the Law Commission is reviewing whether we should be allowed to take companies to court on this, so we should be hopeful that they'll see sense!

In the meantime, we may still be able to pursue compensation using one of the many other existing pieces of consumer legislation.

So my conclusion is...?

I think that these regulations will 'make life a lot tougher for rogues', as one Lord put it. It should help make self-regulating and enforcement bodies bolder to act, too.

If - no, let's say 'when!' - private redress is added to the regulations, I have no doubt that I'll be showing you the many ways that you can get compensation for a variety of bad practices!

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Comments

The opinions expressed here are those of the individual writers and are not representative of The Motley Fool.

At 20:21 on May 06 2008, ComplexNumber said:

There seems to be a new wave of telephone scams that originate from outside the Uk thus avoiding TPS compliance.
In the past two weeks, I have had:-
1) a call from someone who opened with the line "I understand your sky plus box is not working". I don't and never will have a SKY subscription.
2) I got a call from someone who wanted to save my hundreds of pounds on my Gas & Electricity bill. This was a total cold call and came from abroad.
3) Then today, I got a call from someone who said that I had won a holiday in Florida. Naturally, I had not. Again the call was from outside the UK. The woman became abusive when I asked her for details of the competition I had supposedly entered.

I wish there was some way to stop these.

At 20:57 on May 06 2008, karatekate said:

I received a call which told me that I had been randomly chosen to receive a free holiday in FLorida for 4 people, for 2 weeks includnig all flights - I was told this by a recording with an American accent - I sinply put the phone down, however asmy telephone number is Ex-Directry, how did they get it???

At 07:12 on May 07 2008, lozzmo1 said:

I have an ex-directory listing, annonymous call reject and am registered with TPS, I STILL get at least a dozen or more of these type of canvassing calls per month. What else can I possibly try to stop these calls? Any suggestions?

At 08:04 on May 07 2008, FriedEggSandwich said:

Karatekate and Lozzmo1, have you ever entered a competition, and forgotten to tick the box forbidding them and their associated companies from contacting you? Have you shopped on line without fully reading and understanding the privacy policy of the vendor? Do you use networking sites, and have you really read their privacy policies? You may find that you have inadvertently given permission for all sorts of unwelcome contact from unknown parties by default. Just because it says it's a privacy policy doesn't mean it's guarding your privacy.

At 08:20 on May 07 2008, JazzJammer said:

I saw on Watchdog (yeah, someone has to watch it :P ) that many people who request x-directory still get their name/details listed... it makes little difference.

At 08:39 on May 07 2008, vermilion100 said:

Karatekate and Lozzmo1
Also: even if you are ex-dir with BT you have to ask BT to take your name of their database; they can give you name to Companies, presumably for profit.
Check what detail you permitted to be disclosed when you registered on the Electoral Roll.

At 09:18 on May 07 2008, Tilly1975 said:

Hi

They are using autodialers which generally target an area code and go through all the possible combinations of numbers.

We have 4 lines running in our property, 3 business and one residential, we are sick and tired of these companies calling us and can guarantee once one of our numbers are called, the rest will be called in the next 15 mins

I had a joke with one of them the other day "do you feel a victim and deserve compensation" so I hit the yes button, told the guy on the phone the date, time and place it happened .. when he asked me to elaborate I said "well I was at bingo and wanted number 57 for the full house and number 56 came out"

I don't know why he just hung up

At 09:23 on May 07 2008, tulipchickuk said:

Hello all,
This is my first post here :)
I am pretty annoyed this morning; two months ago I applied for a free trial of an appetite curbing product called Pink Patch. I paid £6.95 p+p; actual postage was actually a first class stamp but never mind that. The welcoming letter 'reminded' me that, in accepting the trial, I was also agreeing that, 4 weeks later, a month's supply of pink patch would be dispatched and the my debit card details used again, for £35 plus p+p.

This duly happened, on the 10th of April my account was debited by CurbYourCravin for £40.90.

Yesterday, I emailed the company to say I would not be requiring further supplies and please could they cancel any further orders. I received an email saying this had been done. This morning, I open my emails and there is an order dispatch notice informing me that a further month's supply has now been dispatched and cannot be cancelled as it is in transit!
I am furious. I have already emailed them to let them know I will returning the package unopened for a full refund, but does any one here have any further advice for me?
Thanks.

At 09:27 on May 07 2008, RLPeacocke said:

I sometimes have these calls but not so many and when I do, I am invariably very polite just before I hang up. Get an answerphone and let it kick in before you pick up, then you can filter out the calls and they will slowly stop coming. Works for me.

At 09:30 on May 07 2008, lizzielawrence said:

I had completely forgotten about the lovely free Florida holiday offers. I had these calls when I lived in London two or so years ago. That nice man with his nice welcoming American accent! My number there was also ex-directory. The calls came at all sorts of times of the day and were a real nuisance.

At 09:37 on May 07 2008, hopperodyssey said:

With the cold calling I find stringing them on with a sob story about being a hospital worker on night shifts usually does the trick. Or sob story plus rage at being woken up. Or play crazy deaf old lady. Or lodger. Or burglar. Or telling them in a perfectly English accent that you don't speak English (really push them on this point) These idiots are not worth taking seriously so have some fun with them. The next call I recieve I plan to persuade them that I will buy their product if they sing 'I'm a little teapot' down the phone as loud as they can.

At 09:49 on May 07 2008, Bogphone said:

Like Tilly1975 we have a business and a domestic line, and can guarantee that they will both be called by these companies, normally the one starting with a 2 before the one starting with a 3.

Naughty, but if I'm feeling bored the second one gets the required button pressed, and I then say that I'm "The national telephone scams prosecution service". The callers don't ever seem to want to find out what that is .......

At 09:53 on May 07 2008, iqnetsys said:

Seems to me that the easiest way to avoid the telephone scams is unplug your telephone. I have for the past year, the only reason I have a telephone line is for my computer. If someone wants to call me they call my mobile, far too expensive for scammers to do

At 09:53 on May 07 2008, wthornton said:

"...... politicians are concerned that us individuals will start suing every business that looks at us funny."
And what is wrong with that - it works in the US. And even greater consumer protection is class action against the same. That would have stopped the phone cash back scams right in their tracks and saved millions of consumers from being blatantly scammed.

At 10:03 on May 07 2008, Tri2000 said:

tulipchickuk - you are more likely to get a good answer by posting a message to one of the Fool's Discussion Boards (e.g. Does Anyone Know) rather than wait for a reply here.

At 10:06 on May 07 2008, dobba2 said:

One of the reasons you can be called even if you are ex-directory is that ex-directory telephone numbers are recorded on the electoral role. For the princely sum of £3 you can access the electoral roll and look up anyone's details. The electoral roll is commonly used by companies cold calling.

Ever noticed too, that the same company will cold call twice - once to speak to you and then again a few hours later (or the next day) to speak to your partner....

I have found persistantly asking to speak to their supervisor is a good way to prevent a company from ever calling back!

At 10:12 on May 07 2008, rjpt100 said:

Friedeggsandwich has a good point. The people who make these "cold" calls do not invent the phone numbers

Quite often when you buy something on the net or subscribe to a magazine (pretty much anythin gthat you might be required to enter a contact number) your detials will be registered with a data gathering agency.

These agencies then sell these details to thrid party companies to whom you fit relevant criteria (which you have ticked the box to say is ok).

The guy/gal that is phoning you has generally been told that you are potentially interested in the product they are selling, which is why they can become understandably frustrated sometimes when met with repeatedly aggressive responses by people they have been told are keen!

The easiest way to deal with it is a polite "not interested". Just a thought though, how do you know they would not have been able to reduce the cost of your electric and gas without a conversation?

At 10:24 on May 07 2008, vinnyabdn said:

Hi tulipchickuk,
if this crowd have set up a direct debit on your account just delete it from your online banking or call into your branch and ask them to cancel it. If not direct debit, still complain to your bank and ask them to block future transactions.
vinny

At 10:44 on May 07 2008, Littlesporran said:

My son-in-law received a number of telephone calls from a well known company trying to sell him a conservatory. Eventually he decided to play along and listened to a lengthy patter as to why he should choose this company. Eventually the salesman sensed that he had probably made a sale and made an appointment to come around and measure up in order to give a quotation. My son-in-law agreed a time and date and just before he rang off casually said "You will remember to bring a ladder, won't you?" The puzzled salesman asked why. "Because I live in a second storey flat."
Needless to say, he had no more calls from this company!

At 10:46 on May 07 2008, spiralquark said:

ringtones scam
my 12 yr old daughter's mobile phone (direct debit)account was regularly debited with £40 per month for opening textmessages at £1.50 a time. eventually, after a few month's vain attempt of telling them to stop sending these textmessages, we had to change the Sim card. we lost around £200 to this type of daylight robbery.
IT seems she had openened one of these oon the beginning and everytime someone rang her, she was charged again.
Wonder if these scams are included in the new consumer protection law.
It seems she had openened one of them in

At 11:49 on May 07 2008, astherk said:

I regularly get a nice indian gentleman asking to speak to Mr Wazz. On stating that no one of that name lives here he asks if I wish to take out a loan. This occurs weekly - or at least used to. I am a member of TPS and to no avail. BT Recommended the following

"If you recognise the person calling is Ex UK and you do not want the call just say that you will fetch them to the phone. Then just leave the phone off the hook until they give up waiting" This has proved 100% effective at stopping the requests to speak to mr Wazz - much more so than getting angry down the phone and asking for the number to be removed from their Database!

At 11:51 on May 07 2008, edditheseahorse said:

If you're asked for your telephone number on any forms you complete, either leave the space blank or enter a row of zeros. It may not get rid of cold calls completely, but it will significantly reduce them.

At 11:52 on May 07 2008, MCMXCIX said:

These types of telephone calls are just spam. Keeping your number ex-directory or hiding it in other ways will not help - there are plenty of cold calling centres where the computer which just add a randomly generated number to the code prefix and dial that number next when the cold caller presses the button.

What will help (though I don't think this has been technically implemented yet) is the following:

1) A switch on your phone which changes the standard rate of the incoming call to a premium rate.

2) A clear notification on the caller's bill that when they called you, they were paying for a premium rate phonecall.

3) The profits of the premium rate phonecall to be divided between you and your phone service provider.

4) The precise cost per minute of the premium rate to be entirely in your hands.

Then watch the entire cold-calling telephone sales industry shrivel up and disappear in a matter of months.

I don't suppose BT wants to think seriously about this idea, does it? I would sign up in a second.

At 11:56 on May 07 2008, Dampflok said:

I hope that these new rules stop this sort of situation, experienced this morning while trying to book a flight with Flybe.

QUOTES £33.29 outward and £49.29 return.
TRIED to book, they said £33.29 PLUS taxes and charges of £24.00, and return £49.29 PLUS taxes and charges £20.60
ALSO, insurance £4.49 (mine has expired, so may as well pay it).
THEN comes a page for seat allocations:
Choosing your seat £5 each way or, if you want extra leg-room seat £15 each way.
TRIED to by-pass the seat allocation, and take pot-luck, but wasn't allowed to - so that is another £10!
So TOTAL flights not £82.58 as quoted, but £142.47; nearly twice as much! Grrr.

At 12:09 on May 07 2008, katyslatey said:

hello spiralquark , yes those companies sending premium sms are awful. they arent clear in the costs at all. there is an organisation called phonepayplus used to be icstis 0800500212 that can investigate to see exactly if and when the service was subscribed to. you can stop the service by smsing the word STOP to them. any messges they send after this you should be able to get the money back.

other mobile rip offs include not informing you of what can happen if you upgrade the phone or change tariff part way through the month. always upgrade on your bill date to avoid prorata billing (e.g. 5 days worth of 500 mins tariff and 25 days worth of 300 mins tariff, on one month)
and ask the agent doing the upgrading to remove any old products that were on the account.

At 13:54 on May 07 2008, nickx999 said:

I've had a few of the Sky maintenance calls, I just sound confused and tell them I don't have Sky any more - they always apologise and hang up. My company has a range of numbers, most of them never published or used on sign up forms (direct dial extensions) but we keep getting a few cold calls on them, these could only be from automated random dialling. Unfortunately there's no way of stopping them when they come from abroad - so we might as well just have some fun with them! They tend to get put on hold then transferred around the office with people betting