Consumer Law

Consumer law covers a wide area of law. Areas such as the following:

  • holidays/ timeshares
  • insurance
  • hp / finance / credit agreements
  • home improvements
  • removals
  • faulty goods, cars, TVs, etc.
  • weddings.
  • terms and conditions of contracts

Specific Acts of Parliament cover all of these areas, which afford the consumer protection when dealing with transactions. However, knowing which Act you can use to provide protection and how to go about putting forward a claim is another matter.

Consumer Law does not only protect the individual consumer, businesses need to be aware of consumer rights to protect their business from unnecessary claims. The OFT is tightening up rules and regulations governing businesses. If you fall foul of these regulations your business can be fined or you can be imprisoned. If you have any Consumer Law queries or would like any advice, please click here or phone Sara Checkley whose contact details are given below.

Here are a few examples of areas of consumer law that are not widely known.

DID YOU KNOW for example that if you buy a car using a HP Agreement the car belongs to the HP Company until the final payment is made. But importantly your right to reject the car if it is faulty lasts throughout the life of the agreement.

DID YOU KNOW the Consumer Credit Act provides you with additional legal protection should you have difficulty with the seller after you have ordered and paid for goods or services using your credit card provided the total price is over £100 and less than £30,000. It also provides protection for purchases made from outside the UK using your credit card. This can be a great asset when you have problems with purchases made over the internet which can very often turn out to be from suppliers based abroad.

Using your credit card to make online or telephone purchases is just as safe as using your credit card to make any purchase. The Distance Selling Regulations provide that if anyone dishonestly uses your credit or debit card to buy from a supplier anywhere in the EU by phone, fax internet, digital TV or mail order you can cancel the payment and get a full refund from the card issuer. So you are not liable for any payment.

DID YOU KNOW that tour operators must take due care to ensure that overbooking does not occur. Unfortunately many tour operators make sure that their booking conditions contain a clause denying liability for changes of plan caused by overbooking. But importantly if the alternative accommodation/holiday offered is of a lower standard or in a different resort you will be entitled to be repatriated and to compensation.

DID YOU KNOW that there are two main types of insurance policies. These are "New for Old" or "Indemnity". If your household insurance policy is "new for old" and you are burgled you can go out and replace the stolen items with new ones. If you have an "indemnity" policy and you are burgled you will only be able to replace the stolen goods with items of the same age and condition as the ones that have been stolen.

DID YOU KNOW that if you are suffering at the hands of a bullying or aggressive salesman whether or not you invited them to your home or you were in their store you are now protected by the Unfair Trading Regulations. These Regulations came into force in May last year and prevent traders from acting in a misleading, or aggressive manner and without due diligence. In fact there are 31 things that traders are forbidden to do. This is a new and wide reaching piece of legislation and there have already been prosecutions. Businesses need to have their terms and conditions checked and have their sales personnel advised of this new legislation.

DID YOU KNOW that even if you have invited the double glazing or other home salesperson to your home you now have protection and most importantly cancellation rights thanks to the new Doorstep Selling Regulations which came into force in October 2008.

European Small Claims Court

As of the 1 January 2009 if you have bought goods or services from a European Member State except Denmark and you have problems with those goods or services, you can issue a Summons in your local County Court.

A claim can be made where the value of the claim does not exceed 2,000 EUROS, this sum does not include interest, expenses or disbursements. The procedure is intended to be document only but there is the facility for oral hearings if they are necessary.

So if you have bought goods over the internet for Christmas and they are faulty you should first seek advice from Sara Checkley at our Horncastle office on 01507 522456. Sara can advise you as to how to contact the seller to make your complaint in the first instance. If this is not successful Sara can assist you with the issue of the summons and guide you through the claims procedure.

The Cancellation of Contracts

The Cancellation of Contracts Made in a Consumer’s Home or Place of Work etc Regulations 2008 came into force on 1 October 2008.

These replace the Cancellation of Contracts Concluded Away from Business Premises Regulations 1987. The most important change brought in by the new Regulations is that they now protect consumers who make contracts during both unsolicited and solicited visits to their home by traders.

The Regulations apply to all contracts with a total payment of £35 or more and there is a minimum seven day cooling off period and cancellation rights. The cancellation rights must be clearly and prominently displayed in any written contract or provided in writing if there is no written contract.

The Cancellation of Contracts Concluded Away from Business Premises Regulations 1987 still applies to any contract entered into prior to the 1 October.

In light of this your business client may need to review their terms and conditions and ensure that there is a seven day cooling off period and cancellation rights are displayed.

Unfair Terms in Consumer Contracts Regulations 1999

A recent case has made it clear that the Court will not stand for terms and conditions that are not “plain” and “intelligible”. If you have terms that are hidden away from consumers these will fall foul of the above regulations. Now, in light of this judgement, is a good time to get your business terms and conditions checked.

Selling Over the Internet or by Telephone

All sales made over the internet or telephone are known as distance sales. As such they are governed by the Distance Selling Regulations 2000 and the E-Commerce Regulations. You should check that you have a set of terms and conditions in place on the internet site. You must comply with the above legislation. Get your terms and conditions checked - if you do not have any you need them.

For further information or advice on Consumer matters, please e-mail consumer@chattertons.com or contact Sara Checkley on 01507 522456.