The law controls the way that traders can advertise their bargain offers in the media or in shops, but there are ways in which the law can be side-stepped to trap the unwary consumer.
Bargain hunters are advised to:
- Read all it says on the sale notice or in an advertisement. A sign might read 80% off from a distance, but a closer look might reveal the words 'up to'.
- Shop around - even a 'massive reduction' doesn't mean you can't buy the same item at a lower price elsewhere.
- Don't be fobbed off by notices such as 'no sale goods exchanged' or 'no cash refunds'. If the sale goods you buy are faulty or mis-described then you do have a claim against the trader. But remember, if the product is labelled 'shop soiled' or 'marked on the sleeve' or you are given this information verbally, then this may affect your consumer rights.
- Treat 'special purchase' items with caution. If the store has imported them just for the sale, you have no way of making a price comparison.
- Watch out for credit deals. The shops are full of fantastic sales bargains, and you might be tempted to take out credit offered by the store. Some consumers unwittingly sign up for ‘rolling account’ store credit cards at very high interest rates (sometimes in excess of 25% Annual Percentage Rate), rather than a simple loan to buy an item. Make sure you read the terms of the credit agreement before you sign, and that you understand the deal you are getting into.
- Don’t be pressured into buying expensive extended warranties for electric goods in the sale if you don’t want them. Find out whether your home insurance policy covers appliance repairs, and consider whether the cost of a one-off repair would work out cheaper than the warranty anyway!
- Some stores that usually offer a no quibble returns policy, suspend it during the sale period. If you are looking to buy something in the sales and think you may want to return it later, check the stores returns policy first.
Unwanted Christmas gifts?
There is no statutory right to return goods bought from a shop that are not faulty. Check out your consumer rights. If however you have 'shopped from home', for example on the internet, you do have rights in certain circumstances to return items you don't want for any reason. Check out our internet shopping guide.
If you think the person you are buying the present for may need to return it and the shop has no clear sign telling you their return policy for unwanted gifts, do not rely on what the sales assistant says. Insist that they write it on your receipt (for example, 'cash refunds for unwanted Christmas gifts').
There is no legal requirement for a shop to supply a receipt, although most do.
New Years Resolutions
Get Fit Quick!: If you are thinking of joining a health club or gym in the New Year, shop around and compare deals. Before you sign on the dotted line, make sure you read any terms and conditions carefully. Will you have to pay up front for a year’s membership? Will you be entitled to any money back if your membership lapses along with your good intentions? Do you have to give notice of cancellation?
Shed the Pounds You Put On At Christmas!: Don’t be taken in by adverts that promise ‘miracle’ slimming cures and fantastic weight loss in weeks, simply by taking a tablet or using a patch. Many of these adverts are misleading. Take advice from organisations such as the Food Standards Agency.
Double Your Income By Working From Home!: Many of us are short of cash after Christmas, and may be tempted by adverts that drop through our door offering fantastic earnings from home-working schemes, or pyramid recruitment plans. Be very sceptical about any work opportunities that ask you to pay up front, or that offer financial returns that seem too good to be true – they probably are!
Be Debt Free!: Debt is a major problem for many people, particularly after Christmas when those who have paid for their festivities on credit are now faced with dealing with this in the New Year.
Beware of unscrupulous credit brokers and debt management companies. Credit brokers are only allowed to keep £5 of the commission fee if a credit agreement is not signed, but unfortunately, many customers do not realise this and some credit brokers are taking advantage and keeping the lot!
Be wary when using debt management companies as they also often charge fees, adding to a consumer’s debt and may simply suggest a consolidation loan – where all the consumers unsecured loans are paid off with a larger loan secured on property.
Although a consolidation loan might reduce a person’s monthly payments, it will almost certainly leave them with a greater level of debt overall to pay off over a longer period of time, and if the consumer fails to meet the repayments on a secured loan, they could lose their home. Consumers are advised to look closely at the duration of the consolidation loan, and the total amount payable.
There is plenty of free advice available to help you with your debt problems. The Office of Fair Trading publishes a useful guide entitled ‘In Debt? Help Yourself Out!’Visit our credit and debt advice page for further information |