Consumer Skills Category
Being a good consumer is about making informed purchasing decisions. We can help you to do this by equipping you with the sorts of questions we all need to ask ourselves, before making our purchasing choices – whether we are planning to buy or hire items in shops, over the telephone or online.
Competition in any market place is all about providing greater choice for consumers. It generates innovation, efficiency and enterprise amongst businesses, which means that consumers inherently get to enjoy more competitive pricing and improved quality. And it’s protecting and promoting the interests of consumers that the Jersey Consumer Council is concerned with.
Competition, by its very nature, puts businesses under constant pressure to offer the best possible range of goods, at the best possible prices. If they don’t, consumers have the option to buy elsewhere. However, in Jersey, as with many other small Island communities, competition can sometimes be lacking. This means that consumers have limited opportunities to buy elsewhere, which can be extremely frustrating.
Our pivotal role at the Consumer Council is to help minimize these frustrations and boost competition on the Island, by giving consumers a voice and businesses a greater understanding of what consumers need. We do this through ongoing consumer research and collaborative ventures, with our contemporaries at CICRA (Channel Island Competition Regulatory Authority) and Trading Standards; businesses; industry bodies and other community groups and charities.
Regulation seeks to apply rules to make sure that businesses and companies compete fairly with each other and, in Jersey, this is overseen by the CICRA. But somebody needs to be looking out for the little guy and that’s where agencies like the Consumer Council and Trading Standards come in.
The Jersey Consumer Council is a unique body, in that it is independent from government and can act freely as the consumers’ champion. Our role is to encourage businesses to give themselves a competitive edge by putting consumers’ interests first. We investigate and publicise anomalies in consumer affairs. We provide consumers with accurate and timely information, to help them make informed purchasing decisions. And we are dedicated to creating greater transparency amongst businesses competing in the market place.
Transparency can be difficult in a market which lacks competition, but it is essential for giving consumers the opportunity to genuinely compare services and prices. Cast your minds back to petrol stations where, only a few years ago, you were unaware of the price of fuel per litre until you had actually arrived at the pump!
Effective collaboration between the regulatory authorities, the Consumer Council and the fuel providers, there is clear signage, displaying pump prices at the road. Jersey Consumer Council also hosts Jersey Fuel Watch, a website www.jerseyfuelwatch.com on which we display both road fuel and heating oil prices, giving consumers a one-stop price-comparison shop.
One of the most confusing market sectors for consumers is telecommunications. In a bid to improve transparency here, amidst a limited number of highly competitive providers, the Consumer Council established TelCoWatch, a one-stop comparisons website, to help Islanders make informed choices about how and where they best spend their telecoms budget.
This site, which is supported by the telecoms companies, cuts through industry jargon and lays out the product offerings and cost structures available, so that consumers can choose the provider, product and contract which best fits their personal needs. It is collaborations like these, established and driven by the Consumer Council, that serve to create a culture of positive, fair, consumer-led competition on the Island.
Competition isn’t just based on price; the provision of customer care can be a key area of differentiation. This was evident when the Consumer Council conducted some research within the competitive arena of Primary Health Care. Our aim was to challenge providers to be more transparent with their pricing structures, but our findings also revealed that consumers have a strong desire to feel valued – good customer service can be a significant factor in driving their choices.
In a noteable OXERA report, Professor Sir John Vickers noted that ‘in small-island economies, such as Jersey, it is just as important that markets work well, as it is in larger economies. But in smaller jurisdictions competition policy and regulation, where competition is not possible, faces particular challenges.’ The consumer is a key player in keeping businesses competitive – they do their talking with their £££s, which can be just as powerful as regulatory efforts to control competition.
What is clear is that the consumer voice needs to be heard. Looking after their interests is a crucial aspect within a successful, competitive market place and the Consumer Council continues to work with, and behalf of, Islanders to make a positive and valued influence on our local economy
Peer-to-peer lending, also known as Private Lending, involves matching up investors, who are willing to lend, with borrowers – either private individuals or small businesses. We are sharing this article with you to raise awareness that peer to peer lending is a private arrangement and comes bearing significant risks; attractive as a solution but be cautious and understand exactly what you are signing up to.
By cutting out the middleman and not having the overheads of traditional banks, peer-to-peer lending may offer more favourable rates, or help borrowers who have struggled to get a personal loan elsewhere.
What are the risks as an investor?
By being connected directly to someone who wants to borrow, the most immediate risk to your money is if a borrower fails to repay what you’ve lent them (known as ‘defaulting’).
Your money is also not protected by the Depositors Compensation Scheme which guarantees your savings with Jersey banks up to the value of £50,000.
What are the risks as a borrower?
- Loans are usually granted on an interest-only basis (meaning you repay no capital) and for a short duration, typically 1 to 3 years.
- You would normally still need to have a deposit, or a stake in whatever property you’re putting up as the asset (sometimes called the security).
- At the end of the term, the loan is either paid off by some means, such as replacing with a conventional bank mortgage or selling the property, or in some cases the loan can be renewed for a further period. Take care, if you have struggled to obtain a traditional mortgage and your financial situation has not improved you have no guarantee of obtaining a traditional mortgage at the end of the term to enable you to continue to live in the property. What will you do if the value of the property goes down?
- Interest rates can vary, depending on the lender and their appetite or consideration of the risks involved.
- While the rate of return may be favourable to the investor/lender, the interest rate for the borrower can be higher than high street lending and much higher arrangement and early redemption penalties.
- Borrowers may intend for the loan to be a short term, interim solution before moving to mainstream mortgage lending but if they are still in the same circumstances at the end, the loan can be rolled over (and over) which just continues the difficulty.
- We strongly recommend that you ask any lender about the Jersey Code of Consumer Lending; this is a voluntary or ‘self-regulatory’ code, which sets standards of good lending practice. These standards seek to ensure that Jersey consumers are treated fairly and that the opportunities for taking on excessive financial commitments are reduced. The Consumer Council is working hard with industry, Jersey Financial Services Commission, Citizens Advice, Trading Standards and the Financial Services Unit, Chief Minister’s Department to update the Code and to raise awareness of its importance as it provides various safeguards for consumers. The Financial Ombudsman will take codes of practice into account when determining a complaint. The Code exists even whilst it is being updated, it can be found at this link gov.je/tradingstandards/consumerlending and remains fully relevant.
- The Channel Islands Financial Ombudsman (CIFO) is an independent organisation that resolves complaints about financial services with powers to investigate complaints and award compensation. If you take a loan from an individual, rather than a lending business, you may not be able to complain about them to CIFO. Contact details ci-fo.org and 01534-748610.
What advice do we have for consumers?
Ask yourself why it is important for you to take on additional risk with peer-to-peer lending?
Will your financial situation improve with hard work over time so you can access the traditional mortgage market?
Do you have other housing options? Possibly rental
Our advice is to get professional, qualified and independent legal and financial advice before making any decisions. Don’t let the excitement of a new home cloud your judgement on such a large long term financial commitment. This may be the largest financial decision you ever make – don’t let it be the worst!
Make sure you have a professional valuation on the property you are thinking of buying. Consider if your property will be adequately insured – life insurance, critical illness, building and contents?
Terry Vaughan, Director, Head of Risk and Compliance at The Mortgage Shop and Henley Financial highlighted that “If you’re a borrower, your lawyers need to make sure the person granting the loan has the authority and legal right to do so. Your professional adviser will also check on source of funds for the loan being proposed. You also need to ensure the terms are suitable for you. You need to be aware of the repayment schedule and be sure that it is within your budget”
Eating on a budget, finding time and having the confidence to prepare meals from scratch, are why sometimes many find it difficult. With a bit of planning, using leftovers and just giving it a go, it does get easier.
A good place to start is a weekly menu plan and a budget, which will help you get into the habit of knowing what your weekly shop will cost. Allocate one or two days for a pasta dish, they are cheap, quick with many variations, such as meatballs and spaghetti, ham and pea or simply fresh tomato sauce, all of which should cost under £5.
Sunday is a great day for a roast as you will have more time, plus you can use the leftovers for a dish or two during the week. Why not buy a bigger chicken and strip the carcass down to create a chicken and leek pie on Monday, or a chicken curry with some simple flat- breads another day?
Once you become confident with creating really simple dishes, you’ll find yourself building several weekly meal planners which you can just use time and time again. Because after all, we need these things to be simple.
Caring Cooks have a range of cost effective recipes allowing you to try your planning, shopping and cooking skills. Caring Cooks are treating us all to a Cookery demonstration 27th September Coop Grande Marche St. Helier 12:30 – 13:30 pm.
Let’s get started…
- Work out your weekly grocery budget (planners available by post or http://www.jerseyconsumercouncil.org.je/money-matters/budget-planner/).
- Plan out a weekly menu (recipes available by post or http://www.caringcooksofjersey.com).
- Write out your shopping list; including weight of ingredients.
- Be disciplined when you shop and stick to your budget. Where possible ‘Shop the Offers’. Get familiar with your supermarket’s offer cycles.
- Allow planning and preparation to be a priority. This gives you time to batch-cook and freeze where appropriate. There is no need to feel guilty about time spent planning and cooking.
- Enjoy your cooking, keep budgeting and planning.
If you would like to learn new skills and confidence in the kitchen, and are over 16, please get in touch with Caring Cooks to find out more.
Recipes which share ingredients and are simple to make can be found here on Caring Cooks website:
Your financial circumstances might sometimes mean that you require professional advice to make sure that you make the correct decisions and take the correct actions.
A professional adviser will help you to prioritise your financial goals and give you an understanding of the bigger picture, taking into account other important factors such as any potential tax implications and investment risk. There are thousands of different financial products and investments available and choosing the right one for you can be difficult and at times confusing.
Do you need financial advice?
You may find it helpful to speak to a financial adviser if you are not sure what you need to do or are feeling confused about the options available to you. Financial advisers can help you with a variety of things, such as:
- Providing an income after you stop work
- Saving and investing your money
- Buying and insuring your home
- Insuring yourself and your family against illness, disability or premature death
- Passing your assets on to the next generation tax efficiently
- Changing personal circumstances such as starting a family, redundancy, divorce or bereavement
Once your financial adviser has recommended a plan to help you achieve your financial goals it should generally be reviewed on a regular basis to ensure it remains appropriate to your circumstances and accommodates any changes to your priorities.
What does professional financial advice cost?
Financial advisers usually charge for their services in one of (or a combination of) the following methods:
- an hourly rate – typically averaging around £150 – £250, but can be higher for specialist advice;
- a percentage of the money invested – this can vary depending on the size of the initial investment and will typically be 0.5% to 3%. An annual charge for reviewing an investment portfolio is likely to be 0.50%-1%;
- a fixed project fee – typically £1,000 – £5,000 for a specific piece of research and advice work;
- some firms may also charge clients a monthly retainer fee of between £50-£100.
Fees vary depending on the experience and qualifications of the adviser and the geographical location of the business.
Advisers are no longer paid commission, except for certain non-investment product recommendations, and they have to explain to you how much the advice will cost you. You will need to agree this and how you will pay for it before any advice is provided.
What should I be looking for when dealing with an adviser?
It is important to understand whether your adviser is regulated to provide investment and financial advice in Jersey. A regulated advisory business needs to have in place professional indemnity insurance, which would provide their clients with an additional level of security.
A professional regulated adviser will be able to draw your attention to the potential pitfalls of what may seem a fool proof way to get a much better return on your assets. This is becoming more common place because traditional methods of generating returns on your capital such as bank deposits and low risk investments are currently providing little or low returns than in previous times.
The following list is a prompt for some of the questions you can ask your financial adviser.
- Are you regulated to provide financial advice?
- What is you experience?
- What types of clients do you work with?
- What are your qualifications?
- Do you offer an area of expertise?
- How much will the advice cost?
- What information will you need from me?
- What are the risks associated with the recommendation?
Financial planning involves revealing detailed personal financial information and can involve divulging information about your goals and ambitions, so you need to be comfortable in the company of an adviser. It is worth meeting a few to determine who you are most comfortable working with in an ongoing professional relationship.
There are two great truths when considering investments
- If it looks too good to be true it generally is
- Don’t put your investment eggs in one basket
When we pay a deposit, we are committing to a binding contract with the outstanding payment to be paid at a later date. The natural position of the Law is that the deposit will not be refunded should you decide you do not want the goods or services. You should be aware that the trader may be in a position to pursue you for the outstanding money.
For example, when ordering a wedding dress or prom dress, we are usually required to pay something upfront. It is always recommended that you ask whether the amount it is refundable or not, and if it is, ask the person to indicate the term on the receipt or by email.
For further advice on this matter or any other consumer issues, please contact Trading Standards on 01534 44160.
The majority of us will have had personal experience with specific charities. For many, it is important to support these charities after our death so that their services can continue to provide a benefit and make a difference. Leaving a bequest to a charity in your Will is a great way of doing this.
When leaving a bequest some may have a specific purpose in mind for the bequest they are making, however it is important to bear in mind that there are a vast number of charities, some with very specific aims and some with a wide and general purpose. Is it possible therefore, to bequeath money to a charity and specify how they put that money to use? The short answer is that in general, it is not possible to specifically direct how you would like your money to be used. This is because once a bequest has been made the funds belong to the charity and they are free to decide how best to use it. Having said this, it is possible to express a wish in your Will that the money be used for a specific purpose. This will give the charity a clear idea of how you intended the money to be used even if it is not binding. One of the most common examples that we see, is a bequest to a medical charity, with a wish expressed that the money to be used for research purposes.
Advocate Zoe Blomfield, Managing Partner
t: +44 (0) 1534 888666
Settle down with a warm drink and peruse our Christmas survival tips…ranging from call out charges to buying on line and the risks of fake products.
- Buying Online
In most cases if you shop online with a Jersey, UK or EU trader you have a right to cancel and receive a full refund, even if you just don’t like the goods or have simply changed your mind.
This is in addition to your normal statutory rights. There are some exceptions and time limits apply. Check it out before you buy. Extra tips here… http://www.jerseyconsumercouncil.org.je/consumer-skills/shopping-online/
- Product Safety
Be safe this Christmas. Follow the instructions and appropriate warnings. Make sure toys are CE marked and follow the intended age warnings.
- Know who you are buying from
If you are shopping online make sure you know who and where the trader is based. For example don’t assume you are buying from Amazon when you may be buying from an Amazon seller outside the EU.
Your goods may not comply with European safety standards, they may take a long time to arrive and the cost of returning them may be uneconomical.
Don’t be tempted to buy really cheap branded goods online. Electrical goods may be a fire or electrical shock hazard and perfumes and cosmetics may contain harmful substances.
- Additional Protection
You get additional protection when you buy goods or services over £100 if you paid using your credit card. If something goes wrong and the trader won’t help, the credit card company may have to step in.
- Christmas Loans
If you have to borrow money, make sure they are a reputable lender. Do you understand exactly what you are signing up to and what will happen if your financial situation gets worse? Is the lender a subscriber to the Jersey Code of Consumer Lending? See www.gov.je/tradingstandards/consumerlending
- Call out Charges
If you have to call out a tradesman for an emergency repair during this festive season make sure you know what the ‘call out’ or ‘minimum charge’ will be before you agree. Make sure you both understand what work will be carried out, what it will cost (or how it will be calculated) and when and how the trader expects payment.
- Faulty Goods
You have statutory rights if goods are faulty or not fit for purpose. Try to keep gift receipts as it will help if things go wrong and don’t delay in complaining.
- Unwanted Gifts
Your statutory rights do not apply if you simply changed your mind. Check out the store’s returns policy before you buy. Remember if you bought online, you may have additional rights.
- Recall and Safety Notices
Trading Standards publish product recalls and safety warnings. To sign up for notifications, visit www.mygov.je
You can select the category of goods you are interested in, for example food, toys, electrical goods and nursery products.
Finally, do you know where to get help? Trading Standards offer a free and confidential Consumer Advice Service. The drop in service is located under the clock in the Central Market. You don’t need an appointment. Alternatively you can call on 448160 or email email@example.com
Condor Jersey Consumer Group
First Meeting held today (25th May)
Open & Honest discussions between Group Members & Condor
To keep us all grounded we have our own Group Charter and Objective
Group objective the Group will make every effort to identify and craft mutually acceptable resolutions that are aimed at reducing and resolving dissatisfaction, to improve relationships between Condor and the public
The Charter ensures that we all understand our own responsibilities and commitment to the Group.
All participants are presenting individually to the Group highlighting their own views on;
· main areas of dissatisfaction and the impact it has on those around you
· areas of satisfaction
· thoughts on how things could really change going forward
Half the Group had the opportunity today and others will be afforded the same at our next meeting.
The attendees, including Condor’s CEO Paul Luxon, listened, clarified and talked through various aspects of the service. Group members were open, honest and eloquently made numerous substantiated points. Although timetabling, reliability, communication and customer care was amongst the most cited areas in today’s resumes, each speaker articulated the reality and full implications of these dissatisfactions to each person, their commitments and obligations.
As one member said that it’s ‘when all these shortcomings converge at once’ you get a potent recipe for frustration and dissatisfaction.
The Group talked through with Paul about the Frequent Traveller Scheme as there is clearly confusion about decisions made regarding the longevity of the scheme; Paul clarified that they are currently consulting a selection of Frequent Traveller Scheme members to explore how it should look in the future – he assured the Group that it will be staying but will look different.
The points raised by each member will formulate a robust agenda for discussion.
You are in a rush to get your new gadget or kitchen appliance out of the packaging.
You may have seen a warranty or guarantee card fall out of the box. What exactly is it for and should you fill it in? Trading Standards has provided answers to these questions.
What is the card for?
The card enables you to register for a free warranty (or guarantee) which adds to your legal rights. It may be a condition to fill in and return the card before the warranty becomes valid.
Do I need this additional free warranty?
It may be easier to claim on the free warranty for a repair or replacement if something has gone wrong. Under the law, after 6 months you have to prove you didn’t cause the problem, which can be tricky. It is also a good backup if the retailer has closed or gone out of business or you bought the goods out of the Island.
Have I still got a manufacturer’s warranty if I didn’t fill out and return the card?
It depends. Get in touch with the manufacturer. They may still accept your registration and you may be able to do this online.
Who can claim?
It is usually just the person who purchased the item who can make a claim. Check the small print. Some warranties extend to other people, referred to as ‘third party rights’.
Are there other limitations?
Check the terms and conditions. There will be strict time limits when the warranty expires. Find out who is responsible for the postage and packaging if goods need to be sent away for repair.
Are there other benefits of registration?
The manufacturer will have your contact details if your goods are then subject to a safety notice or recall.
What about extended warranties?
Take care when filling out warranty or guarantee registration cards to ensure you are only registering for a free warranty or guarantee. Don’t confuse it with extended warranties or guarantees which are similar to insurance policies. These cost money. You should think carefully about the benefit of buying an extended warranty against the value of the goods, the risk of them breaking down and always shop around as you may be able to purchase a multiple product policy for less money.
Do I have any protection without a manufacturer’s warranty?
Yes. Under Jersey law you are protected if goods are faulty if they are not of satisfactory quality or fit to do the job intended. You may also have additional protection if the goods were over £100 and you paid in full or part payment on a credit card.
For more advice, contact Trading Standards on 448160 or firstname.lastname@example.org
The world is at your ‘keyboard’ when using the internet to research or book your holiday or other travel arrangements.
Take a moment to check out all the risks even if you think you may be aware of them all.
- Fraud resulting from making payments over unsecured web pages
- Flight scams:
- Where you book a flight and receive a fake ticket, or pay for a ticket that never arrives.
- Holiday scams:
- Fake websites and email offers for holidays or villas that do not exist. They require you to pay a deposit, which you never see again.
- Fake competition scams defrauding you out of a fee to secure a holiday.
- Inadvertently advertising the fact that your house will be empty when you are away, by posting on social networking or travel tracking sites. Some insurance companies are now rejecting claims if homes are targeted by burglars while the owners are away on holiday and made reference to it on social networking sites.
- Ensure that any holiday or travel company unfamiliar to you is reputable by researching them online. Ensure that they are a member of a recognised travel authority which offers financial protection and a complaints service.
- When possible, pay for holidays and travel using your credit card as this offers additional financial protection over other methods. Please note that your holiday or travel company may levy a surcharge for credit card payments.
- Double check all details such as travel dates, itineraries, destinations and travellers before confirming payment, as you may be charged for amendments.
- Take out travel insurance adequate for your destination, activities and everyone in your party.
- Do not reply to unsolicited emails from companies you don’t recognise.
- If renting a private apartment or villa, call the owner/agent directly to ensure that it is legitimate. If the number is not provided, email and request it. Check reviews on TripAdvisor or similar sites.
- Get the full address of the property and find it on Google maps to check its location and legitimacy.
- Prior to payment, obtain a contract setting out terms and conditions of the rental, deposits, payment terms etc.
- Before entering payment card details on a website, ensure that the link is secure, in three ways:
- There should be a padlock symbol in the browser window frame, which appears when you attempt to log in or register. Be sure that the padlock is not on the page itself … this will probably indicate a fraudulent site.
- The web address should begin with ‘https://’. The ‘s’ stands for ‘secure’.
- If using the latest version of your browser, the address bar or the name of the site owner will turn green.
- Some websites will redirect you to a third-party payment service (such as WorldPay). Ensure that these sites are secure before you make your payment.
- Safeguard and remember the password you have chosen for the extra verification services used on some websites, such as Verified by Visa.
- When making a payment to an individual, never transfer the money directly into their bank account but use a secure payment site such as PayPal, where money is transferred between two electronic accounts.
- Always log out of sites into which you have logged in or registered details. Simply closing your browser is not enough to ensure privacy.
- Keep receipts for all online holiday or travel bookings and payments.
- Check credit card and bank statements carefully after booking to ensure that the correct amount has been debited, and also that no fraud has taken place as a result of the booking.
- Before you post details of your travel dates on social networking or travel tracking sites, ensure that the correct privacy settings are in place.
- Ensure you have effective and updated antivirus/antispyware software and firewall running before you go online.
Please refer to the following websites for more information:
ABTA Association of British Travel Agents
ATOL Air Travel Organisers’ Licensing
AiTO Association of Independent Tour Operators