Mums Finance

I used to be a lot meeker when I was a newly married young thing, if I bought something and it turned out to be defective I would not bother to return it and demand an exchange or refund. What I used to do was either throw it out or ask my dad to go back to the store for me…it always worked when dad took over. These days I am a lot bolder and ‘to heck’ with being embarrassed or nervous about approaching the refund counter – I demand my consumer rights!

Working for four years on the refund counter of a major chain store in Sydney changed me for the better – I saw first hand how other people handled this situation, the amazing excuses they would come up with to explain why they wanted their money back…and I eventually developed as much front myself. But I would never dream of pulling some of the scams some of my customers got away with…

But did you know that British people are missing out on possible savings of £74billion a year because they are afraid to complain? each UK household misses out on an average of £2,873 every 12 months because they fail to demand refunds, good service and discounts on faulty or unwanted goods. Now unwanted gifts might just get you a voucher or credit slip as refunds and exchanges are normally reserved for defective purchases. A staggering two out of three people will not complain when they receive bad service in a hotel or restaurant and will even pay a tip.

The top five reasons given by people who refuse to demand better service, discounts, or replacement goods include: fear of making a scene (90 per cent), not wanting to ask for a discount (88 per cent), not wanting to appear cheap (82 per cent), not being good at complaining (67 per cent), and not having time (59 per cent). Is it being British that makes people not want to make a fuss or appear rude and ungrateful…? this never bothered Hyacinth Bucket. Put on your best voice, draw yourself up to your full height – and complain!

Popularity: 11% [?]

There have been times over the past two years where we just could not fathom out the mentality of those pulling the strings of the credit card industry. Where other people were seeing their credit card limits increased – without even applying – we had limits on two of our cards slashed…despite those same cards being paid off EVERY month on the dot for well over 12 years! but we were not the only people to have this done to them and at a time when spending was being encouraged we were being discouraged…or so it seemed.

Big changes are now afoot in the credit card industry and these changes are aimed at making the industries practices more transparent and the consumer more informed. This is also a good time – just after Xmas – for making a credit card comparison and seeing where you can start paying a lot less money. The best way to do this right now is to opt for the balance transfer route – but bear in mind you don’t want to simply ’start over again’ – you want to be paying less than before and to achieve this you need to take a look at and compare the 0% balance transfer credit cards that are on offer right now.

The best deal so far – and has been for quite a while now – is the Virgin Credit Card and to date this deal has outlasted all the other 0% balance transfer offers, which means it is not a ‘first in first served’ kind of deal in that it has been on offer now for 16 months. Often consumers will be so desperate to wipe the slate clean and take their balance elsewhere they will overlook the high interest rate they are being charged – it will simply take longer to pay off and be more expensive in the long run. The Virgin deal looks set to last for a while yet and I’d say plenty of new years consumers have already signed up with them and taken advantage of the 0% interest deal. And remember – aim to pay off the balance, pay MORE than the minimum each month.

Popularity: 15% [?]

More than 100,000 families are paying back Christmas debts at a crippling interest rate of up to 1,500 per cent after being targeted by loan sharks. Borrowers in housing estates are believed to be repaying £29million in loans dished out by illegal doorstep lenders during December. Evidence compiled by housing associations shows that on average these desperate residents borrowed £300.

But the exorbitant rates of interest – which are often around 825 per cent, but can be as high as 1,500 per cent – mean that families repay around three times the amount they originally borrowed. Many will still be paying for their debts next December. Housing association Circle Anglia and think-tank The Financial Inclusion Centre estimate that more than 200,000 families a year are lured into using loan sharks who knock on their door.

This is an increase of almost a quarter on the previous year.

Fears are growing that the rise in loan sharks occurred because so many families are being shut out of mainstream banks and building societies by tougher credit scoring. Loan sharks do not have a consumer credit licence and are not authorised to lend money. As a result, the consumer has no protection from being mis-sold.

The Trading Standards’ illegal money lending teams have helped more than 10,000 victims of illegal lenders in the past year and have written off more than £30million debt.

Popularity: 19% [?]