Advice Column 2006

News of Farepak

Help may be on its way to people affected by the collapse of Farepak, the Christmas hamper firm which has gone bust. A charity called the Farepak Response Fund has been set up. The Fund will contact agents directly to sort out goodwill payments for their customers but if you’re an agent and you haven't heard from the charity, look on their website at www.farepakresponsefund.org.uk.

If you’re a customer who made payments to Farepak using a debit or credit card, you may able to get your money back from the credit card or debit card company. For example, if you paid by credit card for individual items worth over £100, you should get your money back. If you did pay by credit card or debit card, get more information from your local CAB.

Finally, if you’re a Farepak customer or agent, make sure you contact the administrators of the firm to make a claim for your losses There's more information about what to do on the Farepak website, including where to write to make a claim. The website is: www.farepak.co.uk.

New Guidelines for Social Landlords in Dealing with Rent Arrears

From 2nd October 2006 new court guidelines come into effect. Social landlords who are seeking an order for possession based upon rent arrears must comply with certain steps, or risk being denied an order for possession.

In summary, the ‘Protocol for possession claims based on rent arrears’ places obligations upon a landlord as follows:

1. Prior to proceedings - Actively to review with the tenant prior to proceedings, their financial situation, to provide additional rental information, to assist in any benefit claims and consider the particular circumstances of each tenant.



2. At or around the time of service of any statutory notices - to review options for alternative dispute resolution.



3. If proceedings cannot be avoided - to take positive steps to keep the tenant advised of their progress.

The effect of these requirements is that social landlords will need to plan for additional time and resources to address issues arising from rent arrears, and be pro-active when problems do arise. The aim of the protocol is to make possession proceedings an option of last resort.

If you’re a tenant experiencing finding it difficult to keep up with your rent payments telephone or call in during our opening hours for further advice.

Are you at risk of losing your home?

A new survey by Citizens Advice has found that thousands of homeowners could be at risk of getting into serious debt.

The survey shows that homeowners are borrowing more than they can afford by taking out secured loans, second mortgages and other forms of credit to pay for things like home improvements, cars and holidays. Second mortgages and secured loans are money borrowed using your home as security. This means that if you can't keep up the repayments on these loans, the lender can sell your home to get their money back.

If you are a homeowner, you should think carefully before you take out an additional loan, and make sure that you can afford the repayments as well as your mortgage.

If you are thinking of borrowing more money:

• spend time shopping around to see what’s on offer
• always look at the total amount you will have to repay
• make sure you know the difference between secured and unsecured lending
• don’t borrow more money to pay off existing debts.

If you have difficulty paying your mortgage:

• let your mortgage lender know straight away
• don’t try and borrow your way out of debt, as it could get worse
• don’t just stop or miss payments as you could lose your home
• don’t ignore letters, especially court papers and court hearings
• if you are taking out a mortgage with variable interest, ask what your monthly payment will be if the rate goes up. A fixed interest rate may make more sense for you.

To find out more about what you can do if you have mortgage arrears, see our fact sheet, Mortgage arrears, in Debt fact sheets.

For more information on what you can do about other types of debt, see Help with debt.

If you are in debt with your mortgage or other loan, you should get advice from an experienced adviser, for example, at a Citizens Advice Bureau. To search for details of your nearest CAB, including those that can give advice by e-mail, click on nearest CAB.

Changes to the Child Support Agency

You may have heard recently about government plans to replace the Child Support Agency (CSA).

The CSA is the government agency which collects maintenance payments for your children if you have split up from your partner.

The government has announced that a new organisation will take over from the CSA and that a simpler system of child support will be introduced.

None of these changes will happen immediately. This means that if you are currently paying or getting child support through the CSA, or are waiting for an assessment or payment to be made, for the time being, nothing will change.

For more information about child support and the CSA, see Child support for parents who live apart.

In England, Wales and Scotland, you can find the information about Child support from the Child Support Agency, including a leaflet "For parents who live apart". You can also contact the Child Support Agency helpline on 08457 133 133.

To view the leaflet and get up to date information on the way child support is calculated, click on the following website address: www.csa.gov.uk

Age discrimination at work

From 1 October, an employer will no longer be allowed to discriminate against you because of your age.

New rules will come into force, covering all paid workers except for members of the armed forces.

The new rules will mean that:

• an employer must not discriminate against you, harass or victimise you because of your age,
• if an employer discriminates against you because of your age, you will be able to make a complaint to an employment tribunal,
• compulsory retirement will, in most cases, be illegal before the age of 65,
• you will have the right to ask to work beyond the age of 65, and your employer must consider your request,
• there will no longer be any upper or lower age limits for claiming Statutory Sick Pay, Statutory Maternity Pay, Statutory Paternity Pay and Statutory Adoption Pay.

For more information about the new rules on age discrimination at work, visit the ACAS website at: www.acas.org.uk/index.aspx?articleid=1046.

For more information about other types of discrimination at work, see Discrimination fact sheets.

Unfair bank and credit card charges

Banks and other financial companies like credit card companies can charge you if you pay a bill late or go over your agreed overdraft limit. These charges are called default charges.

The bank or credit card company should only charge you what it costs to cover their administrative charges. However, they often charge much more than this, for example £25 for just one letter reminding you to pay.

If you think the charges you have paid are unfair or too high, you can ask your bank or credit card company to refund them. You will need to write and ask them to do this, as the charges are usually automatically taken from your account. You can ask them to refund charges going back six years.

To find out more about how you can claim back unfair bank or credit card charges, visit the website of Which? at www.which.net/campaigns.

Free utility services available

Free services are available from all gas and electricity suppliers to customers who:

• are of pensionable age or
• have a disability or
• are hearing or visually impaired or
• have long-term ill health.

Services which may be available, depending on your circumstances, include:

• a free annual safety check of your appliances
• a service which is more tailored to your needs, for example, you can ask to have your meter readings in Braille, large print or on audio tape
• moving your gas or electricity meter free of charge to make it more accessible
• being given priority for your gas supply to be restored if is interrupted by accident.

For more information or advice about free services from your energy supplier, visit the website of Engergywatch, the independent watchdog for gas and electricity consumers, at: Energywatch.

Have you been a victim of crime?

A new Code of Practice for Victims of Crime has come into force.

If you have been a victim of crime, you can now expect a minimum level of service from all the agencies you might come into contact with, including the police, the Prison Service and the Criminal Injuries Compensation Authority.

Under the new Code, all these agencies must make sure that victims of crime and their families, including relatives of people who have died, receive information, protection and support.

Victims who aren’t happy with the level of service from any of these agencies can complain to a new Victims' Commissioner.

For more information about the Code of Practice, visit the Home Office website at: www.homeoffice.gov.uk/crime-victims/victims/Victims-rights.

Cash Machine Charges

Did you know that some cash machines can charge you for taking out money?

Most cash machines which charge must carry an on-screen message telling you how much you will be charged. They should also have a sticker on them, warning that you will be charged.

You can find out which cash machines in your area charge and which ones are free, by going to the website of Link, the company that operates the cash machine network, at www.link.co.uk.

If you want to have your say about cash machine charges, you can take part in our online survey. Click on the link below:
Cash machine survey

Information about 'bird flu'

The Department of Health (DoH) has produced a new leaflet called Pandemic flu, which gives information about bird flu

Bird flu is a type of pandemic flu, which is different from ordinary flu in a number of ways

The leaflet answers some key questions about pandemic flu, including.

• how likely is it to spread to the UK?
• how likely are you to catch it?
• how can you protect yourself and your family against catching it?

To view the leaflet, click Pandemic flu leaflet.

Child Trust Funds – don't miss out

Many parents who have received vouchers to invest in Child Trust Funds are failing to cash them in.

If you have been sent a Child Trust Fund voucher and have not yet used it to set up an account, your child could be losing money. Any delay in opening an account means there is less time for the money to grow. Your child may already have missed out on up to nine months' worth of investment growth.

If you don't set up an account within 12 months of getting the voucher, you may also lose the chance to put the money into the right account for your child. HM Revenue and Customs (HMRC) will open an account on your behalf, but may not choose the best one for your child. HMRC will let you know the details of the account they have opened. You will then have the chance to move to another one, if you want to.

To find out how to open a Child Trust Fund Account, visit the Child Trust Fund website at: www.childtrustfund.gov.uk.

Buying goods in the sales, what rights do I have?

You don't have the right to take something back to a shop just because you've changed your mind about wanting it when you get home. This applies whether you've bought it in a sale or at any other time. However, it's worth going back to the shop to ask if they'll take it back anyway. Many shops, especially the larger high-street retailers, have a 'returns policy', which means they'll allow you to return the item and get a refund, exchange, credit note or gift voucher to the same value instead. There is usually a time-limit for doing this.

Remember that shops aren't required by law to let you bring unwanted items back, and that even shops which will normally allow you to do this, might not let you do it for items bought in a sale.

The best way to make sure you can take something back that you don't want, is to come to an agreement with the sales assistant that you can do this before you buy it. If you have made an arrangement of this kind, the shop is obliged to honour it.

Of course, if there is something wrong with the item, you will have the right to take it back. Depending on the circumstances, you may have the right to a full refund, to get some of your money back, or to get a repair or replacement. You could also choose to accept a credit note or gift voucher, but you don't have to if you'd rather the problem was sorted out in another way.

You have these rights whether you buy something in a sale or at any other time. If the shop tells you otherwise, they are breaking the law, and you should report them to your local Trading Standards Department.

However, Some sales goods can be reduced because of slight defects so check things carefully before you buy them. If the fault was pointed out to you before the sale, for example on a sign, label, or by the shop assistant, the shop doesn't have to take the item back. This could be the case even if the fault wasn't pointed out to you, but it was so obvious that you should have noticed it anyway.

If the fault wasn't pointed out and wasn't obvious, you can insist on your rights!

To find out more about your rights when you go shopping, see Buying goods - your rights.