Based on my past cases, here is my Consumer Champion’s checklist for keeping your money safer in 2022.
1) Be ‘scamdemic’ prepared
My mailbag was bursting with letters from victims who lost life-changing sums to scammers. Criminals took cynical advantage of our isolation during the pandemic, as many of us worked from home or were cut off from families and friends.
One of the most common ruses that tripped up readers was crooks masquerading as police or bank fraud departments to gain their trust. They tricked them by claiming a rogue employee at their bank or fraudulent activity on their accounts meant it was imperative they should move their money elsewhere to protect it. Sadly, the money simply vanished into the scammers’ coffers instead.
I intervened in numerous cases, persuading banks to reopen closed cases and often changing their minds about reimbursing victims. A recent win involved an elderly couple who lost £36,500 to imposter police who coaxed them to buy gold for safety – and then took it from them. On my intervention, Barclays returned every penny of their losses. This style of scam is certain to continue in 2022.
Action: if someone phones, texts or knocks on the door out of the blue and tries to persuade you to part with personal details or cash, do not give them the time of day.
2) Too good to be true? It is
Many readers fell for attractive deals that turned out to be fraudulent. In one case, an elderly man who searched online for a better return on his savings invested nearly £90,000 in what he thought was a savings bond from Prudential UK, paying 2pc a year. It was bogus and he lost the lot. Thankfully, his bank, Santander, refunded his losses.
Interest rates have edged up recently, but the impact will be barely noticed by savers. This will continue to make them easy prey for fraudsters, who set up fake websites offering what seem to be market-beating rates on investments from well-known names.
Action: ignore deals offering very high returns, as this is sure to be scammers at work. Check the Financial Conduct Authority’s list of known scams.
3) Keep clear of copycats
There are sham websites and then there are copycats. The latter aren’t illegal, they are just rip-offs, so steer clear. The imitators resemble official services, such as the passport office or the DVLA, and offer to make document applications for you. But they apply high handling charges.
One reader unwittingly paid £94 to have her photo driving licence renewed. This would have cost £14 if she had gone via the DVLA website. To add insult to injury, it could not complete the process for her and offered a refund of just £14. I flexed my consumer champion muscle to get the full refund.
Action: when renewing official documents, be wary of the results from an online search. Copycats often pay to appear at the top of the listing. Scroll down to find the link to the official gov.uk address.
4) Know your refund rights
I solved many cases where readers struggled on their own to get money back on goods that were not fit for purpose. This included a £5,000 lumpy sofa, a £4,000 watch that lost time, a leaky dishwasher and an oven that exploded. Chasing refunds on faulty goods is a perennial problem. But in 2022, I hope that the Covid excuse for refund delays and poor service will be sent to the scrapyard. It will no longer wash with consumers, two years on.
Action: know your consumer rights – and complain. Stores selling a product that turns out not to be fit for purpose are in breach of the Consumer Rights Act. This means they must offer a full refund if the product goes wrong within 30 days of purchase – and if it happens after 30 days, they should offer a repair or replacement, or failing that, a full refund.
