New Year’s resolutions at risk of scams and shoddy deals

2 Ionawr 2014

People looking to get fit, lose weight or meet someone special as part of their New Year’s resolutions are at risk of dodgy deals and scammers, says consumer body Citizens Advice.

The Citizens Advice consumer service helped with more than double (120%) the number of problems with slimming services and a 25% hike in complaints about health clubs and gyms in January to March 2013, compared to the previous nine months.

As people look to firms to help them achieve their New Year’s resolutions, Citizens Advice has warned consumers to be on the look-out for unfair deals and rogue retailers.

Complaints made to Citizens Advice include one slimmer who was told they would lose three and half inches from their waist through sessions with a slimming machine. They did not shed anything from the first six sessions, and were very dubious that the remaining nine sessions would make any difference.

Another complained of being let down by their liposuction providers as the trader disappeared after just three sessions. Consumers also highlighted problems with free or small-fee trials for diet pills when in fact companies then go on to take up to £100 from their bank account without their permission.

From December 2012 to November 2013 the Citizens Advice consumer service handled 2701 problems with health clubs and gyms, 1969 on slimming products and 639 on dating agencies.

Problems with gyms include high cancellation charges, taking payments after the contract has ended and price increases during contracts.

One person who sought help from Citizens Advice paid £7 for a month’s trial on a dating website only to find a month later £149 was taken from his credit card. Another dater lost £14,000 after starting a relationship with a man she met online. She was led to believe this money was needed to release him from the US army so they could be together. Her suspicions were aroused, when after making two payments, she was then asked to pay more money.

The Citizens Advice consumer service has handled 2 million problems since it launched in April 2012. Anyone with a consumer problem can get help from the consumer service on 08454 04 05 06 (for advice in Welsh phone 08454 04 05 05) or online advice at www.adviceguide.org.uk

Citizens Advice Chief Executive Gillian Guy said:

“Bad businesses and scammers are preying on people’s good intentions for 2014. Whether it is questionable terms in a contract, money taken without people’s permission or a downright scam, people are at risk of being ripped off when signing up to services as part of their New Year’s resolutions. We’ve seen a marked increase in complaints about diet pills throughout 2013, which suggests there are some dodgy operators in the market.

“If you’re signing up to a gym or other new service, it’s really important you thoroughly check the terms and conditions. If you think something is unfair, like mid-contract price rises, then you can challenge the firm. Equally you need to make sure you are dealing with reputable traders, that way you’re unlikely to fall foul of a scam.”

Signs of a scam

The call, letter, e-mail or text has come out of the blue.
You’ve never heard of the lottery or competition they are talking about .
You didn’t buy a ticket – so can’t win.
They are asking you to send money in advance.
They are saying you have to respond quickly, so you don’t get time to think about it or ask family and friends before you decide.
They are telling you to keep it a secret.
They seem to be offering you something for nothing.
If it seems too good to be true – it probably is.
What to do if you have been scammed
Report it to Action Fraud on 0300 123 2040 to help stop it happening to others.
Often you can't get your money back if you've been scammed, especially if you've handed over cash.
If you've paid for goods or services by credit card you have more protection and if you used a debit card you may be able to ask your bank for a chargeback.
Get advice and report it to Trading Standards through the Citizens Advice consumer service on 08454 04 05 06 (for advice in Welsh phone 08454 04 05 05) or online advice at www.adviceguide.org.uk

How to protect yourself better

Never give out contact details like your name, phone number or address to strangers or to people who should have this information already.
Never give financial information or details of your identity, bank accounts or credit card to strangers or to businesses that should already hold your details.
Shred anything with your personal or bank details on – don’t just throw it away.
If in doubt, don’t reply. Bin it, delete it or hang up.
Persuasive sales patter? Just say: “No thank you.”
Resist pressure to make a decision straight away.
Never send money to someone you don’t know.
Walk away from job adverts that ask for money in advance.
Ask friends, neighbours or family about whether an offer is likely to be a scam.

Notes to editors:

The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website.
The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.
To find your local bureau in England and Wales, visit citizensadvice.org.uk. You can also get advice online at adviceguide.org.uk
You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers
Citizens Advice Bureaux in England and Wales advised 2.3 million clients on 5.4 million problems from October 2013 to September 2014. For full 2013/2014 service statistics see our quarterly publication Advice trends
Citizens Advice service staff are supported by more than 21,000 trained volunteers, working at over 3,000 service outlets across England and Wales.