Stuart Coverley’ s guide to the work of the
NfCG Legislation and Consumer Affairs Committee

Raw Milk

Though the sales of raw milk in England and Wales are still to be allowed, there will be more frequent, quarterly, microbiological sampling and annual inspections of premises. A Public Health warning will be given greater prominence on labels and must include the Chief Medical Officer’s advice that pregnant women, elderly people and those who are currently unwell or have a chronic illness should not drink raw cow’s milk.

Bank Accounts for All

Millions of people in the UK are excluded from having bank accounts, and other forms of credit. Not all of them have low incomes. A formerly bankrupt businessman who has paid off all his debts and a widow who always had a second credit card in her husband’s name have been unable to obtain cards because they had no record of credit worthiness. Now the Office of Fair Trading has issued a report Vulnerable Consumers and Financial Services (free from OFT, P0 Box 366, Hayes, UB3 1XB). This calls for "a new commitment from government, Regulators and industry to improve the economic welfare of those on low or volatile incomes, ethnic minorities and disabled people".

The Director General recommends the provision of basic low cost current accounts without unauthorised credit which could be offered through Post Offices and suitable retailers. Surely this was what the original Girobank accounts were supposed to offer before they were sold by the Post Office to Alliance and Leicester? In addition he suggests there should be a new generation of low-cost and flexible financial products designed to meet the needs of those on low and unstable incomes.

Encouragement should also be given to Credit Unions and a new employee mutual institution proposed by Demos. He adds "It is claimed that those who fail to take up even the most basic of financial services do so out of choice. My scepticism of such claims has been confirmed by our research". NfCG’s pressure for more financial education to be made generally available seems even more essential.

Expensive Computer Work at Home

A check with another Associate, Sutton Trading Standards Department, has confirmed fears about a firm offering home work for a fee of £96. A third version of their leaflet now offers a "guide" for £30. A previous leaflet only disclosed extra costs of nearly £1,000 after you had sent them the £96. In the first leaflet it was mentioned that you could not use your own computer and one would be supplied, but not the fact that you would be paying for it! Please let us have information about any other scams you come across. The Department of Trade & Industry has issued a useful leaflet on homeworking, and a free Helpline number for the National Group on Homeworking (0800 174095) can be used to obtain information or get advice on specific offers.

"Shoddy Financial Protection"

This is the conclusion of the National Consumer Council in its response to the Treasury’s consultation on the Financial Services and Markets Bill. Consumers buying pensions, insurance or savings plans will receive much worse legal protection if these turn out to be inappropriate or defective, than they can rely on if they buy shoddy High Street goods. What is missing from the Bill is a set of consumer protection principles similar to those resulting from the Sale of Goods Act 1979. These would place a duty on firms to supply customers with good quality financial products that are suitable for their needs and offer a degree of risk that suits the individual.

Sales to Young People

With all the publicity you might have thought that undercover detection of the sale of articles banned to those under a certain age would result in enforcement of the legislation. It seems that the large stores cannot be held responsible for the acts of their employees in these cases. It has been reported that Surrey Trading Standards Department, together with LACOTS, are lobbying Ministers to get all underage sales incorporated into a single enforceable Act. In this way the illegal sale of cigarettes, solvents and flick knives could be enforced.

Hallmarking Changes

A wider range of standards of fineness recognising the hallmarks of other States in the European Economic Area came into force on 1st January. The fineness of UK hallmarked articles will be expressed in parts per thousand. Only those hallmarks that provide information equivalent to existing UK marks will be allowed, and they must be in a form that consumers will recognise. Traditional pictorial symbols will be allowed on a purely voluntary basis, and these will be extended to imported articles. Date marking will no longer be compulsory, reducing the cost to manufacturers, and the Assay Office import mark will no longer be required.

EU Arbitration Scheme

This is being piloted by West Sussex Trading Standards Department, an NfCG Associate. It has been proposed in a new European recommendation as a way of avoiding expensive legal action, as not all European countries have Small Claims Courts. Anyone with a complaint against a local trader, including perhaps the High Street travel agents, can fill in a form with help if necessary. The trader will then be approached and offered arbitration which is binding on both sides.

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