Stuart Coverley"s News Round-up
Seventeen Years in Obscurity
W hat has gone on before is often forgotten in the wild chase of modern life.
While this statement could refer to NfCG it is actually the title of the memoirs
of David Watkins MP of life on the back benches. I was lent a library copy with
my attention drawn to an account of his Private Member's Bill introduced under
the 10-minute rule in conjunction with NfCG. It was in 1973 that the question of
drained weights for tinned foods was brought to his attention by his
constituent, Michael Kellner. "The nature of the problem could be
demonstrated from the results of extensive research conducted by the National
Federation of Consumer Groups. Among their findings was that a fifteen ounce (no
metrication then!) can of strawberries bearing a famous name and purchased in
Cheltenham contained 10 oz of liquid while a 10 oz can of the same product by
the same firm purchased in Durham contained 4 oz of liquid, so that the larger
and more expensive can actually contained less fruit than the smaller and
cheaper one." Is there any evidence that things have changed for
Hire Cars for All
A new on-line economy car rental service has been announced, starting in the
London area within the M25. It is aimed at those who do not need a car every day
and who will find it cheaper to hire than to buy. It costs an all-in price of
£19.98 for 24 hours. This includes insurance, VAT, free delivery and collection
but, just like Henry Ford, they offer only one choice: a Vauxhall Corsa. Like
most of the other car companies at the present time there is a £100 damage
insurance excess. You order through lcarl.com. Elsewhere the stress of unknown
results from the small print has been illustrated by a case where the now usual
clause that tyres are not covered by the collision damage waiver was stated to
include the wheels themselves when these were stolen in southern Spain. Avis
have been reported as introducing yet another extra policy to cover wheels,
tyres and windscreens at £1.50 a day, but excluding the first £200. The cost
to the customer quoted above amounted to £325. Book your car in the UK, says
the Association of British Insurers, where you can read the contract in depth
(if you can read it - see 'The Muddle Continues' in Legal, Decent & Honest
on page 4)
Shadow Directors
The Directors who controlled a company's activities, but were not named as
such, have been disqualified for periods totalling 16 years. "This was an
important case which will help in our continued fight to disqualify unfit
directors, even when they are not named directors nor registered at Companies
House, but still directing or controlling a company. This may include
consultants and advisers," states Dr Kim Howells, Minister with
Responsibility for Insolvency Services. On the other hand there have been
suggestions that bankrupts should be allowed to retain at least £10,000 of
their assets, the period of the bankruptcy reduced to 6 months, and a revision
of the preferential creditor status. There is also likely to be action regarding
documents issued by debt collection firms which appear at first sight to be
court summonses.
Get Your Contract Watertight
A new contract form for the home owner/occupier has been published by
Construction Industry Publications and can be bought and used with any building
firm you employ. It deals with the precise arrangements for the work to be done
including price, working hours, insurance and guarantees as well as how disputes
can be resolved. There is also agreement. as to what is expected of both parties
while the work is being carried out, how changes can be scheduled and any
necessary time extension that may be required, as well as how payment is to be
made. The cost is £9.95 from Smiths and other book shops. Alternatively it can
be bought by post direct from the publishers at 60 New Coventry Road, Birmingham
B26 3AY
Money scams
Recent pronouncements from the Office of Fair Trading include one on the
unfairness of contracts that allow banks and building societies to vary interest
rates for 'captive' savers and borrowers, effectively at will. Guidelines have
been issued with a threat to seek injunctions against firms which employ terms
that are considered unfair.
Typical lock-ins quoted include mortgage redemption penalties and exit
charges or loss of interest on withdrawal of savings in accounts 'no longer open
to customers'. Household names among lenders have been told to stick to the
rules regarding annual percentage rates when advertising credit.
The cost of compulsory Payment Protection Insurance must be included in the
APR. A minimum APR is sometimes advertised but only approved if the insurance is
taken out. Such a minimum APR is only acceptable if a typical APR is also
included. Also the OFT draws attention to the case of an estate agent from a
well known firm who had received a previous warning but who still sent out
letters to clients of rival agents suggesting he had buyers available. He was
not able to produce any names when challenged.
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