Julian Knight: When energy firms call say: 'No thanks, bye'
Sunday 05 September 2010
Ofgem is investigating the sales practices of several energy firms.
There is a longstanding problem with people being shifted between providers without their knowledge or lied to by salespeople. It's inevitable wherever you have profit-hungry firms and commission-incentivised salespeople. We've seen it countless times in financial services – think pensions mis-selling for one. Let's hope Ofgem's investigation is conducted quickly, and if firms are found guilty they are fined substantially: the watchdog has the power to dock 10 per cent of their turnover.
The best way to avoid mis-selling is not to get into a conversation with a salesperson. The simple response is always to say no thanks and good day. But this doesn't stop you being ripped off by the energy firms.
Consumer Focus put it well last week when it responded to a rise in EDF's prices: "It's worrying to see suppliers make immediate moves to pass on small increases in their costs when for months they have failed to pass on significant cuts in energy wholesale costs. Price hikes across the industry are not warranted, as these huge falls in wholesale prices have simply not been shared with consumers."
Too right, and what has Ofgem done about this continuing rip-off affecting many more than mis-selling? Absolutely nothing.
Relieve those tortuous queues
A visit to my local post office is always tortuous. Even avoiding peak times such as first thing in the morning and lunchtimes, I still get stuck in a massive queue. Buying some foreign currency took about 20 minutes the other day as the staffer – obviously cajoled by management – tried to sell travel insurance and the post office credit card to every customer. So busy was he trying to push the services on me that he didn't notice that he had counted me out too few euros.
There seems to be another reason for the terribly slow service. The clue comes from a campaign being run by Link, the UK cash machine network. It runs 740 free-to-use cash machines in Britain's post office network which are an invaluable alternative to the pernicious fee-charging machines which have sprang up in poorer areas, and in newsagents and even pubs.
Up to four million post office card account holders are barred from using the machines, which means they have to queue for their cash, prolonging waiting time for everyone else. The previous government decided to impose this restriction on post office card account holders – heaven knows why.
Now Link would like to extend its free-to-use ATMs into lower-income areas – deserted by the mainstream banks. But to do this and boost usage they need post office card account holders to have access too. The coalition needs to think about this. At the least it would reduce those queues – but then staff would be freer to try to foist more financial products on me.
Clodesdale not on their own
It's not just the Clydesdale bank – or Clodesdale as one reader nicknamed it – which is guilty of miscalculating its customers' mortgages and then demanding they make up the shortfall. The Financial Ombudsman said last week it had received a wave of complaints from consumers about their lenders' inability to add up. In some instances, borrowers had received an incorrect mortgage repayment amount in their original mortgage offer and then paid it in good faith only for the lender to come back later and say it had got its sums wrong.
With the reputation of financial services akin to that of the Pakistan cricket team, many would suspect foul play. But the most likely reason is good old- fashioned administrative incompetence. If you have suffered this, I'd like to hear from you as we need to name those firms which are getting it so wrong. Isn't it time the Financial Services Authority got its feet wet over this and checked to ensure that all lenders' admin is now up to speed?
- 1 Malaysia Airlines MH17 crash: Pro-Russian rebel 'admits to shooting down plane'
- 3 Israel-Gaza conflict: The myth of Hamas’s human shields
- 5 Dutch paedophile club to fight their ban at the European Court of Human Rights
Malaysia Airlines MH17 crash: Vladimir Putin is given 'one last chance' to end hostilities in Ukraine
The 'scroungers’ fight back: The welfare claimants battling to alter stereotypes
The truth about conspiracy theories is that some require considering
Malaysia Airlines MH17 crash: Ukrainian military jet was flying close to passenger plane before it was shot down, says Russian officer
Malaysia Airlines MH17 crash: Massive rise in sale of British arms to Russia
Malaysia Airlines MH17 crash: victims’ bodies bundled in black bags and loaded onto trains
iJobs Money & Business
£350 - £400 per day: Orgtel: PMO Analyst - Banking - London - £350 -£400 per d...
£300 - £350 per day + competitive: Orgtel: Cost Reporting Manager - MI Packs -...
£35000 - £40000 Per Annum plus 23 days holiday and pension scheme: Clearwater ...
£475 - £525 per day: Orgtel: Test Lead, London, Investment Banking, Technical ...
Day In a Page
A three-bedrom home in sought-after Queen's Gate Mews, with Italian marble-finished bathrooms
Surrounded by glorious countryside in the village of Udimore, sits this impressive four-kiln oast and barn conversion
A five-bedroom house in the picturesque village of Kettlewell, north Yorkshire
An 18th-century former coaching inn with original staircase, open fireplaces and beams throughout
A Grade II-listed Georgian town house with three bedrooms and a south-facing courtyard, near Arundel Castle
Feel on top of the world at this über chic penthouse on the 37th floor of one of Europe’s tallest blocks.
A Grade II-listed Victorian villa with six bedrooms and two further cottages, all with spectacular sea views
A grade II-listed, Georgian cottage with mature 50ft garden, perfect for summer entertaining
A magnificent Georgian pile with turrets, seven bedrooms, a heated pool and four acres of gardens
Fairoak Farm has five bedroom suites, gym, outdoor swimming pool and golf course
Chic two-bedroom river-fronted flat with a private lift that delivers you directly to your home
A spectacular seven-bedroom Tudor pile, once owned by Henry VIII, with 18 acres of land
A seven-bedroom Georgian property previously used as a picturesque wedding venue
A split-level flat in a church conversion with two en suite bedrooms and 1,200sq ft of living space
A three-bedroom bungalow situated behind an impressive stone wall, £645,000
Windsor Castle overlooks this three-bedroom Victorian cottage located on one of Windsor's smartest roads
Chapel House is a former vicarage with nine bedrooms in the beautiful Upper Wye Valley
A five-bedroom B&B and separate owner's accomodation with potential for conversion
Enjoy summer by the Thames in this two double-bedroom converted warehouse in Rotherhithe village
A one-bedroom, luxury apartment with private gym and concierge service in Moorgate
A four-bedroom house in Hermitage Gardens with three reception rooms and landscaped gardens
A seven-bedroom Grade II-listed property with a separate self-contained apartment
A five-bedroom Victorian house with three reception rooms and galleried landing, £695,000
A six-bedroom farmhouse with five acres of land in a former cloth-making village
A secluded seven-bedroom detached house with large private garden, £490,000
A three-bedroom cottage overlooking Sarratt village green with open fires and solid oak floors
A three-bedroom maisonette flat in a Grade I-listed, Georgian townhouse in a sought-after location
A one-bedroom apartment located within a private gated development, north of Turnham Green
Look forward to a brighter future at two-bedroom Sunny Cottages, ideal for Londoners looking to downsize
A three-bedroom red-brick cottage with outbuildings and pretty gardens, £200,000
This three-bedroom flat within a former textile factory spans the corner of the fourth floor and has a balcony
A charming four-bedroom Oxfordshire cottage with oak floors and chunky-beamed ceilings, £465,000
A beautiful one-bed flat in a sought-after portered block, with access to Norland Square communal gardens
A one-bedroom flat within a Sixties school conversion with high-spec design and open-plan kitchen, close to Lambeth North Tube, £435,000
A 17th century four-bedroom house, with open fireplaces, cellar and pool, £600,000
A three-bedroom, coach house with luxury open-plan living space and contemporary breakfast bar