Tag: cooling off period

According to CheckaTrade, 6.7 million UK adults have been impacted by a rogue trader over the past year.

Rogue Trading

Rogue trading covers a range of activity where a trader is acting outside of the law or to the detriment of the customer. This includes things like:

  • Substandard work which is either poorly done, incomplete, or both
  • Providing unnecessary work
  • Using products that don’t meet the required weights and measures
  • Escalating the price of work from the pre-agreed amount
  • Being aggressive or intimidating to the consumer, such as pressuring you into signing a contract you don’t want to sign

Rogue traders can offer a whole range of legitimate services but fail to carry them out in a legitimate way. This may include work on:

  • Driveways
  • Garden maintenance
  • Electrics
  • Roofing
  • Financial products, such as pensions or investments
  • Building work
  • Security alarms

Your Right to a Cooling-off Period

If a trader comes to your house and you agree to have a service carried out by them or to buy goods worth more than £42, they must give you 14 days to cancel.

They should not start work without your permission within these 14 days. If you do cancel in this time, you may still have to pay for any work that has already been done and any materials that have already been supplied.

Finding a Good Tradesperson

One of the best ways to find a good tradesperson is through word of mouth, by going off the personal recommendation of someone you know and trust.

Before using a tradesperson’s services, you should ensure they have relevant qualifications and accreditations for the work required. You should also check if they are a part of any national trade schemes.

  • You can click here to find registered gas engineers
  • You can click here to find registered electricians
  • You can click here to find tradespeople who are part of the Competent Persons Scheme

You can also visit CheckaTrade to find recommended tradespeople along with customer reviews.

It’s also worth requesting quotes from multiple tradespeople to get an idea of different prices and what a fair price for the work will be.

Avoiding Rogue Traders

When it comes to rogue traders, you should:

  • NOT agree to make full payment before work has been undertaken
  • Get a written quote which states what work will be covered and any terms and conditions involved
  • NOT accept work from tradespeople who show up on your doorstep. Don’t let them bully you or pressure you into buying goods or services off them
  • Be wary of cheap quotes- quotes that are significantly cheaper will often be that way because the work is rushed or corners have been cut
  • Be wary of high availability- rogue traders can use busy periods to their advantage by being the only person available to do the work
  • Read customer reviews and contact these past customers to check the references yourself
  • NOT rush into anything- take your time to do your research and compare prices
  • Make sure traders are qualified to undertake the work you require

Many people in the UK use pawnbrokers for short-term secured loans, so let’s have a look at how pawnbroking works.

Pledges to Pawnbrokers

An individual gives a valuable item (referred to as a pledge) to a pawnbroker who then values said item and agrees to lend the individual part of its value over an agreed period of time. Pawnbrokers earn an income based on the interest they charge on the loan which is secured by the pledged item.

Interest

Depending on your pawnbroker, you will either be charged a monthly or daily rate of interest.

You’ll usually pay a higher rate of interest than you would for a high street loan, but less than you would for a payday loan, which often charge astronomical rates of interest.

Lack of Credit Checks

Under FCA regulation, authorised lenders offering unsecured access to cash must conduct creditworthiness assessments of customers to ensure they can afford to borrow what they wish to.

Despite pawnbroking being FCA regulated, pawnbrokers are not legally required to perform these creditworthiness assessments. This is because the loan is secured against the pledge, so pawnbrokers can assess creditworthiness based on the value of the pledge given to them.

For more information about the world of credit, click here!

Right to Early Repayments and a Cooling-Off Period

The customer can repay the loan at any time during the loan period (usually set at 6 months, but it depends on the pawnbroker) and get their pledge returned. They are allowed to make partial or full early repayments.

Because pawnbroking is FCA regulated, customers are entitled to a 14 day cooling off period where you can walk away from the contract without facing any penalty, providing you do so within 14 days of signing the agreement.

Failing to Repay Your Loan

If you don’t return for your pledge within the loan period and the amount borrowed was £75 or less, ownership of the item is transferred to the pawnbroker.

If you borrowed more than £75, the pawnbroker can sell the item but must return excess funds above the outstanding loan amount back to you, i.e, if the sale of the pledge earns more than the amount due to the pawnbroker, the surplus is owed back to you.

If you have borrowed over £100, the pawnbroker can sell the pledge at the end of the agreed loan period but must notify you of this so that you have a chance to return for the item(s).

Keep Your Ticket

Pawnbrokers must give you a receipt called a ticket when you leave your pledge with them. Make sure you keep hold of this ticket as you will need it when you return for your item. However, if you do lose your ticket, you can click here for more information about what steps to take.