10 Tips to Consumer Success
The 10 Steps to Consumer Success is an effort to help B.C. residents avoid common mistakes in their everyday consumer transactions, culled from the BBB's experience in its 60 years of building bridges between consumers and the business community.
1. Do your homework: Check out the supplier and product before you buy.
2. Never sign anything without reading and understanding it.
3. Check the return policy before you buy.
4. If it's important to you, get it in writing.
5. Credit costs. Use it wisely.
6. Assume all contracts are binding.
7. Always check your bills for errors and scams.
8. Never succumb to high-pressure sales pitches.
9. Never pay for a "free" prize.
10. Consider quality: The lowest price may not be the best value.
1. Do your homework: Check out the supplier and product before you buy.
Smart consumers know that self-education is the key to a positive buying experience. This includes familiarizing yourself with every aspect of a major purchase - and both the product and its supplier - before you buy. Before you consider doing business with a company, you should obtain and confirm its name, telephone number, and street address to be certain it's not a fly-by-night or itinerant operation. Next, you should research the reliability of the company. Get references, where appropriate, as well as any licence or registration information. Ask about affiliations with professional and certifying organizations, and check them out for yourself.
When doing business on the Internet, know the "real world" address of the company and examine site security before transmitting personal information. Read the Frequently Asked Questions page and understand all shipping and return policies that may apply to your purchase. Print out documentation about the site and your order, and look for approval seals from organizations that help guarantee a secure shopping experience on the web, like the BBBOnLine Logo.
Both on-and off-line, the Better Business Bureau provides reliability reports on companies and charities. Company reports take into account the firm's responsiveness to any customer complaints filed with the Bureau, and other information concerning its customer relations practices. These reports can be assessed through the Bureau's 24 Hour Automated Voice Response System at (604) 682-2711, as well as on our web site at Company Reports. The Better Business Bureau also encourages consumers to take advantage of its Buyers Tips.
2. Never sign anything without reading and understanding it.
Most consumers know that they should be careful when signing important financial documents such as contracts or mortgage agreements, and that they should understand both their obligations and their rights as written. There should be no blank spaces on the contract - all of the spaces should be filled in, even if only with an "N/A" ("Not Applicable"). If you don't understand the contract, or if the contract is especially complicated, talk it over with a lawyer.
But there are other reasons to be cautious when signing even the most innocuous documents, from a sweepstakes entry to a seemingly innocent petition. Sometimes a prize drawing card is simply used as a sales lead, but in many cases, sweepstakes, raffles, and other enticements are used to get consumers' signatures to authorize charges or actions (such as changes to their long distance carrier) or to enter into various agreements that can be hidden in the fine print.
3. Check the return policy before you buy.
B.C. law allows a merchant to have whatever refund/exchange policy the merchant feels is reasonable, including accepting no returns whatsoever. Store policies vary greatly - business by business and even item by item. Stores may charge restocking fees or strictly limit the length of time for which returns may be accepted. They can make provisions concerning the condition of the item to be returned or whether or not a receipt is required. Only in instances where a purchased item is defective does B.C. legislation require that the seller take some action - repair, replace or refund. The choice is up to the seller, not the buyer. This merely points to the importance of completely understanding your rights and obligations prior to purchasing an item. A good rule of thumb as you shop is to assume that any major purchase will have to be returned. If you don't know the return policy, ask a salesperson, and don't buy the item until you're satisfied with the answer.
Return issues become even more complicated as Internet commerce continues to grow. It's important to understand even the most minor issues that could apply to your purchase. Who pays the freight charges on a return? Does the company require you to get prior authorization before you ship the item back?
Until you are satisfied with your understanding of a merchant's return policies - and feel comfortable that you can live by the rules - don't make a purchase.
4. If it's important to you, get it in writing.
Oral promises are very difficult to prove. Make sure that anything that's important to you - the completion date of a project, color of the item you're ordering, or the time of day you'll accept delivery, for instance - appears in writing on your contract, bill of sale, or receipt. Is the salesperson "throwing in" extras with your deal? Get it in writing that they'll be provided at no charge. Is the dealer promising that the "as is" used car has had the transmission fully checked and repaired? Have it written on the paperwork. You want only oak used in the construction of your staircase? Make sure it's on the estimate and your contract.
Today's complicated business world revolves around contracts and the written word, not a promise and a handshake, so protect yourself. Even with the best intentions, a salesperson may not remember or may not be employed by the same merchant when you remind them of a promised service. Putting an agreement in writing - and, if necessary, getting the notation signed by a manager or other "authority" - assures you that you will have some recourse in the unlikely event of a problem. If the salesperson or manager won't put the particulars of the deal in writing, chances are the merchant isn't sincere about the offer.
5. Credit costs. Use it wisely.
There's one simple reality to consumer credit: Borrowing money costs money. Credit can also cost you big if you use it carelessly.
Don't enter into credit arrangements without fully understanding their copyright, trademark, links & legal notice and considering your ability to meet the demands the credit will place on your wallet. There's no such thing as "easy credit". Consumers must understand that offers such as "90 days same as cash", "Make no payments through next year", or other delayed payment plans may result in significant finance charges. These offers are invitations to use a loan to pay for whatever item you're buying, and the loan may come with some serious strings attached. You'll pay less if you simply pay cash up front, or pay off the loan quickly, before finance charges start to accrue.
Other options to get "quick cash" may provide immediate gratification, but any choice involving credit requires research, careful review of the terms, and the realization that there are serious responsibilities and consequences. Some choices are riskier than others. Advance Fee Loans look great in the ads, but almost always are a scam in which the consumer loses money. Loan Consolidation or additional credit lines may be a consideration when facing substantial debt, but be extremely cautious - many times, this results only in deeper debt for a longer time. Those facing a short-term financial crunch may be tempted by payroll advance services, but be sure you are not paying more than the law allows, 60 per cent annually.
It's important to protect your credit information and identity. Credit Identity theft, in which your credit information is obtained and used without your permission, is becoming increasingly common. Be cautious about your credit card and other personal banking information and destroy receipts, bills and other paperwork when you are finished with them so that they cannot be used to access your accounts. Carefully monitor your credit card bills, watch for unexpected or unauthorized charges, and contact the credit card company immediately if you suspect someone is making charges on your account.
Finally, recognize that potential lenders check the credit worthiness of individuals by referencing credit reports. It's good to periodically check your credit report - it may contain errors that can be contested, but it will also help you understand your credit history and comments made about your efforts to repay current and former creditors.
6. Assume all contracts are binding.
There is a common misconception that consumers have a right to cancel any contract within ten days. Many consumers do not understand that provincial laws which give consumers limited cancellation (or "rescission") rights apply to only a few specific situations.
In most instances, sales agreements and other contracts bind you the moment you sign them. There is rarely a "cooling off" period. B.C. law gives you the right to cancel some contracts that you sign in your home. Certain lessons and services, such as dancing lessons and health spa memberships are also subject to the B.C. 10-day "cooling off" period. But again, these laws apply to very few situations. If cancellation rights are not stated in the agreement, assume none exist.
Certain documents you sign may not be called "contracts," but are just as binding. Signing an estimate for work may obligate you to the project. Signing a "certificate of completion" may make it difficult to later complain about shoddy workmanship. Make sure the paperwork you're signing doesn't waive your rights as a consumer or contain any unexpected surprises. Assume that signing anything obligates you to something - and act with appropriate caution.
7. Always check your bills for errors and scams.
How often do you pay bills without examining the charges? It may be a costly habit. Whether it's an intentional scam or an honest mistake, a careful look at your bills can uncover errors. Mistakes happen, even in the most efficient computerized systems, and most reputable companies will be quick to make corrections to billing errors.
It's fairly common knowledge that dialing the "900" prefix will result in additional charges on your phone bill. The law requires advertisers using such numbers to disclose the additional fees associated with these calls, but clever scammers have picked up lesser-known foreign exchange numbers that look like ordinary long distance numbers. Some promotional offers using these disguised long distance numbers assure you that you've won a prize that must be collected by calling a number. You may receive some trinket or coupons for discounts, but you'll pay as much as $7.00 per minute for the call. Watch out for unfamiliar phone numbers. Don't call without knowing first where the call goes, and have a decent idea of what the call should cost. And again, check your bills closely.
When you receive any questionable billing, call the company that issued the bill. Ask for an explanation of the charges, and don't be afraid to complain if the charges are incorrect. After all, it's your money.
8. Never succumb to high-pressure sales pitches.
No one has the right to pressure you into giving away money you aren't ready to spend. Most of the time, resorting to high-pressure means that the salesperson is desperate to make a sale or doesn't believe that the product has enough inherent benefits to merit purchase without the need to prod the customer along. Other times, the salesperson knows he's selling a scam - high-pressure is a way to hustle the victims along before they have a chance to think about how bad the deal is.
Some consumers who have complained to the Better Business Bureau suggest that they've become involved in bad situations because they were "worn down" by the salesperson, especially during in-home presentations. If you have trouble saying "no" to a salesperson, are easily intimidated, or have suspicions about a company you're considering doing business with, don't agree to meet with the salesperson alone. Have a friend or relative view the presentation with you. Ask for literature. Flatly tell the salesperson that you won't buy if you feel pressured and that you need time to consider the opportunity. If all else fails or an in-home presentation turns into a high-pressure sweat shop, remember - it's your home. You have every right to ask the salesperson to leave when you are no longer comfortable.
Reputable businesses won't tolerate staff members who resort to high-pressure sales tactics. They train against the kinds of selling techniques that make customers uncomfortable. Be wary if the salesperson says, "This special offer is only good during this visit", or "You have to act now". Good salespeople build excitement into the purchasing decision, are happy to answer questions about their products and services, and display enthusiasm - but not at the expense of their customers' comfort. A good salesperson wants you to be happy and confident about your decision and isn't afraid to give you time to check the deal out.
9. Never pay for a "free" prize.
If you have to pay anything to receive a "free" item, you haven't won anything. Consumers should realize that many so-called prizes are often of much less value than they seem from their descriptions. Be cautious when you are notified by mail, e-mail, or phone that you have won a prize. There are con artists engaged in these promotions just to get your credit card information, chequing account data, or to induce you to purchase overpriced products or services.
Dozens of national sweepstakes are heavily advertised and promoted as the quick route to Easy Street, but they are almost always designed to sell products. Seniors fall into the "Sweepstakes Trap" more than other age groups, purchasing unreasonable amounts of products in the hopes of winning a prize. Often, seniors feel obligated to make purchases from marketers who employ sweepstakes as a selling tool. Even if the disclosures surrounding the sweepstakes clearly state that no purchase is necessary, the text of the mailings can mislead readers into believing that they'll be "out of the running" unless they buy something. Once they've purchased, seniors may find themselves promised bigger prizes hooked to more expensive purchases.
There's nothing wrong with playing the sweepstakes, or shopping the catalogs often associated with them, but pay more attention to the "you might have won" or "if your secret number matches" disclaimers and less to the "Congratulations, Winner!" in the bold print. Check out the odds of winning, and understand that most winners will have purchased nothing from the company sponsoring the sweepstakes. The odds of winning most national contests are astronomical and piling up purchases won't help you win the grand prize.
10. Consider quality: The lowest price may not be the best value.
Consumers can increase their odds of a satisfactory purchase by shopping around (including on the Internet) for the best price. But remember: You usually get what you pay for. Smart consumers seek the best value, not the best price. Value is determined by comparing not only prices, but the quality of the products or services and the level of service after the sale. Some "lowball" bids disguise inferior products, uninsured workers, a lack of attention to customer service, or other "cut corners". Some inexpensive products are simply not as well made as products that may cost more but will be a better investment over time. Ask yourself: How long do you want the item to last? How much are you willing to pay for the item? How important is maintenance and service to the life of the item? Compare features and look for resources on product reliability on the Internet or at your local library.
What impact and value should the existence of a warranty have on your value decision? While warranties can been seen as a "value added" point on any product package, keep in mind that the warranty is only as good as the company writing it. If the company goes out of business, its warranties won't be worth the paper they are printed on.
Explore advertised claims without assuming that they are true. "Sales" aren't always the instant bargains they claim to be. Shop around for yourself and be confident that you're getting a fair price and, again, the best value.