66 million reasons why the customer comes first

At last in a revolution for people power, a new consumer ombudsman will help shoppers with a gripe win justice

WITH two complaints per second about poor quality goods and sloppy service from too many companies, fed-up customers are crying out for a champion to fight their corner.

Now they will no longer have to accept what derisory settlements are offered by offenders – or endure the hassle of seeking redress in the small claims court.

This autumn will see a major boost for ‘punter power’ – with greater rights for consumers when they spend money across all areas of the British economy.

Described by the Government as ‘the biggest overhaul of consumer rights in a generation’, the new Consumer Rights Bill is set to become law at the start of October.

It will introduce a 30-day window for returning faulty goods and will absorb digital purchases into the legal system for the first time, protecting buyers of e-books and downloaders of music, for example.

Overall it pulls together fragments of consumer law that have become scattered under separate legal acts. And the first step to piecing together the consumer rights puzzle has just arrived – in the form of a new ‘Consumer Ombudsman’.

If you have a problem with any goods or services you pay for, which the provider refuses to respond to or rectify, the independent body will look at the facts and offer a verdict – whether that be recommending a refund, repair or simple acknowledgement something went wrong.

The new service is free for customers to use, but businesses pay to be members and are bound by the Ombudsman’s decision.

Designed to plug holes in consumer law where customers have no right of redress, it also satisfies new European Union rules requiring member states to have an independent mediator for all sectors.

While official complaint handlers already exist for financial products, property purchases, and energy and broadband provision, many areas have no mediator to adjudicate in the case of complaints.

New research by Ombudsman Services – the body responsible for the newest go-between service and which already provides conciliation services for customers of energy suppliers and broadband providers – estimates the number of gripes about goods and services last year was 66million – or two per second.

It also estimates that 40 million grievances haven’t been pursued, mostly because people believe it would not be worth the hassle. It is the Ombudsman’s job to sit neutrally between company and customer and take the hassle out of complaining.

In its first year the Consumer Ombudsman will focus on issues around tradesmen, retailers and garages, from fitting new windows to buying and servicing cars.

With more publicity about ‘punter power’ expected this year, experts say this strengthening of the law may bring a shift in shopping behaviour. Buyers will be more likely to choose one business over another if it offers a financial backstop.

Lewis Shand Smith of Ombudsman Services says: ‘In the future people will ask, before they buy, whether

there is access to an Ombudsman if something goes wrong. It will mark a change in the way people shop – not overnight, but in time.’

Georgie Frost calls the new service a ‘game changer’ in giving the public a voice. The presenter of the Consuming Issues Show on Share Radio, which broadcasts on digital radio in Greater London and is available to the rest of the country online, says: ‘It should reduce the need for people to use the small claims court, or to feel forced to accept whatever redress they’re offered by a company without questioning if it is fair. This helps weed out rogue organisations and establish trust between customers and businesses.’

But she accepts that its weakness lies in companies having the choice over whether or not to sign up. Ombudsman Services says it will still take steps to contact a company on a customer’s behalf even if that firm is not yet a member. But if a company refuses to cooperate – whether a member or not – little can be done to force it to.

The ‘dispute resolution’ system relies on companies wanting to put things right to protect their reputation with other customers.

‘Good businesses are expected to see it as a good marketing tool for customers,’ says Shand Smith.

Otherwise the next step is still the courts. The exception is if you spent £100 to £30,000 on an item or service via a credit card. For this you are protected by Section 75 of the Consumer Credit Act and can claim a refund from the card company if a product or service isn’t delivered or is faulty.