Insights from Dean Dunham
Tynah Matembe, Founder of MoneyMatiX, had an exclusive conversation with consumer rights expert Dean Dunham (LBC, Daily Mail, ITV This Morning) to explore the topic “Know Your Consumer Rights” this Christmas. This special edition of the ‘Grow Your Money Podcast’ is designed to help you stay safe and informed this festive period.
You can listen to the full conversation HERE, but here are eight vital things you should know to protect yourself this Christmas.
1. Deliveries: What You Need to Know
Let’s start with deliveries, which generate the most complaints. Often, consumers express distress about goods not arriving on time for Christmas.
It’s common to see a photo of a parcel on your doorstep. However, when you return home, you may find it missing. Retailers like to claim, “Well, we delivered it. It’s on your doorstep. End of story.”
But the Consumer Rights Act states otherwise. Unless you’ve specifically agreed on a “safe place” delivery, the retailer is still responsible for the goods until they are in your physical possession. Therefore, if a parcel is left on your doorstep, stolen, or damaged, it’s not your problem.
Tip: Never agree to a “safe place” delivery. When couriers arrive, do not allow them to take photos of you holding the parcel, as this could lead to scams. Instead, place the parcel on the ground. A photo with your door open suffices as proof of delivery.
2. Pay Safely for Christmas Presents
When buying last-minute Christmas presents, refrain from paying with cash. Cash offers no protection if something goes wrong.
Instead, opt for a credit card. For purchases over £100, Section 75 provides strong protection. If the item is faulty or the retailer refuses to assist, you can file a claim with your card provider for a refund.
If you use a debit card, a similar protection exists through the chargeback scheme. Remember, you must initiate a chargeback claim within 120 days of purchase.
Tip: Be cautious if someone asks you to pay via PayPal's "Friends and Family" option, which is common on platforms like eBay. This is often a red flag indicating a potential scam, so never use this option for purchases.
3. Train Disruptions: Know Your Rights
As Christmas approaches, millions will begin their holiday travel. Unfortunately, for some, this may lead to cancellations, delays, overcrowding, and other disruptions.
For train travel, automatic delay compensation is a helpful scheme. Many operators will refund you automatically for delays depending on how long the disruption lasts.
If a train is cancelled, know you are entitled to a full refund. This point may seem straightforward, but it's crucial.
Tip: Under English consumer law, you need only prove purchase—no receipt is necessary. A credit card statement or bank statement can serve as proof. If you paid with cash, though, you may have trouble getting assistance. For train tickets, using official apps is advisable. They not only create a paper trail but also simplify refunds and compensation processes.
4. Beware of Boxing Day Sales
Boxing Day deals aren’t always what they seem. Many retailers offer similar discounts at different times throughout the year. Don’t assume a deal is the best you’ll find.
Impulse buying during events like Black Friday often leads to regrettable purchases. Instead, make it a habit to shop around—with numerous online platforms, comparing prices is easy. You may often find better deals elsewhere.
Tip: Watch out for scams. Fraudsters frequently create fake websites posing as legitimate retailers, especially during high-traffic shopping events like Black Friday. Since you could easily fall victim, it's best to remain vigilant. Paying with a credit card can offer protection against scams, making it a safer choice.
5. Think Twice Before Buying Gift Cards
Gift cards pose risks. If the retailer goes out of business, the card becomes worthless. Even established brands are closing, and this trend will likely continue into 2025.
If you feel compelled to buy a gift card, select one that works with multiple brands to mitigate risk. Check the terms and conditions; many have expiry dates. Once expired, gift cards can become worthless, and retailers aren’t required to honor them.
In general, giving cash is safer than offering gift cards.
6. How to Avoid Online Shopping Scams
With many people shopping online this Christmas, it’s crucial to steer clear of scams. Here are some effective strategies:
Assume every unknown communication is a scam. Whether it’s a text, email, or website, always verify independently.
Watch for scam alerts. Banks now inform customers of known scams, so stay updated and share the information.
Use a credit card. It provides additional protection against problems, particularly for online purchases.
Be skeptical of deals that seem too good to be true. If it sounds incredible, it likely is.
Check website authenticity. Look for a padlock symbol and legitimate contact details. Fraudsters can easily clone websites, so double-check before purchasing.
In summary, using a credit card provides added security.
7. Avoid Buy Now Pay Later Schemes
Buy Now, Pay Later (BNPL) schemes lack the consumer protections that credit cards offer, making them risky options. This unregulated sector encourages impulsive spending, pushing people to delay financial worries until they become overwhelmed with debt. Many individuals don’t realize that BNPL is debt.
Fortunately, BNPL will soon be regulated, and Section 75 protections will apply. For now, however, it’s best to avoid it if possible. It can skew budgeting decisions and often carries high fees.
Budgeting Tip: Stick to a sound, realistic budget and avoid using BNPL schemes for a more secure financial future.
8. Live It Up This Christmas, but Stay Responsible
Christmas is only one day, so don't overspend. If you haven’t planned for a budget, resist the urge to keep up with others. Consider alternative gifts like vouchers for future sales or giving experiences instead of consumer goods. Remember, many toys go unused, especially by young children.
Tip: If you plan to spend £500 this Christmas, consider selling £500 worth of items from your home to offset the cost. This way, you won’t feel financially strangled.
And Finally - Grow Your Money Live – January 21, Glasgow
If you liked what you heard, join us for our inaugural Grow Your Money LIVE event in Glasgow on Tuesday, January 21st. Kicking off at 6 PM at the amazing Social Hub in Candleriggs, this 3-hour event will be packed with invaluable lessons on financial success in 2025.
Don't miss the opportunity to change your life—secure your tickets now!
Wishing you all a wonderful Christmas and a financially successful 2025!
Read my manifesto - https://www.moneymatix.com/manifesto2024?srsltid=AfmBOoqr7xODAvetRrJ6L9slA0pnWHX_eFVQ_XvwPJ28MVEDA-eR9pEh
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