Millions at risk due to confusion over scams, refunds and builder disputes – as Which? reveals its biggest consumer questions
Millions of people are at risk of getting stung by huge financial losses due to confusion about scams, builder disputes, holiday refunds and other everyday consumer questions, Which? is warning.
The consumer champion surveyed 2,000 members of the public to establish how confident they would be in knowing how to respond to some of the UK’s biggest consumer questions.
The questions, chosen based on analysis of traffic to the Which? website, include how to go about obtaining a refund or replacement for a faulty product, how to get compensation for a flight delay, and what steps you should take if you think your energy smart meter is faulty.
Questions about big ticket purchases like cars featured high on the list. According to recent Which? analysis, the cost of a new vehicle stood at £40,000 as of April this year, and the average costs of many common repairs can range into the thousands of pounds according to the RAC, which cites the average cost of a catalytic converter replacement as £2,200 and a new clutch as £1,200. Yet despite such large amounts of money being at risk, just three in 10 (32%) people surveyed reported being confident that they understood their rights in the event that their new vehicle had a problem.
Scams also pose a significant risk, with more than £1.2 billion lost to financial fraud last year according to UK Finance. Among the highest value types of fraud reported were investment scams, which accounted for over ten thousand cases, at an average of over £11,300 each. Yet more than four in 10 (44%) respondents to the consumer champion’s survey reported they were not confident that they would know how to get their money back after falling victim to a scam. At present, outcomes for scam victims can vary significantly, with long-promised plans to make all banks and payment providers reimburse scam victims in all but exceptional cases yet to become law.
Similarly, over 350 million faster bank payments are made every month, but more than four in 10 (45 %) survey respondents expressed a lack of confidence that they would know what to do if they accidentally sent money to the wrong account. While the confirmation of payee service, introduced in 2020, should help prevent many misdirected payments, consumers could be at risk of losing funds permanently if they don’t act quickly to inform their bank in the event of erroneous transfers.
Shoddy building work can also cause consumers serious financial headaches. Soaring materials and labour costs have pushed up the cost of home renovations since the pandemic, with recent research by the Royal Institution of Chartered Surveyors putting the cost of a loft conversion at up to £88,800. Concerningly, 40 per cent of people reported not being confident that they would know how to complain in the event they encountered issues.
Consumers can also stand to lose hundreds, and sometimes thousands of pounds in the event they need to cancel a package holiday, with a week in Europe this July costing £1,068 per person on average, according to recent price analysis by Which?. However, more than four in ten (42%) reported being unsure of their rights in the event they ended up needing to cancel.
In the last half of 2022, as much as £1.96 billion was spent on gift cards, according to the Gift Card and Voucher Association, but almost four in 10 people (37%) are not confident of their rights when purchasing them.
Section 75 of the Consumer Credit Act, which gives people extra protection when making purchases over £100 on their credit cards, is an important failsafe for consumers making big ticket purchases, particularly in the event of being unable to obtain a refund from the retailer if an item does not arrive or is not of the expected quality. According to UK Finance, 21.3 million credit card transactions were made in January alone, to a value of £18.8 billion, yet worryingly, almost half of respondents (49%) said they were not confident that they knew what Section 75 is.
A similar proportion of people reported being unfamiliar with chargeback, which can be used by your credit or debit card provider to reverse a payment. Almost half respondents (45%) told Which? that they were not confident they knew what it was. This is despite £64.7 billion pounds being spent on debit cards in the first month of this year.
For issues consumers have been unable to resolve by other means, the small claims court is an important mechanism for recouping costs of up to £10,000. However, the process can be daunting for many, with 45 per cent of consumers reporting a lack of confidence in their understanding of the process.
Consumers are however generally more confident when it comes to dealing with day to day retail complaints. More than half (53%) were confident that they would know how to return an item purchased online, with just 5 per cent saying they were not at all confident of what to do in this scenario. Similarly, almost half of respondents (48%) were confident of what to do if their delivery or online order failed to turn up.
As part of its Get Answers campaign, which aims to bring the consumer champion’s free advice to more people than ever before, Which? is highlighting the everyday life questions its experts can help to answer.
Harry Kind, Which Consumer Rights Expert, said:
“Our research shows there’s huge confusion about the consumer questions we all face every day and knowing the right answer can be worth a significant sum of money. This is particularly important when so many are struggling with the cost of living crisis.
“Whatever questions life throws at you, Which? is a trusted home of everyday advice, so whether you need help with travel or your energy bills, Which? can help you get the answers you need.”
Notes to editors:
Which?’s Get Answers campaign
Which?’s ‘Get Answers’ brand campaign showcases the breadth and depth of free, accessible and expert advice offered by Which?.
The consumer champion’s ‘Home of Answers’ activity is currently live in London, with fly poster QR codes spread around the city allowing people to get answers to everyday life questions in an accessible way. TV presenter Laura Whitmore will be helping members of the public to interact with several special QR codes – including a giant parking ticket at a London parking fine hotspot, a jigsaw-themed QR code on the South Bank, pointing to advice for family days out, a ‘living’ QR code made of real moss on the way to the Chelsea Flower Show, and a UV QR code in Old Street giving night owls advice on tackling insomnia. This will be supported by national radio and digital advertising demonstrating the depth and breadth of answers to everyday questions that you can get from Which? for free.
Further activity includes a ‘Home of Answers’ day in Manchester on 31st May , in which a billboard will be brought to life with real-life experts sitting behind windows within the hoarding, ready to get answers for passers-by on key issues of the day, from saving money, to travel tips or even avoiding scams.
Our research
Which? surveyed a nationally representative sample of 2,000 members of the general public, to establish how confident they would be knowing the answers to the twenty most commonly asked consumer questions (as determined by analysis of traffic to the Which? Website). Fieldwork was carried out by Savanta in May 2023.
Prices for a week’s package holiday in July 2023 calculated for a double or twin room across all board types for holidays to the Balearic islands, the Canary islands, Croatia, Cyprus, France, Greece, Italy, Malta, Montenegro, Portugal, Spain and Turkey. Data collected every month between October 2022 and January 2023 from Tui and Jet2.com.
Which? advice guides
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I have a faulty product: how can I get a refund or replacement? |
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How do I get money back that I’ve sent to the wrong account? |
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My delivery or online order hasn’t arrived: what should I do? |
Survey results
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I have a faulty product: how can I get a refund or replacement?
Net confident: 48%
Net not confident: 27% -
The car I bought has a problem: what are my rights?
Net confident: 32%
Net not confident: 35% -
I want to return my goods – what are my rights?
Net confident: 42%
Net not confident: 28% -
Can I get compensation for a flight delay?
Net confident: 36%
Net not confident: 34% -
How can I get my money back after a scam?
Net confident: 27%
Net not confident: 44% -
What is chargeback?
Net confident: 23%
Net not confident: 45% -
What is Section 75?
Net confident: 17%
Net not confident: 49% -
Do I have to pay import costs when shopping online?
Net confident: 29%
Net not confident: 39% -
How do I get money back that I’ve sent to the wrong account?
Net confident: 27%
Net not confident: 45% -
How can I complain about building work?
Net confident: 32%
Net not confident: 40% -
How do I return something I bought online?
Net confident: 53%
Net not confident: 23% -
How do I complain about my GP or doctor’s surgery?
Net confident: 38%
Net not confident: 37% -
My delivery or online order hasn’t arrived: what should I do?
Net confident: 48%
Net not confident: 25% -
How do I make a subject access request (SAR)?
Net confident: 19%
Net not confident: 48% -
What is a cooling-off period and how do I use it to cancel?
Net confident: 38%
Net not confident: 33% -
Do I have to accept a smart meter?
Net confident: 39%
Not confident: 32% -
What are my rights with gift vouchers and cards?
Net confident: 32%
Net not confident: 37% -
How can I make a claim to the small claims court?
Net confident: 27%
Net not confident: 45% -
I think my energy meter is faulty: what should I do?
Net confident: 38%
Net not confident: 33% -
I have to cancel my package holiday, what are my rights?
Net confident: 28%
Net not confident: 42%
About Which?
Which? is the UK’s consumer champion, here to make life simpler, fairer and safer for everyone. Our research gets to the heart of consumer issues, our advice is impartial, and our rigorous product tests lead to expert recommendations. We’re the independent consumer voice that influences politicians and lawmakers, investigates, holds businesses to account and makes change happen. As an organisation we’re not for profit and all for making consumers more powerful.
The information in this press release is for editorial use by journalists and media outlets only. Any business seeking to reproduce information in this release should contact the Which? Endorsement Scheme team at endorsementscheme@which.co.uk.
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