Latest blog entries http://www.pegasusllp.co.uk/Blog/Latest.html Mon, 25 Nov 2013 23:42:15 +0000 en-gb Call for fairer mobile phone deals http://www.pegasusllp.co.uk/Blog/call-for-fairer-mobile-phone-deals.html http://www.pegasusllp.co.uk/Blog/call-for-fairer-mobile-phone-deals.html The mobile phone industry has come under fire for its treatment of customers after recent research by consumer body Which? found that too many people are paying more than they should for their mobile phone contracts.

The research revealed that 39% of consumers have resorted to haggling to get a better mobile phone deal, and 86% of them were successful - saving over £100 a year or getting extras like a new phone or free minutes.

Which? also found that a quarter of people had tried to leave a landline, mobile, broadband or pay TV contract early in the last five years. Only 70% were successful and 42% of mobile phone customers who left had to pay a penalty charge.

Which? has therefore called on the Government to get tough with the industry, without waiting for possible new EU regulations to be pushed through. The European proposals in the pipeline include:

  • Consumers will have the right to terminate any electronic communication contract once the first six months have elapsed. Consumers would not be required to pay any compensation other than the residual value of subsidised equipment/devices or promotional offers.
  • Consumers will have the right to set financial caps at the level of their choice, for free, to ensure their bills never go over this amount without their consent.
  • Consumers will have the right to port any phone number from a national telephone numbering plan within the same member state, for free, with activation happening within one working day of the switch.
  • Receiving calls while roaming will be free as of 1 July 2014.

“The Government must get tough with telecoms providers and help put millions of consumers, who are struggling with the cost of living, in control of their mobile bills,” said Which? executive director Richard Lloyd.

“We found that mobile providers are offering much better deals to customers who are savvy enough to haggle, which begs the question why they can’t offer more transparent, competitive deals to everyone all the time. It needs to be much easier and free for people to switch and leave their contract,” he added.

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[email protected] (Pegasus) Consumer Law Tue, 19 Nov 2013 16:18:19 +0000
Government confirms fee level for child maintenance http://www.pegasusllp.co.uk/Blog/government-confirms-fee-level-for-child-maintenance.html http://www.pegasusllp.co.uk/Blog/government-confirms-fee-level-for-child-maintenance.html The Government is to make a number of changes to its original proposals in connection with charging families for using the child maintenance system. It announced the changes in its response to the results of a consultation on the issue.

The Government launched the consultation in 2012, arguing that a charging system would encourage more families to agree their child maintenance arrangements themselves, rather than relying on a state scheme to make the arrangements on their behalf.

It has now published a summary of the main points made by respondents to the consultation, and its own response to these. It has confirmed that it will make a number of changes, based on the feedback received through the consultation.

These changes include reducing the proposed parent with care collection fee from 7% to 4%, and extending the list of organisations that domestic violence can be reported to in order to qualify for the application fee waiver. It has also updated its definition of domestic violence to keep it in line with the current Home Office definition (which includes financial abuse).

Single parent charity Gingerbread has been highly critical of the Government’s proposed changes to the child maintenance system, and particularly the introduction of a charging system.

Speaking in response to the outcome of the consultation, Gingerbread chief executive Fiona Weir said: “Child maintenance makes a huge difference to children’s lives, especially when many families are struggling to pay for the basics at the moment. The risk is that the charges, combined with the closure of all CSA cases, will result in tens of thousands of families giving up on maintenance altogether and their children going without vital support.”

The Government’s proposals are due to be voted on in Parliament later this year.

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[email protected] (Pegasus) Family Law Thu, 14 Nov 2013 14:43:28 +0000
Faulty used car warning from Citizens Advice http://www.pegasusllp.co.uk/Blog/faulty-used-car-warning-from-citizens-advice.html http://www.pegasusllp.co.uk/Blog/faulty-used-car-warning-from-citizens-advice.html Half of faulty used cars display problems within a month of buying the vehicle, according to new research from Citizens Advice. The findings come as Citizens Advice, Citizens Advice Scotland and the National Trading Standards Institute launch a new campaign to help steer people away from buying a dodgy used car.

The research looked at 2,519 complaints about second hand cars, which were made to the Citizens Advice consumer service in the first two weeks of September 2013. This found that 83% were about faults, of which:

  • more than half (53%) developed faults within a month of buying the car
  • 4 out 5 cars required essential repairs
  • 139 cars were worthy of the scrap heap.

Essential repairs included smoke emerging from the engine, corroded break pipes and a snapped clutch.

Other common problems experienced by used car buyers include substandard services, misleading advertising and incorrect information about the car before they bought it.

“People are spending, on average, over £5,000 on a second hand car with many drivers saving for months on end or taking out expensive finance packages in order to afford it,” said Citizens Advice Chief Executive Gillian Guy.

“The second hand car industry needs to put the brakes on malfunctioning motors by making sure the cars they sell are in good working order,” she added. “That way people aren’t wasting their time or money trying to fix issues that should never have been there in the first place.”

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[email protected] (Pegasus) Consumer Law Wed, 06 Nov 2013 11:21:14 +0000
Details of company beneficial ownership to be made public http://www.pegasusllp.co.uk/Blog/details-of-company-beneficial-ownership-to-be-made-public.html http://www.pegasusllp.co.uk/Blog/details-of-company-beneficial-ownership-to-be-made-public.html The Government has announced that the planned central registry of company beneficial ownership information is to be made publicly accessible, allowing members of the public to find out who really owns and controls UK companies.

The registry will contain information on individuals with an interest in more than 25% of a company’s shares or voting rights, or who otherwise control the way it is run.

The announcement comes after a recent Department for Business (BIS) consultation, in which it published details of its intention to create a registry and invited responses on whether it should be made publicly accessible.

Following this call for evidence, the Government has now decided the register will be made publicly accessible.

“A stronger economy depends on investors, employees and the wider public having trust and confidence in companies and those that are running them,” said Business Secretary Vince Cable.

“We believe a public register, listing those who really own companies makes Britain a better place to invest and do business. People have a right to know who controls UK companies and greater openness will help tackle tax evasion, money laundering and other crimes,” he added.

BIS will give further details on the information to be held by the company and Companies House, and how it should be updated, in its formal response to the consultation. This is expected to be published early next year.

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[email protected] (Pegasus) Business Law Thu, 31 Oct 2013 14:48:59 +0000
Payday industry not meeting voluntary codes http://www.pegasusllp.co.uk/Blog/payday-industry-not-meeting-voluntary-codes.html http://www.pegasusllp.co.uk/Blog/payday-industry-not-meeting-voluntary-codes.html The payday lending industry has recently been in the spotlight, with the Government highlighting that a recent survey found some lenders are still not fully complying with industry standards brought in last year. Further criticism has come from the Financial Conduct Authority (FCA), which has published its own consultation on the rulebook that the industry should be meeting from April 2014.

The results of the Department for Business, Innovation and Skills (BIS) survey showed that:

  • nearly a quarter of consumers said they were put under pressure to extend their loan and approximately half of those surveyed said that lenders did not explain the risks to them of doing so,
  • one in five customers reported that the lender did not ask about their finances when taking out an initial loan,
  • when it came to affording a rollover, over 60% of customers said lenders didn’t appear to check their finances, and
  •  there were very poor customer ratings on the use of continuous payment authority (CPA). Overall nearly one in three customers reported that CPA was not clearly explained to them and nearly 60% were not told how to cancel CPA.

The FCA is proposing to limit the number of times a high-cost short-term credit loan can be rolled over to two and introduce a limit of two unsuccessful attempts on the use of CPAs to pay off a loan.

Commenting on the findings, Citizens Advice Chief Executive Gillian Guy, described them as further evidence that payday lenders are not treating customers fairly.

“Citizens Advice’s own survey finds the industry has failed to improve since the charter was introduced last year. All too often lenders aren’t carrying out proper checks to ensure people are able to pay back the loans and are draining bank accounts without warning, leaving people with little or no money to get by,” she said.

“Firm rules for payday lenders from the FCA, and strong enforcement of them, are vital to ensure a responsible short-term loans market that works for consumers,” she added.

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[email protected] (Pegasus) Debt Advice Thu, 24 Oct 2013 15:53:53 +0000
Better protection for EU Consumers http://www.pegasusllp.co.uk/Blog/better-protection-for-eu-consumers.html http://www.pegasusllp.co.uk/Blog/better-protection-for-eu-consumers.html Recent joint action by EU Member States and the European Commission has highlighted the impact of EU consumer legislation on websites selling digital games, books, videos and music.

The action took the form of a "sweep" - an EU-wide screening of websites to identify breaches of consumer law and to subsequently ensure its enforcement. This took place in summer 2012, targeting 330 websites that together account for a large share of the market.

Detailed investigation by national authorities found a total of 172 websites to be non-compliant with EU consumer law, says the Commission. They contacted the companies concerned in order to make these websites compliant. To date 116 websites have been corrected. Forty-nine websites are subject to further proceedings; in five cases the infringements were minor and not pursued by the Member States, while two websites no longer exist.

The websites were checked to determine whether information on the key characteristics of the products was easily accessible and not in the "small print"; whether the websites provided email addresses to which questions and complaints might be submitted; and whether the websites contained fair terms and conditions.

The sweep revealed that the most common problems were:

  • Unfair contract terms excluding the consumers' right to take legal action or denying consumers a right to compensation in cases where the products failed to work;
  • Unclear information with regard to the right of withdrawal: due to the nature of digital downloads, traders are required to inform consumers prior to the purchase that they will not be able to cancel a download once this has started – this was however not the case for 42% of websites checked.
  • A lack of mandatory information on the trader's identity, in particular their email address, depriving consumers from an effective contact channel.

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[email protected] (Pegasus) Consumer Law Wed, 16 Oct 2013 13:02:20 +0000
'Anomaly’ in the Adoption Act http://www.pegasusllp.co.uk/Blog/anomaly-in-the-adoption-act.html http://www.pegasusllp.co.uk/Blog/anomaly-in-the-adoption-act.html An amendment to the Children and Families Bill has been tabled in order to resolve a technical anomaly relating to adoption or, more particularly, to the descendants of deceased adopted people.

The issue has been raised by the British Association for Adoption & Fostering and the Descendants of Deceased Adopted Persons Group. They would like the descendants of deceased adopted people to have the same rights as other relatives to access an intermediary service – such as a local authority or adoption agency - in order to obtain the original birth information they need.

As the law stands a relative of an adopted person is defined as any person who (but for the adoption) would be related to him by blood or marriage – and this excludes descendants.

The amendment has been tabled by Baroness Sally Hamwee and seeks to revise the Adoption and Children Act 2002, which currently deals with the matter.

“We all have a need to know about our own backgrounds,” said Baroness Hamwee. “My amendment – which has been recommended by a Lords Select Committee – would extend the rights of a relatively small group of people currently excluded from seeking assistance in finding information about a direct ascendant. It would take only a small change to law (which by all accounts some people thought had actually been made in 2002) to enable them to find out about something fundamental to their understanding of their own identities.”

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[email protected] (Pegasus) Family Law Wed, 09 Oct 2013 09:51:31 +0000
Welcome to the Pegasus LDP blog http://www.pegasusllp.co.uk/Blog/welcome-to-the-pegasus-ldp-blog.html http://www.pegasusllp.co.uk/Blog/welcome-to-the-pegasus-ldp-blog.html Subscribe to our blog via RSS to be kept abreast of the legal news and updates in the fields of consumer law, business law & family law.

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[email protected] (Pegasus) Consumer Law Tue, 17 Sep 2013 13:46:15 +0000