Contents:
Debt and Finances
Health
Employment
Buying Goods and Services
Housing
General

Question: When I took out a loan I was sold insurance that promised to cover my repayments if I lost my job or was too ill to work. Recently I was made redundant but my claim has been turned down. Is there anything I can do?

Question: I am retired and worried about how I am going to be able to afford a big increase in council tax. I can just about manage at the moment but I know my pension won’t be going up enough to meet the extra I’ll have to pay. Is there anything I can do?

Question: I decided to start my own business. However, I haven’t earned as much as I expected and now I'm in debt for around £53,000.I’ve heard about Individual Voluntary Arrangements as an alternative to bankruptcy. Would this be right for me?

Question: My bills got a bit out of hand in the last few months and my finances are in a bit of a mess as a result. I started getting calls from debt collectors about my credit card, so I paid that, but it meant I missed a mortgage payment instead. The way things are going it looks like I’m not going to be able to pay this month either.

Question: I’m on a low income, and with the recent big increases in fuel prices, I’m really worried that I’m not going to able to afford my gas and electricity bills this winter.

Question: I am on various tablets permanently to treat a chronic health condition but I have been told I don’t qualify for free prescriptions. I’m finding it hard to afford my medication and I’m tempted to cut out some of the pills I’ve been told.

Question: I had an accident at work and have been thinking about contacting a claims management company. I’m a bit nervous in case I am not happy with the way they deal with my case - are these companies regulated and can I complain to anyone if something goes wrong?

Question: I work full time but I am having to take on increasing responsibility for the care of my elderly mother who is now disabled. I’m worried about how I can fit this in with work.

Question: We’re thinking of buying a timeshare, but we’ve heard lots of horror stories about them. Would we be making a big mistake?

Question: We have recently moved and our new flat needs some work doing on it. I want to get builders in but there are so many cowboys around. How can we make sure the ones we get to do the work are going to be OK?

Question: I’m about to buy a secondhand car. It looks like a real bargain, but I don’t know that much about cars so I’m having to put my trust in the dealer that he’s not going to rip me off or sell me a complete dud. Is there anything I can do to stop this happening?

Question: I’ve heard that there is a new scheme for tenants to safeguard their deposits given to landlords. I’ve asked my landlord about it, but I’m not sure he is part of the scheme. What should I do?

When I took out a loan I was sold insurance that promised to cover my repayments if I lost my job or was too ill to work. Recently I was made redundant but my claim has been turned down. Is there anything I can do?

The payment protection insurance (PPI) business is currently facing close scrutiny from regulators after concerns were raised by Citizens Advice and others about excessive profiteering and the high number of policies that fail to pay out. In recent months half a dozen companies have also been fined for mis-selling PPI. Mis-selling occurs when a company gives false information about a policy, or recommends one that is unsuitable for you, and you are unable to make a claim - for example, if you are above or below the given age limit, are unemployed or work part time. If a company recommends a payment protection insurance policy, it must take reasonable steps to ensure it is suitable for you. If companies do not offer a choice of policy, they might still be mis-selling if they fail to provide appropriate information about the policy in good time for you to make an informed decision about it and it turns out to be unsuitable. If you think you have been mis-sold, you should write to the company concerned requesting a refund of the policy premiums (if the policy is completely unsuitable), or compensation if you were misled regarding what you could claim. If the complaint is not resolved within eight weeks, you can ask the Financial Ombudsman Service (FOS) to intervene. For more information about PPI and making a complaint to the FOS consult your local Citizens Advice Bureau or go to www.adviceguide.org.uk

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I am retired and worried about how I am going to be able to afford afford a big increase in council tax that’s being talked about. I can just about manage at the moment but I know my pension won’t be going up enough to meet the extra I’ll have to pay. Is there anything I can do?

You don’t say how much your pension is, but if you are on a low income and don’t have much in savings you could be entitled to Council Tax Benefit. This is a benefit to help towards council tax, paid by your local council. If you qualify, it means that your bill will be reduced. Thousands of people who should be getting Council Tax Benefit are missing out, just because they don’t know about it or how to claim. First check you are getting any discounts you may be entitled to – for example if you live alone you automatically qualify for a 25 per cent reduction in your bill. If you are eligible for Council Tax Benefit the amount you get will depend on how much money you have coming in. In some cases it will mean you do not have to pay any council tax at all. You should make a claim direct to your local council’s Council Tax Benefit office, using the form they provide. Or if you prefer, you may be able to make your claim by phone or online. Ask for the claim to be dated from the day you asked for the form. If you are over 60 and you think you would have qualified for Council Tax Benefit before you made your claim, you may be able to get payment backdated for up to a year. Your local Citizens Advice Bureau will be able to check to make sure you are getting all the help you are entitled to and help you make a claim. For more information go to the Citizens Advice website www.adviceguide.org.uk or look under ‘C’ in your local phone book.

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I decided to start my own business. However, I haven't earned as much as I expected and now I'm in debt for around £53,000. I’ve heard about Individual Voluntary Arrangements as an alternative to bankruptcy. Would this be right for me?

An Individual Voluntary Arrangement (IVA) is an agreement between you, the debtor, and those people you owe money to, the creditors. An IVA does allow you to avoid going bankrupt to pay off your debts, instead you pay off a proportion of the debt over a fixed period. However, you really need to get advice on your particular circumstances before deciding on your course of action. It may not be the best thing for you. An IVA allows you to pay off your debts over a number of years. Some of the debt may be written off and you may be able to keep assets like your home. It begins with a formal proposal to your creditors to pay part or all of your debt and if agreed is legally binding on all your creditors, they cannot change their mind. The downside is that if you have equity in your home or valuable assets you may have to release them. Also you MUST be able to afford to make the offer of repayments and keep them up; if you fall behind you could end up much worse off and in greater debt because the costs of your failed IVA, which can be quite high, will be added to your debt. And your creditors will be able to take action against you and you could then end up bankrupt.

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My bills got a bit out of hand in the last few months and my finances are in a bit of a mess as a result. I started getting calls from debt collectors about my credit card, so I paid that, but it meant I missed a mortgage payment instead. The way things are going it looks like I’m not going to be able to pay this month either.

When debts start to mount up it’s easy to be panicked into paying the creditors who shout loudest first, but you must make mortgage payments your top priority - you could lose your home if you don't pay. You only need to miss two or three payments before your lender takes you to court and you are at risk of repossession. Always let your mortgage lender know if you're having problems - don't just stop paying or miss payments. But if you do start to fall behind with mortgage payments, it’s time to get free, independent advice as soon as possible. Contact your local Citizens Advice Bureau (see www.adviceguide.org.uk or your local phone book for details) or phone National Debtline on 0808 808 4000.Never ignore court papers and court hearings - do attend court, but get advice first. If you're suddenly out of work or unable to work because of illness or injury, check for any payment protection insurance you may have. Your local CAB can help you sort out your debt problems, negotiate with creditors, and check for any additional income you may be due such as tax rebates, benefits or tax credits. They can also help you get back on track by taking a long hard look at what you have coming in and going out, and helping you make sure that in future you take control of your finances rather than letting them take control of you.

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I’m on a low income, and with the recent big increases in fuel prices, I’m really worried that I’m not going to able to afford my gas and electricity bills this winter.

Don’t turn off your heating or self-disconnect and be cold - contact your local Citizens Advice Bureau to talk about other options. If you are a pensioner, you are entitled to the winter fuel payment on top of your pension. You may qualify for some extra help such as cold weather payments depending on your circumstances. Even if you're not eligible for any extra help of this kind, there may be ways to cut down on your costs by switching your gas and electricity suppliers, paying by direct debit or getting advice on fuel efficiency, including help with the costs of home improvements like insulation, a new boiler or double glazing. A CAB adviser can also check to make sure that you are getting all you are entitled to by way of benefits and tax credits.

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I’ve heard quite a lot about the Child Trust Funds recently but I don’t know if I can apply. Who is it for and what do I have to do?

The Child Trust Fund is a long-term investment account to help save money for when your child turns 18. If your child was born after 1 September 2002 and you get Child Benefit for your child, you will be sent a Child Trust Fund voucher when you start getting Child Benefit. When you get this voucher, make sure you open a special bank or building society account with it, so that the Government can start paying money into your child’s account. It will not affect any benefits or tax credits you receive. The Government will make an initial payment of £250 into the account and another payment of £250 when your child is seven years old. If your family is on a low income your child will get twice that amount paid into their Child Trust Fund account. Friends and family can also pay up to £1,200 a year into the account and you wont have to pay any tax on those savings. Money cannot be taken out of a Child Trust Fund account until your child is 18. For more information about the Child Trust Fund, including how to open an account, go to www.childtrustfund.gov.uk or for more information on benefits you may be entitled to go to www.adviceguide.org.uk.

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I am on various tablets permanently to treat a chronic health condition but I have been told I don’t qualify for free prescriptions. I’m finding it hard to afford my medication and I’m tempted to cut out some of the pills I’ve been told.

If you have to pay for more than five prescription items in four months, or 14 items in 12 months, you could save money by buying a pre-payment certificate (PPC). Prescriptions in England now cost £6.85 per item (in Wales they are free), whereas a three month PPC costs £26.85 and a 12-month one costs £98.70. Until recently, an annual pre-payment certificate had to be paid for in a lump sum upfront, but from 1 July you can spread the cost by paying for a 12-month PPC in 10 monthly instalments by Direct Debit. You can apply online via an NHS website www.ppa.nhs.uk or over the phone (have your credit or debit card details ready) on 0845 850 0030. Some chemists can sell pre-payment certificates so check with your local pharmacy. Alternatively, fill in form FP95, available from pharmacies and doctors surgeries, and send the completed form to:Prescription Pricing Authority PPC Issue Office, PO Box 854, Newcastle Upon Tyne, NE99 2DE.For more information, or to apply online, go to www.ppa.nhs.uk Some people can get free prescriptions. You should check again whether you could get free prescriptions before buying a PPC. Get a copy of Leaflet HC11 (Help with Health Costs) from your nearest Post Office, chemist or GP surgery. You can also get this by writing to Department of Health, PO Box 777, LONDON SE1 6XH.

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I had an accident at work and have been thinking about contacting a claims management company. I’m a bit nervous in case I am not happy with the way they deal with my case - are these companies regulated and can I complain to anyone if something goes wrong?

Claims management companies are companies which act as intermediaries for people claiming compensation: they often approach people who may want to make a claim, sometimes offering ‘no win, no fee’ agreements. The Government has recognised that many people have not always had a fair deal when using the services of these companies, and so has passed the Compensation Act. The Act covers compensation claims for personal injury, criminal injuries compensation, employment matters, housing disrepair, financial products and industrial injury disablement benefits. From April 2007 it has become an offence to provide claims management services without authorisation, or exemption. Claims management companies will be regulated and they must have a formal complaints procedure. The Department for Constitutional Affairs is acting as regulator to claims management companies. You can now search on the claims management website, www.claimsregulation.gov.uk to make sure a company who approaches you or who you are thinking of using are authorised, as well as funding further information. You can also access information at www.adviceguide.org.uk or contact your local CAB.

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I work full time but I am having to take on increasing responsibility for the care of my elderly mother who is now disabled. I’m worried about how I can fit this in with work.

From 6 April, all employees who are carers of adult dependents will have the right to ask for flexible working and to have that request considered seriously by their employer. So If you think more flexible working would help, talk to your boss as soon as possible to explore what options may be available. Flexible working describes a wide variety of working patterns, including compressed hours, flexitime, home working, job sharing, staggered hours and term-time working. Under the new rules, a carer is defined as an employee who is, or expects to be, caring for an adult to whom they are married, or who is their partner or civil partner, or is a near relative (parent, parent-in-law, adult child, sibling, aunt, uncle or grandparent, or step-relative). It can also be someone unrelated but living at the same address. There is a formal procedure to follow which starts with you providing your employer with a carefully thought out application in advance of when you would like the new work pattern to take effect. Your boss then has to follow a set procedure to ensure that your request is considered seriously and a discussion takes place. He or she may only refuse your request where there is a recognised business reason for doing so. There are straightforward forms and letter templates available, along with guidance for both employees and employers, at www.direct.gov.uk/Employment/Employees/fs/en and at www.acas.org.uk

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We’re thinking of buying a timeshare, but we’ve heard lots of horror stories about them. Would we be making a big mistake?

Many people with timeshares are very happy with them, but you’re right to be wary – there are a lot of rogue traders out there. The law is going to be tightened up to stamp out some of the worst abuses, but this won’t be happening until 2010. In the meantime, follow our top tips to avoid being conned:

• Remember that holiday clubs, boats, timeshare re-sales and contracts lasting less than three years are not covered by current timeshare legislation, so you do not get the same cancellation rights or protection if things go wrong.
  
• Be wary of any prize or holiday which has to be collected at a presentation. Don't claim it unless you want to undergo several hours of high-pressure selling.
  
• If you are approached on holiday, don't get into a taxi or bus provided by a sales rep. Companies often choose locations away from your hotel and out of town, making it more difficult to leave a sales presentation.

• If you are unsure about a deal, leave. Ignore suggestions that the special offer may not be available later on.
  
• Be very wary of making an upfront payment to clinch the deal. Be wary of cash back schemes. If the company goes bust before the cash is due, or you cannot find them, you will never get the money.
  
• Ask for written information about costs, companies involved and responsibilities. Take this away and read it before signing. Written information in your own language is a right.
  
• If you change your mind, act quickly. Check the small print for information about a cooling-off period. You may be able to cancel. If they have lied to you or broken the agreement and you paid by credit card or have a credit agreement, get advice about claiming from the credit company.

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We have recently moved and our new flat needs some work doing on it. I want to get builders in but there are so many cowboys around. How can we make sure the ones we get to do the work are going to be OK?

There is a new government-backed scheme called TrustMark which can help you find reliable and trustworthy tradespeople to carry out improvements and repairs to your home. You can use the TrustMark website to find out which trade associations and other organisations have been approved. They can supply you with reputable builders, electricians, roofers, heating engineers and other tradespeople who meet certain standards set by the Government. The site also gives useful tips on the questions to ask when you need an emergency repair, and has the answers to many frequently asked questions such as How do I find a reputable builder? - What standards of workmanship can I expect? And - What do I do if I have a complaint? If a firm displays the TrustMark logo, it means a government-approved organisation has checked and will continue to monitor the quality of work carried out by the firm, its trading practices and financial position. It also indicates that the firm has signed up to a code of practice that includes insurance, good health and safety practices and customer care. If you have a problem or disagreement with the firm, there will be a clear and user-friendly complaints procedure to help sort the problem out. For more about TrustMark and how to find a TrustMark approved tradesperson, go to the TrustMark website at: www.trustmark.org.uk. For advice on dealing with problems with builders, go to the Citizens Advice website www.adviceguide.org.uk

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I’m about to buy a secondhand car. It looks like a real bargain, but I don’t know that much about cars so I’m having to put my trust in the dealer that he’s not going to rip me off or sell me a complete dud. Is there anything I can do to stop this happening?

These days, if you have access to the internet, you can do a lot of detailed research before buying on what you should expect to pay for particular makes and models, depending on their age, mileage, and the state they are in. Before you go ahead with the purchase, it’s worth carrying out a check to discover whether the car is stolen, has been the subject of an insurance write off, or whether there is outstanding finance from a previous sale. Mileage checks may also be available to make sure it hasn’t been ‘clocked’. Most of this can now be done quickly online. For peace of mind, you may also want to get the vehicle inspected for mechanical faults by an expert. There is a charge for these services, but it could be money well spent if it prevents you making a costly mistake because of problems with the car you are buying. For more information about what to look out for when you buy a secondhand car, go to www.consumerdirect.org.uk and follow the link to Advice on goods and services. Remember that if things do go wrong, the law gives you more protection if you have bought from a dealer than if you got your car through a private sale. Anyone who is having problems with a secondhand car they have already bought will find lots of useful information and advice on the Citizens Advice website www.adviceguide.org.uk where there is also a downloadable fact sheet on secondhand cars and contact details of local Citizens Advice Bureaux.

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I’ve heard that there is a new scheme for tenants to safeguard their deposits given to landlords. I’ve asked my landlord about it, but I’m not sure he is part of the scheme. What should I do?

From 6 April, anyone signing a tenancy agreement should check with their landlord or agent how their deposit will be protected. The tenant still pays the deposit to the landlord or agent but the money must be safeguarded through a Government approved tenancy deposition protection scheme. The landlord has 14 days to tell you details of the scheme. There are sanctions against landlords who don’t comply with the law. You could take your landlord to court and if your landlord has not given you details of the scheme or has not put the deposit in an authorised scheme, the court will order the landlord to repay the deposit or pay it into a scheme. The court must also order the landlord to pay the tenant a fine of three times the deposit within 14 days. However, you may decide not to pursue this course of action until you are ready to leave. If you are given notice to quit by your landlord, it’s very important to check immediately that your deposit is protected; if it’s not you should get advice as you may have a defence against eviction.

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I am going on my first trip abroad in a few months time so I need to apply for a passport. A friend told me I will have to go for an interview. Is this true?
From mid-2007 all first-time adult passport applicants will be called to a face-to-face interview. The Identity and Passport Service (IPS) says this is being done in order to combat the growing problem of identity fraud. Applications can still be made by post, but all those aged 16 or over who have never held a passport before will be interviewed after preliminary background checks have been completed. Interviews should last between 10 and 20 minutes and in them people will be asked some basic information about themselves. IPS says this should not be deeply private information, but it will need to be information that can be checked. IPS says it is aiming that 95 per cent of the population will be within an hour's travel of an office where interviews will take place, and over half within 15 minutes. They also promise that the offices should be easy to find, with good parking and public transport access. For those in more remote areas, they will conduct interviews over a secure webcam link. Applicants will be asked to provide information before interview (for example, their national insurance number and previous addresses) which will be checked against government and private sector databases. These changes to the application process will mean an increase in the passport fee, but IPS has not yet announced how much the new charge will be. For more information go to the IPS website: www.passport.gov.uk

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