Five tips to make you a smarter consumer

FRIDAY, JAN. 4: If you are still in the process of making your New Year’s resolutions please make sure that you also resolve to be a smarter and safer consumer.

Here are five tips that should help to start your new year off on the right foot. 

1: Control your finances

Assess your situation before you are drowning in debt and do not be afraid to seek assistance.

If you have bills that you are unable to pay in full do not ignore them. Contact the company and explain your situation honestly.

Tell them how you are able to get the debt paid and ask for assistance. A lot of businesses are willing to work out a payment plan with their customers.

If you have been contacted by a debt collection agency do not ignore them. Ignoring the problem will not make it go away — in most cases it makes the problem worse and the debt will most likely increase. If you agree that you owe the money, make arrangements with the agency to repay.

2: Get information

Take the time to do your research and find out as much information as possible about the product or service. Compare prices between the different stores that supply the product or service. For product information you can go to Consumer Reports website (www.consumerreports.org) and Consumer Product Safety Commission (www.cpsc.gov).

If you are purchasing a big ticket item, take the time to discuss your needs with the salesperson. Don’t let him/her talk you into purchasing something you don’t need and don’t buy something you don’t want or know how to use.

You need to check store policies.

Ask what the store policies are before you purchase the product since there is no law that says the store policy must be displayed.

3: Get it in writing

Get every verbal agreement in writing to limit miscommunication and misunderstandings. Do not just take a business’s word for it.

Get a quote, not an estimate. An estimate is an educated guess as to what the goods or service will cost and is not binding.

4: Beware of Pyramid schemes and Phishing

Pyramid schemes come in a variety of forms but the main characteristic of a pyramid scheme is that participants only make money by recruiting more members. The only way for a pyramid scheme to work for everyone is if there is an endless supply of new members and in reality there isn’t.

It is mathematically impossible and when the business is unable to recruit new investors the money stops coming in and the business collapses.

Phishing — also called ‘carding’ or ‘brand spoofing’ — is an online fraud scam used to steal your personal and financial information such as credit card numbers, bank account information and passwords.

These hoax e-mails can look genuine, using the company’s logo and format, and a link which leads to a website that seems genuine, but isn’t.

E-mails from genuine banks don’t include links.

The sole purpose of this scam is to conduct illegal transactions on your account and steal your money.

In addition to stealing personal and financial information, phishers can infect computers with viruses and convince people to participate unsuspectingly in money laundering.

5: Let Consumer Affairs Help

Under the Consumer Protection Act 1999, Consumer Affairs ensures that “unfair business practices” and “unconscionable acts” are not prevalent in everyday consumer business transactions.

Additionally, Consumer Affairs provides guidance and advice pursuant to the Sales of Goods Act 1978 and the Supply of Services (Implied Terms) 2003.

This office also has certain enforcement powers under the Copyright and Designs Act 2004.

So, simply put, Bermuda Law determines what we can and cannot do.

We are here to help consumers understand their rights, and more importantly, their responsibilities before they buy products and services and before they find themselves in a situation that requires our assistance.

I invite everyone to visit our web-site (www.ca.gov.bm) and learn more about the legislation that is designed to protect consumers and to take the time to read the various publications and news items – there is a lot of helpful information there.

If you truly believe that you have a legitimate complaint against a local business, do not hesitate to contact us.

Honey Adams is the education officer for Consumer Affairs.