Consumer Alerts - April 2007:

Recurring Issues (Published in C@sebites Issue 100, 13 April 2007)

Every once in a while, we at CASE receive public queries or complaints about consumer problems or suspected scams. In our 100th issue of C@SEBites, we give you a recap of some recurring issues.

Sales of goods from vans

Q: I was parking my car when a van drove near me. The driver offered to sell me high quality speakers at a cheap price as he had extra sets in his van. Should I accept the offer?

A: First of all, ask yourself this: Does the offer sound too good to be true? If so, there’s sure to be a catch. Secondly, ask yourself: If something goes wrong with the speakers, how will you locate the mysterious van driver and seek redress? If you can’t answer the question, think twice.

The bottomline: If you want to buy electronic products of a reputable brand, do your research and check out the list of authorised resllers on the company’s website. Make the purchase at a proper shopfront, ensure you have a warranty card and always keep the proof of purchase.

Unhappiness with increasing prices

Q: The rice and vegetable stall at the coffeeshop near my place raised their prices. A plate of rice with three dishes used to cost $2.50. Now, it costs $2.70. I think it’s unfair! I think the stall owner is trying to profiteer from the impending GST hike.

A: As a consumer, you have the right to ask the stall owner or staff why they increased prices. If you strongly believe or have substantive proof that they are increasing prices falsely claiming GST increase, you can report the situation to the Committee Against Profiteering or the Inland Revenue Authority.

Unhappy with the increase in prices? You can vote with your wallet and choose to eat at another stall that offers cheaper alternatives. The beauty of free competition is that it will eventually drive out vendors and retailers that are not able to cater to customers’ demands.

Signing contracts

Q: I am going to sign a contract with so-and-so-company. Have there been complaints against this company before?

A: Such complaint statistics may not be helpful. Complaints against a certain company may not necessarily indicate that the company is in the wrong. It will depend on the context and nature of complaints.

It’s best to let common sense dictate whether or not you sign a contract. Do some research on the company, scrutinise the terms and conditions of the contract, request for the company to substantiate their claims, and always request for all verbal promises to be committed to writing. Never sign anything that you’re not comfortable with.

Timeshare, timeshare (Published in C@sebites Issue 101, 30 April 2007)

At CASE, we always hear about timeshare and timeshare related issues. And we’re constantly amazed at how inventive the companies can be. From timeshare termination, timeshare resale and timeshare leasing, we’re starting to hear of companies offering to organise civil action class suits and companies offering “timeshare offloading”.

See here for CASE’s official response on these companies.

In short: Exercise prudence when dealing with these companies, always ask for substantiation and scrutinise the terms of the contract. When there’s a lack of material information or the presence of ambiguous or unfair contract terms, think twice before committing yourself to such a contract.

Investor alert! (Published in C@sebites Issue 101, 30 April 2007)

An investor’s worst nightmare is that of handing over money to an unregulated company conducting financial activities in Singapore. So, how do you protect yourself from such companies? The MoneySENSE website lists companies or persons who may be conducting financial activities without authorisation from the Monetary Authority of Singapore. Click here to see list.

Losing out on your fixed deposit renewal rate? (Published in C@sebites Issue 101, 30 April 2007)

In an earlier issue of C@SEBites (Issue 85), we had warned consumers that some banks may be offering differing fixed deposit (FD) renewal rates for those who personally renew their FDs at their counter and for those who allow for an auto-renewal of their FDs.  Typically, an auto-renewal results in a lower rate.

CASE would like to advise all consumers to check with the banks, especially those pertaining to renewal rate, when renewing a fixed deposit account. Depositors have feedback that better rates are offered when they renewed at the counter than allowing the banks to renew automatically.