Scamming: Vulnerable Individuals

Philip Boswell Excerpts

Thursday 8th September 2016 Commons Chamber

[Philip Boswell (Coatbridge, Chryston and Bellshill) (SNP)]

The hon. Member for Solihull (Julian Knight) made mention of the Chartered Trading Standards Institute, and I recommend its website to anyone seeking more information. Victims tend to be elderly and therefore less likely to use the web, so we must ensure that all mediums are used to get the message over. I trust that the Minister will take note.

One of my elderly constituents recently told my senior caseworker about an unsolicited call he received from a company claiming that his property’s council tax banding was incorrect and that it could secure him a rebate for a fee of £69.99. It immediately took payment from his debit card over the phone, but—surprise, surprise—my constituent then received a letter from the company stating that it could not secure a rebate. The Lanarkshire joint valuation board, which is responsible for setting the council tax bands, could have checked whether the banding was correct at no charge. Therefore, the “service” offered in the original, unsolicited telephone call was completely unnecessary. I am deeply concerned and further troubled that other vulnerable constituents may be affected by the company and its questionable practices.

My research staff looked into the history of the company, which hid behind office moves and changes of directorship. I wrote to the company, raising my concerns about its business practices and requested a refund for my constituent, but the response was lamentable. My office then reported the situation to the local trading standards team at North Lanarkshire Council, who were extremely helpful. After chasing the company for a refund, they visited my constituent and, after assessing the situation, fitted a telephone screening device to prevent further unsolicited sales calls—exactly one of the devices mentioned by the Minister. Unfortunately, because my constituent used a debit card not a credit card to pay the fee, he was unable to get the money back. Many elderly and vulnerable adults do not have a credit card but, as most of us will know, there is enhanced consumer protection when using one.

Through another case, I have been made aware of a company based in my constituency that has a record of dubious sales practices throughout central Scotland. The company came to my attention when the family of a 79-year-old man, whose wife suffers from dementia, contacted me. The company made an unsolicited visit to the vulnerable couple, offering an external cosmetic service for their home. After taking an initial £800 deposit, the company signed the couple up to nearly £6,000-worth of unnecessary cosmetic work to their home. So keen was it to get the money out of this vulnerable couple that the company did not even check whether they owned the property, which they did not.

Further research into this company shows that they claim to offer a 10-year guarantee, but on closer inspection of their company records a pattern becomes clear. The business practice is to have several companies, with similar names, offering exactly the same services. The directors then fold the company when the heat becomes too great, moving their main business over to one of their many other companies, always with the same two directors in charge. The guarantees are therefore not worth the paper they are written on. That sharp business practice also has a knock-on effect within communities, as it creates reputational risk to other bona fide companies. In an increasingly competitive market, it is difficult for consumers to work out which companies are trustworthy and which are untrustworthy. Unfortunately, many consumers believe that a 10-year guarantee shows that a company is trustworthy, but in the case of this company, nothing could be further from the truth. I also feel for the staff employed by such charlatans, as they, too, may be unaware that the business is built on sand.

I therefore fully support the hon. Member for Solihull and my hon. Friend the Member for North Ayrshire and Arran (Patricia Gibson) on this, and urge the Minister to show the leadership needed to co-ordinate a strong, public service response to these despicable practices.