A new system that will better protect consumers comes into effect today.
Consumer Focus is a new body formed through the merger of the National Consumer Council, energywatch and Postwatch. The new body will be a more powerful consumer champion, with much stronger powers than its predecessors – including the ability to demand information from companies.
In future energy and post companies will have to take greater responsibility themselves for resolving customers' complaints. The regulators, Ofgem and Postcomm, will now fine companies who fail to meet tough new standards. They will also announce how well companies are handling complaints – giving those that perform the best a competitive advantage.
If companies and consumers can't reach agreement on complaints a new independent ombudsman will step in. The ombudsman will be free for consumers, but companies will have to pay hundreds of pounds for every case that reaches this stage. Unlike energywatch and Postwatch, the redress schemes have the legal power to enforce resolution and award compensation for consumers.
Consumer Direct, the government funded advice service, will now give consumers information and practical advice on energy and postal issues.
Consumer Affairs Minister, Gareth Thomas said: “One body, rather than three, means a stronger voice fighting for consumers. It means a joined up and co-ordinated approach to tackling problems, rather than the old fragmented system.
“These difficult economic times make Consumer Focus even more important. I’m sure it will campaign hard for better deals for consumers and do all it can to help people through this period of uncertainty.”
Consumer Direct is the telephone and online consumer advice service funded by government and managed by the Office of Fair Trading. It offers consumers clear, practical and impartial advice and information.
The information and advice helpline is available on a single national telephone number: 08454 04 05 06 from 0800-1830 Monday to Friday, and 0900-1300 Saturday, excluding bank holidays and public holidays.
You can find more information about Consumer Focus on the Consumer Focus website. For more information about consumer related issues, use the links below.