NCA guide to services and your rights
Introduction
As consumers we buy services every day. We use dry-cleaning services, have our homes improved, go on holidays, take classes, seek legal advice, have goods repaired and so on.
As you can see, the types of service we use can very widely.
You have rights when you buy or engage a service but there are no hard and fast rules.
Every case is different and the solution to a problem with a service will depend on the circumstances of the case.
Your rights
Under consumer law, you have the right to expect that:
- The service you ordered is provided with proper care and diligence
- The business providing it has the appropriate skills to do the job
- Any materials they use in the work are sound and fit for their purpose
- Any goods they supply to you as part of the service should be of acceptable quality too
These are your basic rights. These terms can only be excluded in a consumer transaction when it is fair and reasonable to do so, and only if the exclusion is brought to your attention.
Breach of contract
If things go wrong and it's the service supplier's fault, they should put things right.
If the service turns out to be unsatisfactory - for example, if some repairs on your home aren't provided with proper care, or the materials used in it are shoddy, or the people doing the repairs don't deliver what was agreed in the contract - they are in breach of contract.
You should ask them to fix the problem, and if you are still not satisfied you should ask for a refund.
Refunds
If they offer you a refund, this can be in cash or by cheque, or (where appropriate) a refund on your credit card account.
Some services such as restaurants or hairdressers may offer you a credit note or voucher instead, but it is your right to refuse and look for a refund.
If you are still not satisfied with their response, you may have to take legal action against them.
Remember, though, that if the service is provided to you in relation to your trade, business or profession, you are not a consumer in the eyes of the law and consumer rights do not apply to you.
Dealing with problems
Always alert service providers to problems as early as you can and give them an opportunity to put things right.
Agree time limits for this to be done and check that it has been done to your satisfaction when they are finished.
In the case of home repairs and building work in general, it's always better to avoid problems at the end of the job, so raise any concerns you have as the work progresses.
Make yourself available for the people doing the work to contact you, so that they can raise any issues that arise.
Then if the job is finished and you are not satisfied with the service:
- You should act as soon as you can - a delay can be taken to mean that you have accepted the service, even though it's faulty
- Do not attempt to repair what went wrong yourself or give it to anyone else to repair it
- Make sure you have a proof of purchase (a receipt, cheque stub, credit card statement or invoice)
- Keep all evidence of damage caused by shoddy work - take photographs, for example
Legal action
If you have exhausted the complaints mechanism and your claim for a refund is for €2,000 or less, you could consider taking a case to the Small Claims Court.
This is a relatively cheap, fast and easy way for consumers to take a case against businesses without having to use a solicitor.
If the value of the service is over €2,000 you may have to take legal advice from a solicitor.
Cancelling a service
How you cancel a service will generally be set out in the terms and conditions of any written contract.
The cancellation process will depend on a number of issues such as:
- If it's an ongoing service (such as a contract with a mobile phone operator, or membership of a gym),
- If it’s a one-off service with a defined beginning and end (such as a building job on your home)
- If you signed up recently for the contract and are still in a "cooling off" period during which consumers may be allowed to cancel
Some services charge cancellation fees. For instance, a dentist might charge for appointments cancelled at short notice.
But some types of cancellation fee can be much more substantial.
For example, some contracts for broadband or television services will spell out a large fee if you cancel the service earlier than the minimum initial term that you signed up for, such as 12 months.
Some contracts will also require you to give written notice of cancellation.
Changing your mind
But what are your rights if you simply change your mind and decide to cancel a service?
Your contract's terms and conditions should detail what happens if you cancel the service, and whether there is a cancellation charge.
As a consumer, you have additional rights if you order services remotely - over the phone, for example, or by email or fax, or from a website or a mail order catalogue.
In consumer law this is called "distance selling", and your contract with the business is a "distance contract".
Cooling off period
By law, distance contracts must include a "cooling off" period - usually at least seven days after you sign up for the service - during which time you can cancel your order without having to give any reason.
Some services are excluded from distance selling regulations, including:
- Gaming and lottery services
- Financial services such as insurance or banking
- Hotel bookings and many other accommodation, catering or leisure services
- Air, train and other transport tickets
Even if a service is not covered by "distance selling" law, it may still have a cooling-off period.
Life insurance policies, for example, have a cooling off period of 15 days in Ireland. The insurance company must tell you this before you sign the contract.
Services offered on your doorstep
If a business makes an unsolicited call to your home you also have the right to cancel any order you make with them.
This situation is covered by "doorstep selling" legislation and also applies if the business approaches you at your workplace without an appointment and tries to sell you its services in your capacity as a consumer (rather than in your business capacity).
Cancellation fees
Remember too that the contract can be written or oral.
In the example of a dental appointment, the dentists are within their rights to charge a cancellation fee if they warned you while booking the appointment that they have a policy to charge for cancellations.
Guarantees and warranties
The Sale of Goods and Supply of Services Act 1980 refers to guarantees in the context of goods but doesn't refer to guarantees of service.
Therefore much of the time guarantees are about goods provided in the course of a service rather than the service itself.
However, some businesses provide guarantees to customers about supply commitments. For example, some telephone companies will give you credit on your next bill if you are without the service for more than a stated minimum time.
- Remember that you may need to notify the business in a particular way or within a timeframe for the guarantee to operate
- Also, many companies now have customer charters that guarantee the timeframes for complaint handling
If a service involves the supply of products and any of these turn out to be faulty or unsatisfactory, the service provider has obligations and you have statutory rights under your contract.
But you have additional entitlements if the products come with a manufacturer's guarantee. The guarantee applies to anyone who possesses the goods during the lifetime of the guarantee.
And just as with manufacturers' guarantees, if the supplier gives a written guarantee for the work, this is also legally binding.
After-sales
A supplier who promises you spare parts or an after-sales service can be held to that promise.
Under consumer law, they have given an "implied warranty".
The spare parts and after-sales service should be available for the specific amount of time that they originally promised you (or for "a reasonable period" if they didn't specify that amount).
What to do
Keep guarantees in a safe place. If a builder has done work on your home, for example, you should also ask them for the guarantee documentation relating to materials used in the work.
If you have a product with a manufacturer's guarantee and you yourself bought it, remember that you still have your consumer rights, and you should consider returning the product to the shop where you bought it.
If your service supplier bought it, you can't return the item to the shop but you can still ask the manufacturer for your entitlements.
Warranties and new homes
If you are buying a newly-built home, you may be offered a warranty such as HomeBond or Premier Guarantee.
These schemes run for several years after the home is built and cover serious structural problems, some types of leaks, and protection if the builder goes bust before completion.
If you are covered by one of these schemes, find out your entitlements in the warranty's terms and conditions.
Prices
By law, the premises of certain service providers must have prominent price displays, including:
- Pubs and other licensed premises
- Restaurants and other eating establishments
- Petrol stations
- Hairdressers and barbers
There are detailed rules on what these price displays must include. For instance, eating establishments must indicate any service charges and whether these are included in the price.
If you are in one of these types of premises and it fails to have a price display, you should contact the NCA.
You should also contact the NCA if the premises does have a display but you are charged more than the price listed.
Some services such as taxis and electricity suppliers have to abide by price structures that are fixed by regulators of their particular sectors.
Contract price
The best policy when buying or contracting for a service is to have a written contract with the supplier, though an oral agreement also gives you entitlements.
The contract should spell out the price, and this should be the actual agreed price, rather than an estimate.
Prices must include taxes
There are rules about how services display their prices, so that consumers can make price comparisons and informed choices.
Any prices displayed or advertised by the service must be "complete" and "tax inclusive".
This means the price must include all taxes and not have any extra "hidden" charges.
If the price doesn't include Value Added Tax (VAT), for example, the supplier is misleading consumers and in breach of consumer law.
But there is an exception: if a supplier deals mainly with business customers - for instance where a subcontractor is hired by a builder - they are allowed to show prices that exclude the VAT element.
Agreeing contracts
When ordering services, try to get a written "quote" (price quotation).
Always shop around for several quotes, but remember that the cheapest quote may not provide the best quality work.
When you have narrowed down your choice to a particular supplier you should draw up a written contract, which should include the price for the work.
The contract should also give details of the payments schedule - how and when payment should be made - and a deposit, if any.
Deposits and refunds
A deposit indicates that you intend to buy the service therefore always be clear about your and the service supplier's obligations if you pay a deposit - and in particular the circumstances under which you can get a full refund of it.
Many service providers use standard contracts and terms and conditions that apply to all their customers. Always read these before signing and seek clarification if you are unsure of what a term means.
'Distance contracts'
It is also possible to "sign up" to a contract over the internet or telephone. In consumer law these are called "distance contracts", and you have various rights under EU Distance Selling regulations.
The NCA can investigate any claims that a service provider has provided false or misleading information about their service to a consumer, including its price and additional charges.
Return to the web version of our guide to services
http://www.consumerconnect.ie/eng/Hot_Topics/Guides-to-Consumer-Law/Services/intro.html