Citizens Advice has found that seven in ten consumer queries made to them about the Green Deal concern scams against unsuspecting potential customers. More than half of the people caught by the scams are contacted out of the blue, either by phone or door to door sales. Typically, customers are offered thousands of pounds worth of home improvements for free by the scammers. Those falling for the scam are losing up to £500 after paying a fee for an ‘assessment’ that never goes ahead, or, if it does, with the work promised never being carried out. Some customers have provided their bank details and then found that more money has been taken out of their account without their permission.
Citizens Advice wants to see a ban on door to door cold calling and doorstep selling of Green Deal improvements in order to protect customers from bogus companies. The Green Deal system should involve an assessment fee but costs should be explained thoroughly to the customer and a Green Deal Advice Report provided after the assessment has been carried out.
The figures for the number of people being scammed come from an analysis of cases reported to Citizens Advice consumer service in England and Wales between September 2013 and February 2014. The research comes ahead of Scams Awareness Month which launches this week on Thursday 1 May 2014.
“The Green Deal is at risk of being undermined by fake firms” said Citizens Advice Chief Executive Gillian Guy. “With energy prices up by 33 percent since 2010, households are looking for ways to save money on their bills. Opportunistic tricksters are lining their pockets by ripping-off people who are trying to cut the cost of heating and lighting their home. A more energy-efficient home can drive down the cost of bills so it is important people look out for scams and action is taken to protect consumers. A ban on cold calling and doorstep selling of Green Deal would help people distinguish between the genuine scheme and a scam.
Consumers can check whether a firm is a proper Green Deal seller by looking at the authorised list of companies.”
The majority of the firms reported to the consumer service are not registered Green Deal providers and appear to be misusing the scheme’s Green Deal trade mark. Citizens Advice has expressed concern that the confusion between the Green Deal and free schemes such as the Energy Company Obligation (ECO) is creating opportunities for mis-selling. Companies and the government need to provide clearer communication on these schemes with a clear brand and set of standards covering both ECO and the Green Deal. This would enable people to distinguish between the two and make the identification of scams easier. They should also be told about any local energy efficiency schemes operating in their area.
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