During the spring the Consumer Agency received very many complaints about communications and financial services. Communications services, which have been constantly developing, are the subject of the largest number of the several thousand written reports received by the Consumer Ombudsman each year. Complaints have concerned poor customer service, unclear price information, billing errors, unclear restrictions on special offers and deficiencies in the marketing of giveaways.
Financial services are another big problem area. In the past year the Consumer Agency has had to spend a lot of time on matters regarding lending and debt collection, among other things. Communications and financial services are focuses of the Consumer Agency's activities.
The Consumer Agency strives to influence consumers' position on the market in a broad manner. Below is a summary of measures taken by the Consumer Agency and the Consumer Ombudsman this year with regard to communications and financial services.
Shift to digital TV and mobile services revolutionizing the communications market
Work this year regarding communications services has included the following:
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Reform of the Communications Market Act. We have participated in this work and called for the improvement of consumers' position in situations involving delays in service, errors, unauthorized use and the unilateral changing of contract terms, among other things.
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Marketing of digital equipment and error situations. We have published a memorandum on the seller's responsibility for the proper functioning of a digital receiver and typical error situations. We have also prepared a check list for sellers of digital receivers and televisions as well as instructions telling consumers what to do in error situations.
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Offering of 3G phones together with a subscription. We have prepared a memorandum for operators concerning marketing practices. Sellers must provide clear price information and explain the fixed duration of a contract, the length of the contract period and call blocks on a subscription. We have also prepared information for consumers regarding subscriptions.
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Marketing and distance selling of mobile services. We have prepared a memorandum on this subject and emphasized that consumers must be given adequate information before they make a decision to purchase a service. Among other things they must be told what a service cost, who provides the service, what the service includes and whether there are any restrictions. We have also participated in the preparation of Nordic guidelines concerning mobile content services.
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TV games. We have conducted talks with broadcasters about marketing aimed at minors and the position of minors as contract partners and called for changes in practices.
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Electronic direct marketing and data protection. We have participated in a working group that prepared the OECD Anti-Spam Toolkit and produced information for consumers on how to fight spam. We have also held talks with the Data Protection Ombudsman concerning problems in direct marketing aimed at minors and future measures.
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Itemized phone bills. We have participated in legislative reform work and emphasized consumers' right to receive itemized phone bills free of charge. We have also negotiated with operators concerning problems in this area.
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Operators' fixed-duration contract terms and the marketing of services. We have prepared a position paper which emphasizes that marketing must clearly explain the meaning of a fixed-duration contract and its binding nature. Nor can a contract be extended automatically. A new fixed-duration contract can only be concluded with the express consent of the consumer.
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Price information for premium-rate numbers. We have prepared instructions concerning the provision of clear price information in marketing.
Instant loans and responsible lending major themes in financial services
Work this year regarded financial services has included the following:
Distance selling of consumer credit. We have checked contract terms applying to instant loans that can be arranged with a text message and the way they are marketed. We have prepared position papers for companies offering instant loans in order to establish common rules regarding such things as informing customers of the right to withdraw from a contract and in order to resolve problems related to abuses.
New Consumer Credit Directive. The comprehensive reform of the Consumer Credit Directive, which will harmonize legislation in the EU, is on the final stretch and we have striven to influenced its content in national and international forums.
- Responsible lending. The concept of responsible lending is very timely. We have participated in an international conference on this subject, arranged a national seminar and published our own views as a basis for further discussion.
Stepped-up surveillance of the marketing of consumer credit. We have prepared a legislative initiative aimed at increasing the state provincial offices' powers to monitor the marketing of consumer credit at the local level.
Marketing of consumer credit. Major changes in the offering of credit have led to new practices for which common rules need to be established. These must be easily available. For this purpose we have started revising guidelines for businesses concerning the marketing of consumer credit.
- Consumer credit in the motor trade. Monitoring compliance with regulations concerning the marketing of consumer credit in the motor trade requires special efforts. A letter was sent to dealers on the basis of a surveillance campaign.
- Rules concerning billing and payment. The EU is working to create a Single Payments Area and harmonized rules concerning payments. We have participated in the national background group that is working to influence the content of the Directive on payment services.
Good practice in debt collection. We have reminded collection agencies of debtors' right to receive information on their debt situation and upper limits on collection charges. We have also prepared a position on the division of collection costs between a collection agency and the creditor. A position concerning how much a collection agency can charge if it has purchased receivables from the original creditor was disputed by the collection agency and we are assisting a consumer in legal proceedings.
Payment commitments in health and accident insurance. We have investigated insurance companies' current practices in making commitments to pay for expensive treatment and reminded companies of their responsibility to provide customers a real opportunity to use the coverage for which they have paid.
Special problems regarding savings products. In cooperation with other authorities we are preparing guidelines concerning situations in which consumers are offered personal savings products. The aim is to prevent disputes concerning when a contract does not correspond to what the consumer has been led to believe.