Consumer watchdog launches campaign to boost business awareness of credit risk
CCW has launched a campaign to promote business customer awareness of issues associated with the build up of credit against their accounts.
Credit where it’s due aims for businesses to:
• understand that if their retailer were to exit the market, this may mean that any credit they have accrued on their accounts could be lost;
• be aware that paying in advance increases the risk of credit build-up, and of others ways to pay;
• know their rights to have credit returned in a timely manner when they switch retailer.
The watchdog said it would provide a communication toolkit to help retailers effectively reach out to their customers with the information; and will be engaging directly with businesses and their representative organisations to help spread the word.
A number of changes are coming in to support businesses to better manage credit. By 20 July retailers must inform their customers about the risk and benefits of making advance payments, as well as alternative payment options available to them and the amount of credit building up in their accounts. Retailers must also return any credit to a customer within 60 days of them receiving a final bill after switching to another retailer.
CCW said: "Because we know that awareness of the open market is low, with the majority of businesses having not yet switched retailer, we’ll also be campaigning to further strengthen the credit protections so that any accrued credit is automatically returned to businesses on an annual basis from April 2023. Of course, some will want the choice about whether to get their credit back, so CCW will call for an opt out function to cater for all needs.”
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