'Hang-up' on cold caller 'scams'

The Office of Fair Trading (OFT) said its officials and trading standards officers across the country had received hundreds of complaints from businesses about the sales tactics of some telesales companies.

The OFT added that it was particularly concerned about "false claims" that businesses had agreed to buy advertising space followed by demands for payment, when no such agreements had taken place.

Sir John Vickers, OFT chairman, said: "Small businesses are particularly vulnerable to these types of unfair business practice. We advise all businesses to be wary. Don't be pressured or tricked into agreeing to advertising you don't want or into paying for something you haven't requested."

The OFT said that only a court could decide whether a contract existed and whether a business was liable to pay a debt. It added that only a court could instruct bailiffs and that "debt collectors" were not bailiffs and could not attempt to collect payment by taking direct action, such as seizing goods.

Persistent callers

The OFT warned that while legitimate companies did exist, people working for small firms should never take unsolicited calls at a time when they could not give the matter their full attention. "If you want to talk, ask them to call back at a convenient time," a spokeswoman for the Government department said.

She added that people should never agree to something on the phone just to get rid of a persistent caller as "legally binding agreements can be made over the phone".

The OFT spokeswoman also said that firms should be wary of follow-up calls. "You may think they're just verifying details, but they may be trying to trick you into entering into an agreement. If you're not clear about any details, don't be rushed, ask questions."

She went on: "Don't be pressurised into paying for services you haven't agreed to, that haven't been provided or that don't match those agreed to.

"If you are threatened with debt collectors or a credit black-listing, remember that ultimately only a court can decide whether you are liable to pay and disputes with another business will not necessarily affect your credit rating."

'Sound advice'

The Trading Standards Institute (TSI) said it shared the OFT's growing concern about telesales scams. Ron Gainsford, chief executive of the TSI, commented: "This is particularly timely and sound advice from the OFT.

"Trading Standards are increasingly alarmed by the callous lengths that some cold-calling telesales operations will go to, to get well meaning consumers and businesses to part with their hard-earned money."

The OFT said it was considering a number of complaints about misleading claims and that it would take enforcement action against those that made them where appropriate.

In accordance with the Control of Misleading Advertisements Regulations, the OFT can take action against anyone "appearing to be concerned or likely to be concerned" with the publication of a misleading advertisement.