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Jargon-heavy household bills leave Brits vulnerable to over-charging

Your Money
Written By:
Your Money
Posted:
Updated:
17/07/2013

Over-complicated household bills are leaving consumers vulnerable to over-charging, says a new report.

According to comparison site uSwitch.com, jargon-heavy and over complicated household bills are leaving almost three quarters of consumer unable to work out whether there has been a mistake on their energy bill, while almost a third say the same for their water bills. 

The report found that in the last year consumers were overcharged by £6.7bn on household bills, with 95% of cases spotted by consumers themselves.

Energy companies were found to be the most confusing – 86% of those surveyed said they find them too complicated, 73% say they use too much jargon and 65% can’t find the information they need.

More than eight in ten people find energy bills harder to understand than any other – almost four in ten think they have lost money because an energy bill has been too difficult to understand.

The report found that direct TV providers, banks, credit card and mortgage companies send the least complicated bills, but consumers trust council tax departments the most to get bills right.

Ann Robinson, director of Consumer Policy at uSwitch.com, said: “Consumers are spending thousands of pounds a year on household bills – they need to be sure that what they are paying is correct and it shouldn’t take rocket science to do so. In this day and age, clear and concise bills should be the very least that consumers should expect. The fact that some companies and industries are still unable to get this fundamental part of their service right is simply unacceptable.

“It’s also clear that some sectors such as banking and personal finance are leading the way in providing customers with bills that they can understand, check and act upon. It’s important that other sectors look at their success and start to learn from it. All industries use jargon, but some are clearly better than others at shielding their customers from it rather than blinding them with it.”

“Supplying simple, straightforward and helpful bills is a vital part of building trust and consumer confidence. It helps to put customers in control and enables them to make informed decisions and choices about products and services.

“It also means that consumers stand a greater chance of spotting any inaccuracies or incorrect charges – this is also why, despite the difficulties, consumers must continue to check their bills carefully as failure to do so could leave them out of pocket.”