17-10-2007
CPA announces concerns over retailer prepayment schemes
News by Adfero for Simply Business - providers of independent business & retail insurance, business finance, landlord insurance, buy-to-let mortgages and commercial mortgages.
The UK's Christmas Prepayment Association (CPA) has expressed concern over the decision by some retailers to take prepayment for products without regulation.
Highlighted by a recent Treasury Select Committee report, the CPA is outlining its concerns because prepayment schemes by some retailers - such as milkmen or butchers - will not afford consumers protection if they enter into administration.
"The most important point of the CPA is that members must have independent trust accounts, controlled by trustees completely independent of the member company," said Suzy Hall, a representative from the CPA.
"It costs a lot of money to set these things up, and that may put smaller firms off. But in the long run they have to think about their consumers," she added.
In related news, in June the Office of Fair Trading launched an awareness-raising campaign entitled Saving Xmas.
The purpose of the campaign was to improve customer awareness of the differing options available during the generation of Christmas savings.