British students lose out on over £335m per year by not knowing their rights

by Communications Team | Sep 28, 2015

  • Over 1.3 million students are left out of pocket by millions of pounds every year because they don’t know their rights
  • Over three quarters of students complain of problems with accommodation, utility suppliers and retailers
  • Ombudsman Services launches a free downloadable guide ‘Know Your Rights’ for students
  • Many students say they feel too embarrassed to complain

Over 1.3 million students living away from home in Britain have been left out of pocket – to the tune of £335M – because they do not understand their consumer rights.

Research by Ombudsman Services, the largest multi-sector redress provider in the UK, found that over half of students (55%) do not know what their rights are. Almost eight in 10 (78%) students have encountered a problem and lost money as a result. Problems are most likely to come from rented accommodation (57%), a telecoms supplier (28%), an energy supplier (22%) or with a retailer (23%).

Among all students living away from home, almost one in five (19%) have been overcharged for their gas or electricity bills, 14 per cent have paid bills from previous tenants and 17 per cent have paid for damage they or their housemates did not do.

This coupled with one in 10 (11%) students forgetting to get their tenancy deposit returned and six per cent paying twice for the same service (e.g. TV licence), means that the average student estimates that they waste £240 per year by paying up and not making a fuss.  

The problem is that only one in four (25%) students have actually complained. Many say they feel too embarrassed to exercise their rights when confronted with poor products or services (26%), instead preferring to remain silent for fear of intimidation (28%) and a fifth (21%) simply can not be bothered.

Many students find paying energy bills a problem with a third unsure who their energy supplier even is and 50 per cent are unaware they should have been given an energy performance certificate detailing the costs of heating and powering their rented home.  

The majority (52%) do not know about their options to dispute issues with their energy or telecoms supplier and over a fifth (38%) feel a retailer has ripped them off. When it comes to landlords or property management companies, 58 per cent of students feel they are taken advantage of, they are rarely on the side of students (54%) and 38 per cent say they even struggle to get hold of them.

Chief Ombudsman Lewis Shand Smith commented:

“Going to university can be extremely daunting. For many young people this is the first time they are away from home and surviving on their own.  We want to ensure that all students are able to stand up for their rights and speak out when things go wrong – whether that’s being asked to pay for a bill from a previous tenant or paying for damage they did not do.

“Students should not be losing money, simply because they don’t know their rights or are not making a fuss. This is why we have released a ‘Know Your Rights Guide’ which includes advice to help students with their transition into a new independent life.”

To ensure students know how to access help and address any problems, Ombudsman Services – which runs a free online service for consumer complaints www.consumer-ombudsman.org -  is today releasing its Know Your Rights Guide containing tips and advice as well as a comprehensive directory of who to contact for help.

To read (and download) your free guide, click here.

Students who have a problem with a goods or service should follow the below steps to complain effectively:

1. Firstly identify what you want to achieve, have a clear idea of what it is you want to achieve from complaining.

2. Don’t get emotional – keep your anger in check and don’t get mad. Be assertive without being aggressive.

3. Don’t be embarrassed – it’s your right to complain if you’re not satisfied.

4. Admit your part in the problem if you have any fault.

5. Address one complaint at a time, ensure what you say is clear and fair.

6. Keep records of all correspondence, paperwork, bills and receipts, if asked to send them anywhere make sure you send photocopies and keep originals.

7. If you’re not getting results complaining directly to the company, identify the person or organisation that has the power to make changes and help.

8. If your complaint has not been resolved quickly (normally within eight weeks), you can take your complaint to an organisation like Ombudsman Services. The new service, www.consumer-ombudsman.org, is open for any complaint outside financial services and is run by Ombudsman Services, which already operates the popular government-backed complaints schemes in energy and telecoms.

ENDS

Methodology

Research conducted by Censuswide on behalf of Ombudsman Services, which questioned 1,500 students not living at home. The survey ran from 22 July to 28 July 2015.

About Ombudsman Services

  • Ombudsman Services is a not for profit, private company limited by guarantee. 
  • Ombudsman Services runs national, private sector ombudsman schemes which provide independent dispute resolution for the communications, energy, property, copyright licensing sectors, the Green Deal, the ABFA, Reallymoving.com and Which? Trusted Traders scheme.
  • Ombudsman Services provides an expert dispute resolution service. The service focuses on encouraging early-agreed resolution wherever possible and does not charge a fee to consumers so it’s able to offer access to redress for consumers to resolve their complaints without proceeding to the civil courts.
  • Ombudsman Services is a full member of the Ombudsman Association (OA) and adheres to its principles.
  • Further information about Ombudsman Services can be found at www.ombudsman-services.org

 


[i] Higher Education Statistics Agency UK latest figures show there are 2,299,355 UK students in 2013/2014. Santander Student Report 2014 shows that 22% of students live at home meaning there are 1,793,497 living away from home. 78% of students living away from home surveyed stated they have been left of pocket so 78% of 1,793,497 is 1,398,927.

The average amount each student has been left of pocket is £240 each, therefore 1,398,927 x £240 is £335,742,638

[1] Higher Education Statistics Agency UK latest figures show there are 2,299,355 UK students in 2013/2014. Santander Student Report 2014 shows that 22% of students live at home meaning there are 1,793,497 living away from home. 78% of students living away from home surveyed stated they have been left of pocket so 78% of 1,793,497 is 1,398,927.

[1] The average amount each student has been left of pocket is £240 each, therefore 1,398,927 x £240 is £335,742,638.