10/08/2009 - Shoppers not receiving bought goods
Research has found 10% of shoppers, equivalent to 1.8 million people, have not received goods or services that have been paid for in advance during the past two years.
According to a study by shoppers champion Consumer Focus, 48% of shoppers are also not getting their money back.
As a result the group is calling for new measures to protect consumer prepayments and for shoppers to be moved up the list of creditors who receive a share of proceeds when the assets of an insolvent company are sold off.
Consumer Focus cited the main reason for this to retailers and suppliers going bust because of the recession as finance from banks has become harder to access.
Steve Brooker, markets expert, Consumer Focus, said: "Consumers are losing out in the fight to reclaim money from bankrupt businesses."
Low-income consumers have been the hardest hit as companies targeting this group are found to be more likely to fail and these consumers were also less likely to use credit cards, which offer payment protection.
Consumers who lost money on average lost £242 each, with the worst performing sectors being electrical goods 15%, books, music or other small entertainment items 15%, clothing and textiles 12%, furniture 11% and holidays 11%.
Copyright © Press Association 2009
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