Green Deal firms could be forced to hand back tens of thousands of pounds to customers after the ad watchdog slated claims made by the Green Deal Finance Company over the cash-saving benefits of the scheme.
The Advertising Standards Authority launched an investigation following a complaint from Romford-based Crystal Home Improvements, which was concerned that consumers were being treated unfairly.
The complaint related to a brochure which could be downloaded from the Green Deal Finance Company (GDFC) website. In it, the firm claimed that the payment plans were the cheapest on the market and the so-called Golden Rule would deliver “peace of mind” with financial savings that were equal to or greater than the costs attached to the energy bill.
The complainant challenged these claims and protested that the brochure did not set out the additional costs that applied to Green Deal payment plans, such as arrangement and assessment fees, and exit penalties.
In its ruling, the ASA said GDFC did not provide adequate comparisons when promoting the interest rates on offer, adding that consumers were also being misled by the failure to publish a raft of hidden charges.
A leading retail law expert told the Click Green website that consumers could now claim a breach of contract by arguing they were falsely induced into signing up for the Green Deal and launch a civil action to potentially recover damages from their suppliers.
Consumer law solicitor Kerry Gwyther, a partner at leading national law firm TLT, explained: “The ASA normally use Trading Standards’ levels of determining misleading claims and its rulings do go a long way in helping to present a successful case.
“If a consumer has been induced to enter into an agreement by misleading claims, a court may well find in the consumer’s favour and they may well be able to walk away from the contract without further payments or seek damages for any losses suffered.”
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