Using book up |
Book-up is when a trader gives small amounts of short-term credit to consumers. Stores, taxi drivers, hawkers or regional airlines often offer book-up. Book-up can be very helpful when cash flow is tight, but you should make sure you know your rights to avoid getting ripped off.
Protect yourself
- Ask about fees and charges - there might be fees for using the service or other charges for late repayments or using the book-up account.
- Keep a record of your purchases.
- Don´t give your keycard and Personal Identification Number (PIN) to a trader. If you leave your keycard or passbook with one trader you may not be able to access your money to buy things from other traders.
- If the trader insists on keeping your keycard as security, don´t give him/her the PIN. It may be a breach of your contract with the bank to give your card and PIN to the trader.
- Never sign a blank withdrawal form that the trader could use to take money from your account.
- Get your card back from the trader if the store is closing for holidays.
What you should expect the trader to do
- Give you a written agreement that states the conditions for book-up and any interest or charges.
- Display a copy of the conditions in the store so everyone knows what they´re getting into.
- Give you copies of the receipts/statements showing what you bought, when and the price you paid.
- Keep accurate records of the total amount you owe.
- Keep the records confidential.
- If you leave your keycard with the trader, they should make arrangements for you to access your card when the store is closed.
- Return your keycard to you when you request it.
If things go wrong
- Try to work it out with the trader.
- If you can´t sort things out call us on 13 QGOV (13 74 68). We may be able to help.
Tips
- Avoid book-up where possible.
- Never give your PIN to the trader or sign a blank withdrawal slip.
- Read and understand what you are asked to sign - don´t rely on the trader to tell you.
- Set a maximum limit for book-up.
Don´t take the risk - get receipts when you book-up!
Priscilla books-up groceries at the only shop in town. When she checked her account, it was very high and she asked the shopkeeper why. The shopkeeper told Priscilla her relatives had been booking-up on her account.
Priscilla had given a letter to the trader when she opened the account. This letter stated that only she and her daughter were allowed to book-up. The shopkeeper still wanted the full amount owing from Priscilla. Priscilla called the Office of Fair Trading who then contacted the shopkeeper. Because Priscilla had kept the letter and her receipts, the Office of FairTrading could sort out the problem and Priscilla only had to pay for her own and her daughter´s purchases.
Last reviewed 13/12/2011 |
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