THOUSANDS FORCED TO PAY PENALTIES AS FIRST CLASS MAIL IS DELIVERED LATE. AND A SHOCKING ONE MILLION LETTERS GO MISSING EVERY WEEK
CREDIT card firms are charging customers hundreds of thousands of pounds
in interest for failing to meet payment deadlines because first-class letters
arrive up to eight days late.
Now Postwatch, the mail watchdog launched last week, is advising consumers
to save themselves money by getting proof of postage for important letters
before sending them.
A Postwatch spokeswoman said: “Much of first class post does not arrive the
next day. It can often take days or even may not arrive at all. This can
cost customers money, time and effort and can cause huge problems for small
businesses.
“If they can do anything, it is at least to get proof of postage from a
counter at time of posting which could prove to a person you had sent a letter on time. We are recommending that people ask for that. If the letter is
vital, then special delivery may be worth paying for.”
The shocking extent of the poor service offered by the Royal Mail was
revealed last week. Almost two million first class letters do not arrive in the
post the next day. That is 75,000 more late letters every day than there were
in 1998, a figure which means that 11 per cent of first class mail is now
late.
Many letters do not arrive at all. Every week it is estimated that one
million letters vanish into thin air.
The Royal Mail receives two million complaints a year about their poor
service and yet they do not offer compensation for the knock-on effects of their
failures.
Despite the growth of e-mail and mobile phones, much of modern business is
still done through the post. Every month, millions of customers have to
send cheques to their credit card provider to pay off debts. Many people still
put cheques in the post for household bills.
All forms of postal payment have a deadline. Interest is charged on unpaid
credit card bills and unpaid household bills lead to disconnection.
As the post deteriorates, it is customers who ultimately have to pick up
the bill for lost and late post.
Now, some institutions are so furious with the delays in the post that they
are advising customers to go personally to bank branches, ensuring bills are
paid in time.
The umbrella body for credit card companies, the Association of Payment
Clearing Services, is telling customers to go to their bank branch to pay
off their card.
Richard Tyson-Davies, who works for APACS, said the slow post could cause
havoc for people trying to pay bills on time to avoid being charged interest. He
said: “I know Mastercard has been accused by a Government select
committee of deliberately sending statements to card owners late so they only have 10 days to pay off bills.
“But I think much of the problem lies with late post. It can take ages for
a letter to get to a customer. And even if they reply promptly their payment
can take days to get through and miss the deadline.
“The advice we now offer is that if you are worried, go to a branch to pay
credit card bills as you at least know that it has been carried out.”
Meanwhile, the British Chamber of Commerce has admitted that small
businesses are also suffering from the postal slowdown. A spokesman said that
institutions such as banks and tax offices should be aware of the problems
facing small businesses.
He added: “We need as much support as we can at the moment. Customers, the
Inland Revenue and banks need not just be sympathetic to small businesses
and the problems that late post can cause. They should do whatever they can
to help firms manage the process.”
The public cannot receive compensation for the expense that lost and late
post causes. If they send a gift or money by post, they can receive up to £27
compensation from Royal Mail if it is lost completely. “The knock-on
effect of late post is called “consequential loss” and only if the customer has paid £3.50 for special delivery will they be able to claim compensation up to
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