Bad products and services cost UK consumers around £6.6 billion last year, but over a third of those people who experienced problems didn't bother to complain.
Figures reported by the Office of Fair Trading (OFT) show that almost half of the consumers had problems with financial services and professionals, costing them, on average, £533 per person, as well as complaints about home repairs, costing them £234 on average.
The OFT took a poll of 10,000 customers and the majority of complaints were about estate agents, house builders, pension companies, lawyers and accountants, but the area where consumers lost most money was with regard to insurance, where each person, on average, lost more than £1,000.
Defective goods and poor service
34 per cent of the people polled reported one or more problems in the last year, with 542 problems found for every 1,000 people. This equates to approximately 26.5 million problems across the UK's population over the last 12 months.
A quarter of the complaints were about defective goods and almost a third of the difficulties were regarding poor service. Four per cent of those problems led to customers losing over £1,000.
Complaints
Only 64 per cent of consumers polled complained or did anything to try and resolve their problem. Chief Executive of the OFT, John Fingleton, says: "Only five per cent of people in the UK report their complaint through channels such as trading standards and Consumer Direct."
Steve Wiseman, who runs the Norwich and District Citizens Advice Bureau and is author of 'Leaves on the Line: How to Complain Effectively', says: "It's amazing what you can achieve by putting pen to paper. So many people don't bother to complain that you have a high chance of getting compensation just by making the effort."
In his book Steve outlines how you can gain compensation, or resolve problems, regarding holidays, transport, finance and eating out.
He says: "Most companies have a good complaints procedure and various industries, such as the financial services, are regulated so if the company is resistant to resolving the matter, you can refer your complaint to the sector's ombudsman to fight the matter for you or, failing that, the small claims court."
The small claims court
For consumers who are having trouble getting any response from those they have complained to, the small claims court can be a way for people to receive compensation.
The court deals with complaints such as shoddy workmanship (e.g. cowboys and builders), faulty goods, damage to property, or goods not supplied. It's a quick and informal process, designed especially for the layman - no lawyers are needed - for consumers to get their money back.
Veronica Newman, author of 'DIY Small Claims Kit', says: "Just by threatening to take someone to the small claims court you can get the complaint resolved. A huge number of cases are settled out of court because people don't want to go through the time of going to court. Often all it takes is a County Court Claim Form to get them to see sense and pay you compensation."
Further information
10 tips on how to complain
Had a holiday from hell? How to get compensation
Having trouble with trains?
10 tips to keep your solicitor's costs down
Getting your money back - the easy way - how to tackle the small claims court
Small claims: do I have a winning case?