Is it ever a good idea to buy something over the phone? We look at the risks involved and what you should do if you are called with a tempting offer.
All of us will be familiar with the dreaded telesales calls that try to tempt us with ‘can’t-miss’ offers, but is it ever a good idea to buy something over the phone?
In a word, no - buying over the phone can open you up to the risk of fraud as you’ll have no idea who is really on the other end of the phone; what’s more, even if the caller is genuine, it prevents you from shopping around and getting the best deal possible on a product you probably don’t need anyway.
What’s the problem?
The main problem with buying over the phone is that there's no way of knowing who is truly on the other end of the phone and if they actually represent the company they claim to. Even if the caller tells you they are from a company you have regular dealings with and whom you trust, they could be calling from anywhere and there’s no way of telling if the call is legitimate.
You should also give some thought to whether or not you actually need this product. If you weren’t looking around for it already then chances are you don’t need it, and it will turn out to be an impulse buy you could regret.
Additionally, when it comes to making a purchase, whether that’s a financial product such as insurance, or something else, you should always shop around first to get an idea of what’s available on the market. That way you can find the product that’s truly right for you and avoid paying a penny more than you need to. As such buying something someone offers you over the phone means you are missing out on scoping out the competition, and are unlikely to be getting the best deal.
What should I do?
It’s really important to remember that if you are called out of the blue by a company who are asking you to buy anything, even if they claim to be from a company you know, do not make the purchase there and then. If you are interested in what they are offering tell them you’ll think about it, then hang up and contact the company directly after researching your options.
If the person calling you is from a company you haven’t heard of, research them first on the internet to make sure they are genuine. You can check a financial company is legitimate by checking the FSA register. If your research throws up anything that makes you feel unsure about the company, it’s best to steer clear. Remember that if a company is offering something to you that sounds too good to be true, it almost always will be.
If you do decide to buy, you should first shop around and make sure you are getting the best deal in terms of quality and the price you’re getting it for. It’s likely that you will be able to find it for a better price either online or on the high street.
What if I’m asked for personal details?
The other issue that arises from buying something over the phone is the personal information you may be asked to divulge. If you are asked for personal information over the phone such as date of birth or your address, you should be on your guard.
Never give out your bank details over the phone and never, ever give out passwords or PINs – legitimate companies won’t ask for these. Instead, call the company back direct (that means not necessarily on the number they have given you) if they claim to be calling regarding an existing account you have.
On the whole the moral of the story is to treat callers who ask you to make a purchase over the phone with extreme caution. Always do your research to make sure you’re getting the best price for a product you really need, and more importantly, to make sure you aren’t getting caught out by a scam.
