The truth about concert promoters' rip-off fees

The tickets for Rod Stewart's gig, for example, were expensive enough, but then the charges went too far

Rod Stewart (Getty)

Those with long memories will recall when Rod Stewart was a bit of a lad and known as Rod the Mod. One of his biggest hits back then was “Maggie May,” which fans at his concerts enjoy singing along to even now, 44 years after it topped the charts.

But when people attending his gig at the Ageas Bowl in Southampton next June join in, they may choke a little on the lines: “I know I keep you amused, but I feel I’m being used”.

That’s because they will be justified in feeling that the concert promoters have taken them for a bit of a ride by adding in lots of costs on top of the expense of the tickets. These are expensive enough at £55, £75 and £95 for the three price brackets, but that’s just the start of it – as reader Stuart Gregson told me. He was shocked to discover that the booking fee is another 10 per cent on top of the ticket price. And, of course, the fee is charged for each ticket, not per booking.

Then is there a delivery charge of £5.95, he reports. That means buying two £55 tickets will actually cost £127, or £63.50 each.

And still that’s not the end of it, Stuart said. For next comes the issue of rip-off car parking charges. “For the park and ride it is £15 per vehicle – or £20 if you pay on the day. That compares with the £7.50 I paid for the same park and ride when I went to a Test match in the cricket at the Ageas Bowl last year.”

Stuart’s view is simple: “What a rip off!” He added that because of the “inflated booking fees and car parking charges”, he decided not to go. I don’t blame him and suspect that many of you have experienced similarly annoying ticket rip-offs.

Is there anything we can do about it? The sad truth is that ticket companies can charge whatever they like as the fees aren’t restricted by regulations that protect consumers from excessive card surcharges, according to the consumer group Which?.

Instead, rules relating to ticket charges are found in the Committee of Advertising Practice code, which is administered by the Advertising Standards Authority. These rules simply require all compulsory fees to be clearly disclosed at the outset when the ticket price is first displayed, but there’s no restrictions on rates.

So what can you do? Take a lead from Stuart and vote with your feet. If we all refused to pay the fees and didn’t buy the tickets, the concert promoters would have to think again.

Stop lenders being jailers for the new mortgage misfits

Are you a mortgage prisoner? Fresh fears have been raised that the tougher new lending rules introduced last year have made it impossible for certain groups – such as older borrowers, pregnant women or those with irregular income – to remortgage.

This means when they come to the end of a decent fixed-rate deal, they have no alternative than to go on to a lender’s standard variable rate, which is almost certainly much more expensive.

I spoke about the problem to Adrian Anderson, director of the mortgage broker Anderson Harris. He said: “This issue has been raised repeatedly in the media but the majority of lenders have not budged. If banks are not going to make things easier for these mortgage prisoners, then it is essential that the regulator intervenes.”

So it was good news that the Financial Conduct Authority revealed this week that it is investigating the mortgage market. Its two key concerns are that consumers are confused by the mortgage market, and that regulation made it too difficult for challenger lenders to enter the market.

But it is also looking at lending firms’ conduct and relationships, and that should throw up evidence of banks not being sensible or fair when it comes to applying the new rules to existing borrowers.

It’s right that we now have stricter mortgage rules, but lenders must not be too rigid about them and penalise existing borrowers. We simply need a common-sense approach and the City watchdog must ensure that happens.

Tempted by a low-cost loan? It may not stay that way

Loans are getting cheaper and cheaper. This week M&S Bank sent out a press release trumpeting its lowest-ever loan rate. It is charging just 3.5 per cent APR (representative) on loans between £7,500 and £15,000.

Now, while that may seem like great news if you need to borrow a barrow load of cash, you shouldn’t be focusing on the 3.5 per cent part of the deal. In fact, the key word to consider in the offer is “representative”.

What that means is that if you are pretty well-off and probably don’t really need a loan, you might qualify for the low rate. But if you have a financial emergency, such as needing a new car which you can only afford by borrowing, I’m pretty sure you won’t get the deal.

Instead you will be offered a loan at a much higher rate. If you can afford it, that may not be such a terrible outcome – but the danger is you end up agreeing to a deal that you can’t really afford.

It can easily happen. I have known people who have worked out what their repayments would be at the quoted “representative” rate – and then ended up signing up to a much more expensive deal after applying for the loan.

Here is the problem – anyone seeing such a low rate could be tempted into needless debt. I’m not having a go at M&S or any company offering personal loans; I just worry that at such a low price, people who can’t afford to pay the higher rate they will almost certainly be offered will tie themselves to a financial commitment that will bring woe.

Some people tempted by the low headline rate will simply be turned down for the loan, which will give them financial problems in the future. That’s because it will be recorded on their credit record, making it harder for them to get affordable loans in the future.

The answer is simple: force companies to put the range of rates they offer on show and reveal how many applicants they accept. So they should say: “We offer loans from 3.25 to 10 per cent and turn down three out of four people.” That would reduce the temptation to take out easy loans at a stroke.