Fairer terms for care home residents

12/04 30 January 2004

The OFT is helping older people to get fairer contract terms from care homes with new guidance issued today.
Download the Fair terms for care leaflet pdf file (314 kb)

Fair terms for care is a guide to unfair terms in privately funded care home contracts. It is aimed at those thinking about entering residential care who are paying fees for all or part of their care. The leaflet highlights that prospective residents should have straightforward, written contracts in clear, easy to understand language, and in a suitable format, such as large print.

Prospective residents, and those helping them, are advised to take their time to read the terms thoroughly and to ask for things to be explained to them before signing the contract so that they know what they are agreeing to. The leaflet includes a list of useful contacts who can provide advice.

Information that should be given in the contract includes:

full details of the care and services being provided
how the fees or charges are calculated and when they are due
what additional services have to be paid for
the resident's rights and responsibilities
the period of notice required to end the contract.

The leaflet follows publication of guidance for professional advisers about unfair terms in care home agreements issued in October 2003.

John Vickers, OFT Chairman, said: 'Choosing a care home is an important decision and it is vital that consumers are properly aware of what they are signing up to. This guidance arms them with the information they need about contract terms in order to help choose the right home for their needs.'

NOTES

1. The Unfair Terms in Consumer Contracts Regulations (UTCCRs) came into force in 1999 (superseding the UTCCRs 1994) and apply to standard contract terms used with consumers. The UTCCRs protect consumers against unfair standard terms in contracts they make with traders.

2. The OFT, together with certain other bodies, can take legal action to prevent the use of potentially unfair terms. A term is unfair if, contrary to the requirement of good faith, it causes a significant imbalance in the parties' rights and obligations under the contract, to the detriment of consumers. An unfair term in a contract covered by the UTCCRs is not binding on the consumer. Ultimately, only a court can decide whether a term is unfair.

3. Download Guidance on unfair terms in care home contracts pdf file (214 kb).

You can download 'Unfair contract terms guidance' (oft 311) from the publications page under Reports/Unfair contract terms.

Download Unfair standard terms pdf file (59 kb).

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