HAVE you ever been asked to pay for goods and services in advance. If you have what are your legal rights?

Paying in advance can be as simple as putting down a deposit to reserve an item. If you change your mind, you will probably lose your money - unless you can prove that the deposit was returnable. Making a down payment commits you to going ahead with your purchase.

If you then decide that you don't want the item, you could not only lose your deposit, but the trader may sue you for loss of profit. It is best to try to negotiate with the trader to come to an agreement which avoids advance payments, if possible. York Trading Standards advises that there are risks in paying for goods and services in advance. If the business you are dealing with goes out of business, you may be left without any hope of getting your money back or receiving your order. The larger the amount of money you have to put down and the longer the completion period, the greater the risk.

You may end up with a home-improvement job half-finished, or completed in a poor manner. Even reputable, long-established businesses can run into difficulties, quite often without warning.

It is worth considering going elsewhere if a trader insists that you pay up front and there does not seem to be a good reason. Do not be rushed or pressurised into a decision which you might regret later.

There are, however, times when prepayment is unavoidable. York Trading Standards advises that if you do have to pay upfront, take note of the following:

Know what you're agreeing to: Insist on a written contract, including completion, delivery dates and details of deposits. This will help if problems arise in the future.

Don't pay more than you have to: only pay the full amount if you really have to. Where possible ask to pay in stages as work is completed satisfactorily. Try to keep some money back to be paid on completion.

Pay on credit: If you are buying an item or service priced at £100 or more by credit, you have extra rights - even if only the deposit was paid by credit. You may be able to claim your money back from the credit company if you run into problems.

Find a trader who belongs to a trade association: If things go wrong, the trade association could help resolve the problem. Some trade associations have codes of practice and low-cost dispute resolution services to help if problems arise. Remember to check this with the association first.

- If you require further information on this or any other consumer matter please telephone York Trading Standards on (01904) 551562, visit the Trading Standards reception area at 9 St Leonard's Place, York, or email the department at trading.standards@york.gov.uk. The fax number is (01904) 551590.