FAIR trading chiefs are warning local pensioners to be on their guard after threatening letters demanding money.

The letters, claiming to be from psychics, promise 'important revelations' in return for cash. One letter demands £29 to ward off 'enemies lying in wait' as 'Pluto enters your sign' -- but then asks for a date of birth. Another claims to be from a 92 year old woman who will place the recipient in her will -- in return for a minimum payment of £20. John Bridgeman, director general at the office of fair trading, said: "I am concerned that these letters deliberately use scare tactics to extort money out of people. Consumers should deal with these sorts of letter in two ways -- send them to their local trading standards department and, under no circumstance, send any money."