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I'm Dominic Littlewood and I'm here to champion your consumer rights. | 0:00:02 | 0:00:06 | |
I don't mind who I speak to, I just want to try and resolve it. | 0:00:06 | 0:00:08 | |
Any problem, no matter how big or small, | 0:00:08 | 0:00:11 | |
I will help you get the service you deserve. | 0:00:11 | 0:00:13 | |
That would worry me, about the quality of his work. | 0:00:13 | 0:00:17 | |
Whether it involves getting your money back... | 0:00:17 | 0:00:20 | |
My heart just sank because I thought, where am I going to find this extra money? | 0:00:20 | 0:00:24 | |
..or taking on your contract conundrums. | 0:00:24 | 0:00:26 | |
They stated it was not down to them, that it was down to another company. | 0:00:26 | 0:00:31 | |
I'm here to help. | 0:00:31 | 0:00:32 | |
Today I hear from two families who have first-hand experience | 0:00:34 | 0:00:38 | |
of just how precarious the second-hand car market can be. | 0:00:38 | 0:00:42 | |
On the sale certificate, | 0:00:42 | 0:00:44 | |
it states "the above-mentioned vehicle is not fit for purpose." | 0:00:44 | 0:00:48 | |
If I ever tried to turn on the engine and move, it would basically be a mini bomb. | 0:00:48 | 0:00:52 | |
We show you how not to sell on your second-hand phone. | 0:00:52 | 0:00:55 | |
From the moment I sent my phone off to them, | 0:00:55 | 0:00:58 | |
it took 2.5 months for me to get my money. | 0:00:58 | 0:01:01 | |
Crucial advice from the experts on how to know what you're really shelling out on. | 0:01:01 | 0:01:06 | |
Buying a second hand car is risky | 0:01:06 | 0:01:08 | |
because you can't see inside an engine. | 0:01:08 | 0:01:12 | |
I'm taking on your consumer problems to make sure you don't get done. | 0:01:12 | 0:01:15 | |
The used car market is a massive industry in the UK. | 0:01:22 | 0:01:25 | |
In 2012, there were over seven million of them sold. | 0:01:25 | 0:01:30 | |
But you need to be careful | 0:01:30 | 0:01:31 | |
because you don't always get what you're bargaining for. | 0:01:31 | 0:01:35 | |
If my inbox is anything to go by, there are a lot of you out there | 0:01:36 | 0:01:39 | |
who end up having issues with used vehicles. | 0:01:39 | 0:01:42 | |
One couple who have written to me on this exact subject is Danielle and Clive from Essex. | 0:01:43 | 0:01:49 | |
They bought a second-hand car in April 2013. | 0:01:49 | 0:01:53 | |
We needed a bigger family car so it could transport us, | 0:01:53 | 0:01:57 | |
our two children and our two dogs. | 0:01:57 | 0:01:59 | |
Clive needed the car for work and we just needed a really good, reliable car. | 0:01:59 | 0:02:03 | |
But most importantly, a used car with an affordable price tag | 0:02:04 | 0:02:08 | |
as the couple already had a little run-around they planned on keeping. | 0:02:08 | 0:02:12 | |
We found a Mazda 6 on the Auto Trader. | 0:02:12 | 0:02:15 | |
It had low mileage, it was a high spec | 0:02:15 | 0:02:18 | |
and it was the perfect size for our family. | 0:02:18 | 0:02:21 | |
The car was advertised by a company called Blue Gate Cars Limited | 0:02:21 | 0:02:25 | |
and after an initial phone call to the company's salesman, | 0:02:25 | 0:02:28 | |
the couple headed to the car lot in East London. | 0:02:28 | 0:02:32 | |
Blue Gate Cars looked very professional. | 0:02:32 | 0:02:34 | |
Danny was the salesman there. He was really friendly and very helpful. | 0:02:34 | 0:02:38 | |
He showed us everything we wanted to see. | 0:02:38 | 0:02:41 | |
He answered all of our questions very well. | 0:02:41 | 0:02:44 | |
My husband test drove the car and it was all good. | 0:02:44 | 0:02:48 | |
We were generally really pleased with what we saw. | 0:02:48 | 0:02:50 | |
The 2005 Mazda had 67,000 miles on the clock | 0:02:52 | 0:02:55 | |
and roughly three months MOT left on it. | 0:02:55 | 0:02:58 | |
It looked like the perfect motor for the family. | 0:02:58 | 0:03:01 | |
Excited, they made the decision to buy it | 0:03:05 | 0:03:07 | |
and paid £2,300 using their credit card. | 0:03:07 | 0:03:12 | |
This included a six month warranty. | 0:03:12 | 0:03:14 | |
The following day... | 0:03:15 | 0:03:16 | |
We went to collect the car. Danny came out and met us. | 0:03:16 | 0:03:20 | |
He gave us all the past MOTs, the logbook, | 0:03:20 | 0:03:24 | |
the manual for the car and off we went with the car. | 0:03:24 | 0:03:27 | |
As we were driving home, I was following my husband in the car | 0:03:29 | 0:03:33 | |
and I noticed there was a lot of black smoke | 0:03:33 | 0:03:35 | |
coming out of the exhaust. | 0:03:35 | 0:03:37 | |
When we got home, I called Blue Gate Cars and spoke to Danny. | 0:03:39 | 0:03:43 | |
He said it was because the car had been idle, sat on the forecourt | 0:03:43 | 0:03:47 | |
and it was quite usual for that to happen. | 0:03:47 | 0:03:51 | |
The couple accepted Danny's explanation | 0:03:51 | 0:03:53 | |
and were initially chuffed with a new acquisition. | 0:03:53 | 0:03:55 | |
As you can see, the car looks in perfect condition. | 0:03:55 | 0:03:59 | |
The engine is clean, the bodywork is clean. | 0:03:59 | 0:04:01 | |
It's very well polished. | 0:04:01 | 0:04:03 | |
When you get to the inside, it is valeted perfectly. | 0:04:03 | 0:04:07 | |
But looks can be deceiving. | 0:04:07 | 0:04:08 | |
Three weeks later, the car started acting up. | 0:04:08 | 0:04:11 | |
It would stall only to then restart, and the engine management light appeared on the dashboard | 0:04:11 | 0:04:17 | |
only to vanish again. Not very reassuring. | 0:04:17 | 0:04:20 | |
Clive put more oil in the car | 0:04:20 | 0:04:22 | |
and made sure that everything was as it should be. | 0:04:22 | 0:04:26 | |
He then drove the car to a local pub. | 0:04:26 | 0:04:29 | |
At that point he couldn't get the car to start at all. | 0:04:29 | 0:04:33 | |
We left the car there overnight and the next day, | 0:04:33 | 0:04:36 | |
we called the RAC out who attended the car. | 0:04:36 | 0:04:40 | |
They said it was misfiring. | 0:04:42 | 0:04:44 | |
They changed one of the spark plugs on the car and at that point, | 0:04:44 | 0:04:47 | |
the car seemed OK, once again. | 0:04:47 | 0:04:51 | |
The couple called Blue Gate Cars to discuss the issues they were having | 0:04:51 | 0:04:55 | |
and to find out whether any of these problems were covered in their warranty. | 0:04:55 | 0:04:59 | |
But despite repeated phone calls, | 0:04:59 | 0:05:01 | |
they were not getting the answers they wanted. | 0:05:01 | 0:05:03 | |
It felt like they were being fobbed off by the salesman, Danny. | 0:05:03 | 0:05:06 | |
He tried to say, "There's nothing wrong with the car." | 0:05:08 | 0:05:12 | |
At this point, he had started to not answer the phone very much to us. | 0:05:12 | 0:05:16 | |
We were both trying. I then resorted to e-mailing him about the car. | 0:05:16 | 0:05:21 | |
But the e-mails were never responded to, and the car continued to act up, | 0:05:21 | 0:05:26 | |
leaving the family back down to their one car. | 0:05:26 | 0:05:29 | |
It caused an inconvenience to me and my wife. | 0:05:29 | 0:05:32 | |
It's the not knowing whether you'll get to a place you're going to. | 0:05:32 | 0:05:35 | |
We bought it for the reliability and we're not sure of that any more. | 0:05:35 | 0:05:41 | |
With its MOT looming, the couple decided to take the car into a main Mazda garage | 0:05:41 | 0:05:46 | |
for a full-service. | 0:05:46 | 0:05:47 | |
But they were in for a shock. | 0:05:47 | 0:05:49 | |
It had engine management failure, catalytic converter failure. | 0:05:50 | 0:05:55 | |
There was no engine under tray. There was a misfire on cylinder two. | 0:05:55 | 0:05:59 | |
The lumber centre failed its MOT on emissions | 0:05:59 | 0:06:02 | |
and the rear brake pads were not as they should be. | 0:06:02 | 0:06:07 | |
There were bindings on the front brakes | 0:06:07 | 0:06:09 | |
and the rear break discs were rusty. | 0:06:09 | 0:06:11 | |
When I got this list, I was absolutely devastated. | 0:06:11 | 0:06:15 | |
-I was really upset, really shocked. -I am not surprised, | 0:06:17 | 0:06:21 | |
as Mazda had also told them the car was not fit for purpose | 0:06:21 | 0:06:24 | |
or roadworthy in its present condition. | 0:06:24 | 0:06:27 | |
Once again, Danielle got on the phone. | 0:06:27 | 0:06:29 | |
The first time I tried to reject the car was over the phone. | 0:06:29 | 0:06:32 | |
I spoke to Danny and he said I couldn't reject the car | 0:06:32 | 0:06:35 | |
because we had had the car and we had driven the car. | 0:06:35 | 0:06:37 | |
I then sent a letter and an e-mail. | 0:06:37 | 0:06:40 | |
The e-mail had no response at all and the registered letter, | 0:06:40 | 0:06:44 | |
they refused to sign for the letter. | 0:06:44 | 0:06:47 | |
With their rejection being refused, | 0:06:49 | 0:06:51 | |
the couple kept up their chase with Blue Gate Cars and eventually | 0:06:51 | 0:06:55 | |
Danny the salesman agreed to the work needed on the Mazda. | 0:06:55 | 0:06:58 | |
But over a week and half passed and still no work was done on the car. | 0:06:58 | 0:07:03 | |
Danny told the couple his workshop was too busy. | 0:07:03 | 0:07:06 | |
He said we could pay to have the car fixed ourselves and bill them. | 0:07:06 | 0:07:11 | |
But that was about the best gesture he could offer at that point, | 0:07:11 | 0:07:15 | |
which we were obviously not willing to do | 0:07:15 | 0:07:18 | |
after he had messed us around so much. | 0:07:18 | 0:07:21 | |
Things continued to go downhill when Danny broke some news to Danielle. | 0:07:21 | 0:07:26 | |
He stated the car had not been bought through Blue Gate Cars | 0:07:26 | 0:07:30 | |
but through a company called Diamond Tyres and Car Repairs Limited, | 0:07:30 | 0:07:34 | |
meaning Blue Gate Cars had no legal responsibility towards it. | 0:07:34 | 0:07:38 | |
But that wasn't all. He stated the car had been sold to them as scrap. | 0:07:38 | 0:07:44 | |
This is a copy of the receipt from Diamond Tyres and Cars. | 0:07:44 | 0:07:48 | |
On the sale certificate, it states "the above-mentioned vehicle is not fit for purpose. | 0:07:48 | 0:07:54 | |
"The customer accepts responsibility to put it in a roadworthy condition. | 0:07:54 | 0:07:58 | |
"The car is sold with defects, faults, repairs and lights on dashboard." | 0:07:58 | 0:08:04 | |
That is not the car that I purchased. | 0:08:04 | 0:08:06 | |
As on the original advert, and according to Danielle at the point of sale, | 0:08:07 | 0:08:11 | |
there was no mention of it not being fit for purpose or scrap. | 0:08:11 | 0:08:14 | |
Blue Gate Cars was now ignoring all of the couple's complaints | 0:08:16 | 0:08:20 | |
and Danielle desperately needed their second car. | 0:08:20 | 0:08:22 | |
Reluctantly, they paid over £500 to a local garage to fix their car | 0:08:24 | 0:08:28 | |
and get it to the point of being roadworthy. | 0:08:28 | 0:08:31 | |
I thought Dom might be able to get across to Blue Gate Cars, | 0:08:32 | 0:08:36 | |
how much they are affecting people's lives and thought that maybe | 0:08:36 | 0:08:40 | |
he could help us pursue this and get our money back. | 0:08:40 | 0:08:46 | |
Danielle and Clive's story sounds like a nightmare from start to finish. | 0:08:46 | 0:08:51 | |
Blue Gate Cars have a very strange way of doing business. | 0:08:51 | 0:08:54 | |
Firstly, they sell a car under one company name. | 0:08:54 | 0:08:56 | |
When you get your receipt, it's got a completely different one on it. | 0:08:56 | 0:09:00 | |
Also, they describe the car in a way that completely contradicts the paperwork they give you. | 0:09:00 | 0:09:05 | |
I think it's time I looked into this company. | 0:09:05 | 0:09:08 | |
When it comes to the buying and selling of used vehicles, | 0:09:09 | 0:09:11 | |
car dealers have a massive 74% share of the market. | 0:09:11 | 0:09:16 | |
This generates over £28 billion worth of sales annually. | 0:09:16 | 0:09:20 | |
Blue Gate Cars are one of these dealers. | 0:09:20 | 0:09:24 | |
I have been doing a little bit of research into them. | 0:09:24 | 0:09:27 | |
They're based in East London. One guess who is right next door to them? | 0:09:27 | 0:09:31 | |
Sadly, there are no prizes for right answers. | 0:09:31 | 0:09:33 | |
It is Diamond Tyres and Car Repairs Limited. | 0:09:33 | 0:09:36 | |
That's who Danielle's contract was with | 0:09:36 | 0:09:38 | |
and they're going to be my first port of call. | 0:09:38 | 0:09:40 | |
There are tens of thousands of used cars for sale at any one time in the UK | 0:09:49 | 0:09:53 | |
and if you pick a good one, | 0:09:53 | 0:09:55 | |
you should end up with years of trouble-free motoring. | 0:09:55 | 0:09:58 | |
But if you're no mechanic, how do you know | 0:09:58 | 0:10:00 | |
if you're buying a peach or a lemon? | 0:10:00 | 0:10:02 | |
To help us gain fruit from the tree of mechanical knowledge, | 0:10:05 | 0:10:08 | |
we have William, a mechanics instructor at West Thames College. | 0:10:08 | 0:10:12 | |
Buying a second car is risky because you can't see inside an engine. | 0:10:12 | 0:10:18 | |
You can't see inside the gearbox. | 0:10:18 | 0:10:21 | |
If you're buying a car sold as seen, | 0:10:21 | 0:10:23 | |
once you have taken the car down the road, there is no warranty. | 0:10:23 | 0:10:26 | |
OK, so, before you buy, there are certain checks that we consumers can do | 0:10:28 | 0:10:32 | |
to make sure what we're breaking the bank for doesn't break down. | 0:10:32 | 0:10:36 | |
When you're buying a second-hand car, | 0:10:36 | 0:10:38 | |
there's a few things you should look for in the body. | 0:10:38 | 0:10:41 | |
If we have a look at this Corsa, the door gap here is different | 0:10:41 | 0:10:44 | |
from the top to the bottom, so it is obvious there has been an accident at the front | 0:10:44 | 0:10:50 | |
and it has pushed the body in. | 0:10:50 | 0:10:52 | |
What we can look for in the boot of the vehicle is the crumble zone | 0:10:52 | 0:10:56 | |
where it has had a rear end accident and smash. | 0:10:56 | 0:10:59 | |
They've repaired the bumper and it all looks nice on the outside but | 0:10:59 | 0:11:02 | |
when you open the bonnet and lift up the carpet here it's all crumbled. | 0:11:02 | 0:11:06 | |
Folded in. | 0:11:06 | 0:11:08 | |
If you're looking at a wheel it may look pretty with a nice | 0:11:08 | 0:11:10 | |
hubcap on there but when it's removed there's dents and things | 0:11:10 | 0:11:16 | |
so it's been driven up and down curves or abused. | 0:11:16 | 0:11:21 | |
Leaking oil, | 0:11:21 | 0:11:22 | |
if we look at the car over here there's a little puddle underneath. | 0:11:22 | 0:11:26 | |
You can see that it's a little telltale sign | 0:11:26 | 0:11:29 | |
that there's leaks on the vehicle. | 0:11:29 | 0:11:32 | |
All these checks are easy enough for anyone to do | 0:11:32 | 0:11:35 | |
and there are yet more ways in which you can buy with added confidence. | 0:11:35 | 0:11:38 | |
Have a good look, take your time. | 0:11:39 | 0:11:43 | |
Start her, warm the engine up to see if there's any | 0:11:43 | 0:11:45 | |
smoke coming out the back, | 0:11:45 | 0:11:47 | |
the temperature gauge is working. Little things. | 0:11:47 | 0:11:50 | |
Take it for a test drive. | 0:11:50 | 0:11:52 | |
Obviously, if the chap says you can't take it for a test drive | 0:11:52 | 0:11:55 | |
and you can't do some of the things you want to do, walk away. | 0:11:55 | 0:11:58 | |
OK, you've test driven the car, it all seems OK. | 0:12:00 | 0:12:03 | |
Plus it seems to have months left on the MOT. | 0:12:03 | 0:12:06 | |
But that isn't always a sign that everything is fine. | 0:12:06 | 0:12:09 | |
The MOT covers suspension, brakes and things. | 0:12:11 | 0:12:15 | |
When you're buying a motor vehicle | 0:12:15 | 0:12:16 | |
and the MOT's only got nine months or eight months left on the vehicle, | 0:12:16 | 0:12:20 | |
where has it been in that three or four months? | 0:12:20 | 0:12:25 | |
Check the mileage. Has it got a lot of mileage? | 0:12:25 | 0:12:27 | |
Is there any damage been done since then? | 0:12:27 | 0:12:29 | |
The MOT doesn't mean to say the condition of the car | 0:12:29 | 0:12:33 | |
is in good mechanical working order. | 0:12:33 | 0:12:35 | |
It's only a pass on that day. | 0:12:35 | 0:12:37 | |
So what can we do about getting a definitive answer on a car's | 0:12:38 | 0:12:41 | |
road worthiness? | 0:12:41 | 0:12:43 | |
My advice, get an independent mechanic or could you | 0:12:43 | 0:12:46 | |
ask for a new MOT? Some garages now do £30, £35 for an MOT. | 0:12:46 | 0:12:52 | |
It's not a lot to ask. Could you have an up to date, brand-new MOT? | 0:12:52 | 0:12:56 | |
If they refuse, say they're not going to, there may be a reason. | 0:12:56 | 0:13:01 | |
Even if you offer to pay for the MOT yourself. | 0:13:01 | 0:13:03 | |
All duly noted, William. | 0:13:03 | 0:13:05 | |
So, when buying a second-hand car, remember, | 0:13:05 | 0:13:08 | |
if you want that extra piece of mind ask for a new MOT. | 0:13:08 | 0:13:11 | |
Study the car's service history. | 0:13:12 | 0:13:14 | |
Make sure everything that should have happened to the car to | 0:13:14 | 0:13:17 | |
maintain its upkeep is all present and correct. | 0:13:17 | 0:13:20 | |
Take a checklist with you of what to look over on any car. | 0:13:21 | 0:13:24 | |
Work your way through the list methodically checking every | 0:13:24 | 0:13:27 | |
part of the vehicle. | 0:13:27 | 0:13:28 | |
Remember those tips next time you want to buy a used motor | 0:13:31 | 0:13:34 | |
and hopefully, you won't get taken for a ride. | 0:13:34 | 0:13:36 | |
I've been called in to help Danielle | 0:13:43 | 0:13:45 | |
and Clive Deighton from Essex after their £2,300 second-hand car turned | 0:13:45 | 0:13:51 | |
out to be nothing like what they thought they were buying. | 0:13:51 | 0:13:53 | |
Since we've had it various things have gone wrong with it. | 0:13:55 | 0:13:58 | |
I put oil in about every two to three weeks, a litre of oil. | 0:13:58 | 0:14:02 | |
There's no sign of any leaking out of the bottom | 0:14:02 | 0:14:04 | |
so I assume it's burning the oil. | 0:14:04 | 0:14:06 | |
The couple paid out... | 0:14:06 | 0:14:09 | |
Just to get the car road worthy but have | 0:14:09 | 0:14:11 | |
since been told by Blue Gate Cars that it was sold to them | 0:14:11 | 0:14:14 | |
as scrap and from a different company called Diamond Tyres. | 0:14:14 | 0:14:18 | |
This means Blue Gate Cars is not legally responsible | 0:14:18 | 0:14:21 | |
for the car. I think it's time I started my own form of repairs. | 0:14:21 | 0:14:26 | |
I've done some checks and I've found out that Diamond Tyres | 0:14:26 | 0:14:29 | |
and Car Repairs Ltd is a registered company | 0:14:29 | 0:14:31 | |
and the director of that is called Khurum Khalid. | 0:14:31 | 0:14:35 | |
So, let's give Khurum Khalid a call. | 0:14:36 | 0:14:39 | |
-Hello. -Hi, is that Khurum? -Yes. | 0:14:42 | 0:14:44 | |
It's Dominic Littlewood calling from the BBC. Good afternoon. | 0:14:44 | 0:14:47 | |
Good afternoon to you too. | 0:14:47 | 0:14:49 | |
Khurum is happy for us to use his side of the conversation | 0:14:49 | 0:14:52 | |
so I bring him up to speed with the case. | 0:14:52 | 0:14:54 | |
The Deightons may have had all their discourse with salesman Danny | 0:14:54 | 0:14:58 | |
at Blue Gate Cars but their contract is with Khurum's company. | 0:14:58 | 0:15:02 | |
Confusing, eh? She has requested a refund. | 0:15:02 | 0:15:05 | |
We would like to try and sort that out and see | 0:15:05 | 0:15:07 | |
if we can initiate that refund and get that done for her. | 0:15:07 | 0:15:10 | |
-Give me the details, please. -The lady's called Danielle Deighton. | 0:15:10 | 0:15:14 | |
Danielle Deighton, OK. | 0:15:14 | 0:15:16 | |
She bought a Mazda 6 from you on the 28th of April, 2013. | 0:15:16 | 0:15:21 | |
I've got the advert here from Auto Trader. | 0:15:21 | 0:15:24 | |
And it sounds lovely in the advert but as you've probably | 0:15:24 | 0:15:27 | |
realised she found out it had a lot of major problems afterwards. | 0:15:27 | 0:15:30 | |
Hopefully Khurum is going to review Danielle's case. | 0:15:30 | 0:15:34 | |
I'd like you to acknowledge the fact that this car does have major | 0:15:34 | 0:15:37 | |
-problems. -I have to speak to my colleague. | 0:15:37 | 0:15:40 | |
-Then we take it from there. -Smashing. | 0:15:40 | 0:15:44 | |
I'll look forward to speaking to you then. | 0:15:44 | 0:15:46 | |
-Thank you. -Thanks, bye-bye. | 0:15:46 | 0:15:48 | |
OK, it's Friday, which it is. | 0:15:48 | 0:15:51 | |
We'll have an answer for you before Tuesday. | 0:15:51 | 0:15:53 | |
The important point was he is the director, he's taken the call. | 0:15:53 | 0:15:57 | |
I've confirmed his mobile | 0:15:57 | 0:15:58 | |
so I'm expecting on Tuesday they're probably going to take it back. | 0:15:58 | 0:16:03 | |
And all I'll say is if they don't, well, | 0:16:03 | 0:16:08 | |
watch out and see what happens. | 0:16:08 | 0:16:09 | |
Because I'll be reaching for the rule book | 0:16:10 | 0:16:12 | |
and speaking of rules I think it's time you found out just what | 0:16:12 | 0:16:16 | |
rights you had when buying a used vehicle. | 0:16:16 | 0:16:19 | |
Enter consumer rights expert Richard Headland. | 0:16:19 | 0:16:22 | |
When you're buying a second-hand car it really depends where you're | 0:16:22 | 0:16:25 | |
buying it from as to what rights you get under the law. | 0:16:25 | 0:16:28 | |
So, if you buy from a dealer, whether that's a franchise dealer or | 0:16:28 | 0:16:30 | |
an independent dealer you're covered by the Sale of Goods Act. | 0:16:30 | 0:16:33 | |
That means the car has to be as described, fit for purpose | 0:16:33 | 0:16:36 | |
and of satisfactory quality. | 0:16:36 | 0:16:38 | |
As I thought, the law is on Danielle and Clive's side, | 0:16:39 | 0:16:42 | |
as the couple were led to believe | 0:16:42 | 0:16:44 | |
they were buying a good condition family car. | 0:16:44 | 0:16:46 | |
But the subsequent report from Mazda stated that their car was not | 0:16:46 | 0:16:50 | |
fit for purpose and un-roadworthy. | 0:16:50 | 0:16:53 | |
If something goes wrong with the car in the first six months after | 0:16:53 | 0:16:56 | |
you buy it, the onus is on the seller to prove to you that there | 0:16:56 | 0:16:59 | |
was not something wrong with the car when you bought it. | 0:16:59 | 0:17:03 | |
And it only took three weeks before things started going wrong | 0:17:03 | 0:17:07 | |
with Danielle's Mazda. | 0:17:07 | 0:17:08 | |
And so far, Blue Gate Cars hasn't lifted a finger to help. | 0:17:08 | 0:17:11 | |
So, what about the original advert? | 0:17:13 | 0:17:15 | |
Some of it may be correct but not all of it, | 0:17:15 | 0:17:17 | |
and it definitely didn't mention it was not fit for purpose. | 0:17:17 | 0:17:20 | |
They have to make sure their description is accurate | 0:17:20 | 0:17:23 | |
and obviously things like mileage should be accurate. | 0:17:23 | 0:17:26 | |
Any kind of problems with the car. | 0:17:26 | 0:17:28 | |
All of that stuff should be in good order before they try to sell it. | 0:17:28 | 0:17:31 | |
And that certainly doesn't seem to be the case with Danielle's Mazda, | 0:17:31 | 0:17:34 | |
and Blue Gate have passed the buck to Diamond, | 0:17:34 | 0:17:37 | |
who, according to the paperwork, were selling it as scrap. | 0:17:37 | 0:17:40 | |
How confusing. | 0:17:40 | 0:17:41 | |
'Well, the weekend has been and gone and so has Monday and Tuesday | 0:17:44 | 0:17:48 | |
'and still no call back from Khurum Khalid, | 0:17:48 | 0:17:50 | |
'company director of Diamond Tyres. | 0:17:50 | 0:17:53 | |
'But I've managed to track him down. | 0:17:54 | 0:17:56 | |
'Only for him to tell us that Diamond Tyres | 0:17:56 | 0:17:58 | |
'and Car Repair Ltd has gone into liquidation.' | 0:17:58 | 0:18:01 | |
And that is who Danielle's contract is with. | 0:18:01 | 0:18:04 | |
This could potentially mean that anyone who is owed money | 0:18:05 | 0:18:08 | |
by this company cannot start or continue legal | 0:18:08 | 0:18:10 | |
'proceedings against them whilst in liquidation. | 0:18:10 | 0:18:13 | |
'Not good at all, if true.' | 0:18:13 | 0:18:16 | |
In answer to this news we've put together an e-mail to Khurum | 0:18:17 | 0:18:20 | |
and in it we've told him that Danielle and Clive have every right | 0:18:20 | 0:18:23 | |
to reject their car under Section 14 of the Sale of Goods Act 1979. | 0:18:23 | 0:18:28 | |
Because it wasn't fit for purpose or as described. | 0:18:28 | 0:18:31 | |
And in the original Auto Trader advert it wasn't | 0:18:31 | 0:18:34 | |
advertised as scrap. | 0:18:34 | 0:18:35 | |
And if he is adamant that car was sold under Diamond Tyre Car | 0:18:35 | 0:18:39 | |
Repairs Ltd, not Blue Gate, there's also false advertising going on. | 0:18:39 | 0:18:43 | |
And I've also checked with Companies House and they tell me | 0:18:43 | 0:18:46 | |
that Diamond Tyres and Car Repairs Ltd is not in liquidation. | 0:18:46 | 0:18:49 | |
It's still very much active. | 0:18:49 | 0:18:51 | |
Let's see what he's got to say about that, shall we? | 0:18:51 | 0:18:55 | |
Sent. | 0:18:55 | 0:18:56 | |
Danielle and Clive have tried to reject the car right from the | 0:18:58 | 0:19:01 | |
start of this saga believing it was not fit for purpose. | 0:19:01 | 0:19:05 | |
But despite having shelled out over £500 to get it road-worthy | 0:19:05 | 0:19:09 | |
and through its MOT, it's still not right. | 0:19:09 | 0:19:11 | |
We are on our way down to a garage to get a final | 0:19:13 | 0:19:16 | |
opinion on what's wrong with the car, | 0:19:16 | 0:19:18 | |
how much it's going to cost to fix and where to go from here. | 0:19:18 | 0:19:21 | |
I also want the couple to try and work out | 0:19:22 | 0:19:25 | |
whether the problems with the car could have been | 0:19:25 | 0:19:27 | |
present at the point of sale or whether it's something they've done. | 0:19:27 | 0:19:31 | |
Enter mechanic Robert Milligan. | 0:19:31 | 0:19:33 | |
Is the car misfiring, playing around at the moment? | 0:19:35 | 0:19:38 | |
At the moment there's a lot of black smoke coming out of the car. | 0:19:38 | 0:19:42 | |
And it's generally not working very well. | 0:19:42 | 0:19:45 | |
OK, let's run it in and have a look. | 0:19:46 | 0:19:48 | |
As a starting point of investigation Robert hooks the Mazda up to | 0:19:49 | 0:19:52 | |
a diagnostic machine. | 0:19:52 | 0:19:54 | |
The car itself, most of the work you've had done, | 0:19:55 | 0:19:57 | |
I can't fault anything on it today. | 0:19:57 | 0:20:00 | |
Very hard for me to actually make a judgment call | 0:20:00 | 0:20:02 | |
on what the vehicle was like when you bought it. | 0:20:02 | 0:20:05 | |
Fair enough, but despite all said, the car is still not 100% right. | 0:20:06 | 0:20:11 | |
-Robert digs a little deeper. -I'm just taking out the coil packs. | 0:20:12 | 0:20:17 | |
Have a look at the spark plugs | 0:20:17 | 0:20:19 | |
to see if I can see what cylinder is causing the oil. | 0:20:19 | 0:20:24 | |
Definitely burning oil in cylinder two. | 0:20:26 | 0:20:28 | |
If you look at that spark plug it's all crystallised up. | 0:20:28 | 0:20:31 | |
That's the burning oil in the cylinder that's doing it. | 0:20:32 | 0:20:35 | |
That's how a spark plug should look. | 0:20:35 | 0:20:37 | |
As you had these changed eight months ago, | 0:20:37 | 0:20:40 | |
that's how they should all look. | 0:20:40 | 0:20:42 | |
What the actual problem is I couldn't tell you. | 0:20:42 | 0:20:44 | |
All I can tell you is it's burning oil in cylinder two. | 0:20:44 | 0:20:47 | |
Could be a sticky piston ring. Could be a worn bore. | 0:20:47 | 0:20:51 | |
So how does damage like this come about? | 0:20:51 | 0:20:53 | |
If the car has been run low on oil over its life. | 0:20:55 | 0:20:58 | |
To diagnose that problem of where your oil's burning I'm going to | 0:20:59 | 0:21:02 | |
have to remove the cylinder head. | 0:21:02 | 0:21:05 | |
And have a look inside the bore. | 0:21:05 | 0:21:07 | |
You're into at least £1,200-1,500 to diagnose the actual fault. | 0:21:07 | 0:21:12 | |
To put the engine back together again so you could drive it. | 0:21:12 | 0:21:15 | |
What's the worst case scenario? | 0:21:15 | 0:21:17 | |
All said and done you're talking about a new engine. | 0:21:17 | 0:21:20 | |
And how much would a new engine cost? | 0:21:20 | 0:21:22 | |
Off the top of my head about 5,000-5,500. | 0:21:24 | 0:21:28 | |
So it's not worth it for the amount we paid for the car. | 0:21:29 | 0:21:32 | |
5,500? | 0:21:33 | 0:21:35 | |
-Wow! -Ouch. | 0:21:36 | 0:21:38 | |
Not good news and it's more than double what they paid for the car. | 0:21:38 | 0:21:42 | |
But these types of problems don't just appear overnight. | 0:21:42 | 0:21:45 | |
If this car had been run low on oil before our couple bought it, | 0:21:46 | 0:21:50 | |
it could explain why from day one of owning it, | 0:21:50 | 0:21:53 | |
it always had a smoky exhaust and been using excessive oil. | 0:21:53 | 0:21:57 | |
We've decided we don't want the car. | 0:21:58 | 0:22:01 | |
It can't fulfil our uses and we want to give the car back | 0:22:01 | 0:22:08 | |
and get our money back. | 0:22:08 | 0:22:10 | |
And they're not the only ones I've heard from | 0:22:13 | 0:22:16 | |
who have had an unhappy experience with Blue Gate cars. | 0:22:16 | 0:22:18 | |
Meet Stephanie Baynes from east London. | 0:22:20 | 0:22:23 | |
In May 2013, she also bought a car from them. | 0:22:23 | 0:22:27 | |
Stephanie looked at cars on both the Blue Gate | 0:22:27 | 0:22:30 | |
and Diamond Tyres forecourts. | 0:22:30 | 0:22:32 | |
After a lot of um-ing and ah-ing, | 0:22:32 | 0:22:34 | |
she thought one vehicle in particular stood out. | 0:22:34 | 0:22:36 | |
It was Kia Sorento, 4x4 estate, | 0:22:36 | 0:22:39 | |
so I said to Danny, "I really like this car, I really want this car." | 0:22:39 | 0:22:44 | |
Hold on a second! | 0:22:44 | 0:22:46 | |
Danny the salesman? | 0:22:46 | 0:22:48 | |
The very same man the Deightons bought their car from? | 0:22:48 | 0:22:51 | |
Stephanie agreed to buy the Kia at £3,650 from Blue Gate Cars, | 0:22:52 | 0:22:57 | |
but just like Danielle... | 0:22:57 | 0:22:59 | |
It said on the paperwork, "This car is not fit for any purpose." | 0:22:59 | 0:23:04 | |
Well, I asked him, "Does this apply to me? | 0:23:04 | 0:23:06 | |
"This makes no sense." He said, "No, there's nothing wrong." | 0:23:06 | 0:23:09 | |
I said, "Are you sure?" He said, "Yeah." | 0:23:09 | 0:23:11 | |
I put the date and everything, finished signing, | 0:23:11 | 0:23:13 | |
then he stamped Diamond Tyres & Car Repair on the receipt. | 0:23:13 | 0:23:19 | |
Stephanie thought this strange, but accepted it at the time, | 0:23:19 | 0:23:23 | |
as Danny appeared to work for both companies. | 0:23:23 | 0:23:26 | |
The similarities to Danielle's case didn't end there. | 0:23:26 | 0:23:30 | |
Just under three weeks later, the car smelled of diesel. | 0:23:30 | 0:23:33 | |
Water was escaping from somewhere | 0:23:33 | 0:23:35 | |
and black smoke was coming from the exhaust. | 0:23:35 | 0:23:37 | |
Blue Gate cars tried to tell her it was normal for a 2003 car | 0:23:40 | 0:23:44 | |
to do this and some injector cleaner would help. | 0:23:44 | 0:23:48 | |
Unsatisfied with the response, | 0:23:48 | 0:23:49 | |
Stephanie paid £90 to a Kia garage to inspect the Sorento. | 0:23:49 | 0:23:54 | |
Kia said there was an internal problem with the engine | 0:23:54 | 0:23:57 | |
and advised from the technician not to be driven too far. | 0:23:57 | 0:24:01 | |
What followed was weeks of chasing Blue Gate Cars | 0:24:03 | 0:24:06 | |
to fix the Kia's issues and, most importantly, the injectors. | 0:24:06 | 0:24:10 | |
Danny reluctantly took the car in for 11 days | 0:24:11 | 0:24:14 | |
and did the work Kia recommended. | 0:24:14 | 0:24:16 | |
But even after this, the car's condition continued to go downhill | 0:24:17 | 0:24:21 | |
and, finally, it broke down in a very dangerous manner. | 0:24:21 | 0:24:24 | |
The clutch wouldn't raise up at all. | 0:24:25 | 0:24:27 | |
The key was stuck in the engine, it wouldn't turn off, | 0:24:27 | 0:24:30 | |
it was just smoking up the whole road | 0:24:30 | 0:24:32 | |
and that could have caused a serious, serious accident on the road. | 0:24:32 | 0:24:36 | |
Stephanie called a tow truck, who took her to a local garage. | 0:24:38 | 0:24:42 | |
Their report was worse than Kia's. | 0:24:42 | 0:24:44 | |
As he turned on the car, he said that the engine's gone. | 0:24:44 | 0:24:48 | |
It's completely gone. | 0:24:48 | 0:24:50 | |
And unfortunately for Stephanie, she also discovered that the work | 0:24:50 | 0:24:54 | |
Blue Gate had said they'd done hadn't been done. | 0:24:54 | 0:24:57 | |
He was meant to sort the engine out, the water hose, everything, | 0:24:57 | 0:25:01 | |
and he didn't do anything. | 0:25:01 | 0:25:03 | |
The same problems that it went in with, it came back out with, | 0:25:03 | 0:25:08 | |
so he didn't touch it at all. | 0:25:08 | 0:25:09 | |
I took it to a few mechanics and most of them said to me | 0:25:11 | 0:25:14 | |
if I ever try to turn on the engine and move, | 0:25:14 | 0:25:16 | |
it'll basically be a mini bomb. | 0:25:16 | 0:25:18 | |
At this stage, the car was left parked on a friend's driveway | 0:25:21 | 0:25:24 | |
with Blue Gate refusing to take it back. | 0:25:24 | 0:25:27 | |
Stephanie was frustrated, to say the least, | 0:25:27 | 0:25:30 | |
having got nowhere with Danny from Blue Gate Cars. | 0:25:30 | 0:25:34 | |
I played by his rules for such a long time. | 0:25:34 | 0:25:36 | |
Now it was time for him to play by my rules. | 0:25:36 | 0:25:38 | |
Stephanie decided the only route left to her | 0:25:38 | 0:25:41 | |
was to take Diamond Tyres & Car Repairs Ltd to court | 0:25:41 | 0:25:45 | |
to get her money back, | 0:25:45 | 0:25:46 | |
as this was who her contract was with. | 0:25:46 | 0:25:49 | |
I had to fill in the form, send off all my evidence, | 0:25:49 | 0:25:52 | |
photos, whatever I had, which I've sent back to the courts | 0:25:52 | 0:25:56 | |
and it took a while before I got a hearing date. | 0:25:56 | 0:26:00 | |
And once she had got it, it was full steam ahead. | 0:26:00 | 0:26:02 | |
And on the allotted day, Diamond Tyres failed to defend themselves. | 0:26:02 | 0:26:07 | |
The judge awarded me | 0:26:07 | 0:26:09 | |
money back for the car instantly | 0:26:09 | 0:26:11 | |
and then for the loss of the insurance, loss of the towing. | 0:26:11 | 0:26:16 | |
The judge had awarded in Stephanie's favour, but had given Diamond Tyres | 0:26:16 | 0:26:20 | |
one last chance to pay before a final hearing. | 0:26:20 | 0:26:23 | |
But the good news didn't last long. | 0:26:23 | 0:26:25 | |
Stephanie heard that Diamond Tyres were going into liquidation. | 0:26:25 | 0:26:29 | |
Stephanie sprang into action. | 0:26:29 | 0:26:32 | |
I did research into it - | 0:26:32 | 0:26:34 | |
can a company actually close down whilst they're going through | 0:26:34 | 0:26:36 | |
a proceeding and they've actually contested against it? | 0:26:36 | 0:26:39 | |
It said, "If a company wants to close down, | 0:26:39 | 0:26:41 | |
"they must not owe any creditors, | 0:26:41 | 0:26:44 | |
"they must not be going through any legal proceeding," | 0:26:44 | 0:26:47 | |
so in order for me to stop that, | 0:26:47 | 0:26:50 | |
what I had to do was write in to Companies House | 0:26:50 | 0:26:53 | |
with all my evidence stating that he is going through a legal procedure, | 0:26:53 | 0:26:57 | |
legal battle with me, so he cannot close a company down. | 0:26:57 | 0:27:01 | |
It's now a waiting game to find out | 0:27:01 | 0:27:02 | |
whether Diamond Tyres will do the right thing. | 0:27:02 | 0:27:05 | |
Her approach to Companies House has got me thinking | 0:27:06 | 0:27:09 | |
about what laws are in place to protect consumers | 0:27:09 | 0:27:12 | |
who have issues with a limited company who liquidate | 0:27:12 | 0:27:15 | |
and leave people out of pocket. | 0:27:15 | 0:27:17 | |
To find out more, | 0:27:17 | 0:27:19 | |
I've come to meet Nick Howard from the Insolvency Service. | 0:27:19 | 0:27:21 | |
Nick, I believe there's a lot of naivety out there as far as | 0:27:23 | 0:27:26 | |
people's perception of Companies House and the Insolvency Service. | 0:27:26 | 0:27:30 | |
Can you tell me what the difference is? | 0:27:30 | 0:27:31 | |
Yeah, Companies House is broadly there | 0:27:31 | 0:27:33 | |
to record what happens during a company's life, | 0:27:33 | 0:27:35 | |
so it's there at the birth of the company and it's there at the death. | 0:27:35 | 0:27:38 | |
We come in at the end of a company's life | 0:27:38 | 0:27:40 | |
and we're a rather more proactive organisation | 0:27:40 | 0:27:43 | |
that investigates conduct of directors, | 0:27:43 | 0:27:45 | |
so if a company becomes insolvent, that's when we come on the scene | 0:27:45 | 0:27:48 | |
and we're there to look at what's happened | 0:27:48 | 0:27:50 | |
and the cause as to why that insolvency has occurred. | 0:27:50 | 0:27:52 | |
We have powers to take disqualification orders | 0:27:52 | 0:27:55 | |
out against directors, | 0:27:55 | 0:27:56 | |
so if we think they're not fit people to be running limited companies | 0:27:56 | 0:28:00 | |
then we go to the court and we say, | 0:28:00 | 0:28:01 | |
"We've got this evidence which shows that they're not fit people," | 0:28:01 | 0:28:04 | |
and the court can then make a disqualification order. | 0:28:04 | 0:28:07 | |
But the worse-case scenario can often be | 0:28:07 | 0:28:09 | |
before the Insolvency Service even get involved. | 0:28:09 | 0:28:12 | |
A director may think, "I'm going to be made insolvent soon, | 0:28:12 | 0:28:15 | |
"so what I'll do is I'll move all the assets out of this company | 0:28:15 | 0:28:17 | |
"into a different company | 0:28:17 | 0:28:19 | |
"and prevent the liquidator getting their hands on them." | 0:28:19 | 0:28:22 | |
Is that a criminal offence? Is that something you can act upon? | 0:28:22 | 0:28:25 | |
It could be, it could be. | 0:28:25 | 0:28:26 | |
A criminal offence, | 0:28:26 | 0:28:27 | |
obviously a very high standard of evidence is required to prove, | 0:28:27 | 0:28:31 | |
but it would certainly be action we could take on a civil basis | 0:28:31 | 0:28:34 | |
to recover those assets and make sure they end up in the right place, | 0:28:34 | 0:28:37 | |
so the creditors of that company get the benefit of the assets | 0:28:37 | 0:28:40 | |
that should be in that company. | 0:28:40 | 0:28:42 | |
Great, so there is protection out there, | 0:28:43 | 0:28:45 | |
and if I can't get a result dealing with Khurum Khalid, | 0:28:45 | 0:28:48 | |
Danielle and Clive will potentially have to take him to court. | 0:28:48 | 0:28:52 | |
With this in mind, I passed on the news that Diamond | 0:28:52 | 0:28:55 | |
are yet again threatening to liquidate. | 0:28:55 | 0:28:58 | |
So I have contacted Companies House | 0:28:58 | 0:29:00 | |
in order to stop them shutting the company down. | 0:29:00 | 0:29:03 | |
Companies House replied back the next day with this response. | 0:29:03 | 0:29:07 | |
"Dear Danielle, thank you for e-mail. | 0:29:07 | 0:29:09 | |
"Should you go ahead and decide to send an objection, | 0:29:09 | 0:29:11 | |
"we would be grateful if you would confirm in your reply | 0:29:11 | 0:29:15 | |
"whether you would be agreeable for your identity as the objector | 0:29:15 | 0:29:19 | |
"to be disclosed should an enquiry be received." | 0:29:19 | 0:29:24 | |
Danielle doesn't mind in the slightest and immediately responds, | 0:29:24 | 0:29:27 | |
sending all of her paperwork through to them. | 0:29:27 | 0:29:30 | |
I feel that I'm on a positive note, now there is a way forward, | 0:29:30 | 0:29:33 | |
and I'm maybe able to stop them closing down | 0:29:33 | 0:29:36 | |
and hopefully get some justice. | 0:29:36 | 0:29:38 | |
Oh, that's my favourite word, Danielle. | 0:29:38 | 0:29:40 | |
But let's hope I can sort this out with Diamond | 0:29:40 | 0:29:43 | |
before you have to go through yet another battle. | 0:29:43 | 0:29:45 | |
Thanks to the internet, | 0:29:50 | 0:29:52 | |
selling our second-hand items has never been easier. | 0:29:52 | 0:29:55 | |
You take a picture, write a brief description | 0:29:55 | 0:29:57 | |
and upload the information to one of any number of websites. | 0:29:57 | 0:30:00 | |
But if you don't want the hard work, | 0:30:00 | 0:30:02 | |
there are companies out there who would do it for you. | 0:30:02 | 0:30:05 | |
You sell them your items in return for a cash lump sum. | 0:30:05 | 0:30:08 | |
But is it really as easy as all that? | 0:30:08 | 0:30:11 | |
Well, not according to student Elizabeth Berry, | 0:30:13 | 0:30:15 | |
who lives in Birmingham with her young son. | 0:30:15 | 0:30:18 | |
She used one of these companies | 0:30:18 | 0:30:20 | |
when it came to getting rid of an unwanted smartphone. | 0:30:20 | 0:30:23 | |
The phone I was selling was a white iPhone 4, 16GB. | 0:30:24 | 0:30:27 | |
It was in perfect condition, | 0:30:27 | 0:30:29 | |
it had a case on it from the moment I got it and a screen cover. | 0:30:29 | 0:30:33 | |
I went on the price comparison site, putting my phone's details | 0:30:33 | 0:30:36 | |
and it came up with a list of phone companies | 0:30:36 | 0:30:39 | |
who would give me money for it. | 0:30:39 | 0:30:40 | |
There was quite a broad range of values to choose from, | 0:30:40 | 0:30:43 | |
with the lowest one being about £60. | 0:30:43 | 0:30:46 | |
The top one was Cash4phones with, I think it was about £132. | 0:30:46 | 0:30:50 | |
That was the best one, really. | 0:30:52 | 0:30:54 | |
Not only was it the top price, | 0:30:54 | 0:30:55 | |
but it was also a company Elizabeth recognised. | 0:30:55 | 0:30:58 | |
I had heard of Cash4phones before. I had seen TV advertisements. | 0:30:58 | 0:31:02 | |
-ADVERT: -'Where can you get cash for your old mobile? Cash4phones! | 0:31:02 | 0:31:06 | |
'Who offers up to 150 quid with no hidden costs? Cash4phones! | 0:31:06 | 0:31:11 | |
'And who offers a fast service, | 0:31:11 | 0:31:13 | |
'usually paying within 24 hours of receiving your phone? | 0:31:13 | 0:31:15 | |
'Cash4phones! | 0:31:15 | 0:31:16 | |
'It's all in the name!' | 0:31:19 | 0:31:20 | |
After finding out that Cash4phones would give me | 0:31:20 | 0:31:22 | |
the most money for my phone, I went on to their website, | 0:31:22 | 0:31:25 | |
made an account with them | 0:31:25 | 0:31:26 | |
and told them that I'd like to pursue this | 0:31:26 | 0:31:29 | |
and they said that they'd send me a bag in the post | 0:31:29 | 0:31:32 | |
and send it back to them | 0:31:32 | 0:31:33 | |
and then I'd get my money within two to three days. | 0:31:33 | 0:31:36 | |
What a service! Sure enough, the postage bag arrived. | 0:31:38 | 0:31:41 | |
It was a little on the flimsy side, | 0:31:41 | 0:31:43 | |
so Elizabeth triple-wrapped her phone in bubble wrap | 0:31:43 | 0:31:46 | |
to ensure its safe carriage. | 0:31:46 | 0:31:48 | |
The only thing left to do was to pop it in the post | 0:31:48 | 0:31:50 | |
and wait for the cash. | 0:31:50 | 0:31:52 | |
A few days later, I hadn't received any money, | 0:31:52 | 0:31:55 | |
so I went online, checked my e-mails, but there was nothing. | 0:31:55 | 0:31:58 | |
So I checked my junk box and there was an e-mail from them. | 0:31:58 | 0:32:01 | |
The e-mail said that the phone had excessive wear and tear | 0:32:03 | 0:32:05 | |
with scratching on the screen | 0:32:05 | 0:32:07 | |
and they could only offer me £47.60 for the phone now. | 0:32:07 | 0:32:11 | |
I was really shocked by this, really, really shocked. | 0:32:12 | 0:32:16 | |
I knew there was no scratching on the screen. | 0:32:16 | 0:32:18 | |
It had a cover on it, there was no wear and tear - | 0:32:18 | 0:32:21 | |
I was pretty angry, to be honest. | 0:32:21 | 0:32:24 | |
Of course, we only have her word on the condition of the phone, | 0:32:24 | 0:32:27 | |
but she adamant it was in tip-top nick. | 0:32:27 | 0:32:31 | |
There was a time limit on the offer of five days. | 0:32:31 | 0:32:33 | |
If I hadn't rejected or accepted this offer by then, | 0:32:33 | 0:32:36 | |
they would automatically assume that I'd accepted it. | 0:32:36 | 0:32:40 | |
It also said if you decline to accept this offer, | 0:32:40 | 0:32:43 | |
you have to pay £8.95 to get your phone back. | 0:32:43 | 0:32:47 | |
Elizabeth had missed this clause on the company website, where they also | 0:32:47 | 0:32:51 | |
stated that the original offer | 0:32:51 | 0:32:53 | |
on the phone was subject to its condition. | 0:32:53 | 0:32:55 | |
Believing hers was in better condition than they were saying, | 0:32:57 | 0:33:00 | |
Elizabeth complained to Cash4phones, who told her | 0:33:00 | 0:33:04 | |
they would reassess her phone. Cue another e-mail. | 0:33:04 | 0:33:07 | |
In that e-mail, she said they were now offering me | 0:33:07 | 0:33:10 | |
£92 after reassessing the phone. | 0:33:10 | 0:33:12 | |
At this point, I just wanted to accept the offer, I thought | 0:33:12 | 0:33:16 | |
that if I paid the money to get my phone back | 0:33:16 | 0:33:18 | |
and then resold my phone via another company, I wouldn't be making | 0:33:18 | 0:33:22 | |
any more profit from it, so I decided to accept the offer. | 0:33:22 | 0:33:25 | |
'And who offers a fast service, | 0:33:28 | 0:33:29 | |
'usually paying within 24 hours of receiving your phone? Cash4phones! | 0:33:29 | 0:33:32 | |
'It's all in the name!' | 0:33:32 | 0:33:35 | |
They told me the money would be in my account by three working days. | 0:33:35 | 0:33:39 | |
But it was another promise broken. | 0:33:40 | 0:33:42 | |
The weeks of chasing dragged on and Elizabeth even threatened | 0:33:42 | 0:33:46 | |
Cash4phones with the Small Claims Court. | 0:33:46 | 0:33:48 | |
It took a while, but in the end it, seemed to have an effect. | 0:33:48 | 0:33:52 | |
From the moment I sent my phone off to them, | 0:33:52 | 0:33:54 | |
it took two and a half months for me to get my money. | 0:33:54 | 0:33:57 | |
The consumer woes of this unregulated industry are well-known | 0:33:57 | 0:34:01 | |
to former head of Trading Standards, Bryan Lewin. | 0:34:01 | 0:34:04 | |
A seller of second-hand goods doesn't really have | 0:34:04 | 0:34:08 | |
protections as such. | 0:34:08 | 0:34:10 | |
There are certain things you can do to protect yourself. | 0:34:10 | 0:34:13 | |
The first thing to do is never go to just one person. | 0:34:13 | 0:34:17 | |
Why not go to a local person for a valuation? | 0:34:17 | 0:34:20 | |
Someone who'd got a fixed premise, someone you could go back to | 0:34:20 | 0:34:24 | |
if you were dissatisfied. | 0:34:24 | 0:34:26 | |
Remember those tips | 0:34:26 | 0:34:28 | |
because they could save you a lot of hassle in the long run. | 0:34:28 | 0:34:31 | |
We tried to contact Cash4phones to comment on the issues | 0:34:31 | 0:34:34 | |
raised in this story, but the company has now ceased trading, | 0:34:34 | 0:34:38 | |
leaving £384,000 of debt, | 0:34:38 | 0:34:41 | |
mostly made up from customers who | 0:34:41 | 0:34:44 | |
never received payment for the phone they sent off. | 0:34:44 | 0:34:47 | |
Elizabeth was lucky. | 0:34:47 | 0:34:48 | |
I had no reason to believe that Cash4phones were not a reliable | 0:34:48 | 0:34:51 | |
company. I'd seen adverts on TV | 0:34:51 | 0:34:54 | |
and the website was very professional. | 0:34:54 | 0:34:57 | |
Remember, all that glitters isn't necessarily gold. | 0:34:57 | 0:35:02 | |
So if you're looking for a quick buck for your goods, remember | 0:35:02 | 0:35:06 | |
the best offer might not necessarily be in your best interests. | 0:35:06 | 0:35:10 | |
I've been helping the Deighton family with their second-hand car conundrum. | 0:35:15 | 0:35:20 | |
The Mazda 6 they unwittingly bought | 0:35:20 | 0:35:22 | |
from Diamond Tyres & Car Repairs Ltd wasn't fit for purpose | 0:35:22 | 0:35:26 | |
and despite shelling out over £500 for repairs, they are now looking at | 0:35:26 | 0:35:31 | |
a new engine for over £5,000, unless they can get their money back. | 0:35:31 | 0:35:36 | |
If I can manage that, it will be up to the courts. | 0:35:36 | 0:35:40 | |
I have contacted Companies House to put a block on Diamond Cars & Tyres | 0:35:41 | 0:35:46 | |
closing down in order to get my money back. | 0:35:46 | 0:35:49 | |
Stephanie also had to do the same and took Diamond Tyres to court | 0:35:51 | 0:35:56 | |
and won, but the court postponed the final hearing, | 0:35:56 | 0:35:59 | |
giving Diamond one last chance to pay out of court. | 0:35:59 | 0:36:03 | |
So far, nothing has happened. | 0:36:03 | 0:36:05 | |
This means the final decision will be in the judge's hands. | 0:36:05 | 0:36:08 | |
Hopefully, everything works out perfectly smooth and he will pass | 0:36:08 | 0:36:11 | |
judgment on the amount and I will be more happy then. | 0:36:11 | 0:36:16 | |
With Stephanie's final court date looming and Danielle potentially | 0:36:17 | 0:36:21 | |
facing the same prospects, it is time to get back onto Diamond Tyres. | 0:36:21 | 0:36:25 | |
Let's give Khurum Khalid a call | 0:36:27 | 0:36:31 | |
and see what he's got to say for himself. OK. | 0:36:31 | 0:36:34 | |
'I ring exactly the same number I did last month.' | 0:36:34 | 0:36:37 | |
Hello, is that Khurum? | 0:36:37 | 0:36:39 | |
'The first thing I'm told is that there is no person called | 0:36:39 | 0:36:42 | |
''Khurum working there. | 0:36:42 | 0:36:44 | |
'So I ask for the salesman who sold the cars to both Danielle | 0:36:44 | 0:36:47 | |
'and Stephanie.' | 0:36:47 | 0:36:49 | |
What about Danny? It's Dominic Little calling from the BBC. | 0:36:49 | 0:36:53 | |
'The man on the other end of the line gives his name as Ali | 0:36:53 | 0:36:56 | |
'and tells me he is the owner of the business, but will not tell me | 0:36:56 | 0:36:59 | |
'whether that is Diamond or Blue Gate Cars. | 0:36:59 | 0:37:02 | |
'He again states he doesn't know a Khurum.' | 0:37:02 | 0:37:05 | |
Well, I'm ringing his number, aren't I? | 0:37:05 | 0:37:07 | |
'Eventually I manage to let him know why I am calling. | 0:37:07 | 0:37:10 | |
'I again suggest that Diamond refunds Danielle for her | 0:37:10 | 0:37:13 | |
'car before the court. | 0:37:13 | 0:37:14 | |
'He tells me he will see her in court and I should be putting all this in writing.' Right. | 0:37:14 | 0:37:19 | |
'Sorry, pal, been there, done that.' | 0:37:19 | 0:37:22 | |
Khurum, Danny, or whoever I'm talking to, it's got to a point now | 0:37:22 | 0:37:25 | |
where, because it hasn't been sorted out, Small Claims Court proceedings | 0:37:25 | 0:37:29 | |
are about to be initiated if we don't sort this out on the phone today. | 0:37:29 | 0:37:32 | |
'The man on the other end of the line tells me not to ring him up | 0:37:32 | 0:37:35 | |
'and threaten him. Well, how about a simple question, then?' | 0:37:35 | 0:37:39 | |
Let me ask you something. | 0:37:39 | 0:37:41 | |
How can you advertise a car for £2,500 | 0:37:41 | 0:37:43 | |
and make someone sign a form to say it was a scrap vehicle? | 0:37:43 | 0:37:47 | |
I am told the advert wasn't written by Blue Gate Cars | 0:37:47 | 0:37:50 | |
and if Danielle wants to take them to court then let her. | 0:37:50 | 0:37:54 | |
That's no problem at all, if that's what you want. | 0:37:54 | 0:37:56 | |
Don't forget, it has just happened with Stephanie | 0:37:56 | 0:37:58 | |
and you didn't come out of that very favourably. | 0:37:58 | 0:38:00 | |
It could be done very nicely and you could just give the money back. | 0:38:00 | 0:38:04 | |
I ask him again to refund Danielle. | 0:38:04 | 0:38:06 | |
He just tells me to put my complaint in writing. | 0:38:06 | 0:38:09 | |
Believe me, I will, for a second time, whoever you are. | 0:38:09 | 0:38:14 | |
I was fairly abrupt and said this is what is going to happen | 0:38:14 | 0:38:18 | |
if she doesn't get her money back. He said put it in writing, and I will call you back. | 0:38:18 | 0:38:22 | |
Whether he does or not, I don't know. | 0:38:22 | 0:38:24 | |
We're on that point where it could be court or give her her money back. | 0:38:24 | 0:38:30 | |
It's now just over a week after my call to Diamond Tyres | 0:38:32 | 0:38:35 | |
and they've yet to respond to my last call or e-mail | 0:38:35 | 0:38:38 | |
asking for Danielle's refund, what a surprise. | 0:38:38 | 0:38:41 | |
Talking of refunds, Stephanie is back for her final | 0:38:41 | 0:38:44 | |
hearing at Bow County Court, as Diamond has failed to pay up. | 0:38:44 | 0:38:48 | |
Yet another surprise. | 0:38:48 | 0:38:49 | |
The best outcome for me would be actually getting the money | 0:38:50 | 0:38:53 | |
back for the car, for the insurance I've paid out, | 0:38:53 | 0:38:57 | |
for all the expenses over nine months that I had to spend | 0:38:57 | 0:39:00 | |
and all the running up and down that Danny made me do throughout the time. | 0:39:00 | 0:39:04 | |
Hopefully, the judge can see that and award me all of that. | 0:39:04 | 0:39:09 | |
Stephanie heads inside and it only takes 40 minutes for the judge | 0:39:09 | 0:39:12 | |
to make his decision. | 0:39:12 | 0:39:14 | |
The day after court | 0:39:23 | 0:39:25 | |
and I've arranged to meet with both Danielle and Stephanie. | 0:39:25 | 0:39:28 | |
-I can't wait to hear how she got on. Hello. -Hi there. | 0:39:28 | 0:39:30 | |
It's nice to meet you both, and obviously we had | 0:39:30 | 0:39:32 | |
a chat before I got here, | 0:39:32 | 0:39:34 | |
about the common denominator, the problem. | 0:39:34 | 0:39:36 | |
-Yeah. -Yeah. Sum it up for me. | 0:39:36 | 0:39:40 | |
I bought a car, I thought I was buying from Blue Gate Cars Ltd. | 0:39:40 | 0:39:44 | |
But instead, I actually bought it from Diamond Tyres & Cars Repair. | 0:39:44 | 0:39:48 | |
Why did you think you bought it from them? | 0:39:48 | 0:39:50 | |
Because it was advertised on the Blue Gate Cars Ltd. | 0:39:50 | 0:39:53 | |
When I actually went down to the showroom, it said on the banner | 0:39:53 | 0:39:57 | |
Blue Gate Cars Ltd. | 0:39:57 | 0:39:58 | |
My story virtually mirrors Stephanie's story. | 0:39:58 | 0:40:01 | |
We didn't realise until quite a while after that we had purchased | 0:40:01 | 0:40:05 | |
it from Diamonds Cars. | 0:40:05 | 0:40:06 | |
Similar receipt. It had been stamped with Diamond Tyres. | 0:40:06 | 0:40:12 | |
And it's Diamond who's ended up in court. | 0:40:13 | 0:40:18 | |
Stephanie not only wanted her £3,650 back for the car | 0:40:18 | 0:40:22 | |
but all her other incurred costs as well. | 0:40:22 | 0:40:26 | |
-You were in court yesterday. -Yeah. -What happened? | 0:40:26 | 0:40:30 | |
The judge actually totalled up all my expenses, | 0:40:30 | 0:40:32 | |
my insurance policies, the cost of the car, plus my compensation, | 0:40:32 | 0:40:36 | |
so a grand total of £5,618. | 0:40:36 | 0:40:40 | |
-Wow. Almost double what he could have given you. -Yeah. | 0:40:40 | 0:40:44 | |
And you've won. So I think a handshake is due for that. | 0:40:44 | 0:40:48 | |
Stephanie may have won in court, but unfortunately, | 0:40:49 | 0:40:52 | |
a County Court Judgment can be tricky to enforce. | 0:40:52 | 0:40:56 | |
However, that doesn't mean we shouldn't fight for what is | 0:40:56 | 0:40:58 | |
right, as it is still her best chance of getting her money back. | 0:40:58 | 0:41:02 | |
With this in mind, I brought all the relevant paperwork Danielle | 0:41:02 | 0:41:06 | |
would need for the Small Claims Court. | 0:41:06 | 0:41:09 | |
The good thing is, I can give you some advice, this is all in black and white, look. | 0:41:09 | 0:41:13 | |
"I start a claim in court, what happens next? | 0:41:13 | 0:41:15 | |
"How do I make a court claim? I am in dispute, what can I do?" | 0:41:15 | 0:41:21 | |
The information is there in black and white. | 0:41:21 | 0:41:23 | |
Anything you are not sure about, it's there. | 0:41:23 | 0:41:25 | |
It's not all in legal jargon that you can't understand. | 0:41:25 | 0:41:28 | |
It's designed for people who just want to get a problem sorted out. | 0:41:28 | 0:41:31 | |
Sadly, the company you dealt with, | 0:41:31 | 0:41:33 | |
they obviously want to do business this way. | 0:41:33 | 0:41:35 | |
I've given them a chance to pay the money back, as Stephanie did. | 0:41:35 | 0:41:38 | |
They don't play ball. All the best. | 0:41:38 | 0:41:41 | |
I love you for that. There's all your forms, keep us informed of what happens, of course. | 0:41:41 | 0:41:44 | |
-Best of luck. -Thanks very much. | 0:41:44 | 0:41:46 | |
I like the fact that we're leaving | 0:41:46 | 0:41:48 | |
and you've got a smile on your face. | 0:41:48 | 0:41:50 | |
-You're ready to go into battle, aren't you? -I am. -Brilliant. | 0:41:50 | 0:41:53 | |
We wrote to Blue Gate Cars | 0:41:53 | 0:41:55 | |
and Diamond Tyres asking them to clarify... | 0:41:55 | 0:41:59 | |
At this stage, I've heard nothing back. | 0:42:15 | 0:42:18 | |
We also asked Auto Trader to comment on the case, chiefly... | 0:42:19 | 0:42:23 | |
This is because Blue Gate told me | 0:42:29 | 0:42:30 | |
they did not write the original advert for Danielle's Mazda. | 0:42:30 | 0:42:33 | |
We are still awaiting their response. | 0:42:33 | 0:42:36 | |
It's been really good to have Dom on my side | 0:42:36 | 0:42:38 | |
and just get over any doubt I had before. | 0:42:38 | 0:42:41 | |
Whereas after speaking to Dom, | 0:42:41 | 0:42:44 | |
I really do feel I can win and get our money back. | 0:42:44 | 0:42:47 | |
There you had it, two ladies with similar problems, | 0:42:51 | 0:42:54 | |
dealing with the same company and same garage. Two different outcomes. | 0:42:54 | 0:42:58 | |
One of them has already taken the company to court and she's won. | 0:42:58 | 0:43:01 | |
The other lady is on the verge of doing so. | 0:43:01 | 0:43:03 | |
There is a message to be learned here for all you companies | 0:43:03 | 0:43:06 | |
not doing the job properly. Next action, court. | 0:43:06 | 0:43:08 | |
I'm sending that message out. | 0:43:08 | 0:43:10 |