0:00:02 > 0:00:06We ask you to tell us who's left you feeling ripped off.
0:00:06 > 0:00:09I think this is very, very, very wrong, for what they've done.
0:00:09 > 0:00:13The bank piles charges upon charges, upon charges, upon charges...
0:00:13 > 0:00:15Legally it was right, morally...
0:00:15 > 0:00:18that's where the question and doubt comes in my view.
0:00:18 > 0:00:21And you contacted us in your thousands,
0:00:21 > 0:00:24by post, e-mail,
0:00:24 > 0:00:26even stopping us in the streets.
0:00:26 > 0:00:28And the message couldn't be clearer...
0:00:28 > 0:00:31You don't always get a straight answer. They try and fob you off.
0:00:31 > 0:00:32Not happy at all.
0:00:32 > 0:00:34There's always that very small print with a clause
0:00:34 > 0:00:36you didn't realise.
0:00:36 > 0:00:38We're being ripped off big-time.
0:00:38 > 0:00:40'Whether it's a deliberate rip-off,
0:00:40 > 0:00:43'a simple mistake, or a catch in the small print,
0:00:43 > 0:00:46'we'll find out why you're out of pocket
0:00:46 > 0:00:48'and what you can do about it.'
0:00:48 > 0:00:51Keep asking the questions, keep... go to the top if you have to.
0:00:51 > 0:00:55We do get results, I mean, that's the interesting thing.
0:00:55 > 0:00:57'Your stories, your money.
0:00:57 > 0:00:58'This is Rip-Off Britain.'
0:01:00 > 0:01:02Hello and welcome to Rip-Off Britain,
0:01:02 > 0:01:04the series in which we
0:01:04 > 0:01:06work tirelessly to assist you,
0:01:06 > 0:01:09the consumer, to get a fair deal
0:01:09 > 0:01:12and we hope we're able to help you avoid being ripped-off, don't we?
0:01:12 > 0:01:16Absolutely! You've been sending letters and e-mails asking for help,
0:01:16 > 0:01:20and we've also been out and about to hear from you face-to-face.
0:01:20 > 0:01:23You know, one topic that comes up time and time again,
0:01:23 > 0:01:27is when you feel that paperwork, you know, contracts, bills and so on,
0:01:27 > 0:01:31are not fully explained, leaving you feeling most confused.
0:01:31 > 0:01:35Now, in turn, this can often lead you into making bad decisions,
0:01:35 > 0:01:38and above all, costing you money.
0:01:38 > 0:01:46Also coming up, the property investment that cost this man £78,000, was it a con?
0:01:46 > 0:01:50I thought definitely I'd been taken down the garden path and it's a definite scam.
0:01:50 > 0:01:54Prize draws promising big wins...
0:01:54 > 0:01:57If he really isn't close to winning the big prize I don't think these
0:01:57 > 0:02:01people should be writing him letters which make him think he is.
0:02:01 > 0:02:04And we've been solving many of your problems face-to-face
0:02:04 > 0:02:08at our Rip-Off Britain pop-up shop.
0:02:09 > 0:02:12Buying a house is probably one of the most stressful things you can do,
0:02:12 > 0:02:16and as it's also the single most expensive purchase you'll ever make,
0:02:16 > 0:02:18it's vital to get things right.
0:02:18 > 0:02:23A crucial piece of information when deciding whether or not to buy is the survey.
0:02:23 > 0:02:26You hope it will pick up anything about the house that's not quite right,
0:02:26 > 0:02:28but there's a choice of surveys you can get
0:02:28 > 0:02:31and they may not always turn up everything you would expect.
0:02:31 > 0:02:36Like whether your potential home is already occupied.
0:02:38 > 0:02:42Meet Sally and Tim Rogers and their children,
0:02:42 > 0:02:45two-year-old Evie and ten-month-old Pip.
0:02:45 > 0:02:48This is their dream family home -
0:02:48 > 0:02:52which they bought back in 2010.
0:02:52 > 0:02:55It was really the only house that we've ever fell in love with
0:02:55 > 0:02:57when we walked through the front door,
0:02:57 > 0:03:00so we both walked out and went, "Yes, I think so."
0:03:00 > 0:03:03And the timing couldn't have been more perfect
0:03:03 > 0:03:09with the completion date falling one month before baby Pip was due to be born.
0:03:10 > 0:03:13So, here we are on Friday 13th!
0:03:13 > 0:03:15- First time in. - 'It was all coming together.'
0:03:15 > 0:03:19We were going to get everything out for the new baby,
0:03:19 > 0:03:21everything was sorted at last, it was great.
0:03:21 > 0:03:25- Evie! Hello. - 'Before buying, they'd done the sensible thing'
0:03:25 > 0:03:28and decided to get a survey carried out on the house.
0:03:28 > 0:03:31We thought quite long and hard about what kind to go for.
0:03:31 > 0:03:34We were trying to decide between the homebuyer's
0:03:34 > 0:03:36and the building survey, which is a structural survey.
0:03:36 > 0:03:41We took the decision to pay £600 for the homebuyer's survey,
0:03:41 > 0:03:45believing it would pick up anything majorly wrong.
0:03:45 > 0:03:49The survey didn't throw up any big problems they went ahead with the purchase.
0:03:49 > 0:03:55I like what they've done with the curtain pole - it's beautiful!
0:03:55 > 0:03:59Let's hope that Friday 13th is NOT an omen.
0:03:59 > 0:04:03But those words came back to haunt Tim
0:04:03 > 0:04:07when Sally noticed something.
0:04:07 > 0:04:11I just had that feeling that something wasn't quite right.
0:04:11 > 0:04:14There was a strange smell.
0:04:14 > 0:04:18Nice bit of mould down the back of the fridge.
0:04:18 > 0:04:21- Lovely.- Any droppings?
0:04:21 > 0:04:23- I'm sure there are, yes. - Yeah, there are.
0:04:23 > 0:04:27Behind where the fridge had been, there where rat droppings.
0:04:27 > 0:04:29Underneath the sink, where the dishwasher had been,
0:04:29 > 0:04:33there was what looked like an old bait trap and some droppings.
0:04:33 > 0:04:36Then after about ten minutes, we realised there had been a problem,
0:04:36 > 0:04:39even just in the kitchen area, we hadn't even been upstairs.
0:04:39 > 0:04:46They contacted a local pest controller, Sean Whelan.
0:04:46 > 0:04:49Immediately I could smell dead rodents and droppings
0:04:49 > 0:04:52and definitely an odour of rodent activity.
0:04:52 > 0:04:56We then came over and moved this floorboard here,
0:04:56 > 0:04:59which exposed dead rodents, loads of flies
0:04:59 > 0:05:03and also thousands of droppings.
0:05:03 > 0:05:06The next area visited was this floor here
0:05:06 > 0:05:09and straightaway we moved this floorboard
0:05:09 > 0:05:11and under here we revealed
0:05:11 > 0:05:14literally thousands and thousands of rat droppings
0:05:14 > 0:05:19and again a couple of dead rodents. The rat infestation in this property
0:05:19 > 0:05:23has to have been one of the worst I've ever seen.
0:05:23 > 0:05:25We made the decision not to live here.
0:05:25 > 0:05:29I just said, "I'm not happy to bring my children into this environment."
0:05:29 > 0:05:32If this jeopardises this pregnancy at this stage,
0:05:32 > 0:05:35I couldn't live with that outcome. It just wasn't an option.
0:05:35 > 0:05:38'The family had to find somewhere else to live
0:05:38 > 0:05:41'and fork out extra money until they had got the problem fixed.'
0:05:41 > 0:05:44In the meantime, extra storage, rent.
0:05:44 > 0:05:49Treating the rats had actually cost us nearly £6,000.
0:05:49 > 0:05:51Now, you may be thinking,
0:05:51 > 0:05:54"Hang on, they had a survey done," and they did,
0:05:54 > 0:05:57but you need to be careful when it comes to surveys.
0:05:57 > 0:05:59They don't always do what you think.
0:05:59 > 0:06:03In fact, there are three very different types of survey
0:06:03 > 0:06:08with the most basic valuation costing between £100 and £300.
0:06:08 > 0:06:11The first one is not a survey at all it's the mortgage valuation,
0:06:11 > 0:06:13commissioned by the mortgage company
0:06:13 > 0:06:17and basically trying to work out what the market value of the property is.
0:06:17 > 0:06:22The second one is a homebuyer's survey which is much more detailed
0:06:22 > 0:06:25and much more structured, but again has its limitations
0:06:25 > 0:06:29because it depends on what the surveyor can see on any particular day.
0:06:29 > 0:06:32Then the third one is a building survey,
0:06:32 > 0:06:35which is much more detailed and may involve opening stuff up,
0:06:35 > 0:06:39looking more closely at potential defects and so on.
0:06:39 > 0:06:45That more thorough survey probably would have uncovered the rat infestation,
0:06:45 > 0:06:48but it would have cost more - up to £1,000.
0:06:48 > 0:06:53Tim and Sally had gone for the middle homebuyer option at £600,
0:06:53 > 0:06:57but with that one, surveyors don't move heavy furniture or carpets
0:06:57 > 0:07:00to examine the property in detail.
0:07:00 > 0:07:04For that reason, when Sally and Tim complained to the Ombudsman
0:07:04 > 0:07:06that the company doing the survey was at fault,
0:07:06 > 0:07:08their appeal was rejected.
0:07:08 > 0:07:15All of which has left them wondering whether next time around, they'd choose something different.
0:07:15 > 0:07:20I'd either assume the mortgage valuation was all right and just play it by ear,
0:07:20 > 0:07:23or pay top notch for a full structural building survey.
0:07:23 > 0:07:25Good girl. Can you show Pippa?
0:07:29 > 0:07:34In September, for one weekend only, we opened up a very special pop-up shop in Manchester
0:07:34 > 0:07:40so that, thanks to our team of experts, we could offer instant help to as many of you as possible.
0:07:40 > 0:07:46Brenda and her husband Brian came along because of a problem they'd had with their travel insurance.
0:07:46 > 0:07:50Let's start at the very beginning then, it's a very good place to start.
0:07:50 > 0:07:55Booked a holiday at the beginning of the year, to travel to Morocco in May,
0:07:55 > 0:08:00erm, and then in March I was diagnosed with breast cancer
0:08:00 > 0:08:03so I had to cancel the holiday.
0:08:03 > 0:08:07I'd bought travel insurance, as I always do,
0:08:07 > 0:08:09and have never claimed before,
0:08:09 > 0:08:15and when I put in my claim they said I hadn't paid an extra premium
0:08:15 > 0:08:19to be covered by breast cancer so they didn't pay me back for the holiday.
0:08:19 > 0:08:22And you said, "I didn't have breast cancer when I booked a holiday."
0:08:22 > 0:08:29Exactly, I said, you know, I declared all that I had, which was nothing, on my original premium.
0:08:29 > 0:08:33The insurance company had said, "Why didn't you cancel right at the beginning?
0:08:33 > 0:08:37"You should have told us the minute you get the diagnosis,"
0:08:37 > 0:08:43whereas the last thing you're thinking of is your holiday terms and conditions.
0:08:43 > 0:08:45I can't believe that insurance companies,
0:08:45 > 0:08:48when you could have medical advice or medical letters to say,
0:08:48 > 0:08:53"She didn't know she had cancer when she booked this holiday," wouldn't accept that.
0:08:53 > 0:08:57Well, sadly, the financial services industry
0:08:57 > 0:09:01has a habit of trying to protect its profits
0:09:01 > 0:09:04and putting the customer at the bottom of the pile.
0:09:04 > 0:09:08You're one of the millions of people who end up having to fight that.
0:09:08 > 0:09:11You shouldn't have to take this to the Ombudsman,
0:09:11 > 0:09:14but persevere because it's free and I think you'll get your money back.
0:09:14 > 0:09:16So, what would be your advice generally?
0:09:16 > 0:09:19It sounds so cliched, but it really is true,
0:09:19 > 0:09:24you've got to read all that small print in there before you buy it. However, something like this,
0:09:24 > 0:09:29- I think you're in the right, that's the bottom line...- As we say in the programme, be a terrier,
0:09:29 > 0:09:33just keep on going because, you know, it's very easy to be fobbed off.
0:09:33 > 0:09:38I'm sure you'll all be delighted to know that with the help she received from the Rip-Off Britain team,
0:09:38 > 0:09:40that perseverance paid off,
0:09:40 > 0:09:44Brenda has received the full £240 back from her insurance company.
0:09:49 > 0:09:52Now, here's another investment that can go horribly wrong,
0:09:52 > 0:09:55and has already caught out tens of thousands of people.
0:09:55 > 0:09:59Believe it or not, between them they have lost
0:09:59 > 0:10:01an estimated total of £200 million.
0:10:01 > 0:10:04When Eric Wright retired,
0:10:04 > 0:10:07he wanted to invest some of the money that he'd earned,
0:10:07 > 0:10:11to make sure that his future was financially secure.
0:10:11 > 0:10:15It was just more or less having a good backup as I got older -
0:10:15 > 0:10:17not knowing how your health's going to be,
0:10:17 > 0:10:22protecting my future was very important.
0:10:22 > 0:10:26In January of 2010, Eric received a cold call from a company
0:10:26 > 0:10:29called The Property Partnership, based on Bishopsgate in London
0:10:29 > 0:10:33and not to be confused with other companies with similar names.
0:10:33 > 0:10:37They were offering what's called a land banking deal,
0:10:37 > 0:10:39and it seemed simple enough.
0:10:39 > 0:10:43They'd make all the arrangements for Eric to buy a plot of land
0:10:43 > 0:10:47with apparently huge development potential.
0:10:47 > 0:10:50Next, they'd negotiate planning permission for housing,
0:10:50 > 0:10:54and voila - his land would rocket in value,
0:10:54 > 0:10:56without Eric having to do anything.
0:10:56 > 0:10:59They seemed to be kosher,
0:10:59 > 0:11:02and the promises were reassuring.
0:11:02 > 0:11:06They made it sound so good, I couldn't refuse.
0:11:06 > 0:11:10Eric bought a plot in Peckham for £5,000.
0:11:10 > 0:11:14Then, he paid another £25,000 for one in King's Lynn,
0:11:14 > 0:11:20which he was promised would be sold to a housing developer by Christmas.
0:11:20 > 0:11:23This said this would be a good return, one of the best sites
0:11:23 > 0:11:26they'd ever had. So that's why I went ahead with that.
0:11:26 > 0:11:30I was looking to protect the money that I had.
0:11:30 > 0:11:33I wanted to increase it, and I felt that
0:11:33 > 0:11:35this would be the ideal place to put the money.
0:11:35 > 0:11:39But once he'd laid out that initial £30,000,
0:11:39 > 0:11:41the company kept asking for more
0:11:41 > 0:11:43and more money.
0:11:43 > 0:11:45Faced with persuasive salespeople
0:11:45 > 0:11:47giving what SEEMED like
0:11:47 > 0:11:49convincing reasons,
0:11:49 > 0:11:51Eric felt he'd no choice but to pay.
0:11:51 > 0:11:52And soon, he found he'd forked out
0:11:52 > 0:11:56an extra £42,000.
0:11:56 > 0:11:59They have a way of more or less
0:11:59 > 0:12:03pressurising you and making you see their way.
0:12:03 > 0:12:06And saying, you've got to act urgently -
0:12:06 > 0:12:08if you don't, you could lose all the previous
0:12:08 > 0:12:11money you've invested. So then you tend to say,
0:12:11 > 0:12:15oh, well, it's nearly there now, we're almost at the end,
0:12:15 > 0:12:19the sale will be going ahead shortly, which I was promised...
0:12:19 > 0:12:22After handing over a further £6,000,
0:12:22 > 0:12:24Eric was getting suspicious.
0:12:24 > 0:12:27The paperwork he'd seen didn't stack up,
0:12:27 > 0:12:32and every query was met with a request for more money.
0:12:32 > 0:12:35The next time he was asked, he refused.
0:12:35 > 0:12:40I felt, definitely I've been taken down the garden path here, and it's a definite scam.
0:12:40 > 0:12:45So that was the time that I said no, I wasn't sending any more money,
0:12:45 > 0:12:48and that's when I thought there was something wrong.
0:12:48 > 0:12:52£78,000 down,
0:12:52 > 0:12:55Eric discovered that despite what he'd been told,
0:12:55 > 0:12:59the land he'd purchased had no planning permission.
0:12:59 > 0:13:03As if that wasn't bad enough, we found that the ownership of the plot in King's Lynn
0:13:03 > 0:13:06had never been transferred to him.
0:13:06 > 0:13:13Instead, it seems he'd been sold other, smaller pieces of land around the country.
0:13:13 > 0:13:15Chris Mayhew from The Insolvency Service
0:13:15 > 0:13:20advises investors to be wary of schemes that seem too good to be true.
0:13:20 > 0:13:25If somebody is cold called, they should really be asking themselves,
0:13:25 > 0:13:27why should somebody call you out of the blue
0:13:27 > 0:13:32with a fantastic scheme to sell a piece of agricultural land?
0:13:32 > 0:13:34If the scheme was really that fantastic,
0:13:34 > 0:13:36why are they offering it to you?
0:13:36 > 0:13:39Once Eric's worst fears were confirmed,
0:13:39 > 0:13:43he asked Property Partnership for his money back.
0:13:43 > 0:13:45I said at the time that I wasn't happy
0:13:45 > 0:13:48and I'd be looking to have my money returned.
0:13:48 > 0:13:53But as of yet I've had no reply from them. Nothing.
0:13:53 > 0:13:55And he's not likely to either,
0:13:55 > 0:13:58because Property Partnership has gone into liquidation.
0:13:58 > 0:14:02We tried to contact them, but had no response.
0:14:02 > 0:14:07It seems they, along with Eric's life savings, have disappeared.
0:14:07 > 0:14:11It's all right looking back and saying, "I would never have done that now.
0:14:11 > 0:14:14"And I will never do it again", not now.
0:14:14 > 0:14:20So I was, I would think, a bit gullible, to take in everything they told me as true.
0:14:20 > 0:14:25We've heard from other viewers who've lost thousands from similar land banking schemes.
0:14:25 > 0:14:30The Financial Services Authority has already investigated 130,
0:14:30 > 0:14:35and warns that the companies behind them are becoming not just more aggressive,
0:14:35 > 0:14:37but verging on the criminal.
0:14:37 > 0:14:41But what exactly is the FSA doing to combat this?
0:14:41 > 0:14:45I've come to their headquarters here at Canary Wharf to find out.
0:14:45 > 0:14:51Let me put you on the spot - are there any land bank schemes that people should even consider?
0:14:51 > 0:14:57Have I seen a land banking scheme that's made money for an investor? No, I haven't.
0:14:57 > 0:15:01Is it always an illegal activity to sell land
0:15:01 > 0:15:04that might one day get planning permission? No.
0:15:04 > 0:15:06People can buy land, but we need to think
0:15:06 > 0:15:09whether this is a practical and realistic prospect.
0:15:09 > 0:15:13Is it likely that one day in the future, a big house builder
0:15:13 > 0:15:17will buy land from you and 99 other people
0:15:17 > 0:15:20who all own one of 100 plots in a field,
0:15:20 > 0:15:25or are they more likely to deal with a farmer or a single salesperson?
0:15:25 > 0:15:28OK, this has been going on for some years now.
0:15:28 > 0:15:31Why are you not shutting them all down?
0:15:31 > 0:15:35Where are the teeth of the FSA in tackling this problem?
0:15:35 > 0:15:38The legislation doesn't allow us to close a scheme down
0:15:38 > 0:15:40just cos somebody is selling land.
0:15:40 > 0:15:44We have to prove that they're selling land to a group of people,
0:15:44 > 0:15:47that they're offering to look after that land,
0:15:47 > 0:15:50and they're offering to get planning permission for a group of people.
0:15:50 > 0:15:52If we can prove that it's a collective-investment scheme,
0:15:52 > 0:15:56we can go to court and we have gone several times
0:15:56 > 0:16:00and closed down £50 million worth of land-banking schemes.
0:16:00 > 0:16:03- Thank you very much.- Thank you.
0:16:05 > 0:16:10If you're one of the 444,000 people in the UK
0:16:10 > 0:16:15who own a holiday timeshare, you'll be familiar with how they work.
0:16:15 > 0:16:18You'll also be familiar with how tricky they are to sell on
0:16:18 > 0:16:21or indeed how to end the arrangement if you no longer want it.
0:16:21 > 0:16:26So when we heard from 50 customers of the same timeshare company
0:16:26 > 0:16:28who all felt trapped in their contracts,
0:16:28 > 0:16:31we wanted to see if there was anything we could do about it.
0:16:31 > 0:16:33But what happened next surprised even us.
0:16:36 > 0:16:38With nearly a million and a half customers worldwide,
0:16:38 > 0:16:40Diamond Resorts International
0:16:40 > 0:16:44are a major player in the timeshare market.
0:16:44 > 0:16:49But Diamond Resorts are not everybody's best friend.
0:16:49 > 0:16:52We were contacted by 50 British customers
0:16:52 > 0:16:56of Diamond International, and they all said the same thing -
0:16:56 > 0:17:01that their experience of the company falls short of the glossy ads.
0:17:01 > 0:17:05We can't identify any of the people we spoke to, and you'll see why,
0:17:05 > 0:17:08but with the help of our researchers Ben,
0:17:08 > 0:17:10we can tell you what did happen.
0:17:10 > 0:17:13Diamond Resorts is a name we've heard of a lot on this series.
0:17:13 > 0:17:16We've had a number of e-mails about them.
0:17:16 > 0:17:19So we looked into them to see what the complaints were about.
0:17:19 > 0:17:22Most of the people we heard from were initially pleased
0:17:22 > 0:17:25with their holiday investment.
0:17:25 > 0:17:26..That's great.
0:17:26 > 0:17:29But for some, this diamond lost its sparkle.
0:17:29 > 0:17:32Like most timeshare schemes these days,
0:17:32 > 0:17:34rather than buying into just one property,
0:17:34 > 0:17:38Diamond's customers gain access to a whole range of exclusive resorts,
0:17:38 > 0:17:41by buying points for cash.
0:17:41 > 0:17:42The people we heard from
0:17:42 > 0:17:45were spending significant amounts of money on these points.
0:17:45 > 0:17:49Anywhere from a couple of thousand pounds up to £30,000-£40,000.
0:17:49 > 0:17:52So, it is a lot of money that we're talking about.
0:17:52 > 0:17:56With points came the prizes of luxury holidays around the world,
0:17:56 > 0:17:59but there's more money to shell out.
0:17:59 > 0:18:01Diamond customers pay annual maintenance fees
0:18:01 > 0:18:03for the upkeep of the resorts,
0:18:03 > 0:18:07and the amount they're charged is determined by the points they have.
0:18:07 > 0:18:11That's where the trouble really starts.
0:18:11 > 0:18:14When members signed up, they'd agreed that their management fees
0:18:14 > 0:18:18would increase in line with the retail price index - between 2%-4%.
0:18:18 > 0:18:21But we've heard of increases significantly larger than that.
0:18:21 > 0:18:22That's leaving people upset.
0:18:22 > 0:18:25Our maintenance started up at about £600.
0:18:25 > 0:18:31It's now £1,850 a year, which is absolutely crazy.
0:18:31 > 0:18:37Our management fees were £1,450, now they're £2,800.
0:18:37 > 0:18:40With the annual fees alone now costing more
0:18:40 > 0:18:43than an entire holiday from a travel agent,
0:18:43 > 0:18:47the members we heard from decided enough was enough.
0:18:47 > 0:18:49They wanted out of their contracts,
0:18:49 > 0:18:52even if it meant writing off the thousands of pounds
0:18:52 > 0:18:54they'd spent on points.
0:18:54 > 0:18:56But Diamond were having none of it.
0:18:56 > 0:18:59When they contacted Diamond to cancel the contracts,
0:18:59 > 0:19:03they were directed to the small print and realised they were trapped.
0:19:03 > 0:19:07The terms and conditions allow just four circumstances
0:19:07 > 0:19:10under which Diamond customers can cancel.
0:19:10 > 0:19:13The first is the least attractive - death.
0:19:13 > 0:19:17And even then, if you have family, it's implied the contract passes on.
0:19:17 > 0:19:20The second is bankruptcy.
0:19:20 > 0:19:23You can also cancel if you're over 75,
0:19:23 > 0:19:27although again only if you've no transferable family members,
0:19:27 > 0:19:31or if you have medical problems that stop you from travelling.
0:19:31 > 0:19:34So, is such a restrictive contract fair?
0:19:34 > 0:19:36We need a lawyer.
0:19:36 > 0:19:39People are buying into a membership of a company.
0:19:39 > 0:19:42Through the contract, there are some interesting points in there,
0:19:42 > 0:19:46you can resign from being a member. But even if you do that,
0:19:46 > 0:19:49your liability to pay for things lasts beyond that date.
0:19:49 > 0:19:53There's a right for the company to sell points on to other people,
0:19:53 > 0:19:57but they don't have to do that. It's important you consider it carefully
0:19:57 > 0:20:00and look at what you're signing up to.
0:20:00 > 0:20:03Unhappy at being locked into the contract,
0:20:03 > 0:20:07some customers simply stopped paying the escalating fees.
0:20:07 > 0:20:09As we usually do, we filmed interviews
0:20:09 > 0:20:11with a range of unhappy customers.
0:20:11 > 0:20:15So you may wonder why you're not seeing them on the screen.
0:20:15 > 0:20:19Well, after we contacted the company to get their comments on this,
0:20:19 > 0:20:23there was something of an unexpected development.
0:20:23 > 0:20:26We gave Diamond resorts a list of unhappy customers,
0:20:26 > 0:20:29and suddenly, they all received a letter from the company.
0:20:29 > 0:20:32It said that they would be freed from their contracts
0:20:32 > 0:20:36on one condition - they couldn't talk to the media about it.
0:20:36 > 0:20:38And of course, that includes us.
0:20:38 > 0:20:41So we aren't using any interviews we filmed,
0:20:41 > 0:20:44and we won't be calling the people who initially contacted us
0:20:44 > 0:20:49because if they speak to us again, they could be in big trouble.
0:20:49 > 0:20:52I've dealt with lots of confidentiality clauses of the years
0:20:52 > 0:20:55and negotiated them back and forth.
0:20:55 > 0:20:59This one is unusual in that it requires them,
0:20:59 > 0:21:03if they breech the confidentiality, to pay £10,000.
0:21:03 > 0:21:07It's essentially saying, "We will go to court and claim this £10,000
0:21:07 > 0:21:09"for each and every breech."
0:21:09 > 0:21:11It seems to me to be a deterrent
0:21:11 > 0:21:17in terms of trying to stop people speaking to the media.
0:21:17 > 0:21:23Diamond Resorts told us they have...
0:21:23 > 0:21:27..and their bills come with explanations of significant changes
0:21:27 > 0:21:29which are often due to...
0:21:29 > 0:21:33Such as, in Europe, a sharp drop in the exchange rate.
0:21:33 > 0:21:39They say the people we heard from bought their membership...
0:21:39 > 0:21:42But they stress that membership is a...
0:21:42 > 0:21:45and if any member stops paying, it's an...
0:21:45 > 0:21:48These members didn't meet the criteria for cancelling,
0:21:48 > 0:21:54but the company decided that it's in those individuals' interests to...
0:21:54 > 0:21:59Even though it does mean writing off the cash they'd spent on points.
0:21:59 > 0:22:02There you have it. For these customers at least,
0:22:02 > 0:22:04Diamond's no-escape policy is no more,
0:22:04 > 0:22:07so we thought their story is definitely worth telling.
0:22:07 > 0:22:11And it goes to show that persistence really pays off,
0:22:11 > 0:22:15and we're happy if we've helped a little bit along the way.
0:22:17 > 0:22:21Now, there can't be too many of us who haven't, at some point,
0:22:21 > 0:22:24received letters in the post promising to win big cash prizes,
0:22:24 > 0:22:27in return for signing up for something
0:22:27 > 0:22:29or taking out a subscription.
0:22:29 > 0:22:31But what are the chances of actually winning?
0:22:31 > 0:22:33Here's one Rip-Off viewer
0:22:33 > 0:22:36who's been waiting for his prize for quite some time.
0:22:38 > 0:22:40More than just one of Britain's best-known magazines,
0:22:40 > 0:22:43Reader's Digest is something of an institution.
0:22:43 > 0:22:46It was first published in the UK in 1938
0:22:46 > 0:22:49and soon established itself as a family magazine,
0:22:49 > 0:22:53and a trusted brand.
0:22:53 > 0:22:54One big fan is Roy,
0:22:54 > 0:22:58an 87-year-old war veteran and Military-Cross holder.
0:22:58 > 0:23:01He's been a subscriber of the magazine for years,
0:23:01 > 0:23:04but also loves its regular book offers.
0:23:04 > 0:23:09I decided I would buy books from Reader's Digest,
0:23:09 > 0:23:12and build up a reasonable library of interesting books
0:23:12 > 0:23:16which I hope will benefit my children
0:23:16 > 0:23:20and also my grandchildren in due course.
0:23:20 > 0:23:23But when Roy orders his books,
0:23:23 > 0:23:27he also receives letters from the company
0:23:27 > 0:23:30offering him a chance to take part in regular prize draws.
0:23:30 > 0:23:34They send a catalogue of the books then they say,
0:23:34 > 0:23:38if you choose one or two books out of the selection,
0:23:38 > 0:23:43you'll be entered for a prize that might be worth £10,000-£15,000.
0:23:44 > 0:23:49Roy's daughter Anne says the language used in the letters
0:23:49 > 0:23:53has left her father convinced that the more books he buys
0:23:53 > 0:23:57the better his chance of winning a prize.
0:23:57 > 0:23:59And in the last five years,
0:23:59 > 0:24:02she's estimated that he's spent around £2,000.
0:24:02 > 0:24:05Some of the letters make it plain
0:24:05 > 0:24:09that he doesn't have to say "yes" to win a prize,
0:24:09 > 0:24:15But then they say, if you do say "yes", there'll be a bonus for you.
0:24:15 > 0:24:19"To claim your £30,000 opportunity,
0:24:19 > 0:24:22"simply browse though the enclosed catalogue now."
0:24:22 > 0:24:25Then it says, "To order one or more products
0:24:25 > 0:24:30"and ensure your opportunity to win the £30,000 customer-reward prize,
0:24:30 > 0:24:33"return your completed joint confirmation certificate."
0:24:33 > 0:24:36If that doesn't sound like you've got to buy something to win a prize,
0:24:36 > 0:24:39I don't know what does, frankly.
0:24:39 > 0:24:44Having been told that he's down to the final stages in one draw,
0:24:44 > 0:24:49Roy's convinced that the £100,000 could soon be coming his way.
0:24:49 > 0:24:54In fact, he's so hopeful, he's asked us not to use his surname
0:24:54 > 0:24:57to make sure that his chances won't be scuppered.
0:24:57 > 0:25:01I don't know the number of people in the draw,
0:25:01 > 0:25:08But I'm assuming it's two or three in the final stages.
0:25:08 > 0:25:12You don't get a letter from the Liaison Officer for Winners
0:25:12 > 0:25:16unless there is something in the offing.
0:25:16 > 0:25:19So I interpret that accordingly.
0:25:19 > 0:25:22If he really isn't close to winning the big prize,
0:25:22 > 0:25:25I don't think these people should be writing him letters
0:25:25 > 0:25:29which make him think that he is. I think that's wrong.
0:25:29 > 0:25:33Chances are those letters are going to more people than Roy realises.
0:25:33 > 0:25:37And Anne believes if customers like her dad
0:25:37 > 0:25:39knew their real chances of winning,
0:25:39 > 0:25:42they'd feel differently about the draws.
0:25:42 > 0:25:46Suppose they said, "When you enter this draw, your chance of winning
0:25:46 > 0:25:49"Is going to be about one in 10,000."
0:25:49 > 0:25:53How would you feel about that? What would you think?
0:25:53 > 0:25:55Not very enthusiastic about it.
0:25:55 > 0:25:58- Probably not bother. - I probably wouldn't bother.
0:25:58 > 0:26:01Reader's Digest does state in the small print
0:26:01 > 0:26:05that you don't need to buy anything to take part in the prize draws.
0:26:05 > 0:26:08But Anne believes they should make this much clearer.
0:26:08 > 0:26:11People who are of an age where if they receive
0:26:11 > 0:26:14an official-looking letter from a company they trust,
0:26:14 > 0:26:16would take the contents at face value.
0:26:16 > 0:26:18'..I really like that one.'
0:26:18 > 0:26:22And won't be, like younger people might be,
0:26:22 > 0:26:25a little more sceptical about the contents.
0:26:26 > 0:26:30Reader's Digest told Rip-Off Britain that Roy is a valued customer.
0:26:30 > 0:26:36And while any competition has an element of...
0:26:36 > 0:26:42..it's...
0:26:42 > 0:26:44And while their draws...
0:26:44 > 0:26:47They'll take Anne's concerns into account
0:26:47 > 0:26:50when reviewing how they contact customers.
0:26:50 > 0:26:54Do remember, with any sort of unsolicited mail,
0:26:54 > 0:26:57though they may phrase things as though they're your best friend,
0:26:57 > 0:27:00they're usually only after your cash.
0:27:00 > 0:27:03Don't be persuaded to hand it over,
0:27:03 > 0:27:07unless it's for something that you are sure you really want.
0:27:09 > 0:27:11Baffled by your bills?
0:27:11 > 0:27:14I thought, "This cannot be true. It's totally unacceptable."
0:27:14 > 0:27:16I was so angry!
0:27:16 > 0:27:18Trying to wade through never-ending small print
0:27:18 > 0:27:21that leaves you totally confused?
0:27:21 > 0:27:23I might've been stupid for not reading it,
0:27:23 > 0:27:26or I've read it and not took it in.
0:27:26 > 0:27:28I could kick myself, I really could.
0:27:28 > 0:27:37You can write to us at...
0:27:37 > 0:27:42..or send us an e-mail.
0:27:42 > 0:27:48The Rip-Off team is always looking for the stories that matter to you.
0:27:48 > 0:27:52I have to say, and I don't know how you two feel about this,
0:27:52 > 0:27:54but as far as I'm concerned,
0:27:54 > 0:27:57it's been clear from the stories we've heard
0:27:57 > 0:27:59and the amount of letters and e-mails you've sent us,
0:27:59 > 0:28:03that when a company doesn't clearly explain their procedures,
0:28:03 > 0:28:05their contracts, their bills and so on,
0:28:05 > 0:28:09- then you can easily end up losing out. Don't you think?- Absolutely.
0:28:09 > 0:28:11We always say on this show,
0:28:11 > 0:28:15make sure you go through your paperwork with a fine-tooth comb.
0:28:15 > 0:28:17And if in doubt, always get it checked out.
0:28:17 > 0:28:22I agree with you implicitly. Never be afraid to seek assistance,
0:28:22 > 0:28:25it could end up saving you a huge amount of money.
0:28:25 > 0:28:28Next time, we'll be tackling more of your stories.
0:28:28 > 0:28:31Until then, thank you for your company and from all of us, bye-bye.
0:28:31 > 0:28:33- Bye-bye.- Bye.
0:28:35 > 0:28:38A Rip-Off Britain report in December
0:28:38 > 0:28:41featured an investment product sold by a Hampshire-based company,
0:28:41 > 0:28:44Integrity Financial Solutions, which is now in liquidation.
0:28:44 > 0:28:47We'd like to point out that that company has no connection
0:28:47 > 0:28:50with other businesses trading under similar names.
0:28:54 > 0:28:57Subtitles by Red Bee Media Ltd