0:00:02 > 0:00:06We asked you to tell us who's left you feeling ripped-off.
0:00:06 > 0:00:09I think this is very, very, very wrong.
0:00:09 > 0:00:13The bank passed charges upon charges upon charges.
0:00:13 > 0:00:18Legally, it was right. Morally? That's where the doubt comes.
0:00:18 > 0:00:22And you contacted us in your thousands, by post, email,
0:00:22 > 0:00:28even stopping us in the streets. And the message couldn't be clearer.
0:00:28 > 0:00:31You don't always get a straight answer.
0:00:31 > 0:00:36- I'm not happy at all. - It's always that small print.
0:00:36 > 0:00:40- We're being ripped off big time. - Whether it's a deliberate rip off,
0:00:40 > 0:00:46a simple mistake or a catch in the small print, we'll find out why you're out of pocket
0:00:46 > 0:00:51and what you can do about it. Keep asking the questions.
0:00:51 > 0:00:53And we do get results.
0:00:53 > 0:00:57Your stories. Your money. This is Rip-Off Britain.
0:01:00 > 0:01:06Hello and welcome to Rip-Off Britain where whatever the size of the problem or the money you've lost,
0:01:06 > 0:01:12- if you think you've had a raw deal or feel short-changed, we're here to find out why.- We certainly are!
0:01:12 > 0:01:16And guess what - we'll see if we can get some of your money back as well.
0:01:16 > 0:01:21- And, I'm pleased to say, in some cases we have.- Well done.
0:01:21 > 0:01:24More detail on that later on.
0:01:24 > 0:01:29We'll also be looking at companies you may have seen ads for in the papers
0:01:29 > 0:01:35promising they could get you out of debt or claim back cash you didn't even know you were entitled to.
0:01:35 > 0:01:42- They make it sound like they're doing you a favour, but it can be completely the opposite.- Too right.
0:01:42 > 0:01:47Also coming up: the cooling-off periods with a catch.
0:01:47 > 0:01:53- You'll be charged if you want to change your mind.- Why have a cooling-off period if you're charged
0:01:53 > 0:01:59if you cancel within that period? There's no point in even putting it in your contract.
0:01:59 > 0:02:04Our pop-up shop was a huge success when you came along to tell us your issues
0:02:04 > 0:02:07and to meet our team of experts.
0:02:07 > 0:02:13With regards to your complaint about the PPI policy, we can take that up with the business that sold it.
0:02:13 > 0:02:16Or we might be able to help you.
0:02:16 > 0:02:22Payment Protection Insurance or PPI has been one of the big consumer scandals of recent years.
0:02:22 > 0:02:29It was supposed to cover repayments on credit cards and loans if you lost your job or were unable to pay,
0:02:29 > 0:02:36but it turns out almost 6.5 million policies were mis-sold to people who could never make a claim.
0:02:36 > 0:02:42As a result, there are no end of companies promising they can get you your PPI payments back,
0:02:42 > 0:02:46but, as ever, some are better than others.
0:02:49 > 0:02:54Norma Randall is a retired sales manager from North Yorkshire.
0:02:54 > 0:02:59She received a phone call out of the blue from a company telling her she could get compensation
0:02:59 > 0:03:03for mis-sold Payment Protection Insurance.
0:03:03 > 0:03:10I said, "That sounds very interesting, but I'm not aware that I made any PPI payments."
0:03:10 > 0:03:15And he said, "Lots of people aren't aware of it, but I can assure you
0:03:15 > 0:03:22"99% of people have paid PPI at some time, either on a loan or a credit card."
0:03:23 > 0:03:28PPI or Payment Protection Insurance was often added to loans or insurance
0:03:28 > 0:03:33by banks and other financial institutions. It was designed to pay out if the customer couldn't
0:03:33 > 0:03:37meet their payments due to illness or redundancy.
0:03:37 > 0:03:43He said, "Well, I think we could get you back £12,000."
0:03:43 > 0:03:47And I gulped and thought, "Wow!
0:03:47 > 0:03:51"I can go on holiday, I can do work in the house that I need to do."
0:03:51 > 0:03:54That would be great.
0:03:55 > 0:04:02The call was from We Fight Any Claim, a claims management company specialising in PPI.
0:04:02 > 0:04:06Their sales patter to Norma does make sense.
0:04:06 > 0:04:11An estimated 2.5 million people were mis-sold Payment Protection Insurance policies
0:04:11 > 0:04:18and £215 million was paid out in compensation in the first half of this year.
0:04:18 > 0:04:22So Norma was tempted by the idea that she might be entitled to some
0:04:22 > 0:04:26and that We Fight Any Claim could get it for her.
0:04:27 > 0:04:34And then he hit me with the bombshell of, "But that will cost you £3,414.89."
0:04:34 > 0:04:38And I sort of stopped in my tracks.
0:04:39 > 0:04:43They said, "Don't worry about any payments that you make to us
0:04:43 > 0:04:49"because when your claim has been successful, it will not cost you a penny
0:04:49 > 0:04:53"because we will take our fee
0:04:53 > 0:04:57"from the value of the money that we claim for you."
0:04:59 > 0:05:07Convinced by this reasoning and the reassurance of a money-back guarantee if they didn't succeed,
0:05:07 > 0:05:09Norma decided to go ahead.
0:05:09 > 0:05:17In total, I paid £3,659.89 on my credit card to this company.
0:05:17 > 0:05:22In their paperwork, We Fight Any Claim make clear that they charge upfront
0:05:22 > 0:05:25and include a success fee in that.
0:05:25 > 0:05:31But that's unusual. Most other claims management companies charge a smaller upfront fee,
0:05:31 > 0:05:35normally under £300, then take a percentage if the claim succeeds.
0:05:35 > 0:05:42But having paid out so much, Norma had no choice but to hope she'd made the right decision.
0:05:42 > 0:05:46I didn't have a word from them for three months.
0:05:46 > 0:05:49I then began to get worried.
0:05:49 > 0:05:54I decided to phone then and spoke to a young man who assured me
0:05:54 > 0:05:58that the situation was going forward,
0:05:58 > 0:06:03that they would be able to tell me a result within four weeks.
0:06:03 > 0:06:07But six weeks later Norma still hadn't heard anything.
0:06:07 > 0:06:12She decided to cancel her claim and get her money back.
0:06:12 > 0:06:16They said, "If you want to cancel, it will cost you £1,000."
0:06:16 > 0:06:21So I decided not to cancel because I did not want them to have my £1,000.
0:06:21 > 0:06:27I wanted all my money back, not just minus £1,000. So I agreed to let them carry on.
0:06:28 > 0:06:34Even so, because she'd paid the fee on her credit card, Norma decided to ask the credit card company
0:06:34 > 0:06:37for their take on the situation.
0:06:37 > 0:06:42I then rang my credit card company who informed me
0:06:42 > 0:06:50that they had, in fact, sent a letter to the claims company in the January
0:06:50 > 0:06:54stating that there was no PPI on the accounts.
0:06:54 > 0:06:56Not what she'd wanted to hear.
0:06:56 > 0:07:02Norma then called the company she had a loan with as their product was the only other one
0:07:02 > 0:07:08that could possibly have PPI attached, but again she was told it hadn't.
0:07:08 > 0:07:14So, armed with that knowledge, that - as she initially thought - she'd never been sold PPI,
0:07:14 > 0:07:20let alone mis-sold it, Norma went back to the claims company, who had a very convincing response.
0:07:20 > 0:07:28He said, "This is a usual tactic that banks and credit card companies adopt
0:07:28 > 0:07:35"to try to avoid the refund of any monies to their customers.
0:07:35 > 0:07:38"But we are going to take this further."
0:07:38 > 0:07:45Norma's credit card and loan providers were adamant that no PPI was ever paid
0:07:45 > 0:07:51or sold to her. But We Fight Any Claim continued to insist there was a claim to be fought for.
0:07:51 > 0:07:58By now, Norma simply didn't believe them, but they still had over £3,000 of her money.
0:07:58 > 0:08:02They're in denial about the fact that I haven't got PPI.
0:08:02 > 0:08:09We Fight Any Claim could go on with this for years and in the meantime they're holding my money.
0:08:09 > 0:08:13They've no right to it because they haven't done what they promised.
0:08:13 > 0:08:20Emma Parker from the Financial Ombudsman Service says the claims management industry is growing fast
0:08:20 > 0:08:26but for reclaiming Payment Protection Insurance, their services may not even be needed.
0:08:26 > 0:08:31There's been a recent report on this by Money Saving Expert and Which which highlighted
0:08:31 > 0:08:36a number of misleading claims made by claims management companies.
0:08:36 > 0:08:41They've suggested that consumers' chances of success are higher with them.
0:08:41 > 0:08:45Or haven't highlighted the role of the free Financial Ombudsman.
0:08:45 > 0:08:47These are misleading
0:08:47 > 0:08:54and companies that are regulated with the Ministry of Justice, it can take action.
0:08:54 > 0:09:00Well, Norma contacted the Ministry of Justice, too, and after they wrote to the company
0:09:00 > 0:09:06she did finally get all of her money back, plus the interest she'd paid while the balance was on her card.
0:09:06 > 0:09:12We Fight Any Claim told us they don't fully agree with what Norma's told us, but concede there were
0:09:12 > 0:09:17portions of their service that could have been completed more efficiently.
0:09:17 > 0:09:24They say their claims process can be complex and time-consuming when it may appear nothing is happening,
0:09:24 > 0:09:28but they blame that on banks who can be "less than co-operative".
0:09:28 > 0:09:34They apologised to Norma that their service fell short, but still don't seem to accept
0:09:34 > 0:09:37that she didn't have any PPI.
0:09:37 > 0:09:43Although it's all now resolved, Norma's annoyed at being put through so much unnecessary worry.
0:09:43 > 0:09:49I'm cross. I'm angry. I'm angry with myself, but also with the people who persuaded me
0:09:49 > 0:09:51to part with all that money.
0:09:51 > 0:09:58If you're contacted by a company that says it can claim back money in the same way Norma was promised,
0:09:58 > 0:10:04however persuasive they are, don't sign up until you've checked with your lender whether you had any PPI.
0:10:04 > 0:10:08Only then can you decide whether you have a claim to make.
0:10:08 > 0:10:13Big companies don't always make things easy to understand
0:10:13 > 0:10:19and it can be confusing trying to work out why you haven't ended up with what you expected.
0:10:19 > 0:10:24So if you feel bogged down, we've put together a booklet of tips and advice.
0:10:24 > 0:10:30You can find a link to the free guide on our website.
0:10:30 > 0:10:38Or to receive a copy in the post, send an A5 self-addressed envelope to the address we give at the end.
0:10:41 > 0:10:45It's something most of us don't like to think about,
0:10:45 > 0:10:49but writing a will can make life for those we leave behind less painful.
0:10:49 > 0:10:55When you write a will, you also have to appoint an executor, someone to carry out your wishes.
0:10:55 > 0:11:01There are companies who can do all this work for you, but it's an unregulated industry
0:11:01 > 0:11:07and the fees these companies charge vary enormously, which can really eat into the estate left to you.
0:11:11 > 0:11:16Linda Neuwenhuis remembers good times with her feisty Aunt May.
0:11:17 > 0:11:24Aunt May was quite independent. And she was before her time.
0:11:24 > 0:11:28Quite a feminist. She didn't tolerate any messing about.
0:11:28 > 0:11:36When May died in the summer of 2008, Linda contacted the company her aunt had used to write her will, ITC.
0:11:36 > 0:11:41The biggest in the business, they told Linda she'd been left virtually everything
0:11:41 > 0:11:45and sorting things out should only take a few months.
0:11:45 > 0:11:51He confirmed that it was a quite straightforward will, just concerning my husband and myself,
0:11:51 > 0:11:54and it should be over by Christmas.
0:11:54 > 0:12:00As well as writing her will, Aunt May had also appointed ITC as executors,
0:12:00 > 0:12:07so when their representative came to see Linda, she asked him what the company would charge for that.
0:12:07 > 0:12:09He said it's all been taken care of.
0:12:09 > 0:12:15In my naivete, I thought maybe the will process had been prepaid.
0:12:15 > 0:12:23So I assumed that there would be no cost for them actually administrating the affairs.
0:12:23 > 0:12:26And I felt quite happy, initially.
0:12:28 > 0:12:33For the rest of the year, Linda supplied ITC with any information they requested,
0:12:33 > 0:12:38but although she'd been left confident that the will would be settled by Christmas,
0:12:38 > 0:12:41it came and went with no news.
0:12:41 > 0:12:45Linda also began to doubt what she'd understood about the cost,
0:12:45 > 0:12:50so she wrote to ITC and was shocked by their reply.
0:12:50 > 0:12:52I was absolutely horrified
0:12:52 > 0:12:57when I got a letter back to say that their fees would be
0:12:57 > 0:13:02in the region of £15,500 plus VAT.
0:13:02 > 0:13:08The initial remarks, the gentleman told me, "It's all been taken care of,"
0:13:08 > 0:13:12when I specifically asked for how much it would cost.
0:13:12 > 0:13:15He didn't give me any indication at all.
0:13:18 > 0:13:23Despite suggesting that they'd provide a swift service, it took nearly two years of chasing
0:13:23 > 0:13:26before ITC finally settled the will.
0:13:28 > 0:13:35The Legal Services Board is carrying out an investigation into whether the industry needs regulating
0:13:35 > 0:13:41after a survey showed that the way wills are written and administered isn't always good enough.
0:13:41 > 0:13:48Wills are such important documents. It's the only way to make sure those you leave behind get your wealth
0:13:48 > 0:13:54in the way that you intended. If a will goes wrong, it can have huge financial implications
0:13:54 > 0:14:01so it's really vital that everyone who sells wills to the public demonstrates their competence,
0:14:01 > 0:14:07follows a code of conduct, is insured and consumers can complain to the Legal Ombudsman.
0:14:07 > 0:14:10Come on, then, Cracker.
0:14:10 > 0:14:15There have been a number of changes at ITC since they wrote May's will.
0:14:15 > 0:14:20They no longer provide that service, for the last six years only dealing in probate,
0:14:20 > 0:14:27and they've also changed their fee structure. They eventually reduced Linda's bill from £16,000 to £5,000,
0:14:27 > 0:14:34in line with their new prices and what independent solicitors told us was a reasonable price.
0:14:36 > 0:14:41ITC told us they sincerely regret any distress Linda felt.
0:14:41 > 0:14:49They administer a large number of estates every year, the vast majority having a positive outcome,
0:14:49 > 0:14:56and pride themselves on delivering the highest levels of service and value at what is a difficult time.
0:14:57 > 0:15:03They dispute some of Linda's allegations, but say they acknowledged at the time
0:15:03 > 0:15:08that there were issues with this case, apologised and reduced their fees accordingly.
0:15:08 > 0:15:14As far as they're concerned, this was all satisfactorily resolved over a year ago.
0:15:14 > 0:15:19But despite their efforts to make amends, Linda still feels aggrieved.
0:15:21 > 0:15:24I'm so angry on her behalf.
0:15:24 > 0:15:32I don't think they deserved a penny because of all the work I had to do myself. I think it was outrageous.
0:15:32 > 0:15:36Writing a will can be a minefield for all sorts of reasons,
0:15:36 > 0:15:42so with more information of what to think about, here's Gary Rycroft from the Law Society.
0:15:42 > 0:15:46If you've never made a will before or it's a long time since you did,
0:15:46 > 0:15:51do some research first. Telephone some local firms of solicitors
0:15:51 > 0:15:57and find out how much it's going to be to make a will. Then you'll know the market rate.
0:15:57 > 0:16:01Don't feel pressurised into other legal services or products.
0:16:01 > 0:16:06Some things offered may be Powers of Attorney or trusts. They may be good ideas for you,
0:16:06 > 0:16:13but never feel pressurised to sign up there and then. Always take it away with you and think it through
0:16:13 > 0:16:15with a trusted family friend.
0:16:15 > 0:16:18Never, ever pay for will storage.
0:16:18 > 0:16:22Most firms of solicitors will be pleased to store it for free.
0:16:22 > 0:16:26If you do decide to store your will, find out where it will be stored.
0:16:26 > 0:16:31It mustn't be in an attic or garage. Make sure it's in a fire-proof safe.
0:16:31 > 0:16:37At this stage, I would say never sign up for probate and estate administration services.
0:16:37 > 0:16:41You don't know what the value of your estate will be at your death.
0:16:41 > 0:16:45Let your executors sign up for the best deal at the relevant time.
0:16:45 > 0:16:52There's no point in paying now for services that may not be required from a company which may not exist
0:16:52 > 0:16:54at the time of your death.
0:16:54 > 0:16:59We teamed up with BBC Learning to open a pop-up consumer advice shop
0:16:59 > 0:17:03at the Trafford Centre, Manchester.
0:17:03 > 0:17:07We've had a fantastic response from members of the public.
0:17:07 > 0:17:13It's been a great opportunity for us to meet you and hear your problems
0:17:13 > 0:17:19and BBC Learning have been very busy encouraging people to improve their maths
0:17:19 > 0:17:21in their interactive area.
0:17:21 > 0:17:28Our experts are helping lots of people, too, and Martyn James from the Financial Ombudsman Service
0:17:28 > 0:17:34is helping out with a common rip-off: Payment Protection Insurance.
0:17:34 > 0:17:41Alison and her friend tried to claim back mis-sold PPI through a claims management company.
0:17:41 > 0:17:45They said they could get us back in the region of £780.
0:17:45 > 0:17:51But they expected us to pay £280 upfront.
0:17:51 > 0:17:57- Upfront?- Upfront. - Before you even got any claim.- In order for them to do the research.
0:17:57 > 0:18:04They guaranteed that we would get that money, otherwise we would at least get the £280 back.
0:18:04 > 0:18:11So we waited for the forms, we filled them in, like a letter of authority, and sent them off
0:18:11 > 0:18:17and to this day, over a year ago now, despite numerous letters, I've heard nothing.
0:18:17 > 0:18:23- It's been a year?- Far too long. - And she's paid out money.- They are regulated by the Dept of Justice.
0:18:23 > 0:18:27That's the good news. However, unfortunately,
0:18:27 > 0:18:34there isn't an ombudsman scheme or other organisation you can turn to to get the money back from them.
0:18:34 > 0:18:38All that you can continue to do is put pressure on them.
0:18:38 > 0:18:44With your complaint about the PPI policy, we can take that up with the business that sold it,
0:18:44 > 0:18:48and we might be able to help you. That you can do for free.
0:18:48 > 0:18:53Unfortunately, once you've paid them, you may need legal action.
0:18:53 > 0:19:00Knowing the next step to take can make the difference and if you need any further advice, visit:
0:19:08 > 0:19:11We are a nation in debt.
0:19:11 > 0:19:17Between us, we owe a staggering £1.5 trillion.
0:19:17 > 0:19:22Now that is not an easy figure for any of us to get our heads around,
0:19:22 > 0:19:27but that really is the total level of personal debt that's owed
0:19:27 > 0:19:30by the 50 million or so adults in Britain today.
0:19:30 > 0:19:37Among them is pensioner Geoff Burgess. For him, things were a bit tight. He had some debts,
0:19:37 > 0:19:39but he felt he was managing them OK.
0:19:39 > 0:19:45That is until he was cold called by a company called Beneficial Claims.
0:19:45 > 0:19:49Now they seemed to be offering him a solution that might mean
0:19:49 > 0:19:54he didn't have to pay back his loans at all. Sounds too good to be true?
0:19:54 > 0:19:58Unfortunately for Geoff, it was.
0:20:09 > 0:20:14Geoff and May Burgess thought they were doing fine with their money.
0:20:14 > 0:20:2077-year-old Geoff was paying off a loan, but had no problems meeting the repayments,
0:20:20 > 0:20:26until in January of 2010 he got a call out of the blue from a company called Beneficial Claims.
0:20:26 > 0:20:32They told him his loan may not be enforceable under new legislation,
0:20:32 > 0:20:36meaning he may not have to pay it back.
0:20:36 > 0:20:43Beneficial Claims phoned me up and said we'd got this loan and they'd look into it.
0:20:43 > 0:20:48And then I wanted to know what was this going to cost me.
0:20:48 > 0:20:51And they said,
0:20:51 > 0:20:55"Well, the fee will be £360,
0:20:55 > 0:21:00"but if we win your case and get your money wrote off,"
0:21:00 > 0:21:05then the fee would be a percentage of the money we got wrote off.
0:21:05 > 0:21:12But things took an unexpected turn when Geoff received his next credit card bill.
0:21:12 > 0:21:15And my credit card bill came
0:21:15 > 0:21:18and I nearly went mental.
0:21:18 > 0:21:22I couldn't believe... I had to look at it two or three times to see.
0:21:22 > 0:21:27I said, "Who the hell's taken this amount of money off me?!"
0:21:27 > 0:21:35A hefty £5,518 had been taken from Geoff's credit card
0:21:35 > 0:21:39by, you've guessed it, Beneficial Claims,
0:21:39 > 0:21:43so when he got in touch to ask why, how did they explain it?
0:21:43 > 0:21:50That money was being used as a down payment more or less to work on my case for me.
0:21:50 > 0:21:53Then I tried to get through to them
0:21:53 > 0:21:57that the fee was agreed of £360.
0:21:57 > 0:21:59Not nearly 6,000!
0:22:02 > 0:22:05We've looked at Geoff's paperwork
0:22:05 > 0:22:09and it does seem that all he initially agreed to
0:22:09 > 0:22:14was £360 for them to review his loan and credit card agreements.
0:22:18 > 0:22:20It's just unbelievable.
0:22:20 > 0:22:24It really is unbelievable, how they wouldn't explain why.
0:22:24 > 0:22:28I'm still no wiser now over why they did it.
0:22:28 > 0:22:33I just don't know. Nobody has explained why they took that much money.
0:22:33 > 0:22:40Despite Geoff's efforts, his demands for a clear explanation and a refund
0:22:40 > 0:22:43did not get the response that he'd hoped for.
0:22:43 > 0:22:47His case was simply passed to a sister company called Money Worries.
0:22:47 > 0:22:51They said they've transferred it to another company
0:22:51 > 0:22:56who is better equipped and have more knowledge of dealing with it.
0:22:56 > 0:23:00I said, "I don't want this really. I want my money back."
0:23:00 > 0:23:05He said, "We can't do anything about it now. We've passed it all over to them.
0:23:05 > 0:23:07"You'll have to deal with them."
0:23:07 > 0:23:13What Geoff didn't realise is that Money Worries is a debt management company,
0:23:13 > 0:23:19a service he had absolutely no need for because he has been meeting all of his repayments.
0:23:19 > 0:23:25I've never missed a payment on my loan because it goes out on a standing order.
0:23:25 > 0:23:29He didn't need his payment plan being tinkered with
0:23:29 > 0:23:35and he was particularly infuriated when they said they would work on his credit card bill.
0:23:35 > 0:23:38I said, "What do you mean, my credit card?
0:23:38 > 0:23:42"Your company has put this money on my credit card, not me.
0:23:42 > 0:23:45"I had only 260 quid on my credit card.
0:23:45 > 0:23:49"You've put the rest on and I want it back."
0:23:49 > 0:23:55By now, Geoff's repeated complaints had produced a partial victory.
0:23:55 > 0:24:01Beneficial Claims, who by now had changed their name to We Fight Any Claim,
0:24:01 > 0:24:03gave him £4,000 back,
0:24:03 > 0:24:07but the rest was still passed over to Money Worries.
0:24:07 > 0:24:10I was transferred to Money Worries
0:24:10 > 0:24:12without my consent.
0:24:12 > 0:24:16I didn't know what they were going to do,
0:24:16 > 0:24:20how they were going to do it, nothing was explained to me.
0:24:20 > 0:24:22And I didn't want them to do it,
0:24:22 > 0:24:27which I told them on numerous occasions, when I've been on the phone,
0:24:27 > 0:24:31"I want it closed down and I want nothing to do with you."
0:24:31 > 0:24:34But they didn't want to know. It just fell on dead ears.
0:24:34 > 0:24:38Geoff tried complaining to Money Worries too,
0:24:38 > 0:24:44but they told him he wasn't entitled to any refund, so Geoff wrote to us.
0:24:44 > 0:24:47When Rip-Off Britain contacted Money Worries in August,
0:24:47 > 0:24:50the company reinvestigated the case.
0:24:50 > 0:24:53They said it had come to light
0:24:53 > 0:24:58that there was still £1,365.14 of his money lodged with them,
0:24:58 > 0:25:01money that was passed over from Beneficial Claims.
0:25:01 > 0:25:05This money has now been refunded to Geoff.
0:25:05 > 0:25:10The company also told us that they did not agree with Geoff's version of events
0:25:10 > 0:25:15and that the £5,518 originally taken from his credit card
0:25:15 > 0:25:19constituted "agreed review and legal fees".
0:25:19 > 0:25:24They say the transfer of some of those funds to Money Worries was partly...
0:25:34 > 0:25:40Although they're sorry for any misunderstanding, they point out Geoff signed a letter of authority
0:25:40 > 0:25:45and a standing order mandate for them to work on his behalf, which is true,
0:25:45 > 0:25:51but it doesn't mean that he understood exactly what he had been persuaded to sign up to
0:25:51 > 0:25:54and he is adamant that he didn't.
0:25:55 > 0:26:00I feel so disgusted and this company should feel ashamed of themselves.
0:26:00 > 0:26:03I'm a 77-year-old pensioner...
0:26:06 > 0:26:12..and my brain is not working as quick as it used to do and I thin they took advantage of it.
0:26:15 > 0:26:21Still to come on Rip-Off Britain, we'll investigate another company making bold claims
0:26:21 > 0:26:25about reclaiming mis-sold payment protection insurance.
0:26:25 > 0:26:30They were very persistent in their methods of saying that I was entitled to this money
0:26:30 > 0:26:32and that I should proceed.
0:26:32 > 0:26:36In our financial situation, I felt we had to go for it.
0:26:38 > 0:26:41Still on the subject of the dreaded cold call,
0:26:41 > 0:26:45you may have been contacted yourself by companies promising anything
0:26:45 > 0:26:49from cheaper energy bills to a better deal on your insurance.
0:26:49 > 0:26:53That's exactly what happened to Eileen Mason from Lincolnshire.
0:26:53 > 0:26:56She decided to switch her car insurance
0:26:56 > 0:27:00after being cold-called with a better deal from a rival firm,
0:27:00 > 0:27:04a decision she very quickly came to regret.
0:27:07 > 0:27:11Countless consumers have benefited from a cooling-off period,
0:27:11 > 0:27:15the right to cancel a contract within a certain period of time.
0:27:15 > 0:27:21And it's what Eileen Mason was relying on when she changed her mind about an insurance policy.
0:27:24 > 0:27:26I am a pensioner. I live on my own.
0:27:26 > 0:27:30I've worked all my life from the age of 16
0:27:30 > 0:27:35and at my age, I am very careful with how I spend my money.
0:27:37 > 0:27:42In August, the 73-year-old was cold-called by Swinton Insurance
0:27:42 > 0:27:47who said that they could get her a better deal on her house and car insurance.
0:27:47 > 0:27:51Keen to save money, Eileen decided to take them up on their offer,
0:27:51 > 0:27:55not least because they said she had a 14-day cooling-off period,
0:27:55 > 0:28:00which she thought gave her a bit of breathing space if she changed her mind.
0:28:00 > 0:28:06I understood the 14-day cooling-off period meant there wouldn't be any charges,
0:28:06 > 0:28:09so I was quite happy to go ahead.
0:28:09 > 0:28:14But when Eileen called her current insurers to cancel her existing policy,
0:28:14 > 0:28:18they offered to better Swinton's quote by over £100.
0:28:18 > 0:28:22So she gave me the quote which was a standard cover,
0:28:22 > 0:28:25basically the same as Swinton,
0:28:25 > 0:28:30which I thought was a better deal, obviously, because it was over £100 cheaper.
0:28:30 > 0:28:33What fool wouldn't go for that?
0:28:33 > 0:28:40Confident that she'd get her money back because she was cancelling within that cooling-off period,
0:28:40 > 0:28:45Eileen then called Swinton to say that she didn't need their new policy after all.
0:28:45 > 0:28:51They said she could cancel, but she'd be charged for the privilege.
0:28:51 > 0:28:56The young lady said, "You do realise you have to pay a £50 cancellation fee
0:28:56 > 0:28:59"for both home and the car insurance?"
0:28:59 > 0:29:05I said, "What, £100?!" She said, "Yes, I'm afraid that is what we do. That's our policy."
0:29:07 > 0:29:11But it's a policy that Eileen considers outrageous.
0:29:11 > 0:29:17Why have a cooling-off period if you're charged if you cancel within that period or after that period?
0:29:17 > 0:29:21There's no point in even putting it in your contract.
0:29:21 > 0:29:27The Financial Services Authority rules state that companies cannot penalise customers
0:29:27 > 0:29:30for cancelling within 14 days,
0:29:30 > 0:29:33but they can charge a reasonable administration fee.
0:29:35 > 0:29:39I don't mind having to pay an administration charge,
0:29:39 > 0:29:42but not to pay £50. What was the £50 for?
0:29:42 > 0:29:46All they sent to me was copies that they'd printed off
0:29:46 > 0:29:51from obviously their glossy brochure.
0:29:52 > 0:29:58The FSA also says customers should be told about fees like this before taking out the policy.
0:29:58 > 0:30:03Eileen says that did not happen when Swinton contacted her,
0:30:03 > 0:30:06but when she tried to get hold of a copy of the call to prove it,
0:30:06 > 0:30:10she was told that only those from call centres are recorded.
0:30:10 > 0:30:15Eileen's call was from the Grimsby branch, so it's her word against theirs
0:30:15 > 0:30:19that they didn't mention the charge.
0:30:19 > 0:30:22If she had told me at the time that I would be charged,
0:30:22 > 0:30:28I would have said to her, "Cancel those quotes now because I'm not going ahead."
0:30:28 > 0:30:34Swinton aren't the only insurers to charge a fee if you cancel within the cooling-off period.
0:30:34 > 0:30:39Others we contacted charge anything from £5 to £55.
0:30:39 > 0:30:42When we asked about their fee, Swinton told us
0:30:42 > 0:30:46it doesn't exceed the administration costs of setting up a new policy.
0:30:46 > 0:30:50They sent us a list of the 40 tasks and costs
0:30:50 > 0:30:55that they say are part of the market analysis used to calculate the price.
0:30:55 > 0:30:58And they insist that customers would be aware of the fee
0:30:58 > 0:31:04because all Swinton sales staff are required to follow a script that mentions it,
0:31:04 > 0:31:07plus it's in the terms and conditions.
0:31:08 > 0:31:12Even so, they did offer Eileen £50 as a goodwill gesture,
0:31:12 > 0:31:16but determined to get a full refund, she rejected their offer
0:31:16 > 0:31:20and put in a complaint to the Financial Ombudsman Service
0:31:20 > 0:31:24and the company has now refunded the whole £100.
0:31:24 > 0:31:29Eileen says the experience has made her wary of relying on cooling-off periods in the future.
0:31:29 > 0:31:34I have lost confidence with switching from anyone.
0:31:34 > 0:31:39Whoever I'm with now, I will be with till the day I die.
0:31:39 > 0:31:43Earlier in the programme, we heard about just one of the companies
0:31:43 > 0:31:50who claim they'll get back money that you've paid out for mis-sold payment protection insurance,
0:31:50 > 0:31:54or PPI as we call it, but there are lots of those companies around.
0:31:54 > 0:31:57In fact, every week, about 2,500 people use one of them.
0:31:57 > 0:32:01Unfortunately, some of those people never see a penny
0:32:01 > 0:32:05and probably didn't even need the company's help in the first place.
0:32:05 > 0:32:07Come on, boys.
0:32:07 > 0:32:13John and Carol Henry have had a really tough time over the last couple of years.
0:32:13 > 0:32:18Carol was made redundant and John had to leave his job for health reasons.
0:32:18 > 0:32:22With neither of them working, their finances were put under huge pressure.
0:32:22 > 0:32:26We couldn't pay our bills or our mortgage.
0:32:26 > 0:32:33We couldn't pay the loans that we had, we couldn't pay our credit cards. We were in a real mess.
0:32:33 > 0:32:37While he had still been working, John had taken out three loans.
0:32:37 > 0:32:41Each time, he bought payment protection insurance to go with them
0:32:41 > 0:32:44to cover his repayments if he became unable to pay.
0:32:44 > 0:32:49- How much was it on this one?- On this loan alone, it's £2,420.- Yeah.
0:32:49 > 0:32:52The cost of that wasn't small change.
0:32:52 > 0:32:57In total, I have paid over £5,000 in PPI insurance,
0:32:57 > 0:33:02which, if I hadn't done, could have paid off one of my loans.
0:33:03 > 0:33:08After paying out so much, you can see why in autumn 2010,
0:33:08 > 0:33:12when they became aware of the PPI mis-selling scandal,
0:33:12 > 0:33:17John and Carol started to wonder if they had been mis-sold their insurance as well
0:33:17 > 0:33:21and if perhaps they'd be entitled to some of that money back?
0:33:21 > 0:33:27It dawned on me that John hadn't been asked enough questions about him taking out the PPI.
0:33:27 > 0:33:31I think at the time he did take it out with the loans,
0:33:31 > 0:33:34he felt very pressured into signing the forms
0:33:34 > 0:33:37because he needed this insurance,
0:33:37 > 0:33:41but I really don't believe, when we've discussed it,
0:33:41 > 0:33:46that he had actually been truly informed as to what it really meant.
0:33:46 > 0:33:51John contacted his creditors who assured him that he had not been mis-sold his PPI,
0:33:51 > 0:33:55but a few weeks later, he received a call right out of the blue
0:33:55 > 0:34:00from a company called Claims Management Bureau who said the opposite.
0:34:00 > 0:34:03They insisted that he was entitled to compensation
0:34:03 > 0:34:07and made some bold claims about just how much.
0:34:08 > 0:34:13They informed him that he was actually entitled to a minimum of £1,500 rebate
0:34:13 > 0:34:18on the PPI insurance that he had paid. That was the minimum he could expect.
0:34:18 > 0:34:22I informed them that I had already contacted my creditors
0:34:22 > 0:34:26and they told me that I hadn't been mis-sold it
0:34:26 > 0:34:28and he insisted.
0:34:28 > 0:34:33He said, "Yes, you are entitled to this. It's in the government guidelines."
0:34:33 > 0:34:40They were very persistent in their methods of saying that I was entitled to this money
0:34:40 > 0:34:42and that I should proceed.
0:34:42 > 0:34:45In our financial situation, I felt we had to go for it.
0:34:45 > 0:34:49Persuaded they were due some cash after all, John signed up,
0:34:49 > 0:34:56agreeing to pay Claims Management Bureau an initial up-front fee of £234,
0:34:56 > 0:34:59so that they could process his claim.
0:34:59 > 0:35:04They said they were a time-effective, honest and reliable service.
0:35:04 > 0:35:09That was music to your ears and you felt you could go along with that, you could trust them.
0:35:09 > 0:35:13The couple didn't have the money straight away and told the company
0:35:13 > 0:35:17it would take seven days to transfer it to them.
0:35:17 > 0:35:24Every day without fail they rang. "Is the money in the account yet? Is the money in the account yet?"
0:35:24 > 0:35:30I said to John, "There's something wrong. They shouldn't be panicking for this money."
0:35:30 > 0:35:35But the couple paid up and signed all the forms at which point things went rather quiet.
0:35:35 > 0:35:41After two months had gone by and they'd heard nothing, John called the Claims Management Bureau
0:35:41 > 0:35:44to find out what was going on.
0:35:44 > 0:35:49He got somebody on the phone who said to him, "Don't worry, it's all being dealt with.
0:35:49 > 0:35:51"It's all being processed."
0:35:51 > 0:35:57We got Christmas over, then I said, "John, you still haven't heard anything from these people.
0:35:57 > 0:36:00"There's something not right here."
0:36:00 > 0:36:02So he rang them.
0:36:02 > 0:36:06The phone rang out and rang out - no answer.
0:36:06 > 0:36:08- The phone's dead.- Yeah.
0:36:08 > 0:36:14In February 2011 with still no word, John contacted Trading Standards.
0:36:14 > 0:36:19On their advice, he wrote to the company and sent the letter by recorded delivery.
0:36:19 > 0:36:22It was signed for, but he heard nothing back.
0:36:22 > 0:36:26Two weeks later, he sent another letter which was returned.
0:36:26 > 0:36:30It had been opened by the post office, sent back to us,
0:36:30 > 0:36:34informing us that the company was no longer at that address.
0:36:34 > 0:36:40I then decided to contact the Police Fraud Squad and gave them all the details of the company.
0:36:40 > 0:36:45The police said that they couldn't really help without more complaints,
0:36:45 > 0:36:48but we've done some investigations of our own.
0:36:48 > 0:36:53We got in touch with the Ministry of Justice who regulate claims companies of this type.
0:36:53 > 0:36:58They told us that the Claims Management Bureau is not authorised by them
0:36:58 > 0:37:01which means the company was trading illegally.
0:37:01 > 0:37:07What that means for the £234 that John and Carol have paid is unclear.
0:37:07 > 0:37:09Come on, boys.
0:37:09 > 0:37:13They're hoping to get it back from their credit card company
0:37:13 > 0:37:17and to determine once and for all whether they were mis-sold PPI,
0:37:17 > 0:37:22they've contacted the Financial Ombudsman Service, by far the best way of finding that out
0:37:22 > 0:37:24and one that won't cost you a penny.
0:37:24 > 0:37:29We tried to get hold of the Claims Management Bureau for an explanation.
0:37:29 > 0:37:31So far, we've had no response.
0:37:31 > 0:37:34Now here's a fact.
0:37:34 > 0:37:38Last year, seven out of ten complaints to the Financial Ombudsman
0:37:38 > 0:37:42all related to Personal Protection Insurance or PPI, as we call them.
0:37:42 > 0:37:48So today I've come to the Ministry of Justice to talk to Kevin Roussell who is Head of Claims Regulation
0:37:48 > 0:37:53to ask him exactly what they're doing about this enormous problem.
0:37:53 > 0:37:56Kevin, we're really glad that you've joined us.
0:37:56 > 0:38:00This issue of PPI is really causing a lot of disturbance
0:38:00 > 0:38:05and frustration to many of our viewers who have cited the case.
0:38:05 > 0:38:10You are the regulator, so there's something adrift. You're not regulating enough.
0:38:10 > 0:38:14We have about 900 businesses in this area which we're trying to regulate.
0:38:14 > 0:38:18The majority are providing a reasonably good service.
0:38:18 > 0:38:23There's a few bad eggs in that. We're chasing all those to make sure they do comply.
0:38:23 > 0:38:26If they don't, we will close them down.
0:38:26 > 0:38:32Do you feel you're acting quickly enough and punishing these claims management companies sufficiently?
0:38:32 > 0:38:38Yes, I do. We can put conditions on people's licences. That means the businesses can't do certain things.
0:38:38 > 0:38:45We don't have to shut them down. We can restrict their activities, focus on where things are going wrong.
0:38:45 > 0:38:49I have to take into account how many consumers are with that business
0:38:49 > 0:38:53because if it's got thousands of claims which are live,
0:38:53 > 0:38:59it could be detrimental to close the business down, rather than trying some other means to improve things.
0:38:59 > 0:39:02But then the other reason that people give,
0:39:02 > 0:39:07they say that sometimes these companies just go into liquidation, not traceable,
0:39:07 > 0:39:14so in fact the money they've paid up front that you talked about has gone. What redress is there there?
0:39:14 > 0:39:17We track very closely where the individuals go.
0:39:17 > 0:39:21If they try and get involved with another business, we will stop them.
0:39:21 > 0:39:26As for consumers who have paid up-front fees, the majority have paid on credit cards
0:39:26 > 0:39:31and they can claim back via their credit card company who shares liability for it.
0:39:31 > 0:39:35It's not ideal, but in most cases, people get their money back that way
0:39:35 > 0:39:40You did intervene in the case of Norma. She'd been a widow for 17 years.
0:39:40 > 0:39:44So what were your investigations in that case?
0:39:44 > 0:39:50In that case, the company called We Fight Any Claim, we had concerns about their activities in selling,
0:39:50 > 0:39:56so we put some restrictions on their licence to stop them confusing consumers in what they were doing.
0:39:56 > 0:40:01Is your advice not to pay up-front fees or in some cases are they justified?
0:40:01 > 0:40:05There is no reason in PPI claims why you need to pay an up-front fee.
0:40:05 > 0:40:10Sometimes if you make a request for data from a bank, there's a £10 fee,
0:40:10 > 0:40:13but anything else shouldn't be necessary.
0:40:13 > 0:40:18Most companies don't charge up-front fees and provide a reasonable service.
0:40:18 > 0:40:24Your organisation has been accused of not regulating enough. It's too slow, it's not efficient enough.
0:40:24 > 0:40:29In future, how are you going to speed that up and enforce the laws you have more quickly?
0:40:29 > 0:40:33We're putting additional resources particularly into the PPI area
0:40:33 > 0:40:39because it's clear from all the reports we've seen, the mystery shopping that's been done,
0:40:39 > 0:40:43that more businesses need to comply with our regulations.
0:40:43 > 0:40:47So Rip-Off Britain will be still knocking on your door?
0:40:47 > 0:40:51- In a nice way, hopefully. - Thank you very much.- Thank you.
0:40:53 > 0:40:58At Rip-Off Britain, we're always ready to investigate more of your stories.
0:40:58 > 0:41:05Confused over your bills, trying to wade through endless small print that leaves you none the wiser?
0:41:05 > 0:41:10I might have been stupid for not reading it or I've read it and not taken it in.
0:41:10 > 0:41:12I could kick myself. I really could.
0:41:12 > 0:41:16Unsure what to do when you discover you've lost out
0:41:16 > 0:41:20and that so-called great deal has ended up costing you money?
0:41:20 > 0:41:25I thought, "This cannot be true. It's totally unacceptable." I was so angry.
0:41:25 > 0:41:31You might have a cautionary tale of your own and want to share the mistakes you made with us,
0:41:31 > 0:41:33so others don't do the same.
0:41:33 > 0:41:39No-one knows about this, so this is very strange. I really would like to get this much clearer.
0:41:39 > 0:41:41You can write to us at...
0:41:50 > 0:41:53Or send us an email to...
0:41:57 > 0:42:02The Rip-Off team is ready and waiting to investigate your stories.
0:42:04 > 0:42:10It's clear from today's stories that before you agree to anyone offering to claim back money on your behalf,
0:42:10 > 0:42:16check that you do need their services and it isn't something you could do yourself.
0:42:16 > 0:42:22The chances are that you could save yourself not just a lot of money, but also an awful lot of hassle.
0:42:22 > 0:42:25And at a time when money is tighter than ever,
0:42:25 > 0:42:31you want to be confident that you are getting the best value from every pound you spend.
0:42:31 > 0:42:35This programme is all about trying to look after your money at all times.
0:42:35 > 0:42:38That's where we've got to leave it for today,
0:42:38 > 0:42:43but we hope you'll join us again when we'll investigate more of your stories,
0:42:43 > 0:42:49- showing you how to avoid being ripped off. Until then, from the three of us, bye-bye.- Bye-bye.- Bye.
0:43:06 > 0:43:10Subtitles by Subtext for Red Bee Media Ltd 2011
0:43:10 > 0:43:13Email subtitling@bbc.co.uk