Episode 16

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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 for what they have done.

0:00:09 > 0:00:13The bank passed charges, upon charges, upon charges...

0:00:13 > 0:00:14Legally, it was right.

0:00:14 > 0:00:18Morally, that's where the question and doubt comes in my view.

0:00:18 > 0:00:21..and you contacted us in your thousands.

0:00:21 > 0:00:26By post, e-mail, even 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 get a straight answer, they' just fob you off.

0:00:31 > 0:00:33- I'm not happy with them at all. - There's always that very small print

0:00:33 > 0:00:36with the clause in that you didn't realise.

0:00:36 > 0:00:38We are being ripped off big time.

0:00:38 > 0:00:40Whether it's a deliberate Rip-Off,

0:00:40 > 0:00:43a simple mistake or a catch in the small print.

0:00:43 > 0:00:45We'll find out why you're out of pocket

0:00:45 > 0:00:48and indeed, what you can do about it.

0:00:48 > 0:00:51Keep asking the questions, 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 > 0:00:58Your stories, your money. This is Rip-Off Britain.

0:01:00 > 0:01:03Hello and welcome to Rip-Off Britain,

0:01:03 > 0:01:06the programme that looks into your consumer complaints

0:01:06 > 0:01:08to discover whether or not you've been ripped off.

0:01:08 > 0:01:12We're here to tackle the issues you've asked us to investigate on your behalf

0:01:12 > 0:01:15and get your problems sorted out if we can.

0:01:15 > 0:01:17Today, we're looking into the extra charges and expenses

0:01:17 > 0:01:21that you can find yourself saddled with if you own a home.

0:01:21 > 0:01:25Believe it or not, but there are 25 million homes in the UK

0:01:25 > 0:01:28of which seven out of ten are owner-occupied.

0:01:28 > 0:01:31With such large numbers, it's not surprising

0:01:31 > 0:01:33so many of you have contacted us

0:01:33 > 0:01:36with absolute horror stories about things that have gone wrong,

0:01:36 > 0:01:39and indeed, the difficulties you've had in getting them resolved.

0:01:39 > 0:01:41One case we will hear about

0:01:41 > 0:01:45- has rumbled on for an unbelievable six years.- Crikey!

0:01:45 > 0:01:49I know. We're on an absolute mission to speed things up.

0:01:49 > 0:01:55Also coming up on today's show -

0:01:52 > 0:01:55the things you wouldn't want a home survey to miss.

0:01:55 > 0:02:00What can happen when it doesn't investigate every nook and cranny.

0:02:00 > 0:02:02We moved this floor board

0:02:02 > 0:02:08and under here we revealed literally thousands and thousands of rat droppings

0:02:08 > 0:02:09and a couple of dead rodents.

0:02:11 > 0:02:14Plus, how we gave hundreds of you expert advice face-to-face

0:02:14 > 0:02:18at the Rip-Off Britain pop-up shop.

0:02:18 > 0:02:20You shouldn't have to take this to the ombudsman service,

0:02:20 > 0:02:22but do persevere because it's free

0:02:22 > 0:02:24and I do think you'll get your money back.

0:02:25 > 0:02:28Buying a house is probably one of the most stressful things you can do,

0:02:28 > 0:02:32and as it's also the single most expensive purchase you'll ever make,

0:02:32 > 0:02:34it's vital to get things right.

0:02:34 > 0:02:39A crucial piece of information when deciding whether or not to buy is the survey.

0:02:39 > 0:02:42You hope it' will pick up anything about the house that's not quite right,

0:02:42 > 0:02:44but there's a choice of surveys you can get

0:02:44 > 0:02:47and they may not always turn up everything you would expect.

0:02:47 > 0:02:51Like whether your potential home is already occupied.

0:02:54 > 0:02:57Meet Sally and Tim Rogers and their children,

0:02:57 > 0:03:01two-year-old Evie and ten-month-old Pip.

0:03:01 > 0:03:04This is their dream family home -

0:03:04 > 0:03:09a three-bedroomed Victorian mid-terrace which they bought back in 2010.

0:03:09 > 0:03:12It was really the only house that we've ever fell in love with,

0:03:12 > 0:03:15when we walked through the front door,

0:03:15 > 0:03:17so we both walked out and went, "Yes, I think so."

0:03:17 > 0:03:20And the timing couldn't have been more perfect

0:03:20 > 0:03:26with the completion date falling one month before baby Pip was due to be born.

0:03:27 > 0:03:30So, here we are on Friday 13th!

0:03:32 > 0:03:34- First time in. - 'It was all coming together.'

0:03:34 > 0:03:37We were going to get everything out for the new baby,

0:03:37 > 0:03:40everything was sorted at last, it was great.

0:03:40 > 0:03:44- Evie! Hello. - 'Before buying, they'd done the sensible thing'

0:03:44 > 0:03:47and decided to get a survey carried out on the house.

0:03:47 > 0:03:50When we got the documents through about the survey,

0:03:50 > 0:03:53we thought quite long and hard about what kind to go for.

0:03:53 > 0:03:55It wasn't a rush decision.

0:03:55 > 0:03:58We were trying to decide between the homebuyer's

0:03:58 > 0:04:01and the building survey, which is a structural survey.

0:04:01 > 0:04:04We took the decision to pay £600 for the homebuyer's survey,

0:04:04 > 0:04:07believing it would pick up anything majorly wrong.

0:04:07 > 0:04:11The survey didn't throw up any big problems

0:04:11 > 0:04:14and keen to get into the house before the baby was born,

0:04:14 > 0:04:17they went ahead with the purchase.

0:04:17 > 0:04:21I like what they've done with the curtain pole - it's beautiful!

0:04:22 > 0:04:26Let's hope that Friday 13th is NOT an omen.

0:04:26 > 0:04:29But those words came back to haunt Tim

0:04:29 > 0:04:31when Sally noticed something.

0:04:31 > 0:04:37I started to feel just slightly uneasy and it was almost like...

0:04:39 > 0:04:43..I just had that feeling that something wasn't quite right.

0:04:43 > 0:04:46There was a strange smell.

0:04:46 > 0:04:50Nice bit of mould down the back of the fridge.

0:04:50 > 0:04:53- Lovely.- Any droppings?

0:04:54 > 0:04:56- I'm sure there are, yes. - Yeah, there are.

0:04:56 > 0:04:59Behind where the fridge had been, there where rat droppings.

0:04:59 > 0:05:02Underneath the sink, where the dishwasher had been,

0:05:02 > 0:05:05there was what looked like an old bait trap and some droppings.

0:05:05 > 0:05:09Then after about ten minutes, we realised there had been a problem,

0:05:09 > 0:05:12even just in the kitchen area, we hadn't even been upstairs.

0:05:12 > 0:05:16They contacted a local pest controller, Sean Whelan.

0:05:18 > 0:05:20When I first walked into the property,

0:05:20 > 0:05:24immediately I could smell dead rodents and droppings

0:05:24 > 0:05:27and definitely an odour of rodent activity.

0:05:27 > 0:05:31We then came over and moved this floor board here,

0:05:31 > 0:05:33which exposed dead rodents, loads of flies

0:05:33 > 0:05:36and also thousands of droppings.

0:05:36 > 0:05:40It was very clear that there was a major infestation right from the word go.

0:05:40 > 0:05:44To have had the keys the day before and then for him to come in and say

0:05:44 > 0:05:48that we had quite a big problem with rodents was a big shock and very disappointing.

0:05:48 > 0:05:52The next area visited was this floor here

0:05:52 > 0:05:55and straightaway, we moved this floor board

0:05:55 > 0:05:57and under here we revealed

0:05:57 > 0:06:01literally thousands and thousands of rat droppings

0:06:01 > 0:06:03and again a couple of dead rodents.

0:06:03 > 0:06:05The rat infestation in this property

0:06:05 > 0:06:08has to have been one of the worst I've ever seen.

0:06:08 > 0:06:12The infestation was actually significant enough

0:06:12 > 0:06:14that we made the decision not to live here.

0:06:14 > 0:06:16I mean, Evie was not even two

0:06:16 > 0:06:19and I was eight months pregnant with our second baby.

0:06:19 > 0:06:22So, I just said, "I'm not happy to bring my children

0:06:22 > 0:06:23"into this environment."

0:06:23 > 0:06:26If this jeopardises this pregnancy at this stage,

0:06:26 > 0:06:29I couldn't live with that outcome. It just wasn't an option.

0:06:31 > 0:06:33So, instead of moving into their new house

0:06:33 > 0:06:36in time for the arrival of their second child,

0:06:36 > 0:06:39they ended up renting somewhere else.

0:06:39 > 0:06:43We eventually moved into the house three months after we'd bought it

0:06:43 > 0:06:47and in the meantime it had cost us extra storage, rent.

0:06:47 > 0:06:52Treating the rats had actually cost us nearly £6,000.

0:06:52 > 0:06:53Now, you may be thinking,

0:06:53 > 0:06:57"Hang on, they had a survey done," and they did,

0:06:57 > 0:07:00but you need to be careful when it comes to surveys.

0:07:00 > 0:07:02They don't always do what you think.

0:07:02 > 0:07:05In fact, there are three very different types of survey

0:07:05 > 0:07:10with the most basic valuation costing between £100 and £300.

0:07:10 > 0:07:14The first one is not a survey at all it's the mortgage valuation,

0:07:14 > 0:07:16commissioned by the mortgage company

0:07:16 > 0:07:20and basically trying to work out what the market value of the property is.

0:07:20 > 0:07:24The second one is a homebuyer's survey which is much more detailed

0:07:24 > 0:07:27and much more structured, but again has its limitations

0:07:27 > 0:07:31because it depends on what the surveyor can see on any particular day.

0:07:31 > 0:07:34Then the third one is a building survey,

0:07:34 > 0:07:38which is much more detailed and may involve opening stuff up,

0:07:38 > 0:07:42looking more closely at potential defects and so on.

0:07:42 > 0:07:47That more thorough survey probably would have uncovered the rat infestation,

0:07:47 > 0:07:51but it would have cost more - up to £1,000.

0:07:51 > 0:07:56Tim and Sally had gone for the middle homebuyer option at £600,

0:07:56 > 0:07:59but with that one, surveyors don't move heavy furniture or carpets

0:07:59 > 0:08:03to examine the property in detail.

0:08:03 > 0:08:06For that reason, when Sally and Tim complained to the Ombudsman

0:08:06 > 0:08:09that the company doing the survey was at fault,

0:08:09 > 0:08:11their appeal was rejected.

0:08:11 > 0:08:15All of which has left them wondering whether they made the right choice

0:08:15 > 0:08:18and if next time around, they'd choose something different.

0:08:18 > 0:08:21I'd either go for no survey whatsoever and just assume

0:08:21 > 0:08:24the mortgage valuation was all right and just play it by ear,

0:08:24 > 0:08:27or pay top notch for a full structural building survey.

0:08:27 > 0:08:31I'd just recommend to people looking to buy properties

0:08:31 > 0:08:33just to put in the back of their mind

0:08:33 > 0:08:35that there could be a problem there.

0:08:38 > 0:08:43Just one in five homebuyers currently gets a building or condition report

0:08:43 > 0:08:46according to the Residential Property Surveyors Association.

0:08:46 > 0:08:48That's a quite shocking statistic.

0:08:48 > 0:08:52The rest rely on just the valuation, which may not be enough.

0:08:52 > 0:08:55As we've seen, a survey isn't always exhaustive,

0:08:55 > 0:09:00but failing to get one could set you up for thousands of pounds worth of unexpected repairs.

0:09:00 > 0:09:02So, do consider it very carefully

0:09:02 > 0:09:04and when making such a big investment,

0:09:04 > 0:09:07get as much information as you can.

0:09:10 > 0:09:13At a time when money is tighter than ever,

0:09:13 > 0:09:16you need to know that your cash is working hard for you.

0:09:16 > 0:09:19Avoiding Rip-Offs and sharp practice along the way.

0:09:19 > 0:09:22We've put together a booklet of tips and advice

0:09:22 > 0:09:25to help safeguard your hard-earned money.

0:09:25 > 0:09:28You can find the link to the free guide on our website.

0:09:32 > 0:09:34Or, if you want to receive a copy in the post,

0:09:34 > 0:09:37send an A5 self-addressed envelope

0:09:37 > 0:09:41to the address we'll give you right at the end of the programme.

0:09:45 > 0:09:48Now, we don't just take out insurance for buildings, of course.

0:09:48 > 0:09:51We also buy cover for treasured belongings

0:09:51 > 0:09:52so that we're safe in the knowledge

0:09:52 > 0:09:55that if they're lost, we can replace them,

0:09:55 > 0:09:58but that's not always straightforward either.

0:09:58 > 0:10:01It seems that an increasing number of insurers have their own view

0:10:01 > 0:10:05on what replacement actually means,

0:10:05 > 0:10:08not to mention where and how you can buy it.

0:10:08 > 0:10:13As this couple discovered after losing something that couldn't have been more precious.

0:10:15 > 0:10:19There's lots to think about when you're getting ready to jet off somewhere.

0:10:19 > 0:10:24Keeping an eye on your baggage, checking your passport three times, listening for announcements.

0:10:24 > 0:10:27It's very easy for things to go wrong.

0:10:27 > 0:10:29We were going to Italy last September

0:10:29 > 0:10:32and when we arrived at Gatwick Airport,

0:10:32 > 0:10:37I had actually had an infection in my ring finger, sadly.

0:10:37 > 0:10:42So, I actually had my wedding ring on the outside of this bone

0:10:42 > 0:10:44and my engagement ring on this finger.

0:10:44 > 0:10:49We met absolute chaos in the check-in at Gatwick

0:10:49 > 0:10:51and my ring must have come off.

0:10:51 > 0:10:53Engagement ring was still there but wedding ring had gone.

0:10:53 > 0:10:56With the flight due to leave

0:10:56 > 0:10:58and Liz's wedding ring nowhere to be found,

0:10:58 > 0:11:01Tony and Liz were left with a difficult choice.

0:11:01 > 0:11:05Well, panic set in of course and...

0:11:05 > 0:11:10I got a sick feeling as it would be when something like that happens.

0:11:10 > 0:11:13Added to that, of course, we were also having to rush for our flight

0:11:13 > 0:11:15so we had to make a decision -

0:11:15 > 0:11:18are we going to go for the flight or do something about the ring?

0:11:18 > 0:11:20We didn't want to have to miss the flight

0:11:20 > 0:11:25in order to try and look for the ring or just even report it missing.

0:11:27 > 0:11:29With just enough time to report the loss to the airport,

0:11:29 > 0:11:32they got on the plane and tried to enjoy their trip,

0:11:32 > 0:11:35but Liz was gutted to have lost the precious wedding ring

0:11:35 > 0:11:38that she'd been wearing for 36 years.

0:11:38 > 0:11:41Having an engagement ring, but no wedding ring was just weird,

0:11:41 > 0:11:44that's the only way I can describe it.

0:11:44 > 0:11:47Yes, it's faded slightly, but look at those hats.

0:11:47 > 0:11:50Tony and Liz were married in Edinburgh in 1975.

0:11:50 > 0:11:53Tony had bought the ring from a small jeweller's

0:11:53 > 0:11:56for the princely sum of £65.

0:11:56 > 0:11:59On their arrival back to the UK,

0:11:59 > 0:12:02Tony couldn't bear the thought of Liz not having a wedding ring

0:12:02 > 0:12:04and immediately went out to buy a replacement.

0:12:04 > 0:12:11We went to a local jewellers, we wanted to have a look and see what was on offer.

0:12:11 > 0:12:14It's a well-known jeweller around here and they gave us good advice

0:12:14 > 0:12:16and we found a ring that suited Liz.

0:12:16 > 0:12:18It was £295.

0:12:18 > 0:12:22Tony then put a claim in with his insurance company

0:12:22 > 0:12:25letting them know that they had already purchased another ring.

0:12:25 > 0:12:28We didn't expect there to be any problem at all with the insurance

0:12:28 > 0:12:33because our previous experience with the same insurer over 35 years -

0:12:33 > 0:12:37we'd made one buildings claim and one contents claim

0:12:37 > 0:12:40and it was just a case of, "Well, you tell us what you've lost

0:12:40 > 0:12:42"and you provide some proof and we'll pay out."

0:12:42 > 0:12:45We assumed it would be the same process again,

0:12:45 > 0:12:47we'd be talking about a cash settlement.

0:12:47 > 0:12:51But the insurance company had other ideas.

0:12:51 > 0:12:57They offered Tony vouchers for a jewellery store chain to the value of £220.

0:12:57 > 0:12:59That was the value of his claim for the new ring

0:12:59 > 0:13:04which was £295, minus his excess,

0:13:04 > 0:13:07but because Tony had already bought a replacement ring,

0:13:07 > 0:13:09he didn't want vouchers

0:13:09 > 0:13:11and he asked for a cash settlement instead.

0:13:11 > 0:13:13We thought the settlement was mean

0:13:13 > 0:13:17and that what was the point of giving us a voucher

0:13:17 > 0:13:19when we had already bought a ring.

0:13:19 > 0:13:24To make matters worse, Tony had had the original wedding ring valued

0:13:24 > 0:13:26using his wedding photos as evidence.

0:13:26 > 0:13:30He was told that his original £65 ring

0:13:30 > 0:13:35would now be worth over £600 at today's prices.

0:13:35 > 0:13:38So he went back to his insurers again.

0:13:38 > 0:13:43The insurance company said, "We can provide something closely matching that for £430."

0:13:43 > 0:13:45Fair enough, but then they said,

0:13:45 > 0:13:47"However, as you want a cash settlement,

0:13:47 > 0:13:49"we're only going to give you £196."

0:13:51 > 0:13:55Insurance companies often prefer to pay out in vouchers rather than cash.

0:13:55 > 0:13:59It's all there in the small print and it can be better value,

0:13:59 > 0:14:03because they can negotiate discounts with preferred suppliers,

0:14:03 > 0:14:06but Tony and Liz aren't the only people who have told us that

0:14:06 > 0:14:11they find that frustrating and they'd much rather have the cash.

0:14:12 > 0:14:14For Tony, the final straw came

0:14:14 > 0:14:17when he received his updated insurance premium.

0:14:17 > 0:14:22The final insult, as far as I was concerned, because I'm interested in the money side of it,

0:14:22 > 0:14:25was that they said we are going to increase your premiums

0:14:25 > 0:14:28by £61 a year with immediate effect,

0:14:28 > 0:14:30which meant that, when you do the maths you'll see,

0:14:30 > 0:14:34that we were going to repay in full the paltry cash settlement

0:14:34 > 0:14:36over a three-and-a-half-year period.

0:14:36 > 0:14:39Tony gets his insurance through his bank who told Rip-Off Britain

0:14:39 > 0:14:44that, in fact, vouchers can often be worth more to customers than cash.

0:14:44 > 0:14:47They insist they have acted in Tony's best interests throughout

0:14:47 > 0:14:51and advised that to avoid a similar situation,

0:14:51 > 0:14:54you should always contact your insurer

0:14:54 > 0:14:56before buying replacement goods,

0:14:56 > 0:15:01as the retail price can be much higher than they can get from their suppliers.

0:15:03 > 0:15:06But Tony and Liz don't agree, as far as they're concerned,

0:15:06 > 0:15:08whether they took cash or vouchers,

0:15:08 > 0:15:13they felt they were being offered less than the original ring was worth.

0:15:13 > 0:15:18We decided the best way to do it was to just take the cash settlement

0:15:18 > 0:15:21and walk away from the insurance company after 35 years.

0:15:23 > 0:15:26An emotional journey for Tony and Liz

0:15:26 > 0:15:28and one I'm sure they don't want to repeat,

0:15:28 > 0:15:31but to avoid the same sort of pitfalls

0:15:31 > 0:15:34James Daley from Which? has advice on how to get the best results

0:15:34 > 0:15:37when you're claiming through your insurance.

0:15:37 > 0:15:41If you need to make a claim, contact your insurer as soon as possible,

0:15:41 > 0:15:43don't put it off, don't leave it.

0:15:43 > 0:15:48Next up, don't buy any of the products yourself, until you've talked to your insurer

0:15:48 > 0:15:50and you've gone through their processes

0:15:50 > 0:15:55because they might not pay out if you make a purchase before you've contacted them.

0:15:55 > 0:15:59Finally, make sure you gather all your receipts and documentation together

0:15:59 > 0:16:02so you've got as much evidence as possible

0:16:02 > 0:16:05about how much you've spend on items that you need to replace.

0:16:05 > 0:16:07When you come to make a claim

0:16:07 > 0:16:09you might find that you get paid out in vouchers,

0:16:09 > 0:16:12but it's important to remember that you don't have to accept that.

0:16:12 > 0:16:15If your insurer has promised to make a like-for-like replacement

0:16:15 > 0:16:17for any items that have been damaged

0:16:17 > 0:16:22and you can't replace them at the store they've given you vouchers for then it's your right to reject that

0:16:22 > 0:16:25and ask them to come back with a better offer.

0:16:26 > 0:16:29If you're not happy with an offer made by your insurer

0:16:29 > 0:16:31and you can't get them to improve it

0:16:31 > 0:16:35then make sure you make a formal complaint to them in writing.

0:16:35 > 0:16:37if they promised to replace your items like-for-like

0:16:37 > 0:16:41and they haven't done that, then they are contractually obliged to do so.

0:16:42 > 0:16:45If you don't get the response you want from the complaint

0:16:45 > 0:16:49then take it on to the Financial Ombudsman service, that's an independent free service

0:16:49 > 0:16:52and there's a very high chance that your complaint will be upheld

0:16:52 > 0:16:55and you will get is that payment out in full as you expected.

0:16:59 > 0:17:01Still to come on Rip-Off Britain,

0:17:01 > 0:17:05we asked you to tell us how you feel you been ripped off

0:17:05 > 0:17:08and we've been inundated with your stories.

0:17:08 > 0:17:11We'll hear more of your home and property disasters.

0:17:11 > 0:17:15We could've saved pounds and pounds and pounds on our electricity

0:17:15 > 0:17:19just from waiting for those panels to be fitted.

0:17:19 > 0:17:22Plus, we and our experts met some of you face-to-face

0:17:22 > 0:17:25to try to sort out the things that are bothering you.

0:17:29 > 0:17:32Now, if you own property, then, unless you're very, very lucky,

0:17:32 > 0:17:35it's probably going to be your greatest asset

0:17:35 > 0:17:38and if you need to access the equity in the bricks and mortar

0:17:38 > 0:17:42borrowing money against it can be one of the cheapest options,

0:17:42 > 0:17:45but many of the people who signed up to one particular way of doing that

0:17:45 > 0:17:47now bitterly regret it

0:17:47 > 0:17:52because the loan they took out has had a very costly sting in the tail.

0:17:55 > 0:17:59Roger Westley prides himself on being really good with his finances.

0:17:59 > 0:18:03It's a family trait picked up from Ted, his late father.

0:18:03 > 0:18:05He was very careful with his money,

0:18:05 > 0:18:07he used to come down to Devon on holiday

0:18:07 > 0:18:10with a fiver in his pocket, he used to tell me.

0:18:10 > 0:18:14We're talking shoestring stuff, really, but he survived and he did well, he got on with his job

0:18:14 > 0:18:17and life improved from thereon, but he was a great dad.

0:18:18 > 0:18:20Originally from Devon,

0:18:20 > 0:18:23Ted and his wife Mary had decided to move the family back there

0:18:23 > 0:18:24when Roger was a teenager.

0:18:24 > 0:18:27And when they'd retired in 1978

0:18:27 > 0:18:30they bought this bungalow a few miles from Dartmoor.

0:18:30 > 0:18:33There's another shot of the bungalow from the road.

0:18:33 > 0:18:3720 years later, when they needed some money,

0:18:37 > 0:18:41they made the fateful decision to borrow £15,000 against their home.

0:18:41 > 0:18:45The loan was used for mainly double glazing

0:18:45 > 0:18:48and then, of course, they were getting older

0:18:48 > 0:18:53and the bath had to go and a shower unit was put in with all the grab rails

0:18:53 > 0:18:56and all the paraphernalia that comes with getting older.

0:18:56 > 0:18:59The remainder of the money was put away for a rainy day.

0:18:59 > 0:19:03Ted's bank Barclays had offered him two types of loan,

0:19:03 > 0:19:07a regular secured loan, which he'd pay interest on every month

0:19:07 > 0:19:10or what's called a shared appreciation loan,

0:19:10 > 0:19:13which would have no monthly repayments.

0:19:13 > 0:19:16That seemed like a very attractive product for retired Ted.

0:19:16 > 0:19:20- Good morning, Karen, how are you? - Good morning...

0:19:20 > 0:19:23Solicitor Hilary Messer explains how they work.

0:19:23 > 0:19:29A shared appreciation mortgage is an arrangement where a homeowner

0:19:29 > 0:19:32can borrow up to 25% of the value of their home

0:19:32 > 0:19:35and when they come to repay that borrowing

0:19:35 > 0:19:41they also have to pay up to 75% of the increase in value of their home

0:19:41 > 0:19:43as well as the original loan,

0:19:43 > 0:19:47but the loan itself is on a 0% fixed interest rate.

0:19:47 > 0:19:49So, no payments at the time,

0:19:49 > 0:19:53but a share in any increase in their home's value later on.

0:19:53 > 0:19:58Now, to Ted, whose bungalow was mortgage free and worth £62,000,

0:19:58 > 0:19:59it sounded perfect.

0:19:59 > 0:20:03On the advice of the bank he also ran it past a solicitor,

0:20:03 > 0:20:05as well as his only son Roger.

0:20:06 > 0:20:12He showed me the detail, er, he showed me what he'd done

0:20:12 > 0:20:15and how he'd run it by his own personal solicitor

0:20:15 > 0:20:18and on paper, to me, it looked OK.

0:20:18 > 0:20:21It meant they'd be in the property until the end

0:20:21 > 0:20:26and then the deal would be done with Barclays and the money repaid.

0:20:26 > 0:20:31Ted passed away in 2005 and when Mary died last year

0:20:31 > 0:20:35Roger inherited their bungalow, but thanks to the property boom of the late 90s

0:20:35 > 0:20:38its value had increased more than expected.

0:20:38 > 0:20:42So, when he sold it for £175,000

0:20:42 > 0:20:44he wondered how much of that would go to Barclays.

0:20:46 > 0:20:49My expectation was, at the end of the mortgage

0:20:49 > 0:20:51and the house being sold to clear it,

0:20:51 > 0:20:54I thought, "£15,000, 10 or 11 years,

0:20:54 > 0:20:57"probably somewhere in the region of 50,000 or £60,000 to pay back,

0:20:57 > 0:21:00"including the initial 15,000."

0:21:01 > 0:21:04But Roger was in for a very nasty shock.

0:21:04 > 0:21:08Barclays told him he'd have to pay them £82,000.

0:21:08 > 0:21:14Now, that's a whopping 72% of the increase in their home's value

0:21:14 > 0:21:18and on top of that he also had to pay the initial £15,000,

0:21:18 > 0:21:20which his parents had borrowed.

0:21:20 > 0:21:23So, all in all, £97,000.

0:21:23 > 0:21:26I'm going, "Excuse me?!

0:21:26 > 0:21:31"My father borrowed 15,000 and you want 97 plus back?!"

0:21:31 > 0:21:33"Yes, it's all legal, that's it, done and dusted.

0:21:33 > 0:21:38"Your father got it checked out, yes, it's fine, he signed, yes, it's a deal, contract."

0:21:38 > 0:21:42They were right, the details were there in black-and-white on the paperwork,

0:21:42 > 0:21:45Ted had signed and they'd been approved by his solicitor,

0:21:45 > 0:21:49but Roger doesn't think his father fully understood the product

0:21:49 > 0:21:51or indeed its risks.

0:21:51 > 0:21:54He was 80 when he signed up for this deal,

0:21:54 > 0:21:57I couldn't understand the formula when I looked at it, that they used,

0:21:57 > 0:21:59the formula for calculating the repayment.

0:21:59 > 0:22:03The problems associated with the product

0:22:03 > 0:22:07come as a result of the almost exponential rise in property prices

0:22:07 > 0:22:10and when people come to repay their loan,

0:22:10 > 0:22:14because they are paying back a share of the appreciation,

0:22:14 > 0:22:18they end up with, normally, less than half the value of their home

0:22:18 > 0:22:20and so, essentially, they can't re-house themselves.

0:22:23 > 0:22:28The typical cost of a home loan these days works out at between four and eight percent,

0:22:28 > 0:22:33but Roger has paid a staggering 540%.

0:22:33 > 0:22:36Thousands of other homeowners who took out this type of loan

0:22:36 > 0:22:39could actually be in the same position or worse,

0:22:39 > 0:22:42trapped in properties they can't afford to sell.

0:22:42 > 0:22:44Furious at what he's lost,

0:22:44 > 0:22:47Roger tried and failed to get the money back.

0:22:47 > 0:22:49Barclays, who basically told us,

0:22:49 > 0:22:52"Talk to the solicitor who authorised it with your dad," you know?

0:22:52 > 0:22:55They are relinquishing all responsibility

0:22:55 > 0:22:57and think it's all fine.

0:22:57 > 0:23:00I mean, legally it was right, morally,

0:23:00 > 0:23:03that's where the question and doubt comes, in my view.

0:23:03 > 0:23:05We spoke to Barclays...

0:23:05 > 0:23:08who said that shared appreciation mortgages

0:23:08 > 0:23:11was sold for just three months back in 1998

0:23:11 > 0:23:13and that safeguards were built in

0:23:13 > 0:23:16to ensure customers understood what they were buying.

0:23:16 > 0:23:20For example, the insistence on taking legal advice.

0:23:20 > 0:23:23The bank was comfortable that it did everything it could

0:23:23 > 0:23:25to make things clear at the time,

0:23:25 > 0:23:27but say that no-one could have predicted

0:23:27 > 0:23:31the unprecedented rise in house prices over the next ten years

0:23:31 > 0:23:34and they point out, if prices had gone the other way

0:23:34 > 0:23:38customers would've ended up only repaying the original loan.

0:23:40 > 0:23:42But Roger believes that Ted,

0:23:42 > 0:23:45who'd banked with Barclays all his adult life,

0:23:45 > 0:23:47would never have taken out the loan

0:23:47 > 0:23:50if he'd known how much it would end up costing.

0:23:50 > 0:23:53So, at the end of the day, yes, I have an inheritance.

0:23:53 > 0:23:56It's a lot less than we all anticipated

0:23:56 > 0:24:00and sadly I've been unable to provide, at this time,

0:24:00 > 0:24:04for my children and grandson as I had wished

0:24:04 > 0:24:07and also as my late parents had wished because that was in their thoughts,

0:24:07 > 0:24:10that they wanted to provide for us all.

0:24:13 > 0:24:17You know, so many of you contacted us with all your gripes and your confusions

0:24:17 > 0:24:21that we decided to open, on Rip-Off Britain, our own pop-up shop,

0:24:21 > 0:24:25here at the Trafford Centre in Manchester.

0:24:25 > 0:24:27We've teamed up with BBC learning,

0:24:27 > 0:24:29who have set up an interactive maths area.

0:24:29 > 0:24:32Maths buskers, as we call them, are entertaining the crowds.

0:24:32 > 0:24:36There are demonstrations on the Skillswise website.

0:24:36 > 0:24:42And people of all ages are finding out about ways they can gain confidence with their maths

0:24:42 > 0:24:44to help avoid those Rip-Offs.

0:24:44 > 0:24:48Brenda and her partner Brian have come to speak to James Daley

0:24:48 > 0:24:50who is the money editor of Which? magazine,

0:24:50 > 0:24:54about a problem they've had with their insurance.

0:24:54 > 0:24:57Let's start at the very beginning then, it's a very good place to start.

0:24:57 > 0:25:03Booked a holiday at the beginning of the year, to travel to Morocco in May,

0:25:03 > 0:25:08erm, and then in March I was diagnosed with breast cancer

0:25:08 > 0:25:11so I had to cancel the holiday.

0:25:11 > 0:25:14I'd bought travel insurance, as I always do,

0:25:14 > 0:25:16and have never claimed before,

0:25:16 > 0:25:22and when I put in my claim they said I hadn't paid an extra premium

0:25:22 > 0:25:26to be covered by breast cancer so they didn't pay me back for the holiday.

0:25:26 > 0:25:30And you said, I didn't have breast cancer when I booked a holiday.

0:25:30 > 0:25:36Exactly, I said, you know, I declared all that I had, which was nothing, on my original premium.

0:25:36 > 0:25:38So, what did they say, then, when you pointed out that

0:25:38 > 0:25:42when you booked the holiday you did not have breast cancer?

0:25:42 > 0:25:44The insurance company had said,

0:25:44 > 0:25:47"Why didn't you cancel right at the beginning?

0:25:47 > 0:25:51"You should have told us the minute you get the diagnosis,"

0:25:51 > 0:25:56whereas the last thing you're thinking of is your holiday terms and conditions.

0:25:56 > 0:25:59I can't believe that insurance companies,

0:25:59 > 0:26:02when you could have medical advice or medical letters to say,

0:26:02 > 0:26:06"She didn't know she had cancer when she booked this holiday," why they wouldn't accept that?

0:26:06 > 0:26:10Well, sadly, the financial services industry

0:26:10 > 0:26:13has a habit of trying to protect its profits

0:26:13 > 0:26:16and always putting the customer at the bottom of the pile.

0:26:16 > 0:26:21You're one of the millions of people who end up having to fight that.

0:26:21 > 0:26:23You shouldn't have to take this to the Ombudsman,

0:26:23 > 0:26:26but persevere because it's free and I think you'll get your money back.

0:26:26 > 0:26:29So, what would be your advice generally?

0:26:29 > 0:26:32It sounds so cliched, but it really is true,

0:26:32 > 0:26:37you've got to read all that small print in there before you buy it. However, something like this,

0:26:37 > 0:26:41- I think you're in the right, that's the bottom line...- As we say in the programme, be a terrier,

0:26:41 > 0:26:45just keep on going because, you know, it's very easy to be fobbed off.

0:26:45 > 0:26:48We're delighted that you're one of the survivors of breast cancer,

0:26:48 > 0:26:51we're very thrilled for you and you deserve a good holiday.

0:26:51 > 0:26:55So, we wish you well and sorry you've had all the angst!

0:26:55 > 0:27:00I'm sure you'll all be delighted to know that with the help she received from the Rip-Off Britain team,

0:27:00 > 0:27:02that perseverance paid off,

0:27:02 > 0:27:07Brenda has received the full £240 back from her insurance company.

0:27:10 > 0:27:14Now, another way to shave a bit of the cost of energy

0:27:14 > 0:27:16is simply to create your own.

0:27:16 > 0:27:21More than 30,000 people are now thought to have looked to the skies for salvation

0:27:21 > 0:27:24and installed solar panels on their roof,

0:27:24 > 0:27:26but some of those people, like Arthur and Maureen Clark,

0:27:26 > 0:27:29have found there are a few companies out there

0:27:29 > 0:27:32who seem to be making heavy weather of the job.

0:27:35 > 0:27:37Catching a few sunrays makes great sense to the Clarks.

0:27:39 > 0:27:42Like more than 64,000 other homeowners so far this year,

0:27:42 > 0:27:44they thought they'd save some cash

0:27:44 > 0:27:46and help save the planet as well

0:27:46 > 0:27:49by installing solar PV panels on their roof.

0:27:50 > 0:27:54But as you might spotted, there's nothing up there but tiles.

0:27:54 > 0:27:59A couple of years ago I decided to put solar panels on the roof of my bungalow

0:27:59 > 0:28:03because the roof does actually face south and it would receive a large amount of light.

0:28:03 > 0:28:08I got a quote for a job and it was £14,000,

0:28:08 > 0:28:11which I'm not going to get paid back inside my lifetime,

0:28:11 > 0:28:13however much free electricity I have.

0:28:13 > 0:28:17So, when I saw this offer in the local advertiser

0:28:17 > 0:28:21to pay £500 and they would completely cover my bungalow in solar panels,

0:28:21 > 0:28:24if my bungalow was suitable, I jumped at it.

0:28:24 > 0:28:28The scheme on offer from a company called Energy Saving Group

0:28:28 > 0:28:33was one where Arthur wouldn't have to actually buy the panels himself.

0:28:33 > 0:28:36Some companies now offer to fit their panels for free

0:28:36 > 0:28:38or, as in this case, for a small fee

0:28:38 > 0:28:44on the proviso that they can sell energy generated by the panels back to the grid.

0:28:44 > 0:28:47Essentially, they rent the roof space from the homeowner

0:28:47 > 0:28:53who in return benefits from some free or cheap electricity during daylight hours.

0:28:53 > 0:28:56My wife and I, we're both retired now,

0:28:56 > 0:28:58and we spend most of our time in the house

0:28:58 > 0:29:00so we do use a lot of electricity

0:29:00 > 0:29:06and we thought this would be a way of not only combining our recycling

0:29:06 > 0:29:10and trying to do our little bit environment with saving some energy.

0:29:10 > 0:29:14Looking forward to receiving some free electricity,

0:29:14 > 0:29:19Arthur called the Energy Saving Group who sent someone round to assess his property.

0:29:19 > 0:29:21The surveyor measured my house,

0:29:21 > 0:29:23looked at the construction of the roof,

0:29:23 > 0:29:26said yes it was eminently suitable,

0:29:26 > 0:29:30and took my cheque for £500 and left.

0:29:31 > 0:29:35Looking carefully at the paperwork, it's clear that Energy Saving Group

0:29:35 > 0:29:38wouldn't actually be the company installing the panels.

0:29:38 > 0:29:42In fact, all they would do is get in touch with another company,

0:29:42 > 0:29:46- My Energy Station, - which also trades as Norton Energy.

0:29:46 > 0:29:48That company would do its own survey

0:29:48 > 0:29:51and fit the panels if the house was suitable,

0:29:51 > 0:29:55a service they'd provide direct to the customer for free.

0:29:55 > 0:30:00Suddenly Arthur's £500 fee didn't seem such good value.

0:30:00 > 0:30:05I'm quite annoyed that my £500 really didn't go towards the installation whatsoever.

0:30:05 > 0:30:10The work that the survey did was no more than I could've done and sent them the details.

0:30:11 > 0:30:14But while after questions the relationship between the companies,

0:30:14 > 0:30:18his main beef is that he hasn't got what he was promised.

0:30:18 > 0:30:22The paperwork set out a suggested timeframe of around two months,

0:30:22 > 0:30:26but after four months he's heard nothing.

0:30:26 > 0:30:30Yeah, I was beginning to panic and so I phoned them up

0:30:30 > 0:30:33and they said, "Yes, we'll get onto it straightaway,"

0:30:33 > 0:30:36and again nothing happened.

0:30:36 > 0:30:39I phoned them then a further three times

0:30:39 > 0:30:42and again was reassured every time that something would happen.

0:30:42 > 0:30:46And you get 28 panels on there, which gives 3.8 kilowatts...

0:30:46 > 0:30:50Eventually, My Energy Station, the actual installers,

0:30:50 > 0:30:54did send someone round to do a more technical survey.

0:30:54 > 0:30:58After that second visit I was more assured

0:30:58 > 0:31:01and I thought that things would start to happen, but they didn't.

0:31:01 > 0:31:04Installed between two and six weeks.

0:31:04 > 0:31:07Arthur parted with his cash back in January,

0:31:07 > 0:31:11but 11 months later he's still waiting for their panels to be installed.

0:31:11 > 0:31:15I was getting frustrated to say the least

0:31:15 > 0:31:18because nothing had happened, I'd phoned, and phoned, and phoned.

0:31:18 > 0:31:21Trading standards say there are others like Arthur

0:31:21 > 0:31:25who feel they have been kept in the dark by the Energy Saving Group.

0:31:25 > 0:31:28They have dealt with lots of complaints from people who are still

0:31:28 > 0:31:32waiting for their panels to be fitted, or indeed for a refund.

0:31:32 > 0:31:39This company appears to be acting in the role of a type of broker.

0:31:39 > 0:31:42They're arranging for the survey to be done for you

0:31:42 > 0:31:46and then they're arranging for a separate company

0:31:46 > 0:31:48to come and put the panels in,

0:31:48 > 0:31:52but they cannot offset their responsibility to the installers.

0:31:52 > 0:31:54They were given the money

0:31:54 > 0:31:57and they are on the other side of the contract from the householder,

0:31:57 > 0:32:04so therefore the householder is entitled to either the service to be carried out promptly

0:32:04 > 0:32:09or to get their refund of the full amount of £500.

0:32:09 > 0:32:12Oh, hello, this is Arthur Clark.

0:32:12 > 0:32:17Arthur is now so fed up with how he's been treated by the Energy Saving Group

0:32:17 > 0:32:22he's just not prepared to wait any longer and he wants money back.

0:32:22 > 0:32:25I've sent you a number of e-mails, a number of phone calls

0:32:25 > 0:32:26and nothing's happened.

0:32:26 > 0:32:30We asked the Energy Saving Group to explain what has gone on,

0:32:30 > 0:32:33so far they haven't responded...

0:32:33 > 0:32:37but we also contacted the installers, My Energy Station,

0:32:37 > 0:32:44who claim they had no idea that the Energy Saving Group was charging people to be referred to them.

0:32:44 > 0:32:47They say they've never received any money for this,

0:32:47 > 0:32:52have now terminated the relationship and are considering legal action.

0:32:52 > 0:32:55They say they totally disapprove of charging for free solar

0:32:55 > 0:32:58and would never do it themselves.

0:32:58 > 0:33:01They also told us that their own survey suggested

0:33:01 > 0:33:05that Arthur's house was not right for their solar panels,

0:33:05 > 0:33:10but it's a shame that neither company passed that message on to Arthur.

0:33:11 > 0:33:15Now thoroughly sick of wondering if he'll ever get his solar panels,

0:33:15 > 0:33:19Arthur has now had them installed by another company entirely,

0:33:19 > 0:33:24but he still waiting for his £500 refund from the Energy Saving Group

0:33:24 > 0:33:28and even if he does get that money back for a rainy day

0:33:28 > 0:33:31he's furious about all the sunny days that he's missed.

0:33:31 > 0:33:35We've just wasted a whole summer full of sunlight,

0:33:35 > 0:33:39where we could've saved pounds, and pounds, and pounds on our electricity

0:33:39 > 0:33:42just from waiting for those panels to be fitted.

0:33:42 > 0:33:48Having buildings insurance is considered to be an essential if you're a homeowner.

0:33:48 > 0:33:51It means that it'll give you peace of mind if the worst happens

0:33:51 > 0:33:55and, for instance the houses flooded or the roof blows off,

0:33:55 > 0:33:59but complaints to the Ombudsman about this kind of insurance

0:33:59 > 0:34:01have nearly doubled in the last five years

0:34:01 > 0:34:05and after stories like this next one I think you'll be able to see why.

0:34:05 > 0:34:12This Victorian property in London has been standing on this plot of land for 136 years.

0:34:12 > 0:34:15Lola, Jasmine, Claudia and Marcus

0:34:15 > 0:34:18have lived in a flat here since 2005.

0:34:19 > 0:34:23I discovered the place because we were looking at houses

0:34:23 > 0:34:26and we wanted quite big bedrooms

0:34:26 > 0:34:31and then we opted for an old Victorian flat with high ceilings

0:34:31 > 0:34:34and the bedrooms are quite big.

0:34:35 > 0:34:38But just a few months after they moved in,

0:34:38 > 0:34:42they noticed a puddle of water forming outside the front door.

0:34:42 > 0:34:45We called some plumbers round to inspect the problem

0:34:45 > 0:34:48and they said they thought it was a bit more than just a puddle

0:34:48 > 0:34:50and it could be caused by broken pipes.

0:34:51 > 0:34:56The council came and took a CCTV, going into the pipes,

0:34:56 > 0:35:02and when we saw the video back there was clearly a brick from the stairs,

0:35:02 > 0:35:04you could see where the stairs had come down

0:35:04 > 0:35:08and had fallen onto the pipe and broken the pipe.

0:35:08 > 0:35:13The report from the survey concluded that the damage to the drain

0:35:13 > 0:35:16was caused by subsidence to the property,

0:35:16 > 0:35:19but as the couple, along with owners of the building's other flats,

0:35:19 > 0:35:24had insurance cover for subsidence underwritten by Lloyd's of London,

0:35:24 > 0:35:26they thought they'd be OK.

0:35:26 > 0:35:29Of course we called our insurance company

0:35:29 > 0:35:31and our lovely loss adjuster showed up

0:35:31 > 0:35:34and he said we would have to pay for it

0:35:34 > 0:35:40and he could see that it was because of our negligence that the pipe was broken

0:35:40 > 0:35:45and had nothing to do with accidental or subsidence.

0:35:46 > 0:35:48The residents were surprised at that,

0:35:48 > 0:35:52but paid £3,500 to have the drain repaired

0:35:52 > 0:35:55hoping that that would be the end of it.

0:35:55 > 0:35:59Unfortunately, the following year, 2006,

0:35:59 > 0:36:05Marcus and Claudia noticed that huge cracks were beginning to appear in the back bedroom of their flat.

0:36:05 > 0:36:08Again they called their insurance company

0:36:08 > 0:36:13who sent out the same loss adjuster who had dismissed the claim for the broken drain.

0:36:13 > 0:36:18He looked around and said that he didn't see any subsidence

0:36:18 > 0:36:21and it was fairly obvious to us it was subsidence,

0:36:21 > 0:36:24but he said we would have to prove it.

0:36:25 > 0:36:28Frustrated that it was them that had to pay,

0:36:28 > 0:36:30but keen to get the problem resolved,

0:36:30 > 0:36:34Marcus and Claudia paid over £2,000 for tests.

0:36:35 > 0:36:40These concluded that the damage WAS caused by subsidence

0:36:40 > 0:36:43so the residents put in another claim to their insurers,

0:36:43 > 0:36:47who offered £57,000 to repair the damage,

0:36:47 > 0:36:50but only to the back of the house,

0:36:50 > 0:36:54so any problems at the front wouldn't be fixed.

0:36:54 > 0:36:57We thought it would be a bit crazy to accept this offer.

0:36:57 > 0:37:01We had a consultant, what they call a loss assessor,

0:37:01 > 0:37:02and we also had an engineer

0:37:02 > 0:37:06who both said that we should not take the offer

0:37:06 > 0:37:08because it would not cover the entire problem.

0:37:08 > 0:37:10So, in the four years since then

0:37:10 > 0:37:14the residents and the insurance company have been at loggerheads.

0:37:14 > 0:37:17Lloyd's of London, who have been handling the case,

0:37:17 > 0:37:21accept that the damage to the back of the house is subsidence,

0:37:21 > 0:37:26but they refused to carry out, or pay for tests, on the remainder of the property,

0:37:26 > 0:37:28which is also showing signs of cracking.

0:37:28 > 0:37:30Hello, Lola. The door...

0:37:32 > 0:37:34..hardly shuts

0:37:34 > 0:37:38and we've got cracks all around that, as usual, the same.

0:37:38 > 0:37:41Worn down by such a lengthy stand-off,

0:37:41 > 0:37:45the residents took their case to the Financial Ombudsman Service

0:37:45 > 0:37:47who agreed with them.

0:37:47 > 0:37:53They said the insurers could not put a final figure on repairing the house without further testing,

0:37:53 > 0:37:55but as the ruling was informal

0:37:55 > 0:37:58it couldn't force the company into action

0:37:58 > 0:38:03and the insurers would just were not moving from their position.

0:38:03 > 0:38:06Unlike the house, where during all this,

0:38:06 > 0:38:09the cracks and damage have been worsening,

0:38:09 > 0:38:12some of it with frightening consequences.

0:38:13 > 0:38:14So, this is the girl's bedroom

0:38:14 > 0:38:19and it was Saturday on 19 June last year,

0:38:19 > 0:38:24about nine o'clock in the morning I heard this really, really big rumble

0:38:24 > 0:38:29and I came into the room and the ceiling had just fallen down.

0:38:29 > 0:38:32Everything was covered in debris and whatever

0:38:32 > 0:38:35and Lola, at the time, had slept at the top,

0:38:35 > 0:38:38but she had just gotten out of bed, maybe 15 minutes before.

0:38:38 > 0:38:41If she had been hit by it she would have been hurt.

0:38:41 > 0:38:44A Lloyds of London insurer told Rip-Off Britain that,

0:38:44 > 0:38:50"This is a complex claim that requires full cooperation from the residents to resolve."

0:38:50 > 0:38:54So, let's see if we can help move things on.

0:38:54 > 0:38:57We've asked an independent expert to have a look at the house.

0:38:57 > 0:39:01Tony Tsoucass has 30 years experience as a structural engineer

0:39:01 > 0:39:07and we've arranged for full testing, free of charge, on the disputed area

0:39:07 > 0:39:11to find out once and for all if there is any subsidence.

0:39:11 > 0:39:13Even before the team can complete the tests,

0:39:13 > 0:39:17the cracks on the staircase make Tony very suspicious.

0:39:17 > 0:39:19Just without the bore hole information,

0:39:19 > 0:39:22one would think that this is proof of subsidence

0:39:22 > 0:39:24and certainly this is settled.

0:39:24 > 0:39:28It's Tony's investigations at the disputed front of the house

0:39:28 > 0:39:32that are particularly important Claudia and Marcus's claim.

0:39:32 > 0:39:34The insurance company have said

0:39:34 > 0:39:37that subsidence isn't occurring to this part of the house

0:39:37 > 0:39:39and what we think is that it is,

0:39:39 > 0:39:41just from the profile of the cracking inside

0:39:41 > 0:39:43and the proximity of the trees.

0:39:43 > 0:39:46It's not long before Tony is confident enough

0:39:46 > 0:39:48to give Marcus some good news.

0:39:48 > 0:39:54From the initial investigation so far, we think it's definitely subsidence

0:39:54 > 0:39:56and all though testing still has to be carried out,

0:39:56 > 0:39:59from that visual inspection it points to subsidence already.

0:39:59 > 0:40:03And when the tests are complete the full report says the same thing,

0:40:03 > 0:40:08the front of the house is suffering from subsidence.

0:40:08 > 0:40:09Armed with Tony's findings,

0:40:09 > 0:40:14Marcus and the other residents have gone back to the Ombudsman

0:40:14 > 0:40:19to get a formal ruling, which the insurers then would HAVE to act on.

0:40:19 > 0:40:22Yes, I do believe this brings us nearer to a conclusion.

0:40:22 > 0:40:24With physical evidence like this

0:40:24 > 0:40:30I don't see how they can carry on telling us that they will not cover the claim that we've made.

0:40:30 > 0:40:34And just as we were finishing putting this programme together

0:40:34 > 0:40:37we had an update from the insurer that underwrites the policy.

0:40:37 > 0:40:42Their loss adjusters and engineers have now had further meetings with the residents

0:40:42 > 0:40:46to assess the nature and extent of the work required,

0:40:46 > 0:40:51which is they say they hope to agree in the very near future.

0:40:51 > 0:40:55So, fingers crossed all this will soon finally be at an end.

0:40:59 > 0:41:04Here at Rip-Off Britain we're always ready to investigate more of your stories.

0:41:04 > 0:41:06Confused over your bills?

0:41:06 > 0:41:09Trying to wade your way through never ending small print

0:41:09 > 0:41:12that leaves you totally confused?

0:41:12 > 0:41:17I might have been stupid for not reading it or I've read it and not took it in.

0:41:17 > 0:41:19I could kick myself, I really could.

0:41:19 > 0:41:22Unsure what to do when you discover you've lost out

0:41:22 > 0:41:26and that's great deal has ended up costing you money?

0:41:26 > 0:41:29I thought, "This cannot be true, it's totally unacceptable,"

0:41:29 > 0:41:32I was so angry.

0:41:32 > 0:41:34You might have a cautionary tale of your own

0:41:34 > 0:41:36and want to share the mistakes that you've made with us

0:41:36 > 0:41:39so that other people don't do the same thing.

0:41:39 > 0:41:43No-one knows about this, so this is very, very strange to me

0:41:43 > 0:41:45and I really would like to get this much clearer.

0:41:46 > 0:41:49Don't forget you can always write to us:

0:41:56 > 0:42:00Or you can always get in touch by sending us an e-mail:

0:42:04 > 0:42:07Don't forget, the Rip-Off team is ready and waiting

0:42:07 > 0:42:11to investigate your stories.

0:42:11 > 0:42:13You know, from the stories that you shared with us today

0:42:13 > 0:42:17it is absolutely clear that when it comes to buying a home

0:42:17 > 0:42:19and all the things that go with that

0:42:19 > 0:42:25it's just all too easy to end up feeling that you've not quite got what you thought you paid for.

0:42:25 > 0:42:27It really does pay to do your research

0:42:27 > 0:42:29and get as much information as you can

0:42:29 > 0:42:33about what exactly you're signing up to. The trouble with many of these costs

0:42:33 > 0:42:36is that they don't stop once you've been handed the keys.

0:42:36 > 0:42:39Something I'm sure that we've all experienced at some point.

0:42:39 > 0:42:41That's where we have to leave it for today,

0:42:41 > 0:42:44thanks for joining us, we've really enjoyed your company

0:42:44 > 0:42:48and we'll see you very soon when we'll be hearing more of your stories

0:42:48 > 0:42:50and hopefully helping you to avoid being ripped off.

0:42:50 > 0:42:54- So, in the meantime, take care. - Goodbye.- Bye-bye.

0:43:07 > 0:43:10Subtitles by Red Bee Media Ltd

0:43:10 > 0:43:13E-mail subtitling@bbc.co.uk