:00:12. > :00:18.We asked you to tell us who has left you feeling ripped off?
:00:18. > :00:24.think this is very, very wrong for what they have done. The bank pass
:00:24. > :00:28.charges upon charpblgs upon charges. Legally it was right, morally, that
:00:28. > :00:32.is where the question of doubt comes. You contacted us in your
:00:32. > :00:35.thousands, by post, e-mail, even stopping us in the streets. The
:00:35. > :00:40.message could not be clearer. don't always get a straight answer,
:00:40. > :00:44.they try to to be you off. I'm not happy with them at all. It is the
:00:44. > :00:48.small print with the clause in you didn't realise. We are being ripped
:00:48. > :00:53.off, big time. Whether it is a deliberate rip off, a simple
:00:53. > :00:56.mistake or a catch in the small print, we will find out why you are
:00:56. > :01:01.out of pocket, and what you can do about it? Keep asking the questions,
:01:01. > :01:11.go to the stop if you have to. do get results, that is interesting
:01:11. > :01:18.
:01:18. > :01:21.thing. Your stories, your money, this is Rip-Off Britain. Welcome to
:01:21. > :01:25.Rip-Off Britain. The sums involved in some of the stories we are
:01:25. > :01:29.investigating today are eye nor mus, hundreds, thousands of pounds. That
:01:29. > :01:33.is why we are looking at a few of the unwelcome costs and the
:01:33. > :01:36.problems you face when you buy or own a home. The consequences when
:01:37. > :01:41.things don't go to plan. The results can be disastrous. Not
:01:41. > :01:46.least when it is all down to one of your biggest bug bears, an old
:01:46. > :01:48.problem that will simply not go away, builders leaving you with
:01:48. > :01:54.unfinished work and spiralling bills. We will have advice on that
:01:54. > :01:57.and a lot more. Also on today's show, one of the
:01:57. > :02:04.most shocking stories we have ever told. You won't believe the amount
:02:04. > :02:08.of money this man was forced to pay just for having his drain unblocked.
:02:08. > :02:13.He produced the invoice with the extra charges on it, this was of
:02:13. > :02:17.the order of �14,000. And you have been getting it off your chests in
:02:17. > :02:21.our gripe box. And now they are taking my conservatory down because
:02:21. > :02:25.it is falling down. Many of you are looking at
:02:25. > :02:29.extending your home, rather than facing the huge costs and time
:02:29. > :02:33.involved in moving, especially in the current economic climate, when
:02:33. > :02:40.house prices are so unpredictable. But finding a builder you can trust
:02:40. > :02:44.with the task of adapting your home, can be difficult and heart-breaking.
:02:44. > :02:48.Lee and Joe Anne own a three bedroom detatched house in east
:02:48. > :02:54.Yorkshire. Earlier this year, with their children growing up fast,
:02:54. > :02:59.they decided they needed more space. We decided to have a loft
:02:59. > :03:04.conversion done to create a fourth bedroom in the house, we felt
:03:04. > :03:10.Lucy's bedroom was fall. The aim was to move us up into the loft
:03:10. > :03:16.conversion where there would be master bedroom with an enswit.
:03:16. > :03:25.got a couple of quotes and accepted what would be the best one. There
:03:25. > :03:29.is the amount, total amount �25,240. Work was due to start in April 2011,
:03:29. > :03:33.and finish seven weeks later. Before the work started they said
:03:33. > :03:38.they needed a quota of the money up front. We were happy to do it at
:03:38. > :03:41.this time when it is difficult for builders, it might be as good with
:03:41. > :03:49.cashflow. Everything went according to plan at first. They paid the
:03:49. > :03:56.bulk of the bill up front, �22,000. At first we were happy with what we
:03:56. > :04:00.were doing, they ripped out the old loft up there, they started to form
:04:00. > :04:05.the dorm -- dormer, that seemed to go well, that took four or five
:04:05. > :04:08.weeks. They started to worry as progress on the project fell behind
:04:08. > :04:13.schedule. The work had started to slow down quite a bit. It took them
:04:13. > :04:18.a long time to get rid of the old roof joists that were in and start
:04:18. > :04:21.the internal work. The sub contractors that were coming were
:04:22. > :04:26.starting to not come every day. We were ringing the owner of the
:04:26. > :04:33.company quite a bit. He was not answering our answer phone messages,
:04:33. > :04:38.or very reluctant to get back to us. Then work stopped all together,
:04:38. > :04:43.leaving the family with this, in return for their �22,000.
:04:43. > :04:49.We are left with no windows in the dormer, it is boarded up. We have
:04:49. > :04:53.no staircase, and no access to it. They left the old Velux, and the
:04:53. > :04:59.old tank, which we will have to get someone to sort it out. We have got
:04:59. > :05:05.waste, rubble, just left on our driveway. We have wires poking out
:05:05. > :05:09.of my son's bedroom, as well as all the plumbing pipes sticking out as
:05:09. > :05:11.well. We're in a bit of a mess really. It is a bit of a
:05:12. > :05:18.construction site at the moment. Over this side we are supposed to
:05:18. > :05:22.have the sink and the basin, the towel, radiator. The light switches,
:05:22. > :05:27.obviously, and the lights, not got any of that. The only thing we have
:05:27. > :05:32.got is a very election window and pipes sticking out.
:05:32. > :05:36.All this adds up to a headache for Lee, who wants to get the work
:05:36. > :05:40.finished and get his family settled. It makes me angry they can leave
:05:40. > :05:44.the bedroom in that state, with wires and pipes happeninging down.
:05:44. > :05:48.The wires are connected, but, there is a possibility that the kids
:05:48. > :05:52.could tug around on them and play about on them. To be Hon west you,
:05:52. > :05:58.I'm not sure how they are attached upstairs and what damage that would
:05:58. > :06:02.cause. We need to get another builder in to do the work. It comes
:06:02. > :06:09.to the point you don't always trust what they are telling you. A recent
:06:09. > :06:14.survey by the consumer manage seen Which ?, shows in the past two
:06:14. > :06:20.years, 2.5 million of us have had complaints about builders and
:06:20. > :06:25.decorators. That adds up to an astonishing 2,300 complaints every
:06:25. > :06:28.day. In most cases the builder won't have set out to rip-off
:06:28. > :06:30.anyone, they will have overcommitted themselves or develop
:06:30. > :06:35.cashflow problems. For whatever the reason they don't finish the job,
:06:35. > :06:38.if you are the person who has paid out, like Lee, the results can be
:06:38. > :06:42.devastating. I must say, I never thought I would get in this
:06:42. > :06:45.situation. You hear about it from other people, you see it on TV, and
:06:45. > :06:49.I don't know whether I'm too trusting. I feel the amount of
:06:49. > :06:57.money that we spent, we have no way got the work that we have paid for
:06:57. > :07:01.done. Definitely feel ripped off. Lee and Joe Anne are still chasing
:07:01. > :07:06.the loft on version company, in the meantime they are looking for a new
:07:06. > :07:10.builder to put the work right and finish the job. That is likely to
:07:10. > :07:13.cost them upwards of another �12,000. We signed up for the
:07:13. > :07:18.contract, we passed over the money, they have signed their name on the
:07:19. > :07:24.contract. We expect them to actually deliver what was on there.
:07:24. > :07:28.All the building work and what we paid the money for.
:07:28. > :07:32.I will be honest with you, it takes a lot to shock us at Rip-Off
:07:32. > :07:37.Britain, here is a story like nothing we have come across before.
:07:37. > :07:40.Of course we are used to hearing complaints about tradesmen, we all
:07:40. > :07:45.know sometimes their charges with seem over the top. Imagine calling
:07:45. > :07:53.out an emergency plumber, whose rate turned out to be an
:07:53. > :07:57.extraordinary �2,8,00 an hour. It happened to -- �2,8,00 an hour, it
:07:57. > :08:03.happened to Harold. Wait until you hear the blil. Harold is a
:08:03. > :08:07.pensioner from Ealing in London, few things he loves to do more than
:08:07. > :08:10.listening to classical music. Recently, his enjoyment has been
:08:10. > :08:16.interrupted by stress. That's all stemmed from an overflowing drain
:08:16. > :08:21.in his back garden. When he first spotted the problem, he thought he
:08:21. > :08:30.had found the right people for the job. I went to the yellow pages and
:08:30. > :08:36.found an advertisment that claimed to have local engineers in Ealing.
:08:36. > :08:42.They said they could get a guy out to fix the block drain, and there
:08:43. > :08:48.would be a callout fee of �59 an hour. Harold, who is disabled, was
:08:48. > :08:54.keen to get the problem sorted out quickly. He was relieved when
:08:54. > :08:58.Property Care Solutions sent one of their engineers straight away.
:08:58. > :09:02.deduced it was under the manhole in my background. Lifted the cover and
:09:02. > :09:07.saw the horrible sludge. He proceeded to pump water into it,
:09:07. > :09:12.and stir it up. With a view to clearing it. He was stirring up the
:09:12. > :09:17.sludge with his probe, I guess for four or five hours. He just wasn't
:09:17. > :09:23.clearing the blockage. After a few hours of unsuccessfully
:09:23. > :09:27.pumping water into the drain, Property Care Solution's plumber
:09:27. > :09:31.told Harry he needed to bring in more powerful equipment, but at a
:09:31. > :09:39.higher cost. He produced the invoice, with the extra charges on
:09:39. > :09:49.it. It wasn't an extra charge but a total charge, it was in the order
:09:49. > :09:51.
:09:51. > :09:55.of �14,000. Yes, you heard right, �14,000. In fact, �14,400, just to
:09:55. > :10:04.unblock a drain. I was shocked with the price, but I felt I had no
:10:04. > :10:07.alternative. The plumber convinced Harold if he didn't use the
:10:07. > :10:11.equipment. He would be forced out of his home,
:10:11. > :10:17.as the drains would neat excavating. The thought of having to leave
:10:17. > :10:20.horrifies me, my home is adapted to my needs. I'm severely
:10:20. > :10:26.incapacitated. I have a chairlift to go up and down the stairs. All
:10:26. > :10:30.that, of course, would be lift behind, if I had to move out.
:10:30. > :10:34.83-year-old Harold, afraid of leaving his home, he reluctantly
:10:34. > :10:39.agreed to hand over the money. didn't have the money to pay him,
:10:39. > :10:45.but I was going to pay with my credit card, and I got in touch
:10:45. > :10:49.with my credit card issuer and asked them to increase my credit
:10:49. > :10:56.limit. After I had agreed to pay, and signed on the dotted line, so
:10:56. > :11:02.to speak. He brought out from his truck some apparatus or other which
:11:02. > :11:07.he alleged was more powerful what he had been using to date. Within a
:11:07. > :11:14.relatively short time, I can't say exactly how long, but a relatively
:11:14. > :11:17.short time, the level of the sludge started to drop. Upon which I was
:11:17. > :11:25.pretty cheered. The equipment may have shifted the sludge, but for
:11:25. > :11:28.five hours work, the bill came to a staggering �2,880 an hour. Was
:11:28. > :11:33.Harold a victim of a rip-off trader. Let's just see if there's any
:11:33. > :11:39.possibility that Property Care Solutions could have charged a fair
:11:39. > :11:43.price, afterall, stranger things have happened.
:11:43. > :11:47.We asked Dave Taylor, from another local plumbing company, to look at
:11:47. > :11:52.Harold's drains, and give his assessment of the job. I probably
:11:52. > :11:57.carry everything on the market as regards to cameras, coring machines,
:11:57. > :12:04.drainage machines, high-pressure jet machines, rods down to a
:12:04. > :12:08.plunger. Nothing extra special that I wouldn't expect to have a
:12:08. > :12:13.drainage film carry. I charge �150 an hour, I turn up to do a job and
:12:13. > :12:17.it should be on the van. If he's charging �14,000, just for jetting,
:12:17. > :12:21.it is atrocious, isn't it. I would like to know what was going on for
:12:21. > :12:24.five hours. And where the hell the water was going, if it was
:12:24. > :12:29.continuously jetting for five hours. The yes that really needs to be
:12:29. > :12:36.asked, when the extra money was paid, isn't it amazing how all of a
:12:36. > :12:40.sudden it cleared. It is absolutely clear the company
:12:40. > :12:45.charged Harold way over the odds, we asked Property Care Solutions
:12:46. > :12:50.for an explanation. They standby their charge, which they accept
:12:50. > :12:54.seems high. But they also say that it reflects the fact that they work
:12:54. > :12:58.in an emergency market. They insist Harold agreed to the price without
:12:58. > :13:02.any pressure or duress, and that it was a fact, not a tactic, that if
:13:02. > :13:05.the drain wasn't fixed he might have to move out.
:13:05. > :13:09.They are furious at any suggestion that this was a rip-off. Saying
:13:09. > :13:13.they are very upfront about their prices and that every job is
:13:13. > :13:16.different. Even so, and here's the good news,
:13:16. > :13:23.since we got in touch, they have now agreed with Harold a revised
:13:23. > :13:28.and very different price for the work. �849. They still maintain the
:13:28. > :13:35.work was worth much more than that, but just want to see the matter
:13:35. > :13:39.concluded. I am 83 years old, and yes, I would have liked to have a
:13:39. > :13:43.nice peaceful enjoyable retirement. Certainly I don't want to waste
:13:43. > :13:47.time, as I am having to waste time fighting a plumber.
:13:47. > :13:51.You may be thinking that Howard's experience may be extreme, but
:13:51. > :13:56.sadly, it is not unique. So when choosing a tradesman what are the
:13:56. > :14:00.things you should be looking out for to be absolutely sure there is
:14:01. > :14:04.someone you can rely on. Consumer Direct has great advice. If you are
:14:04. > :14:07.thinking of having some work done at home. There are a few things to
:14:07. > :14:11.do before choosing the trader. Speak to friends and family and see
:14:11. > :14:15.if they are able to make any recommendation, or ask the traders
:14:15. > :14:18.you think you are going to use to provide references or ask to see
:14:18. > :14:23.work they have done before. Look to see whether the company you are
:14:23. > :14:26.thinking of using is a member of approved schemes, such as the
:14:26. > :14:31.Office of Fair Trading, or local authority Trading Standards
:14:31. > :14:35.approved schemes. They may offer you additional help if things go
:14:35. > :14:38.wrong. You shouldn't feel pressured into agreeing to a contract, a
:14:39. > :14:44.reputable trader will give you time to think about the decisions you
:14:44. > :14:47.are making. If you do have time, make sure you get detailed quotes
:14:47. > :14:52.in writing, so you can make an informed decision about the best
:14:52. > :14:56.trader. If you are spending more than �100 on the work, it is worth
:14:56. > :15:00.considering using a credit card to pay, it may give you additional
:15:00. > :15:03.protection if things go wrong. Don't pay up front, pacemaker
:15:03. > :15:07.staged payments instead when you are happy the work is progressing
:15:07. > :15:10.to the write standard, make sure you get everything in writing. Read
:15:10. > :15:15.terms and conditions carefully so you know what you are agreeing to,
:15:15. > :15:24.if in doubt, take independent legal advice on what they mean. If things
:15:24. > :15:27.do go wrong, speak to Consumer Direct or your local citizens
:15:27. > :15:30.advice bureau who can provide confidential information on your
:15:30. > :15:34.rights. Still to come on Rip-Off Britain, we have been inundated
:15:34. > :15:39.with your stories of how you feel you have been mistreated or ripped
:15:39. > :15:44.off. We will hear how this woman's property investment went
:15:44. > :15:48.disastrously wrong, costing her a fortune. I had lost all my father's
:15:48. > :15:52.inheritance, which was a lifetime of savings. I had lost all the
:15:52. > :16:02.equity from my home. It makes you feel awful, because I have nothing
:16:02. > :16:09.left at all. In a rip off first, our very own advice shop, where
:16:09. > :16:13.hundreds of you came along to tell us your stories face-to-face. Find
:16:13. > :16:17.out how we were able to sort things out. The Rip-Off Britain pop-up
:16:17. > :16:21.shop here in the Trafford Centre in Manchester, has been inundated with
:16:21. > :16:28.people all day. BBC Learning have been helping people with numeracy
:16:28. > :16:30.in their interactive area. Our experts have been on hand to help
:16:30. > :16:35.out. Sylvia from Trading Standards has been particularly busy, people
:16:35. > :16:43.clearly are very anxious about the problems they hope she can sort out,
:16:43. > :16:45.let's go and see some of the things she has been helping people with.
:16:45. > :16:49.The organisation who protect consumers rights, they are doing a
:16:49. > :16:52.lot of research on unfair practices in caravan parks, I wouldn't give
:16:52. > :16:56.up, obviously you have lost your caravan now, there may be
:16:56. > :16:59.opportunities, potentially, to get some of your money back.
:16:59. > :17:03.A lot of people that have been coming into our pop-up shop in
:17:03. > :17:09.Manchester, have been filling out these postcards. Quite a few have
:17:09. > :17:13.been about issues with home improvements. Sylvia, Gail and
:17:13. > :17:16.Craig seem to have been having a tough time of it, they have left us
:17:16. > :17:20.a card saying that bedroom fitters still haven't finished the job they
:17:20. > :17:25.started six months ago, and also they had work done by a builder, he
:17:25. > :17:28.has left and not finished the work. Where are their rights? It sounds
:17:28. > :17:32.like a pretty tough time of it. Their rights are, under the supply
:17:32. > :17:35.of goods and services act 1982, any work that is done on your home or
:17:35. > :17:38.anywhere else, should be done within a reasonable time. Six
:17:38. > :17:43.months is sounding a very long time to have your bedroom done. What
:17:43. > :17:48.they need to do is to put something in writing, to the company and say,
:17:48. > :17:52.that this has been going on for far too long, they can time the essence
:17:52. > :17:55.of the contract, and say they have to finish the job within a
:17:55. > :18:00.particular time frame. If the company doesn't finish it within
:18:00. > :18:04.that time frame, they can get another builder and kitchen fitter
:18:04. > :18:08.to finish the work and charge it to the company. Unfair fees, shoddy
:18:08. > :18:13.building work, rising property costs, they are all problems we
:18:13. > :18:17.have heard from people in the Gripe Box. I'm going to complain about
:18:17. > :18:21.maintenance charges in blocks of flats. And now they are taking my
:18:21. > :18:27.conservatory down because it is falling down. The council tax that
:18:27. > :18:33.we pay each year, obviously it seems to be increasing yearly.
:18:33. > :18:36.can't afford to put a deposit down on a house. Lots of people have
:18:36. > :18:46.aired their property cost concerns, if you would like any further
:18:46. > :18:47.
:18:47. > :18:51.information, visit our website. It can be a big enough job looking
:18:51. > :18:56.after one home. But many people buy a number of properties in the
:18:56. > :19:04.belief that investing in bricks and mortar is the best way to secure
:19:04. > :19:07.their future. But for tam sin, it was the worst decision of her life.
:19:07. > :19:10.She joined hundreds of other people in putting her money into a
:19:10. > :19:18.business that sounded like it couldn't fail. Instead it has cost
:19:18. > :19:22.her hundreds of thousands of pounds. When she separated from her husband
:19:22. > :19:26.in 2003, Tamsin was facing an uncertain financial future. With
:19:26. > :19:31.two children to look after, she wanted work that she could do from
:19:32. > :19:37.home. So, when a letter arrived, out of the blue, from a businessman
:19:37. > :19:40.offering an intriguing opportunity, she was keen to learn more.
:19:40. > :19:45.claimed he was a property expert, and he claimed that he would teach
:19:45. > :19:51.people the successes that had made him a very wealthy man indeed.
:19:51. > :19:57.man was from a buy-to-let firm called Inside Track. They organised
:19:57. > :20:01.free sessions to share their expertise. So Tamsin went along.
:20:01. > :20:04.There was a lot of elderly people there, pensioners, they were
:20:04. > :20:08.actually saying that pensions weren't going to perform properly,
:20:08. > :20:11.and the best way, the best thing for people to do was to put money
:20:11. > :20:16.into property. They actually had an old couple there, who were supposed
:20:16. > :20:20.to be members, they were claiming they were members, they were
:20:21. > :20:24.claiming that they were investigating flu -- investing
:20:24. > :20:30.through Inside Track and making money out of this. Encouraged by
:20:30. > :20:35.what she heard, Tamsin signed up for a more he detailed two-day
:20:35. > :20:39.seminar, it cost her �2,500, but Inside Track encouraged her that
:20:39. > :20:42.there was big money to be made. You can understand how. This footage is
:20:42. > :20:47.from another of their seminars. They certainly do like to stress
:20:47. > :20:53.the potential profits. Nice chunky lumps every time you do a deal,
:20:53. > :20:56.nice big piece, nice big piece. her seminar, Tamsin was told she
:20:56. > :21:03.could get a discounted price on investment properties, by buying
:21:03. > :21:07.through their sister company, Instant Access Prorpbts, they told
:21:07. > :21:11.her not only would she cover her costs and make money by renting
:21:11. > :21:13.them out, but the properties themselves would grow in value.
:21:13. > :21:18.Even better, professional and legal support would be part of the
:21:18. > :21:24.package. In fact, they promised they would carefully nurse her
:21:24. > :21:30.through the whole process. In return, she would pay them charges,
:21:30. > :21:40.membership fees and finders fees for properties she bought through
:21:40. > :21:45.the company. They referred to us as "armchair" investors, they claimed
:21:45. > :21:49.to be property experts and people with business degrees, with
:21:49. > :21:52.backgrounds in accountany and estate agencies, they said they had
:21:52. > :21:56.many years in the game and personally made money through t and
:21:56. > :22:01.they would hold our hands through the whole investing process. They
:22:01. > :22:04.said they had experts on the ground in Spain, that we would be assigned
:22:04. > :22:09.a property portfolio consultant, they called them, and everyone
:22:09. > :22:13.would look at our particular needs. Reassured by the level of support
:22:13. > :22:17.offered, Tamsin bought seven properties in all. Three in Florida,
:22:17. > :22:25.two in Spain, and two in the UK. She got free membership, because
:22:25. > :22:29.she had bought so many. But she handed over �185,000 in deposits
:22:29. > :22:34.alone. I think the first time that I started to be a little bit wary
:22:34. > :22:38.of them is when I had decided I had bought enough properties, and I
:22:38. > :22:42.knew I personally had reached my limit, but they kept on trying to
:22:42. > :22:48.ring me up and sell me more properties. And there were other
:22:48. > :22:52.things making her wary. The company had promised thorough, independent
:22:52. > :22:56.valuations for their properties, which Tamsin says, she never got.
:22:56. > :23:01.On top of that, the rental income was nowhere near what she had been
:23:01. > :23:05.led to believe. So very quickly instead of making money on her
:23:05. > :23:14.Florida investments, she realised she was losing it. Some months it
:23:14. > :23:21.was so bad that I was actually lose ing $00 a month income. I was on my
:23:21. > :23:25.own -- losing $900 a month income. I was on my own, and there was no
:23:25. > :23:29.way I could afford that. Her other investments were failing too?
:23:29. > :23:32.knew that certainly as far as I was concerned, that I had made a loss
:23:32. > :23:38.on all seven properties. I thought this is not just chance, one
:23:38. > :23:44.property maybe not working, but all seven, it was just too much. Tamsin
:23:44. > :23:48.wondered if she should sell, but Instant Access insisted, long-term
:23:48. > :23:54.her investments should still be successful, as they said whatever
:23:54. > :23:59.the wider economic climate. But Tamsin, was now seriously worried.
:23:59. > :24:02.What I started to do was go on the Internet and get in contact with
:24:02. > :24:06.other members, little by little I heard all these other stories. I
:24:06. > :24:10.knew then it wasn't just me. Every member I was speaking to was saying
:24:10. > :24:13.the same. I searched on forums and other people who had lost money.
:24:13. > :24:20.Some people had tried to get some compensation or some money back and
:24:20. > :24:27.they had a very, very difficult time. But it was too late. In 2008,
:24:27. > :24:30.Inside Track and Instant Access properties went into administration,
:24:30. > :24:35.Tamsin lost all the money she had invested. The prorpbts she had
:24:36. > :24:39.bought, and her home. She's -- the properties she had bought and her
:24:39. > :24:43.home, she's now facing bankruptcy. I realised I had lost �350,000, I
:24:43. > :24:47.had lost all my father's inheritance, a lifetimes of his
:24:47. > :24:53.savings, I had lost all the equity from my home, and I have always
:24:53. > :24:56.worked, all my life, and I had lost the opportunity to support my
:24:56. > :24:59.children through university. I can't afford things I would have
:24:59. > :25:03.been able to afford, taking them on holiday, going on really nice
:25:03. > :25:08.holidays with my kids. Really I had worked hard all my life and got
:25:08. > :25:15.really nice standard of living, and always very careful, it just makes
:25:15. > :25:25.you feel awful. I mean times even now I worry about my future,
:25:25. > :25:28.
:25:28. > :25:34.because I have nothing left at all. With Instant Access properties in
:25:34. > :25:39.liquidtation and Inside Track disappearing, Tamsin is fighting
:25:39. > :25:42.with other people to get back their money. We're fighting together,
:25:42. > :25:46.collectively to hold these people accountable for what went on in
:25:46. > :25:56.this company, and send out a very, very clear message to stop any copy
:25:56. > :25:59.
:25:59. > :26:03.cats, anyone who might like to copy this company. Inside Track, and
:26:03. > :26:07.Instant Access Properties deny any wrongdoing, and describe Tamsin's
:26:07. > :26:10.allegations as groundless, she says she and the company themselves were
:26:10. > :26:15.victims of the global financial collapse. But Tamsin is battling on.
:26:15. > :26:19.Although it will be a long and expensive process. If you are
:26:19. > :26:23.trying to sort out a new mortgage, you will obviously want to get a
:26:23. > :26:27.deal on the best possible terms. That is what Steve and Debbie
:26:27. > :26:30.Matthews thought when they signed up with the Halifax. They agreed a
:26:30. > :26:36.deal supposed to give them for more their money, a lower rate on the
:26:36. > :26:40.mortgage, plus some additional cash, that would cover the cost of a few
:26:40. > :26:48.home improvements. Unfortunately that little extra led to big bills
:26:48. > :26:53.they didn't expect and couldn't afford.
:26:53. > :26:57.Ex-military commander, Steve Matthews, runs the volunteer cadet
:26:58. > :27:01.training at his local base. He's used to putting people through
:27:01. > :27:11.their paces, and he expects the highest of standards. That applies
:27:11. > :27:16.
:27:16. > :27:23.to the companies he deals with as well. The mortgage on his sem y --
:27:23. > :27:26.semi in Halifax was due to be renewed. We wanted a new mortgage
:27:26. > :27:30.because it was coming to the end of its term. We got a really good deal,
:27:30. > :27:34.we were paying less than we did before, because of the interest
:27:34. > :27:38.rates coming all the way down. the end of the meeting, the
:27:38. > :27:41.Matthews were also given the opportunity to borrow some extra
:27:41. > :27:45.money to use on their house. Because the mortgage rates are so
:27:45. > :27:50.good, you could get a really good deal, and you would still pay less
:27:50. > :27:56.than what you were paying before. That would be to borrow about
:27:56. > :28:00.�6,500. So the deal was, a better mortgage rate, and a �6,500 loan,
:28:00. > :28:05.and their total monthly repayments would still be less than they had
:28:05. > :28:10.been paying before. Just too good to turn down, they decided to go
:28:10. > :28:13.for it. For once, we had a good deal and we were happy to pay
:28:13. > :28:17.slightly less, than they were originally paying for over three
:28:17. > :28:23.years, but we had some money, we had something in our pocket to look
:28:23. > :28:27.forward to, so we could treat ourselves.
:28:27. > :28:30.The �6,500 arrived into the bank account, and the math enthuse said
:28:30. > :28:33.about doing up their house, starting with the bathroom. It is
:28:33. > :28:40.nice to walk in the morning, and have a nice shower and everything
:28:41. > :28:45.is new and gleaming. And you know, things were good, everything was
:28:45. > :28:47.rosy and everybody was happy. least they were, until shortly
:28:47. > :28:50.afterwards the couple were puzzled to get a letter from the Halifax
:28:51. > :28:54.telling them their mortgage deal was coming to an end, and they
:28:54. > :29:00.needed to get a new one. We were like, no, we have just done this.
:29:00. > :29:04.My wife actually rang them up, and said there has been a mistake, we
:29:04. > :29:09.have one. To their horror, the Halifax advised them the new
:29:09. > :29:16.mortgage offer they had been so pleased with was null and void,
:29:16. > :29:21.because an additional loan meant they weren't entitled to was no
:29:21. > :29:25.longer valid. They were now tied to a three-year deal where the rate
:29:25. > :29:30.was higher, so there would be an awful lot more to pay. We are out
:29:30. > :29:34.of pocket for �40 a month over three years, that is �1400, that is
:29:34. > :29:41.wrong, we shouldn't be having to pay that out when they have made
:29:41. > :29:45.the errors. Don't forget Steve and his wife never asked for the loan,
:29:45. > :29:48.the bank offered it to them when they agreed to renew their mortgage.
:29:48. > :29:55.They agreed because it seemed they would be saving money, not paying
:29:55. > :29:58.�1400 more. Unhappy, Steve marched down to the
:29:58. > :30:02.Halifax to complain. They said it was their fault, we wouldn't have
:30:02. > :30:06.to pay extra. They said they would look into it. This went on for
:30:06. > :30:10.weeks and weeks and weeks, me phoning up saying we haven't heard
:30:10. > :30:15.nothing. Eventually the Halifax agreed to
:30:15. > :30:20.give the Matthews some of the money back. But only �590, although that
:30:20. > :30:26.meant they would still be left with a shortfall of �850. But they felt
:30:26. > :30:31.they had no choice but to accept. In the end we said, OK, that's only
:30:31. > :30:39.because my wife, Debbie, was actually getting ill over this, and
:30:39. > :30:42.stressed, and each day I could see her actual ly -- actually see her
:30:42. > :30:46.waking up earlier and earlier and in the middle of the night. She was
:30:46. > :30:54.saying it was getting too much for her, it wasn't fair on her, we said
:30:54. > :30:59.we would have it. He may have felt like he was in the
:30:59. > :31:06.firing line, but Steve absolutely refused to admit Ade feet. He
:31:06. > :31:10.contacted rip -- admit defeat. He contacted Rip-Off Britain to see if
:31:10. > :31:14.we could help. We got in touch with the Halifax. We are happy to report
:31:15. > :31:19.that the company has gone back to the couple with an about turn. They
:31:19. > :31:23.have agreed to pay the amount they would have been out of pocket, plus
:31:23. > :31:33.an extra �200 to compensate the distress and inconvience caused a
:31:33. > :31:40.
:31:40. > :31:44.Steve is very glad he persevered and got the Halifax to stand to
:31:44. > :31:49.attention! When you have had a set- to with a bank, and you are in the
:31:49. > :31:57.right, keep on going, especially if you know that you are right. Don't
:31:57. > :32:04.give up, don't shrivel and die, stand up, be a man, and try to get
:32:04. > :32:08.what you are entitled to. Big companies don't always make
:32:08. > :32:14.things easy to understand. It can be confusing trying to work out
:32:14. > :32:17.just why you haven't ended up with what you expected. So if you feel
:32:17. > :32:27.bogged down, we have put together a booklet of tips and advice. You can
:32:27. > :32:37.
:32:37. > :32:40.find a link to the free guide on We all know that buying a home is
:32:40. > :32:44.expensive, but how many of you are prepared for the hidden costs. You
:32:44. > :32:48.have been telling us how surprised you are at the amount of fees
:32:48. > :32:56.involved with your mortgages, so we decided to investigate, and
:32:56. > :32:59.uncovered some interesting findings. This is Chris and his partner Sue,
:32:59. > :33:03.and Chris's children, Callum and Luke.
:33:03. > :33:06.Three months ago they moved into their new house in Greater
:33:06. > :33:10.Manchester. I was looking for about 12 months before I eventually found
:33:10. > :33:14.the house that suited me. I was really excited about that, because
:33:14. > :33:18.it is literally right in the heart of where I wanted to be again. I
:33:18. > :33:23.jumped at the opportunity to buy it. I put in an offer for the house, it
:33:23. > :33:26.was accepted. I then contacted the building society, and spoke with a
:33:26. > :33:34.lady there who offered me advice on the mortgage, I went through bits
:33:34. > :33:37.and pieces and I was told what I would and wouldn't need. Happy with
:33:37. > :33:42.what he heard, and receiving a very competitive mortgage offer, Chris
:33:42. > :33:46.decided to go ahead. I made the application, and the application
:33:46. > :33:51.was processed. During that time I was told I would need to pay a
:33:51. > :33:56.valuation fee, and was told how much that fee would be, I duly paid
:33:56. > :34:00.that. Chris paid �380 to get the house valued and initially didn't
:34:00. > :34:05.think too much about it, when received a breakdown of the costs,
:34:05. > :34:11.he couldn't believe what he saw. This is the key facts that I was
:34:11. > :34:21.sent about two weeks later. A standard valuation fee, non-
:34:21. > :34:28.refundable was �155, the valuers administration fee was �16.50, the
:34:28. > :34:34.lenders' valuation administration fee, �208.50, that is when my jaw
:34:34. > :34:38.dropped. What was so surprising was that 60% of the bill was made up of
:34:39. > :34:44.administration charges. That is not uncommon. James from Which?
:34:44. > :34:50.Magazine, says most banks, not just Chris's, have wildly different
:34:50. > :34:54.charges linked to the valuation fee. There is an enormous varying amount
:34:54. > :34:57.in valuations, you can't escape getting a valuation, your lender
:34:57. > :35:02.needs to know how much the property is worth. Valuations are standard
:35:02. > :35:09.procedures, the cost of a valuation is fairly similar, whoever you go
:35:09. > :35:16.to to have it done. Not happy with what he has been charged, Chris
:35:16. > :35:21.spoke to his bank to question the fees, in particular the biggest the
:35:21. > :35:24.�208 for admin. I was told that whilst they might not agree with
:35:24. > :35:30.the fees, they were the same, nationwide, but they couldn't do
:35:30. > :35:34.anything about it, if I didn't pay it I couldn't have the mortgage.
:35:34. > :35:37.one end of the scale you have people charging the bare minimum
:35:37. > :35:43.for valuation, at the other end you have lenders taking a massive take
:35:43. > :35:46.for themselves. You can pay anything between �200-�450 for an
:35:46. > :35:50.valuation, which is, in essence, the same thing, just different
:35:50. > :35:52.lenders charging different amounts to different borrowers. As a result
:35:52. > :35:58.you can't easily compare total mortgage costs between banks,
:35:58. > :36:01.making it harder to know if you are getting the best deal. Chris has no
:36:01. > :36:06.problem with the valuation fee itself, but why the administration
:36:06. > :36:12.charge for that fee had to be so high, he finds harder to understand.
:36:12. > :36:16.Leaving him, with a simple question. For me, if they are instructing
:36:16. > :36:19.somebody to come and value a house, it is an e-mail, a telephone call,
:36:19. > :36:24.or perhaps a letter to the company that is going to do the valuation.
:36:24. > :36:29.So why then does it cost so much money just to pick a phone up or
:36:29. > :36:36.just to push a button. So, with some mortgage lenders charging more
:36:36. > :36:43.than 0 different fees and in a market where customers can switch
:36:43. > :36:47.their mortgages every few years, the costs can mount up. To help you
:36:47. > :36:52.navigate you through this, we explain what fees you can and
:36:52. > :36:55.cannot a void when buying a house. Buying a house, there are lots of
:36:55. > :37:02.fees to pavement the mortgage arrangement fee is the most
:37:02. > :37:07.important. A few years ago you would pay �100 for the fee and
:37:07. > :37:10.covering the admin costs of the lender. Now lenders are charging up
:37:10. > :37:16.to �1,000, they use the extra revenue to charge a lower interest
:37:16. > :37:21.rate for the mortgage and get to the top of the comparison tables.
:37:21. > :37:24.Two more fees you can't really avoid are the valuation fee and the
:37:24. > :37:28.solicitors' fee. The lender needs to know the house is worth what you
:37:28. > :37:35.are paying for it, they need a valuation, that will cost about
:37:35. > :37:40.�200 or more, then obviously you need to get a solicitor or a
:37:40. > :37:45.conveycy to do the legal work, that is �1,000 and is unavoidable. You
:37:45. > :37:49.don't just pay fees when you take out the mortgage, you can also be
:37:49. > :37:54.charged a fee web the mortgage comes to an end or -- when the
:37:54. > :37:58.mortgage comes to an end or an exit fee, it is worth checking the
:37:58. > :38:05.original mortgage contract, make sure the fees are in there, they
:38:05. > :38:09.are not trying to charge a fee you are not legally required to pay.
:38:09. > :38:13.The next thing is an early repayment charge, when you take out
:38:13. > :38:16.the more, you may have taken on the special deal for the first up to
:38:16. > :38:19.five years where you are paying a low interest rate, if you try to
:38:19. > :38:27.end the mortgage during that introductor period, you could end
:38:27. > :38:31.up paying an early repayment charge of up to 4%.
:38:31. > :38:34.Dodgy builders, poor workmanship, escalating costs, from really
:38:34. > :38:38.aggressive trades people, they are all things we have dealt with on
:38:38. > :38:43.the programme today. They lead to a staggering 2,000 complaints a day,
:38:43. > :38:49.landing on the desks of Trading Standards officers. So how can we
:38:49. > :38:54.protect ourselves as consumers, and how can we fight back against those
:38:54. > :38:58.rip-off merchants. Let's ask Trading Standards. Our research has
:38:58. > :39:00.shown that over the last three years, more than two million
:39:00. > :39:06.complaints have been made to Trading Standards about people who
:39:06. > :39:10.are involved in some way or another with building. That's what 2,000
:39:10. > :39:14.complaints a day. How concerned are you by what appears to be an
:39:14. > :39:16.escalating problem? I think it is about Trading Standards doing their
:39:16. > :39:20.bit, by investigating these complaints and where traders are
:39:20. > :39:23.found to be breaching the law, taking robust action. It is also
:39:23. > :39:26.about educating consumers to minimise the risk of a problem
:39:26. > :39:30.occurring. One of my great concerns is there shutd be more consumer
:39:30. > :39:34.education, people -- should be more consumer education, and people
:39:34. > :39:38.should be more educated about how to choose trader and not someone
:39:38. > :39:40.like a cold caller. You say you are concerned and prepared to
:39:40. > :39:43.investigate, the fact that practices are continuing, it means
:39:43. > :39:47.that Trading Standards are powerless? We are not powerless,
:39:48. > :39:51.there is no magic wand, but Trading Standards cannot provide the whole
:39:51. > :39:56.answer. Which is why I'm saying, it is important n my view, that people
:39:56. > :40:00.are better aware of how to choose a trader. Simple things like choosing
:40:00. > :40:04.a trader approval scheme, getting several written quotes, knowing
:40:04. > :40:08.that the law entitles them to expect goods of satisfactory
:40:08. > :40:12.quality, workmanship done with reasonable skill and care, and
:40:12. > :40:14.knowing how to get redress for themselves. Trading Standards don't
:40:14. > :40:17.have to investigate then, prevention is better than cure, it
:40:17. > :40:21.is that simple. What happens if someone is in the middle of a job,
:40:21. > :40:23.who has quoted you one figure for it, who says this is more
:40:23. > :40:28.complicated than I thought, I need more expensive equipment to
:40:28. > :40:32.complete the job? If you are in that dreadful position where trader
:40:32. > :40:38.gets the Ghostbusters equipment out,, saying you need the equipment
:40:38. > :40:42.of �1,000 every five minutes, put a stop on it, say thank you, we will
:40:42. > :40:45.stop it here, let me pay you for the work you have done I don't want
:40:45. > :40:50.any more, choose trader in the reliable way I have told you. If
:40:50. > :40:56.you think the trader has tried to rip you off for might have,
:40:56. > :40:58.complain to Trading Standards, let them look into it.
:40:58. > :41:03.Here at Rip-Off Britain we are always ready to investigate more of
:41:03. > :41:06.your stories. Confused over your bills? Trying to wade through
:41:06. > :41:10.neverending small print that leaves you totally confused? I might have
:41:10. > :41:15.been stupid for not reading it. Or I have read it and not taken it in.
:41:15. > :41:19.I could kick myself. I really could. Unsure what to do when you discover
:41:19. > :41:24.you have lost out, and that great deal has ended up costing you
:41:24. > :41:28.money? I thought, this cannot be true. It is totally unacceptable, I
:41:28. > :41:31.was so angry. You might have a cautionary tale of your own, and
:41:31. > :41:36.would be happy to share the mistakes you have made with us, so
:41:36. > :41:41.others don't do the same. No-one knows about this, this is very,
:41:41. > :41:51.very strange to me, I would really like to get this much clearer.
:41:51. > :41:59.
:41:59. > :42:04.You can write to us on the above The Rip-Off team is ready and
:42:04. > :42:08.waiting to investigate your stories. That's all we have time for today.
:42:08. > :42:12.But do make sure when spending any of your money on bricks and mortar,
:42:12. > :42:16.that you do your homework, and watch out for the pitfalls before
:42:16. > :42:19.signing any paperwork. Julia is right, homework is the key,
:42:19. > :42:23.always check before you sign for anything, now hopefully today you
:42:23. > :42:26.will have picked up some tips that can stop you finding yourself in
:42:26. > :42:29.the sort of situations that we have been hearing about on the programme.
:42:29. > :42:32.Thank you very much for joining us today, and hopefully we will see