0:00:02 > 0:00:06'We asked you to tell us who's left you feeling ripped-off.'
0:00:06 > 0:00:09I think this is very wrong for what they have done.
0:00:09 > 0:00:13The bank passed charges upon charges upon charges.
0:00:13 > 0:00:18Legally, it was right. Morally? That's where the doubt comes, in my view.
0:00:18 > 0:00:21GLORIA: 'You contacted us in your thousands,
0:00:21 > 0:00:26'by post, e-mail, even stopping us in the street.
0:00:26 > 0:00:28'The message could not be clearer.'
0:00:28 > 0:00:32- They just try and fob you off. - I'm not happy with them at all.
0:00:32 > 0:00:36It's that small print that's got the clause in that you didn't realise.
0:00:36 > 0:00:38We're being ripped-off.
0:00:38 > 0:00:43'Whether it's a deliberate rip-off, a simple mistake or a catch in the small print,
0:00:43 > 0:00:48'we'll find out why you're out of pocket and what you can do.'
0:00:48 > 0:00:51Keep asking the questions. Go to the top.
0:00:51 > 0:00:53We do get results.
0:00:54 > 0:00:58'Your stories, your money. This is Rip-Off Britain.'
0:01:00 > 0:01:02Welcome to Rip-Off Britain,
0:01:02 > 0:01:07where it's our job to take to task the companies giving you a raw deal,
0:01:07 > 0:01:12and to make sure you've got the best advice on what to do when disaster strikes.
0:01:12 > 0:01:16We've got plenty of that today, because when the worst happens -
0:01:16 > 0:01:19a company goes bust or you've been a victim of fraud -
0:01:19 > 0:01:22obviously, you want to get your money back.
0:01:22 > 0:01:25- That could be simpler than you think.- Too true.
0:01:25 > 0:01:31Paying by plastic is often the safest way to protect your purchases and stop you being ripped-off.
0:01:31 > 0:01:35Mind you, even the banks aren't always aware of the benefits.
0:01:35 > 0:01:40So for them, as well as you, we have some unmissable tips coming up
0:01:40 > 0:01:42that could just save you a fortune.
0:01:42 > 0:01:48'Meet the lady convinced that she'd lost thousands as a victim of fraud,
0:01:48 > 0:01:51'but whose bank just didn't believe her.'
0:01:51 > 0:01:55It's a nightmare that you can't wake up from. What else can you do?
0:01:55 > 0:01:58How can you prove you're innocent?
0:01:58 > 0:02:01'We've set up a pop-up shop for consumer advice,
0:02:01 > 0:02:04'and we're rushed off our feet.'
0:02:05 > 0:02:08Whenever we use a credit or a debit card,
0:02:08 > 0:02:12we're always asked to keep the PIN number somewhere safe,
0:02:12 > 0:02:16where no-one can get hold of it and use it without you knowing.
0:02:16 > 0:02:23We're told you have to have a number that no-one else knows, and not to keep it anywhere near the card.
0:02:23 > 0:02:26It's all common sense, really, because by doing that
0:02:26 > 0:02:31you significantly reduce the chance of a card being used fraudulently.
0:02:31 > 0:02:36In 2010, there were over 100,000 cases of card fraud identified in the UK,
0:02:36 > 0:02:42with the losses on those cards coming to a whopping £365 million.
0:02:42 > 0:02:46'When it was introduced in 2003, the chip and PIN system
0:02:46 > 0:02:50'was the biggest change in the way we pay since decimalisation.
0:02:50 > 0:02:56'Ever since, it's been heralded by the banking industry as infallible.
0:02:56 > 0:02:59'But Professor Anderson disagrees.'
0:02:59 > 0:03:05We've found a significant number of vulnerabilities in chip and PIN,
0:03:05 > 0:03:08which have led to a lot of fraud.
0:03:08 > 0:03:13What's more, in many cases, this fraud is blamed on the card holders.
0:03:13 > 0:03:16'Chip and PIN cuts down on fraud in two ways.
0:03:16 > 0:03:20'Firstly, there's a microchip on your debit or credit card
0:03:20 > 0:03:24'which stores personal data securely so it's difficult to counterfeit.
0:03:24 > 0:03:29'The second is the PIN - much harder to copy than a signature.
0:03:29 > 0:03:31'Since the scheme started,
0:03:31 > 0:03:35'credit card fraud has dropped by 69%.
0:03:35 > 0:03:40'Dr Stephen Murdoch, who works with Professor Anderson, also believes
0:03:40 > 0:03:44'that it's not as secure as the banks would have us believe.'
0:03:44 > 0:03:50The biggest source of card fraud in the UK is from "card not present" transactions.
0:03:50 > 0:03:54That's things like telephone, mainly online transactions.
0:03:54 > 0:03:58In most cases, customers do get their money back from this.
0:03:58 > 0:04:03The biggest threat to customers, when they don't get their money back,
0:04:03 > 0:04:05is fraudulent ATM withdrawals.
0:04:05 > 0:04:09Your card might have been taken out of your wallet and used.
0:04:10 > 0:04:13We asked ourselves,
0:04:13 > 0:04:16how is it possible for a stolen chip and PIN card to be used
0:04:16 > 0:04:19by someone who doesn't know the PIN?
0:04:19 > 0:04:23We found that if you put a suitable piece of wicked electronics
0:04:23 > 0:04:26between the card and the terminal, you can tell the card
0:04:26 > 0:04:29that a signature is authorising a transaction,
0:04:29 > 0:04:31and tell the terminal
0:04:31 > 0:04:36that the card accepted the PIN that was put in at the terminal.
0:04:36 > 0:04:38And everything works.
0:04:38 > 0:04:43'In other words, these Cambridge boffins have found a high-tech way
0:04:43 > 0:04:46'to crack chip and PIN.
0:04:46 > 0:04:48'Dr Murdoch's about to prove it.
0:04:48 > 0:04:52'Imagine that the card has been lost or stolen and he doesn't know the PIN.
0:04:52 > 0:04:56'That should mean that any transaction would be refused.
0:04:56 > 0:04:59'But with the help of this special gadget, he's hoping
0:04:59 > 0:05:04'to trick the sort of terminal used in most shops and restaurants
0:05:04 > 0:05:07'into thinking that the correct PIN is being used.'
0:05:07 > 0:05:11First, we'll put the card into this device.
0:05:11 > 0:05:16This can be made smaller and quite easily hidden up someone's sleeve.
0:05:16 > 0:05:22Then we put the card into the terminal, just as normal.
0:05:22 > 0:05:24Type in the PIN.
0:05:26 > 0:05:31I typed in 1111, which is not the right PIN for the card. Press enter.
0:05:33 > 0:05:38- The transaction goes through. - The transaction HAS gone through.
0:05:41 > 0:05:44'Worryingly, it's worked.'
0:05:44 > 0:05:48We told the industry about this vulnerability in October 2009.
0:05:48 > 0:05:53'In the middle of 2010, one of the banks did some work to fix it
0:05:53 > 0:05:57'with one of their suppliers, but by December,
0:05:57 > 0:06:00'the fix had been taken out and the fraud worked.'
0:06:00 > 0:06:05We suspect that they found that the fix was causing too many false alarms
0:06:05 > 0:06:11so it would be better to take the risk, rather than upsetting a lot of customers.
0:06:11 > 0:06:14That's fair enough, provided they're prepared to give their customers
0:06:14 > 0:06:18the benefit of the doubt when they complain about fraud.
0:06:18 > 0:06:21'The UK Cards Association is...
0:06:24 > 0:06:27'They say, though technically possible...
0:06:30 > 0:06:33'And once you've reported your card stolen,
0:06:33 > 0:06:38'it would be blocked and the device could no longer work.
0:06:41 > 0:06:45'They insist that any innocent victim of card fraud
0:06:45 > 0:06:47'won't suffer any financial loss.
0:06:47 > 0:06:51'But as you'll see later, it isn't always that simple.'
0:06:53 > 0:06:57Although this is Rip-Off Britain, tackling all things British,
0:06:57 > 0:07:02what can you do if you've been caught by a company based overseas?
0:07:02 > 0:07:08Judging from your letters, it happens to a lot of you, including Tony and Margaret Hayden.
0:07:08 > 0:07:12They ran into trouble with a company based abroad after being cold-called
0:07:12 > 0:07:15with an offer that seemed too good to refuse.
0:07:19 > 0:07:22'The most famous light show of them all,
0:07:22 > 0:07:27'the northern lights, once just a story told by intrepid travellers,
0:07:27 > 0:07:30'now a regular sight on our screens.
0:07:30 > 0:07:33'They can be experienced first-hand
0:07:33 > 0:07:36'by people who go on an Arctic cruise.'
0:07:36 > 0:07:38Voyages to the northern lights...
0:07:38 > 0:07:43'Tony and Margaret Hayden from Manchester dreamt of such a cruise.'
0:07:43 > 0:07:47We've never been on one before and...we were getting interested,
0:07:47 > 0:07:52especially looking at things like the northern lights in Norway.
0:07:52 > 0:07:56'In July this year, they were cold-called by a company
0:07:56 > 0:08:01'called The Holiday Specialist, who offered to make their dream come true.'
0:08:01 > 0:08:03The young lady said to me
0:08:03 > 0:08:08that they were a wholesale UK-based travel agent
0:08:08 > 0:08:15who were able to get hold of cruises at greatly discounted rates.
0:08:15 > 0:08:17£599,
0:08:17 > 0:08:21and they would send us a voucher
0:08:21 > 0:08:24and we could book this cruise when we wanted
0:08:24 > 0:08:26within the next three years.
0:08:26 > 0:08:31'Tony happily signed up but, a few days later,
0:08:31 > 0:08:35'he checked his credit card statement online
0:08:35 > 0:08:38'and noticed that the payment hadn't gone to the company he'd spoken to.
0:08:38 > 0:08:42'Instead, it had been paid to one called Lifetime Marketing Solutions,
0:08:42 > 0:08:46'LMS for short, and they weren't UK-based.
0:08:46 > 0:08:49'They were in Benidorm, in Spain.'
0:08:49 > 0:08:52As soon as it came up LMS Benidorm,
0:08:52 > 0:08:56I thought, "Spanish company. Benidorm. Whoops!
0:08:56 > 0:09:00"I don't think this is what I first thought it was."
0:09:00 > 0:09:04And it's turned out to be that, as well.
0:09:04 > 0:09:08'Then the documents arrived and their worst fears were realised.
0:09:08 > 0:09:12'Instead of buying a cruise, all they'd got for their £600
0:09:12 > 0:09:15'was a holiday club loyalty card,
0:09:15 > 0:09:18'promising discounts on future holidays.
0:09:18 > 0:09:23'And a call to the company to clear it all up only made things worse.'
0:09:23 > 0:09:25Basically, the supervisor said,
0:09:25 > 0:09:29"Well, you knew you were buying a loyalty card.
0:09:29 > 0:09:32"You've bought the loyalty card.
0:09:32 > 0:09:35"It's non-refundable. We don't do refunds."
0:09:35 > 0:09:41'Tony and Margaret didn't give up that easily and there were avenues for them to explore.
0:09:41 > 0:09:46'EU law contains legislation called "distance selling regulations",
0:09:46 > 0:09:50'which should give consumers cooling off-rights
0:09:50 > 0:09:54'when buying goods or services without face-to-face contact.
0:09:54 > 0:09:57'But The Holiday Specialist claimed they were exempt,
0:09:57 > 0:10:00'that it didn't apply when buying loyalty cards.
0:10:00 > 0:10:07'Laura Ferguson from the UK European Consumer Centre has heard it all before.'
0:10:07 > 0:10:11The companies deliberately interpret the legislation
0:10:11 > 0:10:13to minimise consumer rights.
0:10:13 > 0:10:17What the law ACTUALLY says is that excluded contracts
0:10:17 > 0:10:23are contracts for accommodation that are to be provided on a specific date or time period.
0:10:23 > 0:10:27'So maybe the Haydens could battle on with that route.
0:10:27 > 0:10:33'In the meantime, Tony has gone down a different path, claiming a refund through his credit card company.'
0:10:33 > 0:10:39Section 75 covers, as they say, creditor, debtor and supplier.
0:10:39 > 0:10:42The bank are the creditor.
0:10:42 > 0:10:46I'm the debtor, because I owe the money.
0:10:46 > 0:10:52And the supplier is The Holiday Specialist.
0:10:52 > 0:10:56'That sound straightforward, but there was a snag.
0:10:56 > 0:10:59'Because the money was paid to LMS Benidorm,
0:10:59 > 0:11:03'not The Holiday Specialist, a fourth party was involved,
0:11:03 > 0:11:06'so the Haydens' situation isn't strictly covered
0:11:06 > 0:11:10'by section 75 of the Consumer Credit Act.
0:11:10 > 0:11:16'The decision on whether to pay out is at the discretion of each credit card company, and Tony's refused.'
0:11:16 > 0:11:21Some people find that their credit card company's really strict.
0:11:21 > 0:11:25Others find that they're more forthcoming offering reimbursement.
0:11:25 > 0:11:30Unfortunately, there's no standard. It's pot luck, I'm afraid!
0:11:30 > 0:11:35My main advice to consumers is do NOT give your credit card or bank details to anybody
0:11:35 > 0:11:40until you have received your paperwork and you know what you're getting.
0:11:40 > 0:11:44'Meanwhile, Tony may yet be in luck.
0:11:44 > 0:11:46'When Rip-Off Britain rang LMS,
0:11:46 > 0:11:50'they confirmed they are the same company as The Holiday Specialist,
0:11:50 > 0:11:53'which should mean the credit card company
0:11:53 > 0:11:56'looks at his claim in a different light.
0:11:56 > 0:12:01'But there are other questions LMS may find harder to answer.
0:12:01 > 0:12:07'Such as why all of the cruise liner companies whose logos appear on their website
0:12:07 > 0:12:10'deny ever selling their holidays through LMS.
0:12:10 > 0:12:14'They've told us that's so they can offer impartial advice
0:12:14 > 0:12:16'to clients who ask about cruises.
0:12:16 > 0:12:23'And the reason companies haven't heard of them is because customers book their holidays direct.
0:12:23 > 0:12:25'The company also told us
0:12:25 > 0:12:28'that what Tony bought is what he'd ordered,
0:12:28 > 0:12:30'although he maintains it's not...
0:12:47 > 0:12:50'..We suspect it still might be.'
0:12:51 > 0:12:53I think next time we book a holiday,
0:12:53 > 0:12:57it's not going to be... from a cold call.
0:12:57 > 0:13:01It's going to be through a reputable travel agent that we know,
0:13:01 > 0:13:04we've dealt with before,
0:13:04 > 0:13:07and do it that way - the safe way.
0:13:07 > 0:13:13The Haydens' story shows only too well how easily you can run into problems when buying from abroad.
0:13:13 > 0:13:20With more about what your rights are, here's Jane Negus from the Trading Standards Institute.
0:13:21 > 0:13:24Wherever you're shopping, in the UK or online,
0:13:24 > 0:13:28you need to make sure that you know where that trader's based.
0:13:28 > 0:13:32Just because it's a co.uk website doesn't mean that it's in the UK.
0:13:32 > 0:13:35You need to do your research first.
0:13:35 > 0:13:39If you've purchased something and there's a problem with it,
0:13:39 > 0:13:43the first thing to do is contact the trader involved.
0:13:43 > 0:13:48Most of the consumer law in the UK is now applicable across Europe.
0:13:48 > 0:13:53When things go wrong with a purchase or service that you've had in the EU
0:13:53 > 0:13:55there are things that you can do...
0:14:04 > 0:14:09If you've made a purchase from somewhere outside of the EU,
0:14:09 > 0:14:13there is an organisation called Econsumer that you can approach.
0:14:13 > 0:14:16They will signpost you to an appropriate organisation
0:14:16 > 0:14:19in the country you made the purchase
0:14:19 > 0:14:24to see if they can assist you to get your money back or to get the matter resolved.
0:14:27 > 0:14:31Earlier, we showed how easy it can be to crack the chip and PIN system
0:14:31 > 0:14:35that we all rely on to keep our credit and debit details secure.
0:14:35 > 0:14:40With banks reluctant to accept that the system might have flaws,
0:14:40 > 0:14:45where does that leave you if you think that somebody has been using your card to withdraw your cash?
0:14:45 > 0:14:49Eve Russell was sure she'd been a victim of fraud,
0:14:49 > 0:14:52but her bank just didn't agree.
0:14:55 > 0:14:59'Four little numbers to keep your bank details safe.
0:14:59 > 0:15:03'Since 2003, we've been using chip and PIN to make payments.
0:15:03 > 0:15:08'The four-digit code used to authorise these must be used
0:15:08 > 0:15:10'or your purchase won't go through.
0:15:10 > 0:15:14'Chip and PIN has significantly reduced credit card and bank fraud.
0:15:14 > 0:15:17'Banks repeatedly insist it's fool-proof.
0:15:17 > 0:15:21'One person who definitely wouldn't agree is Eve Russell.
0:15:21 > 0:15:26'She's had a dispute with Barclaycard which started in August 2010,
0:15:26 > 0:15:31'when she queried a new credit card number on literature they sent to her.'
0:15:31 > 0:15:35I phoned Barclaycard up and I was told it was my new card.
0:15:35 > 0:15:40I said, "What new card? I don't know anything about a new card."
0:15:40 > 0:15:42They said the card that I ordered.
0:15:42 > 0:15:46I'd phoned up and ordered a new card. I said, "No, I didn't."
0:15:47 > 0:15:50The story Barclaycard was told was that I,
0:15:50 > 0:15:54or someone pretending to be me, was in a bar in London,
0:15:54 > 0:15:58had too much to drink and lost their card so they needed a new one.
0:15:58 > 0:16:01This is according to Barclaycard, obviously.
0:16:01 > 0:16:04And I said it wasn't me.
0:16:04 > 0:16:09'Eve was adamant it wasn't her who'd ordered it, but in any case,
0:16:09 > 0:16:12'a new card was out there somewhere in her name.
0:16:12 > 0:16:14'Although it had a different number,
0:16:14 > 0:16:20'Barclaycard said the PIN was identical. Eve was baffled.'
0:16:20 > 0:16:25I thought it was a mistake. Maybe the wrong card number, the wrong Evelyn Russell.
0:16:25 > 0:16:30I couldn't believe what they were telling me. I have my card!
0:16:30 > 0:16:34I did not order a new card. I did not receive a card.
0:16:34 > 0:16:39I did not spend anything on a card, other than the card that I have in my possession.
0:16:39 > 0:16:45'Whoever rang gave one wrong answer to Barclaycard's security questions,
0:16:45 > 0:16:47'Eve's age on her next birthday.
0:16:47 > 0:16:50'For some reason, that wasn't picked up,
0:16:50 > 0:16:52'allowing them to order a new card.
0:16:52 > 0:16:58'Eve thinks the bank should have also picked up on another big clue that something was amiss.'
0:16:58 > 0:17:04In one month, whoever got my card spent £15,000.
0:17:04 > 0:17:08My normal spending pattern is roughly £50, £60 a month
0:17:08 > 0:17:10on my mobile phone bill, that's all.
0:17:10 > 0:17:13Not £15,000!
0:17:13 > 0:17:15And I only have a £10,000 limit.
0:17:15 > 0:17:19Barclaycard state they will monitor irregular spending.
0:17:19 > 0:17:21This is worse than irregular spending.
0:17:21 > 0:17:26This is somebody going for a jolly for £15,000 on a £10,000 limit!
0:17:26 > 0:17:30Totally different from however I've used my card.
0:17:30 > 0:17:33I've been a Barclaycard customer for over 20 years.
0:17:33 > 0:17:37Barclaycard should have flagged this.
0:17:37 > 0:17:39'As Eve continued to protest,
0:17:39 > 0:17:42'Barclaycard produced a somewhat grainy photograph
0:17:42 > 0:17:45'of the door the courier had delivered the new card to.
0:17:45 > 0:17:48'But it wasn't Eve's front door.
0:17:48 > 0:17:52'Although Barclaycard said the card went to a neighbouring address,
0:17:52 > 0:17:55'her nearest neighbour said they didn't receive it.
0:17:55 > 0:17:57'But that wasn't the worst of it.
0:17:57 > 0:18:03'Despite watertight alibis to prove she wasn't present when the card was used,
0:18:03 > 0:18:07'Barclaycard said she must have been because the correct PIN was used.
0:18:07 > 0:18:12'So they insisted that Eve pay back all the money that had been spent,
0:18:12 > 0:18:14'well over £15,000.'
0:18:14 > 0:18:17It's a nightmare that you can't wake up from.
0:18:17 > 0:18:20What else can you do?
0:18:20 > 0:18:23How can you prove you're innocent when you're told,
0:18:23 > 0:18:29even if your card had got delivered to Scotland, and the PIN was used, you would still be liable?
0:18:29 > 0:18:31'Eve's case is surprising
0:18:31 > 0:18:35'because in cases where banks refuse to refund disputed payments,
0:18:35 > 0:18:41'they are supposed to provide evidence that the customer's to blame
0:18:41 > 0:18:47'either through fraud or negligence, for example, letting someone know your PIN.'
0:18:47 > 0:18:51The law has given people additional rights to say that,
0:18:51 > 0:18:55even where a PIN was used, that is not proof that the customer
0:18:55 > 0:18:58authorised the payment.
0:18:58 > 0:19:00You have to have greater evidence
0:19:00 > 0:19:05that somebody was acting fraudulently or grossly negligently
0:19:05 > 0:19:08before a bank can refuse to reinstate a payment.
0:19:08 > 0:19:13The bank have got to come up with very good reasons and some evidence,
0:19:13 > 0:19:16to prove that you were either negligent or fraudulent
0:19:16 > 0:19:19in the way in which you'd used your card.
0:19:19 > 0:19:23They can't simply say, "We're not going to repay you."
0:19:23 > 0:19:26If you feel that your bank has acted unfairly,
0:19:26 > 0:19:31you ought to go to the Financial Ombudsman Service and let them sort it out.
0:19:31 > 0:19:35'Eve did just that and, in October 2011,
0:19:35 > 0:19:39'more than a year after the trouble began, the Ombudsman recommended
0:19:39 > 0:19:43'that Barclaycard wipe off all the disputed debt,
0:19:43 > 0:19:46'remove adverse information from her credit file
0:19:46 > 0:19:49'and provide her with compensation, which they've done,
0:19:49 > 0:19:53'as well as offering to "contribute to her costs".
0:19:53 > 0:19:58'Barclaycard told us they're sorry for their...
0:20:07 > 0:20:12'..They claim that Eve gave them contradictory information about the records she'd kept of her PIN,
0:20:12 > 0:20:18'but now accept that she was...
0:20:20 > 0:20:23'While her battle may be over, Eve is furious
0:20:23 > 0:20:25'about what she had to go through.'
0:20:25 > 0:20:30I feel terrible about the whole situation, emotionally drained.
0:20:30 > 0:20:34It's been an absolute nightmare of a year. Very, very bad.
0:20:34 > 0:20:39I really thought it would all end last year, but it takes so long.
0:20:39 > 0:20:42It's left me absolutely dreadful.
0:20:46 > 0:20:51'Still to come, our experts have been rushed off their feet
0:20:51 > 0:20:54'at our pop-up shop for consumer advice.'
0:20:54 > 0:21:00The law says that anybody providing a service should provide it with reasonable care and skill.
0:21:00 > 0:21:04'And we'll reveal a little-known fact that could help millions of you
0:21:04 > 0:21:07'claim money back when a purchase goes wrong.'
0:21:07 > 0:21:12We couldn't believe the process till the money arrived in our account.
0:21:12 > 0:21:14And we were elated!
0:21:16 > 0:21:18Next, a little-known fact
0:21:18 > 0:21:22that could prove to be a lifeline for many of you
0:21:22 > 0:21:25if a financial transaction goes wrong.
0:21:25 > 0:21:29Usually, we're told that while credit cards give you protection
0:21:29 > 0:21:34in situations where, for instance, a company from whom you've ordered something goes bust,
0:21:34 > 0:21:36a debit card won't.
0:21:36 > 0:21:39Well, actually, it might.
0:21:39 > 0:21:44Because if your debit card's Visa, as two-thirds of them are,
0:21:44 > 0:21:47it should still be protected in the same way.
0:21:47 > 0:21:51That's information that really could make all the difference.
0:21:51 > 0:21:56Unfortunately, apparently, even the banks aren't always aware of it.
0:21:56 > 0:22:00It's rather lucky that when disaster struck for one couple,
0:22:00 > 0:22:02they wrote to us.
0:22:06 > 0:22:11'Lee Price and her civil partner Jane moved to the UK from Zimbabwe a year ago.
0:22:11 > 0:22:16'They're braving the current financial climate
0:22:16 > 0:22:19'and opening a cafe in Battle, Sussex.'
0:22:19 > 0:22:23In Zimbabwe, I ran a cafe for three years.
0:22:23 > 0:22:27We wanted to be able to fit it in with taking care of the children.
0:22:27 > 0:22:32That's one reason why we chose the cafe in Battle, because it's seven minutes' walk from home.
0:22:32 > 0:22:36'But first, the cafe needed a new kitchen.'
0:22:36 > 0:22:40For a family, it's fantastic. For a business, it's not great.
0:22:40 > 0:22:43We wanted to enclose this off, bring in a new entrance
0:22:43 > 0:22:46and we'd add our sinks over here.
0:22:46 > 0:22:50'In April 2010, they found what they wanted
0:22:50 > 0:22:52'at Focus DIY.
0:22:52 > 0:22:56'They were quoted just over £3,500
0:22:56 > 0:23:00'and they paid up-front with a Nationwide Visa debit card.'
0:23:00 > 0:23:02We felt that
0:23:02 > 0:23:07although it was a quick decision to make, that it was a good one
0:23:07 > 0:23:10with the price.
0:23:10 > 0:23:14They seemed very helpful, up-front and, um...
0:23:14 > 0:23:19it's such a big store that you have such confidence in it, actually.
0:23:19 > 0:23:23'But six weeks later, they got a call from Focus DIY.
0:23:23 > 0:23:26'It wasn't news they wanted to hear.
0:23:26 > 0:23:29'The company had gone into administration.
0:23:29 > 0:23:32'Concerned, Lee and Jane immediately
0:23:32 > 0:23:35'went to the store where they'd bought the kitchen.'
0:23:35 > 0:23:39They told us, "Don't worry. We're pretty certain...
0:23:39 > 0:23:41"We're very certain that you'll get it.
0:23:41 > 0:23:45"It's on a pallet stored for you already.
0:23:45 > 0:23:49"It's just a case of being delivered. It might take a while to get delivered."
0:23:49 > 0:23:56'Despite the store's reassurances, Lee and Jane began to suspect that the kitchen might never turn up.
0:23:56 > 0:24:01'So they went back to the shop to try and get some more answers.'
0:24:01 > 0:24:03It was a very different atmosphere.
0:24:03 > 0:24:08The same salesman who had reassured us and said, "Don't worry.
0:24:08 > 0:24:12"Your kitchen's on a pallet." He said - I'm quoting him verbatim -
0:24:12 > 0:24:16"You won't be getting your kitchen now."
0:24:16 > 0:24:19This is all on a computer programme. This is the stove...
0:24:19 > 0:24:23'The couple were left devastated by this news.
0:24:23 > 0:24:29'Their business plans were in tatters and they'd lost the money they needed to get the cafe open.'
0:24:29 > 0:24:34- You burst into tears when we got home.- Yeah. I did.- I got angry.
0:24:34 > 0:24:36It unsettled our home. The children were unsettled.
0:24:36 > 0:24:39This is a bird's-eye view...
0:24:39 > 0:24:42'Convinced they'd lost their kitchen and their money,
0:24:42 > 0:24:44'they contacted Rip-Off Britain.
0:24:44 > 0:24:49'And we were able to give them the good news that they hadn't expected.
0:24:49 > 0:24:53'Because they'd paid with a Visa debit card,
0:24:53 > 0:24:57'they were covered by a little-known scheme called...'
0:25:08 > 0:25:10What I understand it as is...
0:25:11 > 0:25:16..if you go to a company and pay for something with a debit card,
0:25:16 > 0:25:20you can go to your bank and say, "I haven't received the goods."
0:25:20 > 0:25:23And the bank will then be able
0:25:23 > 0:25:28to chargeback your money, give it back to your bank account.
0:25:28 > 0:25:33Which seems like a really amazing sort of...system.
0:25:33 > 0:25:37'There are nearly 85 million debit cards in the UK,
0:25:37 > 0:25:41'73 million of which are Visa cards.
0:25:41 > 0:25:46'That means an awful lot of people could benefit from knowing about the chargeback scheme.
0:25:46 > 0:25:50'But does it actually work in practice?
0:25:50 > 0:25:54'It did for Lee and Jane, who put their claim in writing to the bank
0:25:54 > 0:25:57'and got all the money back that they'd lost.'
0:25:57 > 0:26:03We couldn't believe the process until the money arrived in our account. We were elated.
0:26:03 > 0:26:10All of the feelings of loss and... loss of dreams, loss of hope,
0:26:10 > 0:26:14was re-established, and we felt like we'd been grounded again.
0:26:14 > 0:26:19'Lee and Jane are about to open their first cafe, after all.
0:26:19 > 0:26:23'And with a little help from us, their plans are back on track.'
0:26:23 > 0:26:25It was great to have a happy ending.
0:26:25 > 0:26:29We were only too pleased to be able to help.
0:26:29 > 0:26:33If like Lee and Jane, you have a situation you think could benefit
0:26:33 > 0:26:36from the Visa chargeback system,
0:26:36 > 0:26:40here's a bit more about how it works and when you're able to use it.
0:26:40 > 0:26:45You may even find people in your own bank haven't heard of it,
0:26:45 > 0:26:49but it's great protection when you buy things with your debit card.
0:26:49 > 0:26:52If you buy something with your card
0:26:52 > 0:26:54and it's broken, doesn't turn up
0:26:54 > 0:26:56or the company's gone bust,
0:26:56 > 0:27:00you can ask your bank to get the money back.
0:27:03 > 0:27:05It's not legally binding, but...
0:27:08 > 0:27:10It should mean that if something goes wrong,
0:27:10 > 0:27:13you shouldn't be out of pocket.
0:27:13 > 0:27:18You need to claim within 120 days of realising there was a problem,
0:27:18 > 0:27:22otherwise your card provider may not be able to help.
0:27:22 > 0:27:25What can you do if your card provider says
0:27:25 > 0:27:28they won't help you under the chargeback scheme?
0:27:28 > 0:27:32You can still go to the Financial Ombudsman.
0:27:32 > 0:27:35It's a free service and they are there to help.
0:27:35 > 0:27:39You need to do that within six months of ending your correspondence
0:27:39 > 0:27:41with your card provider,
0:27:41 > 0:27:46but the Ombudsman may well be able to help you get your money back.
0:27:50 > 0:27:53GLORIA: 'When money is tighter than ever,
0:27:53 > 0:27:57'you need to know that your cash is working hard for you,
0:27:57 > 0:28:00'avoiding rip-offs and sharp practice along the way.
0:28:00 > 0:28:03'We put together a booklet of advice
0:28:03 > 0:28:06'to help safeguard your hard-earned money.
0:28:06 > 0:28:10'You can find the link to the free guide on our website...
0:28:13 > 0:28:16'If you want to receive a copy in the post,
0:28:16 > 0:28:21'send an A5 self-addressed envelope to the address at the end of the programme.
0:28:26 > 0:28:29'We went on the road and set up our very own pop-up shop,
0:28:29 > 0:28:34'where we got the opportunity to talk to you and hear your stories.
0:28:34 > 0:28:39'One issue that keeps cropping up is confusion over consumer rights,
0:28:39 > 0:28:43'particularly when purchases are faulty or go wrong.'
0:28:43 > 0:28:49'Newlyweds Mr and Mrs Robinson had tried to protect their wedding video purchase
0:28:49 > 0:28:52'by paying the full amount on delivery.
0:28:52 > 0:28:56'But I'm afraid they were in for a last-minute surprise.'
0:28:56 > 0:28:59We booked a video for our day.
0:28:59 > 0:29:01Paid £100 deposit up-front.
0:29:01 > 0:29:05A few days before the wedding, she asked for full payment,
0:29:05 > 0:29:07which I had my reservations about.
0:29:07 > 0:29:12- How much was that? - She wanted the full £300 up-front.
0:29:12 > 0:29:17I said can I not pay half and the rest on completion? But she insisted
0:29:17 > 0:29:19or she couldn't go ahead.
0:29:19 > 0:29:26Weeks went on, no contact from her. Didn't reply to e-mails, texts, phone calls.
0:29:26 > 0:29:32I finally sent her an e-mail threatening that I would take action if she didn't respond.
0:29:32 > 0:29:37She said she was sorry and she'd sent a copy in registered post.
0:29:37 > 0:29:41'After the third copy of the DVD did not arrive by post,
0:29:41 > 0:29:45'the newlyweds paid a visit in person.'
0:29:45 > 0:29:48We ended up at the address and demanded a copy.
0:29:48 > 0:29:53Got a copy, which doesn't play on a DVD player, only on a computer.
0:29:53 > 0:29:57And there's no sound. You can't even hear our vows.
0:29:57 > 0:30:01It's all mix and match, not in any order.
0:30:01 > 0:30:03You do have rights against her.
0:30:03 > 0:30:08The law says that anybody providing a service should provide it with reasonable care and skill.
0:30:08 > 0:30:12I advise you to to write her one final letter,
0:30:12 > 0:30:14head it up "letter before action",
0:30:14 > 0:30:18saying that you are unhappy with the DVD you were provided with.
0:30:18 > 0:30:24"This is the last opportunity I'm giving you to give us a full refund, all the unedited footage,"
0:30:24 > 0:30:27that you're asking for compensation, and give her seven days to respond.
0:30:27 > 0:30:32Send it recorded delivery so you've got evidence it's been received
0:30:32 > 0:30:35and keep a copy of it so you've got evidence as well.
0:30:35 > 0:30:41If you don't get a response, you can fill in forms in relation to the court service online.
0:30:47 > 0:30:51You can do it yourself, face-to-face in the Small Claims Court.
0:30:51 > 0:30:57Or you can do everything online, if you don't want to meet her face-to-face in a court environment.
0:30:57 > 0:31:00All the information's on Her Majesty's Court website.
0:31:00 > 0:31:04- Are you going to do that?- Yeah. We're not going to let it rest.
0:31:04 > 0:31:07- We wish you luck with it.- Thank you. - And bin that!
0:31:07 > 0:31:11Don't bin it! You need it as evidence!
0:31:11 > 0:31:16GLORIA: 'If you'd like information about how to write letters of complaint,
0:31:16 > 0:31:21'BBC Learning has got lots of tips on their Skillswise site.
0:31:21 > 0:31:28'For further advice on this and more visit our website:'
0:31:32 > 0:31:37When we use our credit cards, most of us do so safe in the knowledge
0:31:37 > 0:31:41that should anything go wrong, we're better protected than if we'd paid by cash or cheque.
0:31:41 > 0:31:46Thanks to the Consumer Credit Act, if we don't receive what we pay for
0:31:46 > 0:31:50or it turns out to be faulty, we can probably get our money back.
0:31:50 > 0:31:54There are some big exceptions you might not know about
0:31:54 > 0:31:59that could mean that even if you've spent thousands of pounds, you've got no protection,
0:31:59 > 0:32:01as this family found out.
0:32:04 > 0:32:08'Your wedding day should be your happiest day of your life,
0:32:08 > 0:32:11'family and friends gathered together to celebrate.
0:32:11 > 0:32:16'Jennifer and Lloyd Cunningham spent years planning their special day.
0:32:16 > 0:32:22'They decided to get married in Africa, with 25 of their nearest and dearest in attendance.'
0:32:22 > 0:32:26We decided to get married in Ghana cos we'd been there and liked it.
0:32:26 > 0:32:31It's a tropical place. We're also looking at relocating to Ghana.
0:32:31 > 0:32:37We thought we'd have the wedding there and invite the friends and family, cos it's a beautiful place.
0:32:37 > 0:32:41So my colour scheme was the yellow and the green,
0:32:41 > 0:32:46and also to pick up on the Jamaican flag as well, the green and gold.
0:32:46 > 0:32:49- This is my lucky colour. - There we go!
0:32:49 > 0:32:52'The guests began preparing well in advance.
0:32:52 > 0:32:55'Jennifer's mother Beryl booked flights for herself, her husband
0:32:55 > 0:32:58'and Jennifer's sisters, who were bridesmaids.
0:32:58 > 0:33:02'Not being computer-savvy, rather than getting flights online,
0:33:02 > 0:33:05'she'd booked them all through her local travel agent.'
0:33:05 > 0:33:08They were wearing the burgundy...
0:33:08 > 0:33:10I went to an agent.
0:33:10 > 0:33:13I don't know about booking with an airline.
0:33:13 > 0:33:18I tried it before and it seems very complicated for my age group.
0:33:18 > 0:33:21I'm...quite old really.
0:33:21 > 0:33:25'But a few months later, in May 2010,
0:33:25 > 0:33:29'the couple and their wedding party had some shocking news.
0:33:29 > 0:33:31'Ghana International Airlines,
0:33:31 > 0:33:35'who they were due to fly with, had run into trouble and their flights,
0:33:35 > 0:33:40'still months away, wouldn't be happening.'
0:33:40 > 0:33:42I felt pig sick, really!
0:33:42 > 0:33:45I thought my daughters didn't have the money
0:33:45 > 0:33:49to go to their sister's wedding because of the recession.
0:33:49 > 0:33:53They have mortgages to pay and they are single ladies.
0:33:53 > 0:33:55And I paid all this money
0:33:55 > 0:33:59and we are going to lose all this money not going anywhere.
0:33:59 > 0:34:02- That's a nice one. - I like the greenery.
0:34:02 > 0:34:06'Over the next few months, Jennifer and her guests tried desperately
0:34:06 > 0:34:08'to get their money back.
0:34:08 > 0:34:12'They hoped they could book new flights and still make the wedding.
0:34:12 > 0:34:16'Despite initial promises, they had no joy getting anything
0:34:16 > 0:34:18'back from the airline.
0:34:18 > 0:34:21'Beryl had spent over £2,000 on flights.
0:34:21 > 0:34:28Because she'd paid with a credit card, she was confident that she'd be protected. But she was wrong.
0:34:30 > 0:34:35'In the letter, they wrote back and said that we are not covered'
0:34:35 > 0:34:40under section 75 of the Consumer Credit Act
0:34:40 > 0:34:44because I did not book directly with the airline,
0:34:44 > 0:34:47I had booked through a third person.
0:34:47 > 0:34:51I rang them to ask, "What is this third person?"
0:34:51 > 0:34:54Because I didn't understand that at all.
0:34:54 > 0:34:58They said I booked through a travel agent.
0:34:58 > 0:35:03'In most cases, the Consumer Credit Act means the credit card company
0:35:03 > 0:35:08'is jointly responsible for goods or services that customers have paid for but not received.
0:35:08 > 0:35:12'Like most of us, Beryl had no idea that there's a clause
0:35:12 > 0:35:17'that means that if you bought your goods through a third party you may not be covered.
0:35:17 > 0:35:21'Because she'd booked through the travel agent, not the airline,
0:35:21 > 0:35:25'she wasn't entitled to a refund.'
0:35:25 > 0:35:28I've spoken to tons of people that travel a lot.
0:35:28 > 0:35:34They go all over the place, and they did not know this.
0:35:34 > 0:35:36You know? So I...
0:35:37 > 0:35:41This was really a shock to me, really.
0:35:44 > 0:35:48'A month before the wedding, none of the party had got their money back.
0:35:48 > 0:35:51'Having spent thousands of pounds, Jennifer and Lloyd had no choice
0:35:51 > 0:35:56'but to go ahead and travel to Ghana without their family.'
0:35:56 > 0:36:00When I was walking down the aisle with my giveaway father
0:36:00 > 0:36:05who took the place of my stepdad, there was definitely a void.
0:36:05 > 0:36:08It was a sad day, but I tried to make the best of it.
0:36:08 > 0:36:11We would have lost even more money because we'd paid
0:36:11 > 0:36:17the money on all the things that we needed to pay for the wedding, so it was a sad occasion.
0:36:20 > 0:36:23I wanted to be there for Jennifer cos I know
0:36:23 > 0:36:28that she would be upset, she would not feel happy if we were not there.
0:36:28 > 0:36:31But I just could not afford another 2,000.
0:36:31 > 0:36:35The weather was perfect that day. It wasn't too hot...
0:36:35 > 0:36:38'With just a handful of friends able to attend the wedding,
0:36:38 > 0:36:44'the couple invited members of the church in Ghana to make up numbers.
0:36:44 > 0:36:47'For the rest of the family, it's difficult to watch the footage,
0:36:47 > 0:36:50'knowing they should have been there.'
0:36:50 > 0:36:54- I love the beautiful colours. - Yeah.- I also love the greenery.
0:36:54 > 0:36:59- The hotel looked like it would be right up my street.- Yes.
0:36:59 > 0:37:01You would have loved that...
0:37:01 > 0:37:04'I was very sad that'
0:37:04 > 0:37:07her giveaway mother and father
0:37:07 > 0:37:12was her head teacher and her husband, and not me.
0:37:12 > 0:37:16I felt really, really bad about it.
0:37:16 > 0:37:19'And after everything the family's lost,
0:37:19 > 0:37:24'the newlyweds are keen to warn viewers that there are some situations
0:37:24 > 0:37:30'where you may think you're covered by using a credit card, but you might not be.'
0:37:30 > 0:37:34'If you knew if you book with a third party you will not be covered,
0:37:34 > 0:37:37'you'd get online and book directly with the airline.'
0:37:37 > 0:37:41No-one knows about this. This is very, very strange to me.
0:37:41 > 0:37:45I really would like to get this much clearer, the facts.
0:37:45 > 0:37:47APPLAUSE ON VIDEO
0:37:52 > 0:37:54'As we've been discovering,
0:37:54 > 0:37:59'your credit and debit cards aren't always as safe as you thought.
0:37:59 > 0:38:05'I've come to meet Jemma Smith from the UK Cards Association to shed light on the whole topic.'
0:38:05 > 0:38:08So, Jemma, we've been hearing from people
0:38:08 > 0:38:12who've fallen foul of this thing called Section 75.
0:38:12 > 0:38:15Could you tell us what Section 75 does
0:38:15 > 0:38:19and especially what it doesn't cover?
0:38:19 > 0:38:21It gives a level of protection
0:38:21 > 0:38:24that you don't enjoy with any other payment.
0:38:24 > 0:38:28However, there are some basic parameters to the legislation.
0:38:28 > 0:38:32You have to have purchased something that's over £100
0:38:32 > 0:38:35or underneath £30,000.
0:38:35 > 0:38:39People have been complaining that they thought they were covered
0:38:39 > 0:38:42and turn out not to be because of the use of a third party,
0:38:42 > 0:38:46people who've booked holidays through travel agencies.
0:38:46 > 0:38:50It's deemed to be who you have the relationship with.
0:38:50 > 0:38:54If you've bought something directly, a goods or service off somebody,
0:38:54 > 0:38:56then you're covered.
0:38:56 > 0:38:59If they are a third party supplier,
0:38:59 > 0:39:02like a travel agent or they've sold you tickets
0:39:02 > 0:39:05or, for instance, through PayPal,
0:39:05 > 0:39:10then you wouldn't get the protection under Section 75.
0:39:10 > 0:39:14Some experts are saying that the chip and PIN system
0:39:14 > 0:39:18is not as secure as the credit card companies like to make out.
0:39:18 > 0:39:20It is possible
0:39:20 > 0:39:24a fraudster can get hold of your PIN and use your card, we see that.
0:39:24 > 0:39:29Unfortunately, we see that happening in most situations at cash machines,
0:39:29 > 0:39:33where a fraudster will overlook somebody's shoulder
0:39:33 > 0:39:36to find out their PIN as they're tapping it in,
0:39:36 > 0:39:39then subsequently steal their card.
0:39:39 > 0:39:41It's very clear in the legislation.
0:39:41 > 0:39:46A bank can't turn down a customer because a genuine PIN was involved.
0:39:46 > 0:39:51However, every fraud claim is taken on an individual basis.
0:39:51 > 0:39:56The bank will look at a whole raft of different information before they decide
0:39:56 > 0:40:00whether to pay up or to turn down your claim.
0:40:00 > 0:40:07The reality is there are customers who would claim it a fraudulent transaction when it's not.
0:40:07 > 0:40:11What are the golden rules for people using their credit card?
0:40:11 > 0:40:14Whether you're using your credit or debit card,
0:40:14 > 0:40:16when you're typing in your PIN,
0:40:16 > 0:40:19use your free hand to cover your PIN.
0:40:19 > 0:40:22Second to that, make sure that you don't
0:40:22 > 0:40:25let your card out of your sight.
0:40:25 > 0:40:28It's valuable information in the wrong hands.
0:40:28 > 0:40:32Thirdly, make sure that you check your statement.
0:40:32 > 0:40:36If you see anything amiss, contact your card company straightaway.
0:40:36 > 0:40:40If you're the innocent victim of any card fraud,
0:40:40 > 0:40:42you should get your money back.
0:40:44 > 0:40:49GLORIA: 'At Rip-Off Britain, we're always ready to investigate your stories.
0:40:49 > 0:40:52'Confused over your bills?
0:40:52 > 0:40:57'Trying to wade through small print that leaves you totally confused?'
0:40:57 > 0:41:02I might have been stupid for not reading it or I've not took it in.
0:41:02 > 0:41:04I could kick myself. I really could.
0:41:04 > 0:41:07'Unsure what to do when you discover that you've lost out
0:41:07 > 0:41:11'and that great deal has cost YOU money?'
0:41:11 > 0:41:16"This cannot be true. It's totally unacceptable." I was so angry!
0:41:17 > 0:41:19'You might have a cautionary tale
0:41:19 > 0:41:24'and want to share your mistakes so others don't do the same thing.'
0:41:24 > 0:41:30No-one knows about this. This is very strange to me and I'd like to get it much clearer.
0:41:31 > 0:41:33'You can always write to us at...
0:41:41 > 0:41:44'Or you can get in touch by sending us an email to...
0:41:49 > 0:41:52'The Rip-Off team is ready and waiting
0:41:52 > 0:41:54'to investigate your stories.'
0:41:55 > 0:42:01That's just about it. We hear so much about how credit cards can get you into trouble.
0:42:01 > 0:42:06- It's good to know they can get you out of it, too.- You are so right!
0:42:06 > 0:42:09It does give you peace of mind in these tough economic times
0:42:09 > 0:42:13to know that if someone rips you off and you've paid by credit card,
0:42:13 > 0:42:17all is not necessarily lost, and you will probably get your money back.
0:42:17 > 0:42:21Find out more about your rights on our website...
0:42:25 > 0:42:29- Check it out.- That's where you'll find us all the time.
0:42:29 > 0:42:35If you want to get in touch about anything that's left you feeling cheated or hard done by, please do.
0:42:35 > 0:42:37We always want to help where we can.
0:42:37 > 0:42:42We'll see you again soon, when we'll be investigating more stories.
0:42:42 > 0:42:45- Until then, from the three of us, bye bye.- Goodbye.- Goodbye.
0:43:04 > 0:43:07Subtitles by Red Bee Media Ltd
0:43:07 > 0:43:10E-mail subtitling@bbc.co.uk