Episode 8 Rip Off Britain


Episode 8

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Transcript


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We asked YOU to tell us who's left you feeling ripped-off?

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I think this is very, very, very wrong for what they have done.

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The bank piles charges upon charges upon charges.

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Legally, it was right.

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Morally? That's where the question of doubt comes, in my view.

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And you contacted us in your thousands,

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by post, e-mail, even stopping us in the streets!

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And the message could not be clearer.

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You don't always get a straight answer. They fob you off.

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I'm not happy at all.

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It's always that very small print that's got the clause in

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that you didn't realise.

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We're being ripped off big-time.

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Whether it is a deliberate rip-off,

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a simple mistake, or a catch in the small print,

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we'll find out why you're out of pocket and what you can do about it.

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Keep asking the questions. Go to the top if you have to.

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We do get results, that's the interesting thing.

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Your stories, your money. This is Rip Off Britain.

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Hello, and welcome to Rip Off Britain,

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the program that investigates

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your consumer complaints and battles on your behalf

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to get the answers that you've been fighting for.

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Throughout the series,

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we're shining a light on the companies you've told us about

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that have left you feeling short-changed,

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both big and small organisations.

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And today, well,

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some of the companies that you've contacted us about

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are very big indeed.

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Today we're tackling problems to do with your phone

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or your internet connection.

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Services provided by some of the country's best-known names.

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But are you always getting what you expect for your money?

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Also coming up on today's programme - we set up our very own pop-up shop

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where you came and told us your consumer concerns.

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The most upsetting thing is that we've lost our telephone number.

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Why is that number so important to you?

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We've had it for 35 years.

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And how frustrations at slow broadband connections

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can make you reach boiling point.

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At times I just feel as though

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I want to throw the PC out the window,

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and rip my hair out!

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Now, for many of us, whether it's at work or at home,

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the internet has become an essential part of everyday life.

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In fact, 19 million households are now online.

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But exactly how fast your internet connection will be

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still, I'm afraid, very much depends

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on which part of the country you live in.

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Now, in rural areas especially,

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trying to get online can be frustratingly slow.

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Martin and Diane Verlaine are amongst the people angry about that.

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They don't like the fact that they're paying the same

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as people who enjoy faster speeds.

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And they also reckon that their slow Internet connection

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is actually damaging their business.

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Two years ago, Martin and Diane Verlaine swapped this...

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for this.

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We're both workaholics and we were like ships that pass in the night.

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I was an IT project manager

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and quite often I would do a 48-hour stint.

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I said to Martin that we need to find something else,

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because otherwise we'll cark at our desks

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and the taxman will get all our money.

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We didn't want that,

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so we started looking around for something else we could do.

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And here is that "something" - a holiday cottage business

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tucked away in a beautiful corner of Devon.

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But there's a downside to living in such a remote area -

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the speed of their broadband internet connection,

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which is very slow indeed.

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They've got downloadable lessons now which they haven't had before.

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-That's good.

-Yeah, it's good,

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but it takes so long to download them

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and for them to play,

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that it's... It's virtually useless.

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Here we go, look.

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See? Goes slow.

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The most that we've ever got is one meg. 1.1, I think.

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1.2 at an absolute push,

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but that's when I'm using it at 6.30 in the morning

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and there's no other interference on the line, nobody else using it.

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Martin and Diane don't just need a faster connection for fun,

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they need it for their holiday cottage business,

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so that they can take bookings online.

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We'd like to be able to run the business ourselves,

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but we can't, because we have to rely on the booking agent

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to get the customers in.

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If I can have my own website and I can take my own bookings,

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I need to be able to take payments via the internet.

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I can't do any of that with this kind of broadband speed.

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The problem is that broadband is still a postcode lottery.

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If you live in a big city,

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chances are that you'll have a fast connection.

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In rural areas, where the infrastructure hasn't been upgraded,

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it's likely to be much slower.

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And though Martin and Diane's guests come to get away from it all,

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like the rest of us, they've learned to expect fast internet access

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wherever they are.

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They may be getting five or six-Meg broadband where they are

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and expecting, you know, to be able to have a very similar response

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when they come away.

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Unfortunately, you have to tell them, "It's very disappointing.

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"I'm sorry, this is all we can get."

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And what's especially galling for the couple is that

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they still have to pay the same amount to BT as everyone else!

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That's £19 a month for advertised speeds of up to 20 megabits.

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They knew they'd never achieve the highest speeds living here,

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but hadn't imagined it would be as slow and unpredictable as it is.

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Or that it would have such an impact.

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I don't think we thought,

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having lived in London and in major towns,

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that to have such a slow broadband connection

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was something that we needed to take into consideration.

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I don't think we believed that it was a situation

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that there wasn't a solution to.

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The couple say the reason BT have given them for the slow connection

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is that they're a long way from the exchange

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and the system uses the original copper wiring.

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And it's not like they can switch to another provider.

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Because we have copper wire and there is no fibre optics,

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some companies won't entertain us at all,

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other companies will offer us a service,

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but with no better speed, but costing us much more money -

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almost triple what we're paying now.

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And I can't afford that.

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Michael Phillips is the broadband expert

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for the price comparison site Consumer Choices.

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We've ended up in a situation

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where rural people have poor broadband speeds

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because there's never been the investment framework

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to support commercial organisations.

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Very few people live in rural communities,

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so there's never been the incentive

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for private companies to make the investment

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to bring those areas up to speed.

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Broadband is now one of life's essentials.

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It's like the fourth utility.

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So not having a useful broadband connection

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can be a massive inconvenience on people's lives.

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But that is magnified by an enormous extent for businesses.

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We are a technology economy, we're a service economy,

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so it's almost impossible to operate

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if you don't have a fast broadband connection.

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And that's something the industry regulator, Ofcom, has recognised.

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It's ruled that BT should cut what it charges

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to other suppliers who used its network in rural areas.

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It remains to be seen if this is going to bring more choice

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to people like Martin and Diane,

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but in the meantime, they know what they'd like to see.

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If you're providing a service that's vastly inferior

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than someone in the middle of London can get to people,

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then you have to charge less.

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And until Ofcom, or someone,

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has the power to force British Telecom to do that,

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there will be no movement from where we are.

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BT told Rip Off Britain that their policy has always been

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to give customers an...

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..before they sign up.

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And they say that their pricing is based on...

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Including usage limits and security features.

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They've confirmed that Martin and Diane currently receive the...

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But there is another glimmer of hope on the horizon.

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The government has invested £530 million

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to increase broadband speed.

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Martin and Diane's area is set for improvements next summer.

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The couple hope that that's not too late

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for them to realise their dreams

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and make a success of their business.

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I'm incredibly frustrated by it.

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I can't grow my business

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because I can't offer the services to my customers and my guests

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that they feel - and I feel - they should have.

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I just can't grow my business.

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At a time when money's tighter than ever,

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you need to know that your cash is working hard for you,

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avoiding rip-offs along the way.

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So we've put together a booklet of tips and advice

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to help safeguard your money.

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You can find a link to the free guide on our website.

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Or, to receive a copy in the post, send an A5 self-addressed envelope

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to the address that we'll be giving at the end of the programme.

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The mobile phone - over 30 million are sold in the UK every year.

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The question is, how did we cope without them?

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But what happens if you lose yours?

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Well, the latest Home Office figures show that,

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in a 12-month period, 850,000 people have had their mobile phone stolen,

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leaving them not only incommunicado but also out of pocket.

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Sam Arnold is a student and he relies heavily on his phone.

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But the 21-year-old doesn't make any calls -

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he only uses it for text messages, because he's severely deaf.

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I constantly use mobile phones, every day,

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and I constantly have them with me all the time,

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because it's very important for me to contact people

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and I can't live without my phone.

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But while studying for his final exams at university,

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Sam lost his telephone after a night out with pals.

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The next day, I just noticed

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that I haven't got my phone with me.

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So I contact my mates to say, "Have I left my phone in your house?"

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But the house was a bit messy, so they said they'll find it.

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When the phone wasn't found, his dad, Paul,

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called the mobile provider -

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in this case, Orange - to cancel the contract.

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I asked in that normal, casual way, "Has the phone been used?"

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They say, "Yes, the phone has been used."

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They start to reel off the countries -

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Somalia, UAE,

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Nigeria, Netherlands...

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I'm sitting there, thinking, "My gosh.

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"This bill is getting bigger every time they say another name."

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So I said, "What's the total bill?"

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They said, "Well, right now, it's up to about £1,450."

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So, of course, I just felt that real knot in my stomach.

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No wonder, because Sam and his dad

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were told it was them that had to foot the bill.

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And that's not unusual.

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If your mobile is lost or stolen,

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it's generally YOU who will be liable

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for the cost of calls made on it up to when you reported the loss.

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Even though, in this case, clearly Sam had not made them.

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When Orange told us to pay £1,452,

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I was a bit, like, in shock,

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because I never make phone calls because I'm deaf.

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He never makes a phone call.

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He just used it for text.

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So surely when a phone moves

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from being text-only to being mainly phone calls,

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surely something should be triggered there?

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So you went to Brussels, Belarus, Greece...

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Paul wonders why the phone company didn't spot the unusual calls

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straight away and let them know about the situation.

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I was actually quite disgusted,

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because how could a bill that is normally about £30, £35,

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jump to £1,500 and there's no communication back?

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They're a communications company!

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Why are they not talking to me?

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You'd think they'd do something. Particularly if it goes from

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just texting to voicing, then wouldn't you do something about that?

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And actually, therefore,

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when it goes from £30 to £60 to £90 to £120, £150, up to £1,500,

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surely you own some responsibility for doing something.

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Where are you protecting our rights?

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Orange told us that when unusual usage is flagged up by the system,

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they take appropriate action as and when required.

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But they stress that it's the customer's responsibility

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to tell them as soon as the phone goes missing,

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as only then can they stop calls being charged to an account.

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In this case,

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they say it was two days before they were notified of the phone's loss.

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They recommend their customers use the security PIN on their phones

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to prevent unauthorised loss.

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And they say that situations like this

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could be avoided by requesting a bar on international calls.

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Even so, the company did eventually agree

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to cancel the outstanding bill of £1,452.94.

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But Sam and Paul still feel that the calls

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should never have been allowed to get so high.

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It was stressful,

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money was hard to come by,

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to then suddenly have to find £1,500 out of nowhere

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to pay this bill was horrible.

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And I just felt that it just didn't seem right that this should happen.

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If you've had a similar problem

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and you're stuck about what to do next, then worry not.

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We've found an expert to guide you through those choppy waters.

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Most mobile phones now give you the functionality

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to set up a PIN to protect it,

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so you've got to key your PIN in before it can be used.

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It's well worth taking advantage and making use of that,

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because if somebody gets hold of your phone,

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it makes it much harder for them to get into it to use it.

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Unfortunately, lots of people get shock bills on their mobile -

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they don't realise how it's being used until the bill arrives.

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If this happens, the first thing to say is, don't panic,

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but you do need to dig out the terms of your contract,

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dig out the deal and the tariff that you're on,

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find out exactly what you're being charged for

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and try and identify where the cost has been incurred.

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Then you're armed with all the information you need

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and you can then contact your mobile network provider

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and see if they'll refund you the money.

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If you lose your mobile or have it stolen,

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you've got to act quickly,

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because your mobile provider's under no obligation

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to refund any money that's spent on it.

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So as soon as you know that your phone's missing,

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contact your mobile provider.

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It can put a block on it so you don't have to cancel the phone,

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in case you find it again, but that will just protect it

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in case it has fallen into the wrong hands.

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Even if you have mobile phone insurance,

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you've still got to notify your mobile provider

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if your phone goes missing or it's stolen.

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So you've got 12 hours from noticing that you've lost your phone

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within which you can contact your network provider.

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You then need to report it to the police

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and get a crime or lost property reference number.

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Once you've got those pieces of information

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and you've done that, then's the time to contact the insurer

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and it can start processing the claim.

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Now, earlier in the programme, we met Martin and Diane,

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who were having their patience really tested

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by slow internet speeds.

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Well, Michael McCue has contacted us with a similar problem.

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He lives in a small village in the northeast of England

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and relies very heavily on the internet

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to keep him in touch with the rest of the world.

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But the time it takes him to get online is driving him mad!

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In the village of Medomsley

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lives a man named Mike McCue.

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Mike's village has just 300 houses and the nearest big city, Durham,

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is ten miles away, which, most of the time,

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is just the way Mike likes it.

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I prefer living in a rural area, because it's quiet.

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And there's no rush. You've got...

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all the time in the world. Even more so now we're retired.

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But I lived in town. Didn't like it.

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Because Mike and his wife have health problems,

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they don't venture out of the house a lot.

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The wife, being an invalid, she can't get about much.

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I get very breathless if I try and do anything.

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Walking up to the shop to get the paper,

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I've got to stand there for a couple of minutes,

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getting my breath back before I go in the shop!

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Mike's health problems don't stop him leading a full life

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and these days, the retired bus driver

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uses the internet as his window on the world.

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I think the internet is a marvellous thing.

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It helps you keep in contact with people.

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I'm waiting at the moment to be able to pass on news

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to a lot of my relatives that I've become a great-grandad again.

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Shopping - I find I can get things that I can't normally get locally.

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Such as an old-fashioned shaving stick.

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I can get that on the internet.

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I would like to watch films on the internet

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when the wife is down here watching soaps.

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But there's a major snag whenever Mike goes online.

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Like Martin and Diane, whom we met earlier,

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Mike gets very frustrated at how slow his internet connection is.

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He pays £17 a month for broadband with BT,

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on a package that promises speeds of up to 20 megabits a second.

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But Mike says his connection falls far short of that figure.

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The trouble with my internet is that it is that slow,

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I cannot watch a lot of the videos.

0:18:120:18:16

And, of course, it keeps on stopping.

0:18:160:18:19

You just give up. You watch a couple of seconds and then it's blank

0:18:190:18:23

for a while, then you watch another couple of seconds.

0:18:230:18:25

So exactly how fast - or slow - is Mike's broadband?

0:18:250:18:31

This is a speed test that I did earlier.

0:18:310:18:33

It says the download speed is just under half a megabit

0:18:330:18:38

on a 20 megabit line.

0:18:380:18:42

Although that was 40 times slower

0:18:420:18:45

than the most he could apparently hope for,

0:18:450:18:47

the website told Mike

0:18:470:18:49

THAT speed was normal for his area.

0:18:490:18:52

In fact, anything between 0.04 megabits

0:18:520:18:55

and 0.5 megabits,

0:18:550:18:58

is classed as acceptable where he lives.

0:18:580:19:01

And when he complained to BT,

0:19:010:19:03

they pointed out that the terms and conditions did say

0:19:030:19:07

he would only get, "up to 20 megabits".

0:19:070:19:11

I felt cheated.

0:19:110:19:12

That they couldn't give me the speed that I wanted.

0:19:120:19:15

They say one thing, then give you another

0:19:150:19:18

and say, "Ah, but it says on the small print."

0:19:180:19:21

But you go onto the BT helpdesk, as they call it,

0:19:210:19:28

you check the speed through them,

0:19:280:19:31

and it says this is acceptable.

0:19:310:19:33

Unlike Martin and Diane in Devon,

0:19:330:19:36

Mike is unlikely to benefit from the government's £530-million pledge

0:19:360:19:40

to improve broadband speeds.

0:19:400:19:42

His area is too far away from the nearest exchange.

0:19:420:19:48

The government's planning to ensure that 90% of homes

0:19:480:19:52

will be able to access a speed of 25 meg across the UK.

0:19:520:19:58

It does mean, though, that 10% of households

0:19:580:20:00

are only going to be working to a promise of 2 meg.

0:20:000:20:04

2Mb is a significant improvement on nothing,

0:20:040:20:08

but in terms of being able to watch a video online,

0:20:080:20:11

it's barely able to support something like BBC iPlayer.

0:20:110:20:16

So customers, in 2015, when things will have moved on,

0:20:160:20:19

will still be lagging behind.

0:20:190:20:21

That's bad news for Mike, who hasn't even the option of leaving BT

0:20:210:20:26

and trying another supplier.

0:20:260:20:28

I've looked at the other ones

0:20:280:20:29

and they're all more or less the same.

0:20:290:20:34

It doesn't care what internet service that's in this area,

0:20:340:20:40

there's no other internet service can give you much faster speeds.

0:20:400:20:47

It all comes through BT telephone exchange.

0:20:470:20:50

So what I get, they get.

0:20:500:20:52

BT say they have NOT misled Mike over his speed

0:20:520:20:57

and would never have promised he'd get the full 20 megabits.

0:20:570:21:01

Their pricing isn't just based on speed,

0:21:010:21:05

but they have made some adjustments to make his connection a bit faster.

0:21:050:21:09

He can now receive close to 2 megabits -

0:21:090:21:13

a fastest possible for his area.

0:21:130:21:17

Even so, Mike's still left feeling frustrated every time he logs on.

0:21:170:21:23

At times, I just feel as though I want to throw the PC out the window

0:21:230:21:30

and rip my hair out.

0:21:300:21:33

Especially when I'm sat there watching it.

0:21:330:21:35

Oh!

0:21:350:21:37

It can be very bad.

0:21:370:21:39

BT says it is committed to expanding its super-fast broadband

0:21:430:21:48

to 90% of the UK by 2015,

0:21:480:21:50

and they're testing new technologies to fill in the final 10%.

0:21:500:21:56

So there is hope for faster connection for Mike -

0:21:560:21:59

but not straight away.

0:21:590:22:01

In the meantime, his speed is now slightly up,

0:22:010:22:03

but as far as he's concerned,

0:22:030:22:05

until he can get the same fast service as everyone else,

0:22:050:22:09

he really doesn't see why he should pay the same price.

0:22:090:22:12

We're here at the Trafford Centre in Manchester where,

0:22:150:22:18

for one weekend, we've opened Rip Off Britain's first pop-up shop.

0:22:180:22:23

We've teamed up with BBC Learning

0:22:240:22:26

who are on hand with numeracy advice.

0:22:260:22:29

And we've a great selection of experts here

0:22:290:22:31

to point people in the right direction.

0:22:310:22:34

Mobile and broadband specialist Mike Wilson is expecting a busy desk

0:22:340:22:38

and there's one rip-off he sees quite regularly.

0:22:380:22:42

Typically, it's customers who've been put on to packages

0:22:420:22:45

that probably aren't really suitable for them.

0:22:450:22:48

Often they pay over the odds, both for broadband and for mobiles.

0:22:480:22:51

It's not long before Mike starts meeting his first customers.

0:22:530:22:57

The most upsetting thing is that we've lost our telephone number.

0:22:570:23:02

As soon as the first provider knocked off our line,

0:23:020:23:06

we've lost the provider.

0:23:060:23:07

Why is that telephone number so important to you?

0:23:070:23:10

We've had it for 35 years.

0:23:100:23:12

-I'm complaining about my mobile phone company.

-Yeah.

0:23:120:23:16

Basically, I've been paying two lots of line rentals since '99.

0:23:160:23:19

On one phone? 'Communications are clearly letting people down,

0:23:190:23:23

as our next case shows.'

0:23:230:23:26

Larry, you're talking to Mike here,

0:23:260:23:28

who's our broadband and telephone expert.

0:23:280:23:30

-What's your problem?

-The problem is,

0:23:300:23:32

I received a letter through the post

0:23:320:23:35

offering me a service with television, broadband and telephone

0:23:350:23:40

at a much cheaper rate than I was getting from another company.

0:23:400:23:44

-How much was that going to cost?

-£30 a month, according to the blurb I got through the post.

0:23:440:23:48

How much did it end up costing you?

0:23:480:23:51

I began to notice that the bills were saying £57 a month

0:23:510:23:55

before I started paying for anything else.

0:23:550:23:58

What was going on here, Mike?

0:23:580:24:00

What it looks like, is that when Larry signed up for the products,

0:24:000:24:03

they put him on a really expensive package,

0:24:030:24:05

one of the top packages you can get,

0:24:050:24:07

probably more suited to a family of five than Larry and his son.

0:24:070:24:11

-Larry, you're 82 now?

-I wish!

0:24:110:24:13

-Add another four and count.

-You're 86?

-I am, plus.

-Right.

0:24:130:24:19

So clearly he didn't need the package

0:24:190:24:21

that was suitable for a family of five.

0:24:210:24:23

I think we'd all hope that the provider would recognise

0:24:230:24:26

if you're on the wrong tariff and get in touch with you.

0:24:260:24:29

But have a look at the bill at the end of the month and say,

0:24:290:24:32

realistically, what am I using?

0:24:320:24:34

A lot of people sign up for TV packages, all singing,

0:24:340:24:37

all dancing, all 900 channels when they don't need half of them.

0:24:370:24:40

Check if you're getting charged over your standard package

0:24:400:24:43

and make sure you ask them for an itemised bill

0:24:430:24:46

and where these costs are coming from.

0:24:460:24:49

-Mike, is there anything else we can do for Larry?

-Absolutely.

0:24:490:24:52

I'll look at the itemised bills for the telephone package

0:24:520:24:55

and make sure you're on the best deal for you.

0:24:550:24:58

-A result.

-Very much, yes.

-Nice to meet you, Larry.

0:24:580:25:01

-It's been very nice.

-Arrivederci!

-Arrivederci.

0:25:010:25:05

Coming up - want to make some money from your old mobile phone?

0:25:110:25:15

Lots of people do, but here's one Rip-Off viewer who's been

0:25:150:25:18

left hanging on by one particular phone recycling company.

0:25:180:25:22

I'm pretty disgusted. I think I've been ripped off.

0:25:230:25:26

Today, we've been hearing from people

0:25:290:25:31

who feel they've been slightly left behind

0:25:310:25:34

by the phone and broadband companies,

0:25:340:25:36

not able to communicate as fast as they'd like to.

0:25:360:25:38

And that's how things used to be

0:25:380:25:40

for the residents of the small fishing village of Robin Hood's Bay

0:25:400:25:44

on the Yorkshire coast.

0:25:440:25:45

But not any more.

0:25:450:25:46

They got so fed up of being told they couldn't get broadband,

0:25:460:25:49

they decided to do something about it.

0:25:490:25:52

This is Robin Hood's Bay on the North Yorkshire coast.

0:25:520:25:56

For years, this seaside village

0:25:560:25:59

simply had no access to a broadband internet connection -

0:25:590:26:04

until the residents took matters into their own hands.

0:26:040:26:07

A local businessman, Cliff Southcombe, kicked things off

0:26:070:26:11

after realising his old-school dial-up connection

0:26:110:26:14

just wasn't coping with his business needs.

0:26:140:26:17

People were using the internet more,

0:26:170:26:19

businesses were using email, Skype, those sort of things.

0:26:190:26:23

So if things didn't change quickly,

0:26:230:26:25

we would be in trouble.

0:26:250:26:27

Worried that without broadband, his business could suffer,

0:26:270:26:31

Cliff began looking for a solution.

0:26:310:26:35

I spotted that there was a government-run scheme

0:26:350:26:38

to try and encourage broadband in the region

0:26:380:26:42

and a number of businesses were being offered free broadband

0:26:420:26:46

through a satellite dish for a year.

0:26:460:26:49

I applied and was fortunate enough

0:26:490:26:51

to be one of the ones lucky enough to get it.

0:26:510:26:53

And he loved having it.

0:26:530:26:55

But, as the end of that free year approached,

0:26:550:26:57

Cliff was left with two big problems.

0:26:570:27:01

One was that, at the end of the year,

0:27:010:27:03

I - or our business - was going to have to pay for that.

0:27:030:27:07

And even at a cut rate, it was about £260 a month

0:27:070:27:11

for the broadband.

0:27:110:27:13

And secondly, it wasn't a good position

0:27:130:27:16

to be the only one in the village with broadband.

0:27:160:27:18

That was something that didn't seem fair.

0:27:180:27:21

Cliff got together with some of the other locals

0:27:210:27:24

and together they came up with the answer.

0:27:240:27:27

They formed a cooperative company and used the technical know-how of a couple of residents

0:27:270:27:32

to build their own broadband network

0:27:320:27:34

using a system of boxes and aerials

0:27:340:27:37

that could bounce the signal

0:27:370:27:38

from one central point to everyone in the village.

0:27:380:27:41

Their ramshackle system worked a treat.

0:27:410:27:44

When, a few years later, BT installed an advanced telephone line,

0:27:440:27:48

they were able to use that

0:27:480:27:50

to iron out the final few problems.

0:27:500:27:53

Another plus point was that, having Wi-Fi round the village,

0:27:530:27:56

we have a lot of visitors coming to Robin Hood's Bay,

0:27:560:27:59

so they could pick up broadband as well.

0:27:590:28:01

And it provides a nice income for the cooperative as well

0:28:010:28:04

to help us keep the prices down for those people who live here.

0:28:040:28:07

In fact, the cooperative charges users

0:28:070:28:10

just £5 a month for the service

0:28:100:28:12

and it seems to be going from strength to strength.

0:28:120:28:15

Other broadband services have since become available in the area,

0:28:150:28:18

but many prefer to stick with the home-grown provider.

0:28:180:28:22

It's cheap, reliable,

0:28:220:28:24

always looking to extend and improve.

0:28:240:28:26

The next thing we're looking at

0:28:260:28:28

is the link to the fibre-optic cable in Whitby.

0:28:280:28:31

We need to do that via a relay over the hill at High Normanby.

0:28:310:28:36

And any customer service issues

0:28:360:28:39

can easily be dealt with over a pint at the pub.

0:28:390:28:41

Internet just didn't exist before we all got together.

0:28:410:28:46

Downloading a web page and you could go and have a cup of coffee

0:28:460:28:50

and read the newspaper.

0:28:500:28:51

Uploading web pages was a terrible business.

0:28:510:28:54

You hardly ever did it because it took so long.

0:28:540:28:59

Having broadband installed,

0:28:590:29:02

it's a lot easier.

0:29:020:29:03

You can go onto different information sites, er, even news,

0:29:030:29:08

you can get up-to-date news instantly, it's there.

0:29:080:29:11

What the locals have achieved here

0:29:110:29:14

is something they think could easily be copied elsewhere.

0:29:140:29:17

With a bit of determination and know-how,

0:29:170:29:20

they've shown that, even if you have to do it yourself,

0:29:200:29:24

it is possible to get online, even in the unlikeliest of places.

0:29:240:29:29

Now, what happens to your old mobile phone

0:29:330:29:36

when you abandon them for a newer, smarter, cleverer model?

0:29:360:29:39

Well, sadly, not much at all.

0:29:390:29:42

There's thought to be a staggering 80 million old handsets

0:29:420:29:45

lying forgotten in our homes,

0:29:450:29:47

and if that seems a complete waste,

0:29:470:29:50

you can understand why companies offering

0:29:500:29:52

to recycle your old mobile have become so very popular.

0:29:520:29:56

You can get rid of your old handset and earn cashback at the same time.

0:29:560:30:00

But when Mark Colby chose a company called Skyphones

0:30:000:30:04

to recycle his phone,

0:30:040:30:05

things did not go according to plan.

0:30:050:30:08

H's Cafe in Kent is a favourite with bikers.

0:30:090:30:13

We asked some of them what they do with their old mobile phones.

0:30:130:30:17

I put them in a drawer, forget about them,

0:30:190:30:21

or pass them on to family, friends, or the kids.

0:30:210:30:23

If not, they stay in there until they get thrown away.

0:30:230:30:26

I do have a couple of mobile phones at home,

0:30:260:30:28

just on the side, just in case I need them again.

0:30:280:30:31

I've got lots of mobile phones at home, just keep them in a drawer.

0:30:310:30:35

Don't ever recycle them.

0:30:350:30:36

Our bikers could be missing out on some cash

0:30:380:30:40

by NOT selling their handsets

0:30:400:30:42

to a mobile phone recycling company.

0:30:420:30:44

A growing number of people do

0:30:440:30:46

via websites that offer to buy your old phone

0:30:460:30:49

for sometimes very tempting prices.

0:30:490:30:53

But Rip Off Britain has had complaints

0:30:530:30:56

that some of these companies don't pay as much as they promise,

0:30:560:30:59

and one name in particular, Skyphones, came up again and again.

0:30:590:31:03

Mark Colby is one of the people who has contacted us about them.

0:31:060:31:09

Father of two, and seriously addicted to biking,

0:31:090:31:13

Mark spends lots of time and money on Baby,

0:31:130:31:17

his pride and joy.

0:31:170:31:18

And he likes nothing better

0:31:180:31:20

than to be taken for a ride, but NOT when it comes to his cash!

0:31:200:31:23

Mark uses his phone a lot, and when he decided

0:31:290:31:32

that it was time for an upgrade,

0:31:320:31:34

he wanted to recycle his old phone.

0:31:340:31:36

I looked on a compare website and that's where I found Skyphones.

0:31:360:31:40

They had the best price for my phone, about £30,

0:31:400:31:44

which sounded good to me.

0:31:440:31:46

So Mark packed his old phone off,

0:31:470:31:49

eagerly awaiting the £30 that would soon come his way.

0:31:490:31:53

He waited, but nothing happened.

0:31:530:31:55

And then he received an e-mail.

0:31:550:31:58

The e-mail just said it had a few scratches on the screen

0:31:580:32:01

and on the...casing

0:32:010:32:05

and that they were going to send me an undisclosed reduced amount

0:32:050:32:10

for the phone.

0:32:100:32:13

And if I wanted the phone to come back to me, I'd have to pay £12

0:32:130:32:16

for them to send it back.

0:32:160:32:18

Like most phone recycling companies, Skyphones reduces its payments

0:32:200:32:24

for phones that it claims have scratches or other damage,

0:32:240:32:27

which surprised Mark, who says that when he sent his phone off,

0:32:270:32:31

it was fine. But what really made him mad

0:32:310:32:34

was that they didn't say how much they'd now be paying,

0:32:340:32:37

and if he wasn't happy, he'd have to pay to get the phone back!

0:32:370:32:42

I e-mailed them again, stressing my unhappiness

0:32:420:32:44

and disgust in the way they were handling it,

0:32:440:32:48

and the amount of time it took for them to respond,

0:32:480:32:52

and also why they would have to charge me this £12

0:32:520:32:56

for me to get my phone back if I wanted it back.

0:32:560:32:59

From that point onwards, alarm bells started to ring.

0:32:590:33:03

They sent me an e-mail back, not addressing any issues at all,

0:33:030:33:06

just telling me they would be sending me out

0:33:060:33:09

an undisclosed amount within 14-21 days.

0:33:090:33:12

It seemed like an automated e-mail to me.

0:33:120:33:14

But the 21 days came and went, and Mark had heard nothing.

0:33:160:33:21

I e-mailed again, basically asking where the cheque was,

0:33:210:33:25

I hadn't received it and I said that I may take this further

0:33:250:33:31

if I don't hear anything within the next 14 days.

0:33:310:33:35

I didn't hear anything from there onwards.

0:33:350:33:39

-About 12 weeks now and I still haven't received anything.

-And he probably never will.

0:33:390:33:43

Because, it seems, Skyphones, and its sister company Fone Craze,

0:33:430:33:47

have ceased trading.

0:33:470:33:49

After receiving almost 240 complaints,

0:33:490:33:53

Trading Standards is now investigating the companies.

0:33:530:33:56

But it's little consolation to Mark - he didn't get any cash

0:33:560:34:01

and THEY still have his phone.

0:34:010:34:03

I'm pretty disgusted. I think I've been ripped off.

0:34:030:34:06

We tried to contact Skyphones for an explanation, but our letters

0:34:100:34:14

were returned and they didn't answer any calls or e-mails.

0:34:140:34:19

If you're interested in recycling your phone,

0:34:190:34:21

here's Dominic Balachevsky from Mobile Choices with some advice.

0:34:210:34:24

Mobile phone recycling is a growing market place

0:34:260:34:28

with lots of companies offering the service.

0:34:280:34:31

It's an environmentally friendly way

0:34:310:34:33

to get rid of your old, unwanted phone

0:34:330:34:35

and it's also a way to pocket a few extra pounds as well.

0:34:350:34:38

When recycling your phone, it's important to shop around

0:34:380:34:41

because prices vary substantially between one site and the next.

0:34:410:34:44

It's also useful to use a comparison site,

0:34:440:34:46

as that will help you do your homework in finding the best deal.

0:34:460:34:51

But make sure to check with the site directly

0:34:510:34:53

as you'll find the latest price,

0:34:530:34:55

and also details and terms and conditions

0:34:550:34:58

as to how much they'll pay or what they'll knock off if your phone is damaged

0:34:580:35:01

or if there's something slightly wrong with it.

0:35:010:35:05

A reputable company will be a member of the CheckMEND Service.

0:35:050:35:08

This is designed to prevent phones

0:35:080:35:09

being sold to the second-hand markets

0:35:090:35:11

if they are declared as stolen

0:35:110:35:13

or have been claimed on insurance beforehand.

0:35:130:35:15

Before sending your phone off,

0:35:180:35:20

it's always worth taking a picture of it.

0:35:200:35:22

That way you'll have proof

0:35:220:35:23

as to exactly what condition it was in before sending.

0:35:230:35:26

Take a picture of the front and the back

0:35:260:35:28

to show what the surround is like,

0:35:280:35:30

and also with the phone on to prove that it works.

0:35:300:35:32

Most sites will offer you a pre-paid postal envelope, although a lot of times these aren't padded.

0:35:360:35:41

It's always worth popping to your local stationer's

0:35:410:35:44

to pick up some bubble wrap

0:35:440:35:45

to make sure that you can wrap your phone safely and securely.

0:35:450:35:48

Also, wrap it with plenty of Sellotape

0:35:480:35:50

and mark "Fragile" on the packaging

0:35:500:35:52

to ensure that it gets a smooth ride in the postal system.

0:35:520:35:56

When it comes to actually posting the phone, I would recommend opting

0:35:560:36:00

for next-day or special delivery

0:36:000:36:02

because that way you can track your parcel

0:36:020:36:04

and it's insured should it get lost in the postal system.

0:36:040:36:07

If you are offered a reduced price

0:36:070:36:09

because your handset is slightly damaged, it's worth making sure

0:36:090:36:13

that you decline the offer if you're not happy with it immediately,

0:36:130:36:16

as some sites will assume

0:36:160:36:18

that if they haven't heard from you within two to three days

0:36:180:36:21

that you're happy to go ahead.

0:36:210:36:22

In today's programme, we've been hearing from people

0:36:250:36:27

who feel really frustrated with their broadband services,

0:36:270:36:31

and in some cases feel totally ripped off.

0:36:310:36:34

Well, I've come to Ofcom in London to meet Stuart McIntosh

0:36:340:36:37

to see if he's got any encouraging solutions.

0:36:370:36:40

Stuart, I'm very glad you could join us on the programme.

0:36:410:36:44

Obviously, most of us depend on the internet these days

0:36:440:36:47

for business, for pleasure.

0:36:470:36:49

And yet, we've been looking at the rural side of it and I think

0:36:490:36:52

that a lot of the rural customers

0:36:520:36:54

are really left out in the cold a bit with very slow broadband.

0:36:540:36:57

So it seems a bit unfair, really, doesn't it?

0:36:570:37:01

Well, there are technical constraints

0:37:010:37:03

on what you can deliver over telecommunications networks.

0:37:030:37:06

And in most rural locations,

0:37:060:37:07

people tend to live quite far from the telephone exchange.

0:37:070:37:11

That really is the determining factor.

0:37:110:37:13

If you live more than say, two, or two and a half miles away

0:37:130:37:16

from the telephone exchange,

0:37:160:37:18

you will see a degradation in your service.

0:37:180:37:20

Many people have been in touch to say that they go along,

0:37:200:37:23

they get a package to say, for X number of pounds,

0:37:230:37:26

you will get 20 megabits and yet there they are, with maybe only 2 megabits.

0:37:260:37:32

That seems grossly unfair.

0:37:320:37:33

Yes, I can well understand consumers' frustration over that.

0:37:330:37:36

And it is partly a reflection, unfortunately,

0:37:360:37:39

of the underlying economics.

0:37:390:37:40

Communications networks depend on scale.

0:37:400:37:43

If you have a very large number of customers and density,

0:37:430:37:47

if you have them all together in the one place,

0:37:470:37:49

you can build a network which is relatively low-cost.

0:37:490:37:53

So that's what large towns and cities are like.

0:37:530:37:55

If you look at rural locations, however,

0:37:550:37:58

people do tend to be spread out

0:37:580:37:59

and they do tend to be smaller in number.

0:37:590:38:01

What that unfortunately means

0:38:010:38:03

is that the average cost of providing the service

0:38:030:38:06

is actually higher.

0:38:060:38:07

It is a bit like buying a first-class ticket and having to go steerage.

0:38:070:38:11

It doesn't work, in a way.

0:38:110:38:13

It goes back a little bit

0:38:130:38:14

to the actual cost of upgrading those networks, which is very high.

0:38:140:38:18

Let me give you some illustrative numbers.

0:38:180:38:22

To provide higher speed services in most of the urban locations,

0:38:220:38:25

BT is spending somewhere in the region of £2.5 billion,

0:38:250:38:29

-that is what they're spending.

-Billion?

-Billion, yes.

0:38:290:38:32

Virgin Media have also spent quite considerable amounts

0:38:320:38:35

in order to upgrade their networks.

0:38:350:38:38

To achieve similar speeds in the rural parts of the UK,

0:38:380:38:42

will take multiples of that,

0:38:420:38:44

simply because the costs are quite a bit higher.

0:38:440:38:47

So what you are saying is, you have to bite the bullet

0:38:470:38:50

and wait until all these improvements happen.

0:38:500:38:52

Bite the bullet a little, but hopefully, it will not be too long.

0:38:520:38:56

The other factor is

0:38:560:38:57

that because government is putting up some quite significant money,

0:38:570:39:01

the government has already committed over half a billion pounds

0:39:010:39:05

to a programme to promote the development

0:39:050:39:07

of much higher speed broadband services in rural locations -

0:39:070:39:12

that will help keep the prices down

0:39:120:39:14

so they are more comparable

0:39:140:39:15

with the prices which apply in urban locations.

0:39:150:39:18

Just to sum it all up,

0:39:180:39:19

what would you say to our viewers who are very frustrated, very angry,

0:39:190:39:23

if they are not getting their service,

0:39:230:39:25

what hope would you give them for the future?

0:39:250:39:27

If you're unhappy with the service today,

0:39:270:39:29

do not assume that that's the best you can get.

0:39:290:39:32

There may be some technical things in relation to -

0:39:320:39:34

you may be able to buy a small £5 filter, for example,

0:39:340:39:37

which will improve things. Secondly,

0:39:370:39:40

it could well be that there is something specific to your line.

0:39:400:39:43

So you need to check that.

0:39:430:39:45

The third thing is, make sure that you are up-to-date

0:39:450:39:48

with all the options available to you.

0:39:480:39:50

There are a number of sites which we have accredited

0:39:500:39:53

where consumers can go and check the services

0:39:530:39:56

which are available in their location,

0:39:560:39:59

check the prices, the speed.

0:39:590:40:01

So if you do all those things,

0:40:010:40:02

it may well be that you can get a better service at a better price.

0:40:020:40:06

And in the long run, be assured that a lot of billions

0:40:060:40:09

-are going into improving the service.

-Absolutely.

0:40:090:40:12

And we can expect within relatively short order,

0:40:120:40:15

within 2 to 3 years' time, to see a further revolution

0:40:150:40:18

in the provision of broadband services in the UK.

0:40:180:40:20

-And if all else fails, I'm going to ring you!

-Please do.

0:40:200:40:23

Here at Rip Off Britain,

0:40:270:40:29

we're always ready to investigate more of your stories.

0:40:290:40:32

Confused over your bills?

0:40:320:40:35

Trying to wade through endless small print

0:40:350:40:38

that leaves you none the wiser?

0:40:380:40:39

I might have been stupid for not reading it,

0:40:390:40:41

or I've read it and not took it in.

0:40:410:40:44

I could kick myself. I really could.

0:40:440:40:46

Unsure what to do when you discover you've lost out,

0:40:460:40:50

and that so-called great deal has ended up costing you money?

0:40:500:40:54

I thought, "This cannot be true."

0:40:540:40:56

It's totally unacceptable. I was so angry.

0:40:560:40:59

You might have a cautionary tale of your own,

0:40:590:41:02

and want to share the mistakes you made with us,

0:41:020:41:04

so others don't do the same.

0:41:040:41:06

No-one knows about this

0:41:060:41:09

so this is very, very strange to me

0:41:090:41:10

and I really would like to get this much clearer.

0:41:100:41:13

You can write to us at -

0:41:130:41:15

Or send us an e-mail to -

0:41:250:41:27

The Rip Off team is ready and waiting to investigate your stories.

0:41:310:41:36

And that is it for today.

0:41:390:41:40

But we can all learn something

0:41:400:41:42

from the locals we saw earlier in Robin Hood's Bay.

0:41:420:41:45

Didn't they do very well?

0:41:450:41:46

If you are unhappy with service,

0:41:460:41:48

not just from your broadband supplier,

0:41:480:41:50

but anyone you do business with,

0:41:500:41:52

then for goodness sake, do something about it.

0:41:520:41:55

At the very least, speak up and complain, is what we always say.

0:41:550:41:58

Absolutely. Make your voices heard.

0:41:580:42:00

Meanwhile, we are rather hoping

0:42:000:42:01

that the government's plans to upgrade most of us

0:42:010:42:04

to the fastest broadband system in Europe,

0:42:040:42:07

is going to signal an end to the sort of problems

0:42:070:42:09

that you've been telling us about today.

0:42:090:42:11

But do let us know how things pan out in your area.

0:42:110:42:14

And also, if it looks like the communications revolution

0:42:140:42:17

is leaving you behind.

0:42:170:42:19

In the meantime, do join us again

0:42:190:42:20

when we will be investigating more of your stories

0:42:200:42:23

and showing you how to avoid being ripped off. Till next time, goodbye.

0:42:230:42:27

-Bye-bye.

-From all of us, bye-bye.

0:42:270:42:29

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0:42:480:42:51

E-mail: [email protected]

0:42:510:42:54

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