0:00:02 > 0:00:04We asked you to tell us who's left you feeling ripped-off
0:00:04 > 0:00:09and you contacted us in your thousands by post, e-mail,
0:00:09 > 0:00:14even stopping us on the streets, and the message couldn't be clearer.
0:00:15 > 0:00:18I think there's a lot of hidden information about your bills
0:00:18 > 0:00:20that should be made a lot more clear.
0:00:20 > 0:00:22I don't feel I get treated how I should be.
0:00:22 > 0:00:24You've told us with money tighter than ever
0:00:24 > 0:00:28you need to be sure that every pound you spend is worth it.
0:00:28 > 0:00:30How do I get my money back? I just think I'm entitled to it.
0:00:30 > 0:00:34So, whether it's a deliberate rip-off, a simple mistake,
0:00:34 > 0:00:37or a catch in the small print, we'll find out why it is
0:00:37 > 0:00:40that you're out of pocket and what you can do about it.
0:00:40 > 0:00:44Keep asking the questions, you know, go to the top if you have to.
0:00:44 > 0:00:46We do get results, that's the interesting thing.
0:00:46 > 0:00:48Your stories, your money.
0:00:48 > 0:00:51This is Rip-Off Britain.
0:00:53 > 0:00:55Hello and welcome to Rip-Off Britain,
0:00:55 > 0:00:59where today we have the banks firmly in our sights.
0:00:59 > 0:01:02A topic that this year has filled the headlines
0:01:02 > 0:01:05as much as it has our postbag and our inbox.
0:01:05 > 0:01:10It really isn't so long ago that the banks were among the most respected institutions around.
0:01:10 > 0:01:13But as you know, times have definitely changed.
0:01:13 > 0:01:16Although their reputation's taken quite a battering recently
0:01:16 > 0:01:19it does seem that in some cases they've only got themselves to blame.
0:01:19 > 0:01:24Of course, typically, it isn't one of those big financial scandals
0:01:24 > 0:01:26the banks are embroiled in that you write to us about.
0:01:26 > 0:01:32It's always those small, everyday scandals of their customer service
0:01:32 > 0:01:35and you tell us about that all the time.
0:01:35 > 0:01:38So a bit later in the programme we're going to be asking
0:01:38 > 0:01:41just how it is the banks plan to win back much of that lost trust?
0:01:41 > 0:01:44Also on Rip-Off Britain -
0:01:44 > 0:01:49Why this woman's bank can't tell her what happened to the £25,000 she put there.
0:01:49 > 0:01:52It's not been taken out, it's not been transferred.
0:01:52 > 0:01:55It's not upstairs, it's not under the floorboards,
0:01:55 > 0:01:57I've not spent it on a yacht.
0:01:57 > 0:01:59It's still in the bank somewhere.
0:01:59 > 0:02:04How thousands of family businesses have been pushed to the brink
0:02:04 > 0:02:06because of what their banks talked them into.
0:02:06 > 0:02:09I always had the attitude that if you went to the bank
0:02:09 > 0:02:12you went for help, and you would get the best advice.
0:02:12 > 0:02:15That seems to be something that's gone by-the-by.
0:02:17 > 0:02:20And we hear your gripes about the nation's banks face to face.
0:02:21 > 0:02:24Now, they do say that if you look after the pennies
0:02:24 > 0:02:26then the pounds will look after themselves.
0:02:26 > 0:02:30But I think most of us would like to think the pounds are looked after pretty well too
0:02:30 > 0:02:34and certainly one of the best places that you can do that has always been the bank.
0:02:34 > 0:02:37Well, certainly that's what Linda Bond thought
0:02:37 > 0:02:39when she opened an account to keep her money secure.
0:02:39 > 0:02:42And quite a large sum of money it was too.
0:02:42 > 0:02:47So why is it that now it's no longer there?
0:02:47 > 0:02:48And, just as importantly,
0:02:48 > 0:02:52why can no-one at the bank tell her where it's gone?
0:02:55 > 0:02:58Linda Bond has always believed that, like knitting.
0:02:58 > 0:03:02money is made slowly one stitch at a time.
0:03:02 > 0:03:07Mum and Dad worked all their life and they put money away
0:03:07 > 0:03:11so when they died, obviously, they left it to us to be comfortable.
0:03:12 > 0:03:15Linda wanted to carry on saving that money for when it was needed
0:03:15 > 0:03:19so over three years, from 1996 to 1999,
0:03:19 > 0:03:25she deposited a total of £25,000 into an account with the Abbey National.
0:03:25 > 0:03:26We didn't need to spend the money
0:03:26 > 0:03:29because we was both working at the time
0:03:29 > 0:03:33and we was quite comfortable, so we thought we'd just use the money
0:03:33 > 0:03:39that we got from our work and we'd just put it away for a rainy day.
0:03:39 > 0:03:44Linda's bank book sat in her kitchen drawer for the next 11 years
0:03:44 > 0:03:46until in December 2010,
0:03:46 > 0:03:51the rainy day that she'd been waiting for arrived.
0:03:51 > 0:03:53Linda and her husband decided to move house
0:03:53 > 0:03:57and their thoughts quickly turned to the £25,000 in that account.
0:03:57 > 0:04:01Deciding that the time was right to withdraw her cash,
0:04:01 > 0:04:04Linda went to her local Santander branch in West Thurrock,
0:04:04 > 0:04:09Santander Bank having taken over the Abbey National in 2004.
0:04:09 > 0:04:11I went up to the lady, said,
0:04:11 > 0:04:15right, you know, I need to take some money out.
0:04:15 > 0:04:20When she went on the computer she said the account doesn't exist, it's closed.
0:04:20 > 0:04:26Shocked and baffled, Linda asked to speak to the manager.
0:04:26 > 0:04:30He couldn't tell her what had happened to the money either
0:04:30 > 0:04:32and suggested that she contact head office.
0:04:32 > 0:04:37Santander said that the account, it just doesn't exist,
0:04:37 > 0:04:40they've closed it, and if I needed to take it further
0:04:40 > 0:04:43that I should get in touch with the Financial Ombudsman.
0:04:43 > 0:04:47But with no proof that she hadn't closed the account
0:04:47 > 0:04:50that didn't clear things up either.
0:04:50 > 0:04:54The Financial Ombudsman said that Santander has gone as far
0:04:54 > 0:04:57as they can looking for the account
0:04:57 > 0:05:00I just feel I'm knocking my head against the wall.
0:05:00 > 0:05:03It's one thing to have no record of an account,
0:05:03 > 0:05:09but obviously for Linda the main issue is, what's happened to her £25,000?
0:05:09 > 0:05:12She can't understand why no-one,
0:05:12 > 0:05:15especially the place where she left it, can tell her.
0:05:15 > 0:05:18They're saying to me that I closed it down.
0:05:18 > 0:05:24Right, if I closed it down, where is the proof that I did close it down?
0:05:27 > 0:05:30You'd think that if Linda had closed the account
0:05:30 > 0:05:34and withdrawn so much money, she might have remembered doing it.
0:05:34 > 0:05:39And if she had taken out her £25,000, shouldn't the proof be here
0:05:39 > 0:05:40in her account passbook?
0:05:42 > 0:05:46After all, it says very clearly that no money can be withdrawn
0:05:46 > 0:05:49without the passbook, which is in Linda's name only.
0:05:50 > 0:05:56But the only recorded withdrawal was £583 back in 1999.
0:05:56 > 0:06:01After that, the passbook seems to back up what Linda's said -
0:06:01 > 0:06:06that there has been no activity on that account since.
0:06:06 > 0:06:08So it's stalemate.
0:06:08 > 0:06:10Linda says the bank must still have her money.
0:06:10 > 0:06:12But the bank insists that it doesn't.
0:06:12 > 0:06:15Unfortunately for Linda,
0:06:15 > 0:06:19both Santander and the Financial Ombudsman say a passbook
0:06:19 > 0:06:22does not prove that an account still exists
0:06:22 > 0:06:25and it would have been possible to close the account without it,
0:06:25 > 0:06:27using other suitable ID.
0:06:29 > 0:06:32I've not taken the money out and put it into another account.
0:06:32 > 0:06:35If I did, it would be in another account.
0:06:35 > 0:06:38It's not upstairs, it's not under the floorboards,
0:06:38 > 0:06:40I've not spent it on a yacht.
0:06:40 > 0:06:46So how does Santander explain what has happened to Linda's £25,000?
0:06:46 > 0:06:52Well, the bank told us that they...
0:06:55 > 0:06:59They reiterate that the ruling was in their favour.
0:06:59 > 0:07:05They suggest that as they can see Linda was sent annual tax statements up to the year 2000,
0:07:05 > 0:07:08the account must have been closed over the next year.
0:07:08 > 0:07:11The reason they can't be more definite about that
0:07:11 > 0:07:17is because they are...
0:07:17 > 0:07:20Like all banks, they only need to keep records
0:07:20 > 0:07:22for six years after they've been closed.
0:07:22 > 0:07:25And although six years of inactivity on an account
0:07:25 > 0:07:29may result in it becoming what's called 'dormant',
0:07:29 > 0:07:32in those circumstances they will still have records.
0:07:32 > 0:07:35So they're confident that that is not what's happened here.
0:07:37 > 0:07:40Which means the mystery remains unsolved.
0:07:40 > 0:07:44Linda is equally confident that the account wasn't closed
0:07:44 > 0:07:47and right now, she really could do with the money.
0:07:47 > 0:07:51I don't know now, I don't know whether we can
0:07:51 > 0:07:54if we want to be comfortable and retire,
0:07:54 > 0:07:57whether we can actually do that and it is just not right.
0:08:01 > 0:08:05I hope you know by now just how much we love getting your mail.
0:08:05 > 0:08:08But amongst all the complaints that you've sent us about the banks this year,
0:08:08 > 0:08:11this next one has simply got to be one of the worst.
0:08:11 > 0:08:14Countless businesses have found themselves saddled
0:08:14 > 0:08:16with costs of tens of thousands of pounds
0:08:16 > 0:08:19and in many cases, sadly, face going under
0:08:19 > 0:08:22thanks to something which the bank has talked them into.
0:08:22 > 0:08:26the high street in the market town of Watton in Norfolk
0:08:26 > 0:08:28has its share of struggling businesses.
0:08:28 > 0:08:31But things are particularly bad for the family
0:08:31 > 0:08:35that runs Adcock's electrical retail business - Adcock and Sons Ltd.
0:08:35 > 0:08:38This is my great-grandfather, Ernest Adcock.
0:08:38 > 0:08:42It's been a thriving business for four generations
0:08:42 > 0:08:43but all that's changed.
0:08:43 > 0:08:47The company at the moment is on its knees because the bank
0:08:47 > 0:08:50that's supported us all these years has thought it wise
0:08:50 > 0:08:53that we have this horrendous product.
0:08:53 > 0:08:57The Adcocks' troubles are down to a financial product
0:08:57 > 0:09:01Paul was sold five years ago by Barclays Capital,
0:09:01 > 0:09:04the investment arm of the family's trusted bank.
0:09:04 > 0:09:08Known as an interest rate swap, it was supposed to help him
0:09:08 > 0:09:11if interest rates changed, a bit like a fixed rate mortgage does.
0:09:11 > 0:09:16It was offered at a time when he'd taken out some extra loans to develop the business.
0:09:16 > 0:09:18Whilst the expansion was under way
0:09:18 > 0:09:23out of the blue almost we had a call from our relationship manager
0:09:23 > 0:09:28that suggested we consider some kind of interest rate protection.
0:09:28 > 0:09:30He declined the offer, but a year later
0:09:30 > 0:09:33Barclay's Capital started to call again and again.
0:09:33 > 0:09:36I sort of succumbed just, really, for not having the guts to say
0:09:36 > 0:09:39sorry, I don't want it, I'm not interested,
0:09:39 > 0:09:41because I didn't want to upset the bank.
0:09:41 > 0:09:46But Paul didn't realize that he'd signed up to what was effectively a huge gamble
0:09:46 > 0:09:49that interest rates wouldn't fall below a certain point
0:09:49 > 0:09:52and if they did, what he'd pay would go up.
0:09:52 > 0:09:55It's a bit like being sold a time bomb.
0:09:55 > 0:09:57When interest rates started to go down,
0:09:57 > 0:10:02suddenly we had this additional interest payment of about £2,000.
0:10:02 > 0:10:06And from then on the super low interest rates
0:10:06 > 0:10:09that the Bank of England engineered to support small businesses
0:10:09 > 0:10:12had the opposite effect for Paul.
0:10:12 > 0:10:17To date he's now paid over £188,000 on this product.
0:10:17 > 0:10:22That's on top of the repayments on his original loan of £970,000.
0:10:22 > 0:10:27The impact has been two members of long-term staff have had to go
0:10:27 > 0:10:30because we simply couldn't afford to keep them on
0:10:30 > 0:10:33which is very difficult in this kind of business.
0:10:33 > 0:10:37It's thought around 40,000 small businesses
0:10:37 > 0:10:41may have fallen foul of these interest rate swap products
0:10:41 > 0:10:44which have been sold by all the big four banks.
0:10:44 > 0:10:46Another one is this DIY Store in Cleveland,
0:10:46 > 0:10:50run by Stephen Lilley and his daughter, Liz.
0:10:50 > 0:10:57To purchase the shop in 2006, they took out loans for £425,000 with HSBC,
0:10:57 > 0:11:02and the bank rang encouraging them to take out one of these interest rate swaps, too.
0:11:02 > 0:11:08I said to him, before we accept any of these products you're offering,
0:11:08 > 0:11:11I'd like to see something in writing
0:11:11 > 0:11:15so I could present them to our accountant for further advice.
0:11:15 > 0:11:19But the bank rang again and spoke to Stephen's daughter, Liz,
0:11:19 > 0:11:23and in a brief conversation, she was sold the interest rate swap over the phone.
0:11:23 > 0:11:26The conversation with him on the mobile phone
0:11:26 > 0:11:31to commit the shop to a ten year base rate swap, was a three minute conversation.
0:11:31 > 0:11:34The family only began to understand the implications
0:11:34 > 0:11:37of what they'd ended up with once interest rates started to fall
0:11:37 > 0:11:40and the extra charges kicked in.
0:11:40 > 0:11:43So we started off, interest rates came down a little bit,
0:11:43 > 0:11:44and we pay £200.
0:11:44 > 0:11:49And now the interest rates have really dropped, we're paying £1,200.
0:11:49 > 0:11:53In 2010, the family made a complaint of mis-selling
0:11:53 > 0:11:56to the Financial Ombudsman Service.
0:11:56 > 0:11:59They found in favour of the bank,
0:11:59 > 0:12:02but the product has continued to have a disastrous effect.
0:12:02 > 0:12:07Most weeks I work seven days a week and I just feel very bitter.
0:12:07 > 0:12:12We've paid HSBC £50,000 towards this base rate swap so far.
0:12:12 > 0:12:16We've laid-off staff, we've had to put back growth of the business
0:12:16 > 0:12:18and development of new ideas.
0:12:18 > 0:12:23At the beginning of last year, the bank told them there was a way out.
0:12:23 > 0:12:28They could cancel the product by paying an extra fee. So, how much would that cost?
0:12:28 > 0:12:33£49,000 if we want to buy ourselves out of the product.
0:12:33 > 0:12:37Back in Norfolk, Paul's bank, Barclays, also told him
0:12:37 > 0:12:39he could pay a fee to cancel.
0:12:39 > 0:12:44But in his case that would be a hefty £224,000.
0:12:44 > 0:12:47Neither of these families, and plenty of others
0:12:47 > 0:12:51in the same boat can quite believe that their bank could have sold them
0:12:51 > 0:12:54something so that's proved to be so catastrophic.
0:12:54 > 0:12:57I always had the attitude that if you went to the bank
0:12:57 > 0:12:59you went for help and you would get the best advice.
0:12:59 > 0:13:03That's seems to be something that's gone by-the-by.
0:13:03 > 0:13:08Last June, a review by the Financial Services Authority said it found
0:13:08 > 0:13:12serious failings in the way all the major banks had sold these products.
0:13:12 > 0:13:16The regulator said in many cases the banks failed to disclose
0:13:16 > 0:13:20the costs of exit fees, sold swaps that weren't appropriate,
0:13:20 > 0:13:24and didn't always ensure their customers understood the risks involved.
0:13:24 > 0:13:29They also announced they'd reached agreement with Barclays, HSBC,
0:13:29 > 0:13:32Lloyds and RBS over providing redress,
0:13:32 > 0:13:34and that such products should no longer be marketed.
0:13:34 > 0:13:38The review by the FSA doesn't mean automatic compensation,
0:13:38 > 0:13:44but it does mean that cases like those of the families we spoke to will be looked at again.
0:13:44 > 0:13:47Barclays, which sold the interest rate swap to
0:13:47 > 0:13:50Paul Adcock for his electrical store, told us
0:13:50 > 0:13:52they have an ongoing dialogue with him,
0:13:52 > 0:13:54and when they receive approval from the FSA,
0:13:54 > 0:13:57they'll start a review for all eligible customers,
0:13:57 > 0:13:59starting with those in financial distress.
0:13:59 > 0:14:02They say where they...
0:14:02 > 0:14:04they'll put things right.
0:14:05 > 0:14:10Meanwhile, HSBC told us it would be inappropriate to comment on Stephen and Liz's case
0:14:10 > 0:14:13as it's...
0:14:13 > 0:14:17They insist the family's complaint has already been fully
0:14:17 > 0:14:20investigated and rejected by the Financial Ombudsman.
0:14:20 > 0:14:22But, as part of the review,
0:14:22 > 0:14:26they've agreed with the FSA they will review it again, and...
0:14:29 > 0:14:32In the meantime, there's been a further glimmer of hope.
0:14:32 > 0:14:35Until the reviews are complete, the families have had
0:14:35 > 0:14:38further payments for their interest rate products frozen.
0:14:38 > 0:14:41But while they wait for a final decision,
0:14:41 > 0:14:44they are both exploring taking legal action.
0:14:44 > 0:14:46I feel very bitter towards the bank.
0:14:46 > 0:14:52'We're just very hopeful with the findings of the FSA on our side
0:14:52 > 0:14:59that the bank will take a responsible attitude, and resolve that situation.
0:14:59 > 0:15:02Because if they don't, there's no question that
0:15:02 > 0:15:05the business won't be here, not even years, but in months.
0:15:05 > 0:15:07Many other family firms fear the same thing,
0:15:07 > 0:15:11but because of a product they were sold by their bank,
0:15:11 > 0:15:14they too face shutting up shop forever.
0:15:21 > 0:15:23Rip-Off Britain is on the road again.
0:15:23 > 0:15:26Yes, thousands of you wrote to us with all your complaints
0:15:26 > 0:15:29and your gripes and we thought the thing to do was to come up
0:15:29 > 0:15:31and see what you had to say face to face.
0:15:31 > 0:15:34What we've done, literally, is to transform a shop overnight
0:15:34 > 0:15:37and we have put inside a whole team of experts,
0:15:37 > 0:15:40so I think the best thing to do is for us to go in,
0:15:40 > 0:15:43and see if we can get some of those problems sorted.
0:15:43 > 0:15:47Personal finance expert Sarah Pennells is meeting Jill,
0:15:47 > 0:15:52who thinks that her elderly father is being ripped-off by his bank
0:15:52 > 0:15:54and wants to know if she can intervene on his behalf.
0:15:54 > 0:15:59OK, so how much in all do you think he's been charged by the bank?
0:15:59 > 0:16:03About £1,300 now over 18 months.
0:16:03 > 0:16:05Having had a look your father's bank statements,
0:16:05 > 0:16:09it definitely looks like the bank could've taken a step back
0:16:09 > 0:16:11and tried to look at the overall situation
0:16:11 > 0:16:14rather than just applying charges month in month out.
0:16:14 > 0:16:17So what I would do is get back in touch with your father's bank
0:16:17 > 0:16:19and tell them that you would like them to consider
0:16:19 > 0:16:23to at least write-off a percentage of the charges they've already made.
0:16:23 > 0:16:26If they don't agree, say that you want a final letter
0:16:26 > 0:16:29and then go to the Financial Ombudsman Service
0:16:29 > 0:16:31and they will look into the complaint for you.
0:16:31 > 0:16:34I would recommend that you ask your father
0:16:34 > 0:16:35if you can be added on as a second name
0:16:35 > 0:16:39- so you become a joint account holder.- Oh, that's a good idea.
0:16:39 > 0:16:42In the longer term, it might be worth your while
0:16:42 > 0:16:46taking out a power of attorney, your father taking out a power of attorney.
0:16:46 > 0:16:48then you can not only deal with this bank account
0:16:48 > 0:16:54- but other ones as well and any other bills.- That's really good advice. Thank you.
0:16:54 > 0:16:57Gloria, can I have you over here for a minute? We've got an interesting one.
0:16:57 > 0:16:59You sound excited or worried. One or the other.
0:16:59 > 0:17:01'Which? Magazine's money editor, James Daley,
0:17:01 > 0:17:04'has been hearing about Anne and Terry's case.
0:17:04 > 0:17:08'The couple have been accused of being dishonest by their bank
0:17:08 > 0:17:12'after finding themselves the victims of credit card fraud.'
0:17:12 > 0:17:14Three hotel stays in Cheltenham,
0:17:14 > 0:17:17quite a long way from Bishop Auckland where they live.
0:17:17 > 0:17:22You must have been shocked when you saw these rather large items on your credit card?
0:17:22 > 0:17:24Yeah, I just couldn't believe it.
0:17:24 > 0:17:28And they refunded it but then a few weeks later they wrote them a letter
0:17:28 > 0:17:31and said we've had a look at these transactions
0:17:31 > 0:17:33and we actually now think that you did carry them out
0:17:33 > 0:17:39and we're going to take the money off your card again and it's £1,125.
0:17:39 > 0:17:44They think that it hasn't been a fraud, it's been a genuine thing
0:17:44 > 0:17:47that I've actually made the payment with my own card.
0:17:47 > 0:17:51What the bank has done is they've gone back to the hotel,
0:17:51 > 0:17:54they've got them to send through the details of these transactions.
0:17:54 > 0:17:56But if you look at them closely here,
0:17:56 > 0:18:01- what it actually says is customer not present.- Oooh.
0:18:01 > 0:18:04And so what that means is that these transactions have taken place
0:18:04 > 0:18:07over the internet but there's absolutely no proof that Anne and Terry made that.
0:18:07 > 0:18:10What kind of redress do they have in this case?
0:18:10 > 0:18:14The best thing you can do is make a complaint to the bank.
0:18:14 > 0:18:17Insist that they refund you first and investigate later.
0:18:17 > 0:18:21If they still won't refund you, then you take that complaint on to the Financial Ombudsman Service.
0:18:21 > 0:18:24'But Anne and Terry didn't have to take their complaint that far.
0:18:24 > 0:18:29'Thanks to James's advice, they've since had the money
0:18:29 > 0:18:32'they were wrongly accused of spending refunded by the bank.'
0:18:35 > 0:18:40Next, an investment that really did seem to be a perfect opportunity
0:18:40 > 0:18:43and it certainly did turn out to be life-changing,
0:18:43 > 0:18:47but not at all in the way that was expected.
0:18:47 > 0:18:52At 84, Margaret Sherborne should be enjoying her retirement in peace
0:18:52 > 0:18:56but over the last five years, her quiet life has been disrupted
0:18:56 > 0:18:58by the effects of an investment
0:18:58 > 0:19:01that her bank recommended she take out.
0:19:01 > 0:19:03I'm not money-minded.
0:19:03 > 0:19:06I have no financial interest really,
0:19:06 > 0:19:10but when Barclays said I should do something with this money,
0:19:10 > 0:19:12I thought that was a good idea.
0:19:12 > 0:19:15It never occurred to me not to trust them.
0:19:15 > 0:19:19Margaret's financial situation first changed back in 2007.
0:19:19 > 0:19:23Recently widowed out in Spain,
0:19:23 > 0:19:26she made the decision to move back to a retirement village in the UK.
0:19:26 > 0:19:30Margaret's plans would be funded from her life savings
0:19:30 > 0:19:32and the sale of her Spanish property.
0:19:32 > 0:19:37In total, she invested over £247,000,
0:19:37 > 0:19:40which she put into her account with Barclays.
0:19:40 > 0:19:43When Barclays saw that I had that much,
0:19:43 > 0:19:47they said I really should be doing something different with it,
0:19:47 > 0:19:49putting it somewhere else.
0:19:49 > 0:19:51Barclays sent round a financial adviser,
0:19:51 > 0:19:53who recommended she invest her money
0:19:53 > 0:19:58in a scheme called Aviva's Global Balanced Income Fund.
0:19:58 > 0:20:03'He told me it would bring me in about £5,000 a quarter.
0:20:03 > 0:20:05'That, with my pensions,
0:20:05 > 0:20:08'was going to be just about enough to pay the rent.
0:20:08 > 0:20:12'I told the Barclays adviser that I didn't want a high risk'
0:20:12 > 0:20:15but moderate risk I was prepared for,
0:20:15 > 0:20:18in order to get a good return.
0:20:18 > 0:20:21But I don't know much about these things.
0:20:21 > 0:20:23I didn't then, and I don't now.
0:20:23 > 0:20:26On the advice of the man from Barclays,
0:20:26 > 0:20:29Margaret placed her entire life savings into their recommended fund,
0:20:29 > 0:20:34And she did it because Barclays had themselves classed the fund as "unadventurous".
0:20:34 > 0:20:38So on that advice, it seemed just the sort of investment Margaret needed,
0:20:38 > 0:20:41unlikely to throw up any nasty surprises.
0:20:41 > 0:20:44But from the off, it did not perform as expected.
0:20:44 > 0:20:50'Each month, it had fallen by £10,000 or £20,000 and so on
0:20:50 > 0:20:51'until December,'
0:20:51 > 0:20:53when it had fallen so much,
0:20:53 > 0:20:57it was really only worth half the money I'd put in,
0:20:57 > 0:21:01I could see that I wasn't going to be able to stay here in the Hawthorns.
0:21:03 > 0:21:06Margaret was far from being the only Barclays customer
0:21:06 > 0:21:08to find herself in this predicament.
0:21:08 > 0:21:12It turned out the bank had mis-classified the risk
0:21:12 > 0:21:15not just on this fund, but on another one too.
0:21:15 > 0:21:18In total, 12,000 Barclays customers,
0:21:18 > 0:21:21most of them either retired or approaching retirement,
0:21:21 > 0:21:23were finding that their investments
0:21:23 > 0:21:27were a lot riskier than they'd been led to believe.
0:21:27 > 0:21:31Between them, they'd invested a total of £692 million,
0:21:31 > 0:21:35much of which, with the funds underperforming,
0:21:35 > 0:21:37now appeared to be lost.
0:21:37 > 0:21:40Barclays faces the biggest fine ever levied on a bank
0:21:40 > 0:21:43for its dealings with high-street customers.
0:21:43 > 0:21:47In January 2011, Barclays was fined £7.7 million
0:21:47 > 0:21:52by the Financial Services Authority for mis-selling these funds.
0:21:52 > 0:21:56The FSA said they should always have been described as high-risk
0:21:56 > 0:21:59and shouldn't have been sold to older customers
0:21:59 > 0:22:02who could ill afford the heavy losses the product caused.
0:22:02 > 0:22:04For Margaret, this seemed good news.
0:22:04 > 0:22:07She hoped she could reclaim some of the money she'd lost.
0:22:07 > 0:22:10'When I realised how much money I'd lost,'
0:22:10 > 0:22:12I contacted Barclays
0:22:12 > 0:22:16and I asked if there could be compensation
0:22:16 > 0:22:17because I didn't have enough.
0:22:17 > 0:22:20Then I received a letter from them
0:22:20 > 0:22:24saying they admitted they had wrongly advised me
0:22:24 > 0:22:28but that I wasn't entitled to any compensation.
0:22:28 > 0:22:31I don't get angry about these things
0:22:31 > 0:22:32but yes, I was very upset
0:22:32 > 0:22:36because I wasn't going to be able to stay here.
0:22:36 > 0:22:39But then Margaret heard about a company called Claims,
0:22:39 > 0:22:43which had already advised people stuck in the same situation
0:22:43 > 0:22:45and when they contacted Barclays about her case,
0:22:45 > 0:22:48the bank changed its tune.
0:22:48 > 0:22:51'They offered £44,000
0:22:51 > 0:22:53It didn't really cover the amount I had lost
0:22:53 > 0:22:58but it would have put me on a much more even keel.
0:22:58 > 0:23:01Claims didn't think Barclays was offering Margaret enough,
0:23:01 > 0:23:06and after months more uncertainty, the Financial Ombudsman Service agreed.
0:23:06 > 0:23:10In November, they ordered Barclays to pay back all of the money that
0:23:10 > 0:23:15Margaret had lost through this fund - £63,315.
0:23:15 > 0:23:19Barclays told us they are "sympathetic" to Margaret's situation,
0:23:19 > 0:23:25and after a recent review, agreed the fund she was sold "was not suitable for her needs."
0:23:25 > 0:23:30They say they've apologised, and offered compensation.
0:23:30 > 0:23:33And though Margaret is delighted that she can now afford to stay in her home,
0:23:33 > 0:23:39the whole business has caused her and other pensioners in the same position
0:23:39 > 0:23:41a lot of unwelcome stress and worry.
0:23:41 > 0:23:46I'd always been with Barclays all my life. 60 years at least.
0:23:46 > 0:23:49I trusted them implicitly.
0:23:49 > 0:23:52I wouldn't trust them again.
0:23:58 > 0:24:01When you feel you've had a raw deal, it can be hard to know
0:24:01 > 0:24:03what to do or where to turn.
0:24:03 > 0:24:06So, to help you, we've put together a new booklet,
0:24:06 > 0:24:08full of practical tips and advice.
0:24:08 > 0:24:11You can download the free guide on our website...
0:24:15 > 0:24:17Or, to receive a copy in the post,
0:24:17 > 0:24:20send an A5 stamped and self-addressed envelope
0:24:20 > 0:24:25to the address we'll give you at the end of the programme.
0:24:28 > 0:24:32The summer of 2012 was full of scandal for British banks.
0:24:32 > 0:24:35Hardly a week went by without them hitting the headlines,
0:24:35 > 0:24:37and for all the wrong reasons.
0:24:37 > 0:24:42Allegations of money-laundering, revelations of a global rate rigging scandal,
0:24:42 > 0:24:47and in the RBS Group a computer glitch which left 17 million customers
0:24:47 > 0:24:49without access to their cash.
0:24:49 > 0:24:53So, is it any wonder that these once-respected institutions
0:24:53 > 0:24:57seem to have become the villains of the high street?
0:24:57 > 0:25:01I've got a few bob in the bank, but it makes no interest.
0:25:01 > 0:25:03No interest at all,
0:25:03 > 0:25:06yet they are still paying salaries which are outrageous, in my view.
0:25:06 > 0:25:10They were too interested in selling us something rather than sorting the problem.
0:25:10 > 0:25:13In my opinion, they are load of rogues.
0:25:13 > 0:25:15They give you no confidence whatsoever.
0:25:15 > 0:25:18I've not got the trust I used to have before in them.
0:25:20 > 0:25:23So, what are the banks doing to try to rebuild trust?
0:25:23 > 0:25:27We put that to Eric Leenders of the British Bankers Association,
0:25:27 > 0:25:30which represents all the big high street names.
0:25:30 > 0:25:33Mr Leenders, I don't think I have to tell you of all people that
0:25:33 > 0:25:37the reputation of bankers in this country is now in tatters.
0:25:37 > 0:25:40Is there, within the industry and within bankers,
0:25:40 > 0:25:43a feeling at all of embarrassment or shame for that?
0:25:43 > 0:25:47Absolutely. I've been in the industry now for some 30 years,
0:25:47 > 0:25:49and I think this is a very, very difficult period indeed.
0:25:49 > 0:25:53So when you go to a party and someone says, "What do you do for a living?"
0:25:53 > 0:25:55Would you be embarrassed to admit, "I'm a banker"?
0:25:55 > 0:25:58Well, I think it's very regretful that you would probably
0:25:58 > 0:26:01think twice about admitting that you were a banker,
0:26:01 > 0:26:04but what I would like to think is that I'm a banker who is trying to
0:26:04 > 0:26:08make a difference and trying to change across the industry and restore that faith and trust.
0:26:08 > 0:26:10How can you improve the image of a profession
0:26:10 > 0:26:13which, as far as most people are concerned at the moment,
0:26:13 > 0:26:18was very happy to pay themselves large salaries and large bonuses in the good times,
0:26:18 > 0:26:23but then expect the consumer and the taxpayer to bail them out when things go wrong?
0:26:23 > 0:26:28The way that we need to address that is to get back to serving customers well.
0:26:28 > 0:26:32I think it's important that when you as a customer come to speak
0:26:32 > 0:26:35to your banker you're confident that what they tell you,
0:26:35 > 0:26:39the advice they give you, the products and services they offer work for you.
0:26:39 > 0:26:43And I can assure you, there are a lot of people at all levels within the banks
0:26:43 > 0:26:45that are determined to achieve that.
0:26:47 > 0:26:52Here at Rip-Off Britain, we're always ready to investigate more of your stories.
0:26:52 > 0:26:55You can write to us at...
0:27:04 > 0:27:06Or send us an e-mail to...
0:27:10 > 0:27:14Well, the banks' recent troubles seem to have been a bit of a wake-up call for them.
0:27:14 > 0:27:18For too long some of them have taken for granted the fact that most customers,
0:27:18 > 0:27:22once they have chosen their bank, tend to stick with the same one for life.
0:27:22 > 0:27:27And that's usually because the whole idea of unpicking all those direct debits and standing orders
0:27:27 > 0:27:30makes moving your account seem just that bit too difficult.
0:27:30 > 0:27:32But in actual fact it's straightforward.
0:27:32 > 0:27:36So, if you're not getting the service you deserve or want,
0:27:36 > 0:27:39- then simply don't stand for it. - And why should you?
0:27:39 > 0:27:41Just switch somewhere else.
0:27:41 > 0:27:46And there is evidence that more and more people are starting to do exactly that.
0:27:46 > 0:27:51And you can find out how to do it on our website:
0:27:51 > 0:27:54There's lots of useful advice.
0:27:54 > 0:27:56But for now, that's all we've got time for today.
0:27:56 > 0:28:00- Thanks once again for joining us, and we'll see you again very soon. - Bye bye.- Bye bye.
0:28:03 > 0:28:06Subtitles by Red Bee Media Ltd