Episode 7 Rip Off Britain

We asked you to tell us who has left you feeling ripped-off

and you contacted us in your thousands,

by post, e-mail,

even stopping us on the streets and the message could not be clearer.

They're in it for what they can get.

They're not in it to provide a service.

I didn't sleep! It upset me so much that I didn't sleep.

You've told us, that with money tighter than ever,

you need to be sure that every pound you spend is worth it.

How do I get my money back? I just think I'm entitled to it.

So whether it's a deliberate rip-off, a simple mistake,

or a catch in the small print,

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

Keep asking the questions, you know, go to the top if you have to.

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

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

Hello and welcome to Rip-Off Britain.

Now today, we have got some classic examples of why so many of you feel

that you've ended up getting a raw deal

or experiencing really bad service,

or maybe even getting both at the same time.

Because when you feel you've been ripped-off,

there doesn't actually have to be a very large sum of money involved.

In fact, sometimes it's just the everyday prices and costs that we

have to pay that really irritate the most. Isn't that the truth?

Well, that's really because at the end of the day,

we all like to feel we're getting value for money.

But unfortunately, all too often, we're not.

So today, we're going to hear about situations where you've told us

you feel a bit short-changed and find out what you can do about it.

Coming up: Cash for gold!

But when companies promise big money, do they always deliver?

I was offered £214 and I was angry.

There was no way I would have sold the watch for that.

And we all know their catchphrases

and have probably even sung their jingles.

But are comparison sites really as good as they want us to think?

I feel very misled by the fact that they advertised a price that

seemed cheaper than other companies and really it wasn't

when we looked at the fine detail.

Now we've all seen the ads for the companies that have sprung up

offering to exchange your gold for cash.

At first glance, it seems a great way to earn money

from any unwanted jewellery that you might just have

lying around the house. But in fact, as we've reported before,

it's not always the golden opportunity that's promised.

Swapping your gold for cash

has become increasingly popular in recent years.

And when Leesa Tait from Greenock decided to sell

an expensive watch which she rarely wore, she thought she'd try one

of the dozens of companies who offer great prices for unwanted jewellery.

My husband bought me the watch on a holiday to Turkey 11 years ago.

It's just been in my jewellery box, not really doing anything.

I thought it would be nice to use the money from the watch

to go on holiday with my daughter.

Leesa found an impressive looking website for a company

called The British Gold Refinery,

who were promising "excellent rates and first class service".

Their website looked professional and it stated that if I wasn't happy

with their price they would return it within ten days, no quibbles.

To get a price quote, Leesa entered the watch's weight

and carat into the website's online calculator.

And she was delighted when they said

that they'd pay her more than £500 for it.

So she posted off the watch.

But then after they'd received it in early March,

The British Gold Refinery rang her up to say that, in fact,

they could only pay her less than half

of what they'd initially suggested.

I was offered £214 and I was angry

because I felt that the website was misleading.

Erm, there was no way I would have sold the watch for that.

Now, one of the reasons the company gave for the reduced offer

was that they said the watch was 13 carat

and not 14 carat, as Leesa had said.

They also claimed that the weight was wrong as well.

But Leesa found all of that just hard to believe.

I know this to be the weight in carat because I've had

an expert valuation done for insurance purposes in the past.

And I'm afraid the bad news didn't stop there.

Leesa was told that if she turned down the £214 offer

and wanted her gold returned, she would have to pay

an administration fee to cover an expert valuation they'd carried out,

plus postage and packing, all of which they said added up to £50.

I was shocked because their website had kept saying,

"free quotation", "free valuation", "free return",

if you're not happy with the quotation that we give you.

Leesa told The British Gold Refinery she was not happy with their offer.

And though they did increase it, first to £302,

and then to £350, that was still a lot lower than the quote

they'd given her in the first place.

By now, whatever they offered her,

Leesa no longer wanted to deal with the company.

I wouldn't sell my watch to The British Gold Refinery

even if they offered me the full value of it.

I would rather flush it down the toilet than give it to them.

Leesa found herself up against a deadline

because the company told her that, if within 14 days,

she didn't accept their final price of £350, or stump up the £50

to have her gold returned, then she would automatically be paid just the

£214 they'd previously offered and the watch would then be destroyed.

They told me that if I didn't pay within 14 days,

it would be melted down

and for that reason I felt that I had no choice but to pay the £50.

But intrigued as to why that 'expert valuation' had cost

so much, she asked the company to e-mail her a copy.

Their expert evaluation was worded

"One watch with straps, valuation £302".

Which works out at £10 a word.

It's a complete rip-off.

I could get a proper expert evaluation for half that price!

The British Gold Refinery told other customers who'd complained

about the £50 administration fee

that they'd paid it because they had not ticked the "quote only"

box on the envelope and had therefore consented to a valuation.

Now Leesa admits that's an error she also made,

but had tried to correct it.

When I realised my mistake, I called them

and spoke to a telephone operator who assured me that she

had put a note on my account to that effect and that

I wouldn't be charged the £50 admin fee. But they still charged.

Leesa says she didn't spot the admin fee because it was buried

deep in the terms and conditions on the company's website.

And the Advertising Standards Authority would agree with that.

Last year, they ruled that The British Gold Refinery should

clearly display the administration fee on their website.

And in fact, the company has gone further than that.

After we got in touch to query Leesa's charge, they told us

that they've now scrapped their return fees altogether.

They say although they've "always aimed to provide the best price"

for the gold sent to them, and "the best customer service",

they've "listened to customers"

and as a result have changed their policy.

Anyone unhappy with a quote who wants their gold back

will now get it free of charge,

"with no return fees applied".

But we wondered whether the rest of Leesa's experience was a one-off?

So we sent three pieces of gold to The British Gold Refinery,

valued by a professional jeweller at £848.

This piece is 14 carat gold.

I've weighed it at 25.27 grams.

They instantly beat the jeweller's valuation

by quoting us more than £900.

But after they received our items, they reduced their offer to £335.94.

So naturally, one of our team rang them straight away.

You know I was expecting over £900, really, for what I've sent in.

They then upped their offer to £360, a bit of an improvement,

but still over £500 less than their original quote.

They claimed that our bracelet contained only half as much gold as

certified by our jeweller

and the other two items were a lower carat.

So we decided to decline The British Gold Refinery's offer

and ask for our gold back.

It isn't what I was hoping for at all,

so I'd just prefer to have them sent back if that's OK?

They promised to call us back but the phone didn't ring.

We also e-mailed to make sure that the company knew we were unhappy.

We were then told to contact their returns department.

We called The British Gold Refinery a further three times

to ask for our gold back.

And it was returned five days after we first asked.

But our experience with what they offered to pay was very

similar to what had happened to Leesa.

So why had they initially quoted

so much more than they were willing to pay?

When we asked them just that, The British Gold Refinery told us

that they were "unable to comment" without proof our valuations

were for the same items that we'd sent them.

They also said their valuations

"are based on the scrap value of gold",

not a retail, resale or insurance price,

which they say "may explain the discrepancies"

between their valuations and the ones from our jeweller,

although in fact, his valuations were done in exactly the same way.

The company also says how much they offer

takes into account their cost and profit margins,

"which is a usual and expected business model" and they believe

their prices to be a "fair estimate for the gold in the items sent".

They've stressed that the initial price

they quote is simply a guide based on the spot price of gold.

The exact prices can only be confirmed

once they've received the actual items.

But none of that holds much weight

with the jeweller who did our initial valuation.

I'm not saying that we're always going to be the best

person in town, but I think £500 differential is a huge amount

to be thinking about.

335, it just seems to be that they haven't read the gold properly.

There are plenty of other gold companies that you've told us

don't pay anything like the price initially quoted.

The best advice is to do what we did.

Get your gold accurately weighed and valued before you send it off.

And shop around so that you can be sure you are getting a fair price.

Leesa did get her watch back and she eventually sold it to another

company, who paid out exactly the same price they first quoted her.

But she's still been left feeling very frustrated

by her dealings with The British Gold Refinery.

To me it is underhand and misleading

and it shouldn't be allowed to happen.

You can find more information on how to sell your gold safely

and effectively on our website...

Rip-Off Britain has created a pop-up shop where anyone can receive

instant advice from our team of consumer experts.

If nobody is offering you any financial recompense,

then you may have to consider going through the courts.

First up to see our travel expert, Simon Calder, is John.

He feels badly let down by his travel insurance company

after his partner had an accident on holiday in Scotland.

We got to Bute, were out walking,

she fell, broke her wrist

and it involved us in taxis, trips to the mainland for X-rays.

In total, the cost came to about £135.

So we put the insurance claim in and we got a letter back

saying that this insurance policy does not cover us

for the United Kingdom, the Channel Islands or the Isle of Man.

Here we are, here we are.

Section B emergency medical treatment expenses.

It very specifically says this section does not apply to

trips within the UK, Channel Islands or Isle of Man if you live there.

What should they have done?

The advice is, unless there's a very particular reason that you

would want to get insurance for a UK trip, don't bother.

-Are you going to take this issue up on behalf of John?

-I most certainly am.

I want to find out first of all how they can possibly be selling

insurance at that price, £55 for five days in Scotland.

I don't know if we have legally a leg to stand on,

but morally, I'm afraid this is an almighty rip-off.

-Are you a happy man John?

-Very much so. Go for it!

John, great to see you. Thanks very much indeed.

One of the most important pieces of advice that we keep coming

back to here on Rip-Off Britain is shop around!

Because it really is only by getting a whole range of prices

that you can be sure you're getting a good deal.

And these days, thanks to the internet,

there's really no shortage of companies and websites that seem

to make that whole process not just easier, but almost instantaneous.

But can you really be sure that they are giving you the whole picture?

Or when you compare the market,

should you also be comparing the comparison sites?

We all need a bit of help sometimes.

And ads like these, for price comparison websites,

claim that they'll point us in the best direction of where to get it.

They've become the first port of call for many people

looking for a new deal on things like energy and insurance.

And it's the ones with the catchiest ads

that have become household names.

Which? magazine discovered that not all of these sites are necessarily

comparing every deal that's available to you,

or getting you the best price.

This is an industry that's mushroomed

from apparently out of nowhere.

They're spending a fortune on advertising.

Simples!

Some of the biggest advertising campaigns are being done

by comparison sites now.

# Use your head To save your bread at go compare! #

The businesses that are putting their products on those sites

pay them to appear there.

Money supermarket.com. A great deal easier.

Don't assume that this is free, impartial advice

that you can always trust.

# Confused.com. #

Which? magazine do have a comparison site of their own,

but just for energy, and they're concerned that some

comparison sites don't take an impartial view.

They did their own test to compare what you'd be offered

when shopping for insurance.

We found that the 11 most popular comparison sites for the most

popular insurance products never covered more than

a third of the market. They don't show you nearly 70% in most

cases of all the deals that are out there.

When Billy Thompson from Merseyside was quoted £185 to renew

his home and contents policy with his current insurer, he turned to

comparison site Confused.com to see if they could offer anything better.

Entered all my details on to that

and eventually came up with a price of £154.

As he'd hoped, he was offered a saving.

Swinton Insurance came up trumps, offering him

a policy that would cost £31 less than he was currently paying.

But in order to get this price,

he had to phone the insurance company directly.

He could not seal the deal online.

They sort of insisted that I needed to go through all the details again

and then they came up with a price which was £40 dearer,

up to £190 odd.

However hard he tried, Billy could not get Swinton to match

the price that he'd seen on confused.com.

Leaving Billy feeling, well, confused.

On this occasion, I'm just at a loss as to why there's such

a difference in price when you come to actually buy it.

Both companies have confirmed that the price should have been the same.

Swinton told us this was "an isolated incident"

due to an error by one of their call centre staff

and they've taken steps to ensure it doesn't happen again.

But Which? magazine found some surprising results

when they posed as customers on a range of comparison websites.

They found prices varied from £310.28 to £660.20

for car insurance policies,

despite entering the same details every time.

That's a 112% difference!

And it's not just the price that may not necessarily come out

the way you expected, as teacher Jo Harter-Tong found out.

She lives in Manchester with her husband, Richard, and daughter, Mia.

Last March, she was keen to pay less for her car insurance.

We looked on a number of price comparison websites

and tescocompare.com came out with a very good price

with two different companies.

Jo chose to go with a company called Diamond, and,

as instructed on the website, her husband called to secure the price.

But when the policy arrived,

they were shocked to find it was for ten months and not 12.

At no point did it mention that it was anything other than

an annual premium on the price comparison website,

or during the phone conversation with Diamond.

I feel very misled by the fact that they advertised a price

that seems cheaper than other companies and, really,

it wasn't when we looked at the fine detail.

Tesco Compare say they always offer annual policies,

so again it seems in this case an error was made

by the insurance company's call handlers.

Diamond tell us they can't find the recording of the phone call

when Jo bought the policy, but are sorry for the inconvenience

caused, and are refunding the extra money that she was charged to

change her policy from a 10 month to a 12 month one.

They even sent her some flowers!

Comparison sites say such that mistakes are rare and that

they've saved millions of people hundreds of millions of pounds.

So will you always get a better deal by going online rather than

calling companies for quotes direct?

We did an experiment to see whether we'd get the best quotes for car

insurance on comparison sites or over the phone.

It wasn't a scientific test,

but it did give an idea of the variety of prices.

Well, I've looked at the four best-known comparison sites.

All four of those sites have exactly the same insurance

company at the top of their list.

But there's a difference in the quotes of £40.

We then called the insurers direct to see

if they would match or even better the prices that we'd found online.

That's actually more expensive then.

You're quoting me more than the comparison site offered me.

So really I'm better going with the comparison site

than doing it with you on the phone?

And it was clear that, today at least,

the websites proved to offer the better deal.

Well, that was a really interesting and useful half hour

spent on the telephone. I think the most important thing I've discovered

is that those comparison sites immediately give you

a 15% discount from anything that the insurance companies are going

to quote you on the telephone simply because you're booking online.

In addition, by telephoning the companies,

what I have found is some of them are going to charge you

an administration fee, as much as £12.50,

that'll bump up the price.

There's no doubt that these sites have revolutionised the way we buy.

But to be sure you really are getting the best deal,

try looking at a few of them, and not just one.

-Comparison sites may not always be as...

-"Simples"

-..as they appear.

When you feel you have had a raw deal,

it can be hard to know what to do or where to turn.

So to help, we have put together a booklet

full of practical tips and advice.

You can download the free guide on our website...

Or to receive a copy in the post,

send an A5 stamped and self-addressed envelope

to the address that we'll give you at the end of the programme.

A good chunk of the letters and the e-mails that we receive are about

what you have to pay for life's essentials.

Thing like energy, petrol, car insurance.

All things that you've told us you think cost too much.

And it seems that we can now add another thing to that list

and it's printer ink for the printers

that are attached to our computers.

They're used by millions of us at work, at home or both,

but they are not always cheap.

As Vice-Captain of Denton Island Bowls Club in Sussex,

it's the job of Lawrence King to keep an eye on the club's finances.

But he's noticed one cost that really adds up -.

printer ink.

I have to do a lot of printing to send out to people and to

copy stuff to people and I expect my printing costs to be reasonable.

The Epson cartridges the club needs cost around £30 a set,

and that's a lot for the sort of simple printing that Lawrence does.

Mainly, I'm interested in the black cartridges,

but you can't run the machine without the other colour cartridges.

They've got to be there whether you are using them or not.

So Lawrence decided to shop around,

and found he could buy what's called 'compatible ink'

made by a different company than the one who'd made his printer.

This printer takes a set of four cartridges.

If I buy a set,

I can probably get them for about £12.

But Lawrence says it can be hit and miss

as to whether he can get these to work.

And it seems his Epson printer didn't like him

using cheaper ink from one of the company's competitors.

It just comes up on this little screen here,

"This cartridge is not acceptable".

Why do I want to pay all this money for an Epson cartridge,

when I can source a much cheaper cartridge

that looks and appears the same?

Of course, Epson isn't the only printer manufacturer

who would prefer customers to use its own brand of ink.

Most of the big names would say the same

and in almost all cases, their ink is much more expensive,

sometimes, costing more per millilitre

than vintage Dom Perignon champagne!

So why do they cost so much?

Alan Lu from Computer Active magazine can explain.

There is a lot of research and development

which goes into developing inks

and that costs quite a lot of money, so they want to recoup their costs.

The second reason is that when manufacturers sell you an ink jet

printer, the printer will usually cost as little as £50 or perhaps

even less, so the way they make back their money, the way they make

their profit, is to sell you printer ink and paper at quite a high cost.

The printer manufacturers themselves would say that it's the quality of

their ink that sets their products above the cheaper alternatives.

And it's certainly true that some cheaper inks may quickly run out

or perhaps even clog up your printer.

So does that mean own brands are the best?

To find out, we've done a test...

..comparing inks for three of the best known printer manufacturers -

Epson, HP and Canon.

For each big name, we bought three different types of ink...

an original branded cartridge,

a refillable cartridge from a high street cartridge shop

and a compatible cartridge from the supermarket.

It's not a scientific test,

but it does give an idea of how different inks

compare for the sort of printing that someone like Lawrence does.

So, how did they perform?

Well, of the three inks we tried in the HP printers,

there wasn't much in it between HP's own brand and the supermarket ink,

except on price.

Both printed around the same number of pages,

but the supermarket ink was a fair bit cheaper.

With the inks for the Canon printers, it was the refillable

cartridge that came out best overall, as it had the lowest cost,

although the supermarket ink printed the most pages.

As for the Epson inks,

the refillable one printed the most pages,

but it was the supermarket one

that worked out best value, again because it had the lowest price.

So for this simple job,

there'd be no need to splash out on those branded inks when you

could get as good a performance, or even better, by spending less.

But when we contacted the printer companies with these results,

they all stressed that neither price nor the number of pages

printed are the key factors to consider when choosing ink.

They're confident that only their own genuine inks,

with all their research and development behind them,

will deliver the reliability and print quality that customers expect.

And while their printers won't stop you using cheaper ink,

HP described these compatibles as "a gamble", while Epson calls them

"a false economy", saying they can shorten the life of the printer.

HP also says in independent tests,

their ink printed many more pages than refillable cartridges.

As for Lawrence's objections, Epson tell us that the

message he gets when he tries to use cheaper ink is simply

the printer warning that the company "cannot guarantee the printer

performance if he chooses to continue with the installation."

They say, "customers are free to use whichever make of ink

cartridge they prefer", but they can only "ensure peak performance"

if their brand of printer is used with their own ink.

But, back at the bowls club, Lawrence remains unconvinced.

If I went and bought a car from Ford, I'd expect to be able

to use anybody's petrol in it, the cheaper the better.

Here at Rip-Off Britain,

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

You can write to us at...

Or send us an e-mail to...

So, as we've heard, it's very easy to feel totally ripped-off

if it seems that you've paid over-the-odds for something

that you could find cheaper elsewhere, particularly if,

for whatever reason, you thought you were getting a really good deal

-at the time.

-That is so annoying isn't it?

-Infuriating.

And although the best advice really is still to shop around,

that is no longer as simple as it sounds.

These days you have so many deals and offers online,

not to mention all of those comparison sites.

Well, frankly sifting through them and actually working out

where to find the best value for money is quite a task.

-It's like a full-time job.

-It is! Sure is.

Even if someone insists that they're giving you the best price,

don't take what they say at face value.

And do keep telling us when something that seemed to be a good deal

turned out to be nothing of the kind.

But that's it for today.

We'll be back to investigate more of your stories soon.

-Until then, from all of us, bye-bye.

-Goodbye.

-Goodbye.

Subtitles by Red Bee Media Ltd