0:00:02 > 0:00:04We asked you to tell us who has 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 could not be clearer.
0:00:14 > 0:00:16They're in it for what they can get,
0:00:16 > 0:00:19they're not in it to provide a service.
0:00:19 > 0:00:22I didn't sleep. It upset me so much that I didn't sleep.
0:00:22 > 0:00:25You've told us, with money tighter than ever,
0:00:25 > 0:00:30you need to be sure that every pound you spend is worth it.
0:00:30 > 0:00:33How do I get my money back? Cos I just think I'm entitled to it.
0:00:34 > 0:00:38So whether it's a deliberate rip off, a simple mistake, or a catch in the small print,
0:00:38 > 0:00:43we'll find out why you're out of pocket and what you can do about it.
0:00:43 > 0:00:46Keep asking the questions, you know, go to the top if you have to.
0:00:46 > 0:00:50We do get results, I mean, that's the interesting thing.
0:00:50 > 0:00:53Your stories, your money - this is Rip-Off Britain
0:00:55 > 0:00:58Hello and welcome to Rip-Off Britain.
0:00:58 > 0:01:00Now, today we'll be looking at situations where,
0:01:00 > 0:01:04let's not beat about the bush, you've been told something that was either misleading
0:01:04 > 0:01:06or it was simply untrue.
0:01:06 > 0:01:09Because often with the stories that you ask us to investigate,
0:01:09 > 0:01:13it can turn out that there was a small detail that you missed,
0:01:13 > 0:01:16or maybe a bit of small print that you just didn't understand.
0:01:16 > 0:01:20But that is not the case with the stories that we've got coming up this time.
0:01:20 > 0:01:22In fact, it's almost worse than that.
0:01:22 > 0:01:25Promises made to get your business were not correct,
0:01:25 > 0:01:28sometimes deliberately, other times not.
0:01:28 > 0:01:32But as we'll see, it's not just fly-by-night companies that can
0:01:32 > 0:01:34bamboozle you with misleading promises.
0:01:34 > 0:01:36Even big names can be caught doing it.
0:01:38 > 0:01:40Coming up... As yet more companies fail to deliver
0:01:40 > 0:01:43on promises of getting back your mis-sold PPI,
0:01:43 > 0:01:47we show you the best way to find out
0:01:47 > 0:01:49if you're owed thousands of pounds.
0:01:49 > 0:01:52They're not a help to anybody, you don't need them,
0:01:52 > 0:01:55you can do everything yourself.
0:01:55 > 0:01:59The modelling company caught on tape lying to get new business.
0:01:59 > 0:02:03They were plugging directly in to the heart of a parent
0:02:03 > 0:02:05who wants their child to be happy, succeed, get a job.
0:02:05 > 0:02:09They were cynically after my wallet.
0:02:09 > 0:02:14And a problem shared is a problem solved at our consumer advice shop.
0:02:14 > 0:02:21Next, three letters that have become a real financial hot potato over the last couple of years - PPI.
0:02:21 > 0:02:24Now I'm sure you know by now that stands for payment protection insurance,
0:02:24 > 0:02:30a policy that turned out to be mis-sold to millions of people right across the UK.
0:02:30 > 0:02:33And as a result, what seems like no end of companies have sprung up
0:02:33 > 0:02:38offering to help you claim back money that you should never have paid in the first place.
0:02:38 > 0:02:41Well, we've investigated some of those companies before,
0:02:41 > 0:02:44but I'm afraid they show no sign of going away,
0:02:44 > 0:02:49and that's despite the fact that most people don't even need their help anyway.
0:02:49 > 0:02:54You'd be much better ignoring the middleman and claiming your money back yourself,
0:02:54 > 0:02:58something this next couple wishes they'd known before they signed up.
0:03:00 > 0:03:06There are now around 3,000 of them out there, with their ads everywhere.
0:03:06 > 0:03:10And they may even bombard you with texts and phone calls.
0:03:10 > 0:03:14We're talking about the companies promising that, in return for a fee,
0:03:14 > 0:03:19they'll get you back money they reckon you're owed through missold payment protection insurance.
0:03:23 > 0:03:29Like many others, grandparents Ann and Michael Costello had no idea they might be entitled to anything.
0:03:29 > 0:03:31Until, that is, two years ago,
0:03:31 > 0:03:35when one of these companies suddenly called Ann right out of the blue.
0:03:35 > 0:03:41A company called Tucan Claims called me saying they could get me PPI
0:03:41 > 0:03:47back from any credit cards or any loans that I've had over so many years
0:03:47 > 0:03:54and they said they'd already refunded lots of money for a lot of customers.
0:03:54 > 0:03:57I didn't know I had any PPI on any of my loans or any of my credit cards.
0:03:57 > 0:04:00I wasn't aware at that time if I had any or not.
0:04:02 > 0:04:04Ann wasn't sure that she wanted to go ahead,
0:04:04 > 0:04:08but Tucan Claims reassured her that they were registered with the Ministry Of Justice
0:04:08 > 0:04:13and that recently they'd got another customer £7,000 back.
0:04:13 > 0:04:19So she signed up, agreeing to pay Tucan Claims 10% of whatever they recovered on her behalf,
0:04:19 > 0:04:26and an upfront fee of £250 - although she did wonder why that was exactly necessary.
0:04:26 > 0:04:30I thought that if they did their job right,
0:04:30 > 0:04:34if they were charging a 10% fee, that's a way of being paid.
0:04:34 > 0:04:38I didn't think they needed an upfront fee, anyway.
0:04:39 > 0:04:43Tucan Claims told Ann that seven different companies could owe her money.
0:04:43 > 0:04:47But in order to access her records, she'd need to pay each of them ten pounds,
0:04:47 > 0:04:50which she did, but it took over a year before Tucan sent her
0:04:50 > 0:04:54a confirmation letter to say that they had been successful with a claim.
0:04:54 > 0:04:57It stated that they were happy to tell me
0:04:57 > 0:05:04that they'd negotiated a refund of £802 from a credit card.
0:05:04 > 0:05:07Of course I was really pleased,
0:05:07 > 0:05:11because this was the first time any money looked as though it was coming back to me.
0:05:12 > 0:05:17It may have looked like the cash was on its way, but, sadly, it never materialised.
0:05:17 > 0:05:21So Ann rang the credit card company that was supposed to be making the refund,
0:05:21 > 0:05:25to check why they hadn't sent the money on to Tucan.
0:05:25 > 0:05:28And what she was told next came as quite a shock.
0:05:28 > 0:05:31They'd already sent the amount of money to Tucan Claims.
0:05:31 > 0:05:34It went on the 12th of November.
0:05:34 > 0:05:38I got the letter on the 17th of November,
0:05:38 > 0:05:42and they cashed the cheque in the bank on the 23rd of November.
0:05:42 > 0:05:47So, that was it, my money had gone into Tucan Claims's bank.
0:05:47 > 0:05:48I've not seen it since.
0:05:48 > 0:05:51Although they'd certainly received her money,
0:05:51 > 0:05:54Tucan Claims hadn't sent one penny of it on to Ann.
0:05:54 > 0:05:56So what had they done with it?
0:05:58 > 0:06:02I was calling two or three times a week to try and chase up where this money was.
0:06:04 > 0:06:06Excuse after excuse,
0:06:06 > 0:06:09I never got an answer of when the money was coming at all.
0:06:09 > 0:06:13Just couldn't get any ideas about the refund.
0:06:13 > 0:06:16So Ann and her husband decided to do their own research
0:06:16 > 0:06:20into reclaiming payment protection insurance.
0:06:20 > 0:06:25And they soon discovered a website that they wished they'd known about in the first place.
0:06:25 > 0:06:30It just said, download this information and you can send off and find out yourself
0:06:30 > 0:06:33if you've got PPI on any loans or any credit cards, which he did.
0:06:33 > 0:06:38We downloaded the form and we sent it off for a credit card of my husband's
0:06:38 > 0:06:44and within five weeks of him sending off the information he got a cheque back into the bank.
0:06:45 > 0:06:49So while husband Michael had got his PPI payments back without
0:06:49 > 0:06:52paying a middleman, Ann was left bitterly regretting
0:06:52 > 0:06:56ever agreeing to let Tucan Claims reclaim money on her behalf.
0:06:57 > 0:07:01I just feel totally disgusted with Tucan Claims, the company,
0:07:01 > 0:07:04they're not a help to anybody, you don't need them,
0:07:04 > 0:07:07you just... You can do everything yourself.
0:07:07 > 0:07:13I'm not happy at all about them, I'm absolutely fed up.
0:07:14 > 0:07:18In February, three months after Tucan Claims had cashed the cheque,
0:07:18 > 0:07:20Ann got in touch with them once again.
0:07:20 > 0:07:22On the advice of the Citizens Advice Bureau,
0:07:22 > 0:07:26she threatened them with court action if they didn't pay up within 28 days.
0:07:26 > 0:07:28I've not heard a single word from them,
0:07:28 > 0:07:33they're just not interested. I think they're just not bothered.
0:07:33 > 0:07:37I think my money is in their bank making lots of interest for them,
0:07:37 > 0:07:40and I think I'm just like a lot of other people,
0:07:40 > 0:07:42I don't know where the money has gone.
0:07:42 > 0:07:44I haven't got it.
0:07:44 > 0:07:47Ann isn't the only one very unhappy with Tucan Claims.
0:07:47 > 0:07:51In April, the Ministry Of Justice, which regulates companies like these,
0:07:51 > 0:07:56prohibited them from providing any further claims management activities.
0:07:56 > 0:07:59And that sort of action happens quite regularly.
0:07:59 > 0:08:02In the last 12 months, the Ministry Of Justice
0:08:02 > 0:08:04has struck off their register 700 other companies
0:08:04 > 0:08:07who promised to reclaim missold payment protection insurance.
0:08:07 > 0:08:10And that's just under a quarter of the entire industry.
0:08:11 > 0:08:15As for Tucan Claims, the company has now gone into liquidation.
0:08:15 > 0:08:19Which perhaps explains why no-one from the company
0:08:19 > 0:08:22has responded to our calls, emails or letters.
0:08:22 > 0:08:26They were ordered to repay all refunds to customers by May.
0:08:26 > 0:08:29But Ann still hasn't got her money back.
0:08:29 > 0:08:32She can try to claim it back through Tucan's administrators,
0:08:32 > 0:08:34but so far, she's had no luck.
0:08:35 > 0:08:38However, there is some light on the horizon for Anne.
0:08:38 > 0:08:43As of next year, she, and anyone else who has lost money through claims management
0:08:43 > 0:08:47companies will be able to take their case to the legal ombudsman
0:08:47 > 0:08:51who will be able to ensure compensation is given where appropriate.
0:08:51 > 0:08:54But for the time being, Ann has learned the hard way
0:08:54 > 0:08:57that if you want to reclaim your PPI,
0:08:57 > 0:08:59the best way to do it is to do it yourself.
0:09:02 > 0:09:04For more information on how to do that,
0:09:04 > 0:09:07and for details on how to take a complaint about a claims management company
0:09:07 > 0:09:12to the legal ombudsman, you can always log onto our website.
0:09:18 > 0:09:21Well, as Ann has discovered, you don't usually need
0:09:21 > 0:09:24one of these companies to help you reclaim any mis-sold PPI,
0:09:24 > 0:09:28and it's usually pretty straightforward to do it yourself.
0:09:28 > 0:09:32Paul Lewis from Radio 4's Moneybox programme is here to explain how.
0:09:34 > 0:09:37I never recommend going to any company that tries to get
0:09:37 > 0:09:40payment protection insurance compensation for you.
0:09:40 > 0:09:42First of all, there's no point, you can do it yourself.
0:09:42 > 0:09:44There's lots of help online.
0:09:44 > 0:09:49Which? - the consumer organization - has a dedicated part if its website to help you.
0:09:49 > 0:09:51So does moneysavingexpert.com,
0:09:51 > 0:09:54so you can see if you are due compensation
0:09:54 > 0:09:56and how to make the claim.
0:09:56 > 0:09:59And they both have template letters to fill in.
0:09:59 > 0:10:01Now, I'm sure a lot of you are thinking,
0:10:01 > 0:10:04"Well, I may not have the documents, I don't know where I filed them,
0:10:04 > 0:10:07"I probably threw them away." Don't worry,
0:10:07 > 0:10:10the firm that sold you the insurance will have to provide them for you.
0:10:10 > 0:10:14They will see if you were a customer, whether you were sold insurance,
0:10:14 > 0:10:16and the terms on which you were sold it.
0:10:16 > 0:10:21Now, once you've sent that letter, the firm has 8 weeks to reply.
0:10:21 > 0:10:23If it hasn't replied in 8 weeks
0:10:23 > 0:10:25or if it's sent you a reply you don't like,
0:10:25 > 0:10:29then you can go to the Financial Ombudsman Service, which will arbitrate.
0:10:29 > 0:10:35What you have to get back is all the premiums you paid for the policy right throughout its life,
0:10:35 > 0:10:39plus interest at 8% a year on those premiums.
0:10:39 > 0:10:42If the offer is any less than that, don't accept it,
0:10:42 > 0:10:45go to the Ombudsman because the Ombudsman is there to arbitrate,
0:10:45 > 0:10:49and the vast majority of people who go there get their money.
0:10:53 > 0:10:58These days we live in what many people will think of as an age of celebrity and glamour,
0:10:58 > 0:11:02but you know, it's not just television talent shows that might encourage you to think that,
0:11:02 > 0:11:05well, you too could have your moment in the spotlight.
0:11:05 > 0:11:08You often write to us about companies who, for a fee,
0:11:08 > 0:11:11will offer to get you modelling work,
0:11:11 > 0:11:15and after you've paid it, well, in the cases that we've heard about,
0:11:15 > 0:11:21the work that had sounded so likely to happen, never quite comes off.
0:11:21 > 0:11:24So, if you've ever wondered exactly how people are persuaded
0:11:24 > 0:11:29to sign up to these companies, well, here's someone who recorded all the calls,
0:11:29 > 0:11:34meaning that we can tell which bits are true, and which aren't.
0:11:39 > 0:11:44Like all mothers, Sam Hewitt from Lincoln thinks that her daughters are adorable.
0:11:44 > 0:11:47And she got such a positive reaction from friends to pictures
0:11:47 > 0:11:51that she'd taken of her eldest daughter, Sienna,
0:11:51 > 0:11:55that she decided to send them off to some modelling companies that she found online.
0:11:56 > 0:11:59I contacted four different companies,
0:11:59 > 0:12:02and I didn't really expect anything to happen, to be honest with you.
0:12:02 > 0:12:04But it did!
0:12:04 > 0:12:07She got a call from a company called Form Models,
0:12:07 > 0:12:11which started an expensive chain of events.
0:12:11 > 0:12:16They phoned up, just said who they were and that they'd seen a picture of Sienna,
0:12:16 > 0:12:20how beautiful she was, she'll go really far in this career.
0:12:20 > 0:12:23So, I just went weak at the knees at just that.
0:12:23 > 0:12:29Form Models said they needed Sam and Sienna to come to London for a test shoot,
0:12:29 > 0:12:32but there'd be a payment involved.
0:12:32 > 0:12:35They was really keen to book her in, too keen, thinking back now,
0:12:35 > 0:12:40but said all we need is £50 deposit just to secure your booking
0:12:40 > 0:12:44and then as soon as you've turned up for the test shoot you'll get your money back for that.
0:12:44 > 0:12:47They said that once she'd gone for the test shoot
0:12:47 > 0:12:50we'd see how she was in front of the camera,
0:12:50 > 0:12:52and if she was successful, then we'd get her work.
0:12:52 > 0:12:56She then started reeling off how much a week she could actually get.
0:12:56 > 0:13:02With stars in her eyes, Sam paid the money by credit card for Sienna,
0:13:02 > 0:13:05and was also encouraged to sign up her younger daughter, Olivia.
0:13:05 > 0:13:08She then phoned her husband to tell him the good news.
0:13:08 > 0:13:12He said about the fake modelling agencies that were out there.
0:13:12 > 0:13:14So I started to freak out a little bit then,
0:13:14 > 0:13:19and looked into it a bit more and then found that they didn't really have a very good write up at all.
0:13:19 > 0:13:23Sam phoned Form Models two days later to cancel her shoot.
0:13:23 > 0:13:26I mentioned that I thought that they're a modelling agency
0:13:26 > 0:13:29and she then said, "We never said that we were a modelling agency,
0:13:29 > 0:13:32"that's just the way you thought that we were."
0:13:32 > 0:13:33On closer inspection,
0:13:33 > 0:13:37the Form Models website says it's not a model agency,
0:13:37 > 0:13:42but a modelling platform, and that it doesn't provide work for models.
0:13:42 > 0:13:44After managing to cancel,
0:13:44 > 0:13:48Sam thought all that she'd lost was a little pride.
0:13:48 > 0:13:53But when she got her next credit card statement, she realised she'd lost an awful lot more.
0:13:53 > 0:13:59They'd charged £140 per child for cancelling the photo shoot,
0:13:59 > 0:14:04and then £50 per child for the actual deposit that they'd kept.
0:14:04 > 0:14:06That's a total of £380.
0:14:06 > 0:14:08I felt sick about it all,
0:14:08 > 0:14:11It was like £380 out of the account for nothing.
0:14:12 > 0:14:14Despite phoning and emailing,
0:14:14 > 0:14:17Sam had no luck getting her money back from Form Models.
0:14:18 > 0:14:21Luckily for her, as she'd paid on her credit card,
0:14:21 > 0:14:25she was able to claim it back through her credit card company.
0:14:25 > 0:14:29I feel really stupid about it all, to be honest with you,
0:14:29 > 0:14:35but then I'm a mother and I got led in by her nice comments of the children.
0:14:35 > 0:14:39Sam was lucky. We've heard from other people who DID go through with photo shoots
0:14:39 > 0:14:43that were arranged by Form Models, who said that they were then
0:14:43 > 0:14:47talked into handing over hundreds of pounds to buy picture portfolios.
0:14:47 > 0:14:52In fact, that is not how proper model agencies do things,
0:14:52 > 0:14:56and nor would they normally ask for a deposit.
0:14:56 > 0:15:00Felix Dawes from the Wirral also contacted Form Models.
0:15:00 > 0:15:03He was looking for a way to earn a bit of extra cash during the summer.
0:15:03 > 0:15:07Originally I looked on the internet for modelling firms, modelling agencies,
0:15:07 > 0:15:10and Form Models popped up at the top, one of the sponsored links.
0:15:10 > 0:15:14And, four days later, the company gave him a call.
0:15:14 > 0:15:19When they first got in touch they said I was perfect model material, exactly what they were looking for.
0:15:19 > 0:15:22Very flattering, I was really, really excited.
0:15:22 > 0:15:29At that point, the Form Models representative asked to speak to Felix's mother.
0:15:29 > 0:15:33I'd just come home from work, staggered in through the front door and Felix came running to me
0:15:33 > 0:15:38with this bloke on the phone and said, "Mum, Mum, there's a model agency on the phone,
0:15:38 > 0:15:40"they want me to go down for a test shoot."
0:15:40 > 0:15:45And I spoke to him and there was this incredibly excited bloke, effusive,
0:15:45 > 0:15:50saying how wonderful my son was, he had boyband looks and he was really gorgeous,
0:15:50 > 0:15:53and I felt myself, my stomach start to contract thinking,
0:15:53 > 0:15:57"Wow, I've got a gorgeous child!" And you don't...
0:15:57 > 0:16:01You know your own child is gorgeous to you, but you never think that professionals
0:16:01 > 0:16:04might be ringing you up and asking your child to come and work for them.
0:16:04 > 0:16:08But this time, Form Models had made the wrong call.
0:16:08 > 0:16:12Felix's mum is a BBC journalist.
0:16:12 > 0:16:16So she grabbed her Dictaphone and recorded the conversation.
0:16:16 > 0:16:21I knew this couldn't be real, and that's when I grabbed my tape recorder,
0:16:21 > 0:16:23They were so positive about how wonderful this was,
0:16:23 > 0:16:28how important it was that we rush to do this and grab this opportunity.
0:16:28 > 0:16:32And the fact they wanted me involved as well made me very suspicious.
0:16:32 > 0:16:37The parent side of me really wanted this to be real.
0:16:37 > 0:16:40The journalist side of me knew it couldn't possibly be.
0:16:41 > 0:16:44We've listened to the whole call.
0:16:44 > 0:16:48And there are several bits that are nonsense. Like this, for starters...
0:16:57 > 0:17:02It wouldn't be illegal to photograph Felix without his mum.
0:17:02 > 0:17:05So why would they be so insistent that she was there?
0:17:05 > 0:17:11Could it be perhaps because she'd be more likely to have the money to buy the pictures?
0:17:11 > 0:17:16It was quite clear that what he was really after was my credit card.
0:17:16 > 0:17:20Because my son doesn't have a credit card and doesn't have any money,
0:17:20 > 0:17:26he was flattering me about my gorgeous child in order to get me to allow this all to happen.
0:17:37 > 0:17:39So in other words, you are being pressured
0:17:39 > 0:17:42and forced into making a decision very, very quickly.
0:17:42 > 0:17:44"If you don't make the decision now,
0:17:44 > 0:17:47"if you don't buy the portfolio now, we'll kill the pictures,
0:17:47 > 0:17:49"we delete them for copyright reasons."
0:17:49 > 0:17:53Copyright reasons? Come off it.
0:17:53 > 0:17:57It's made clear several times during the call that Felix's test shoot
0:17:57 > 0:18:00wouldn't guarantee him work.
0:18:00 > 0:18:04But the overall impression is that he stands a good chance of getting it,
0:18:04 > 0:18:06especially because of claims like this one...
0:18:16 > 0:18:21That's NOT true. We checked with both high street names,
0:18:21 > 0:18:27and they told us they'd never used this company and certainly didn't have any work with them now.
0:18:27 > 0:18:31So we asked Form Models about what we'd heard on the call, and the way that they do business.
0:18:31 > 0:18:35They reiterated they're not an agency but a modelling platform.
0:18:35 > 0:18:39And they say that that means they work alongside models
0:18:39 > 0:18:42to help them get casting opportunities and contacts,
0:18:42 > 0:18:45without charging any commission or admin fee.
0:18:45 > 0:18:50They accept they have not helped models to get work with River Island or H&M.
0:18:50 > 0:18:54They didn't say why Felix and his mum were told otherwise,
0:18:54 > 0:18:58but they did send us the name of other companies for which they have provided models.
0:18:58 > 0:19:01Although when we contacted these companies,
0:19:01 > 0:19:06some of them said they had also never worked with Form Models.
0:19:06 > 0:19:10Form Models say it's clearly stated on their website
0:19:10 > 0:19:15that models under 22 need to be accompanied by a parent at their photoshoots.
0:19:15 > 0:19:17That's so that they can...
0:19:23 > 0:19:26And to stop them ordering photos out of their price range...
0:19:31 > 0:19:35They stress that at these test shoots they offer many different types of portfolio,
0:19:35 > 0:19:38starting with single images at £50,
0:19:38 > 0:19:42and there is no obligation or minimum purchase.
0:19:44 > 0:19:48Meanwhile, Felix and his mum are glad they did not sign up with Form Models.
0:19:48 > 0:19:51But they can understand why others have.
0:19:51 > 0:19:54They take peoples' hopes up, people who might not have much
0:19:54 > 0:19:56and want to, you know, get out there,
0:19:56 > 0:19:58get out in the world, be the people on the poster boards.
0:19:58 > 0:20:02'They were plugging directly in to the heart of a parent
0:20:02 > 0:20:06'who wants their child to be happy, succeed, get a job.'
0:20:06 > 0:20:09They were cynically after my wallet.
0:20:12 > 0:20:14Still to come on Rip-Off Britain,
0:20:14 > 0:20:18the fraudulent mobile phone apps that are secretly stealing your money.
0:20:18 > 0:20:21It was pretty clear that I wasn't the only person in the country
0:20:21 > 0:20:24to have suspicious text messages on their mobile phone.
0:20:28 > 0:20:30- JULIA:- 'For one weekend only,
0:20:30 > 0:20:33'we've set up our very own one-stop consumer advice shop.
0:20:33 > 0:20:36'Inside, our team of experts is ready and waiting
0:20:36 > 0:20:40'to offer practical advice on your consumer issues.'
0:20:40 > 0:20:42The solicitors' fees came to £800.
0:20:42 > 0:20:46The flight's still here, we're still here, you can't have your money back.
0:20:46 > 0:20:50- So have you paid him at all for what he did?- Just under £1,000.
0:20:50 > 0:20:53'Sarah has been telling Trading Standards expert Sylvia Rook
0:20:53 > 0:20:57'how she feels well and truly misled after buying son Ross
0:20:57 > 0:21:00'what she thought was a great value birthday treat.'
0:21:00 > 0:21:06We've recently purchased a paintballing experience day out for ten people,
0:21:06 > 0:21:11and I said to the salesman, "That seems very, very cheap."
0:21:11 > 0:21:13It was £60 for 10 people.
0:21:13 > 0:21:16I said to him, "There must be more to pay,"
0:21:16 > 0:21:18and he said, "No it's a one-off special offer."
0:21:18 > 0:21:21Having got the pack home and read it properly,
0:21:21 > 0:21:25we've realised that the price we actually paid for the product
0:21:25 > 0:21:28is nowhere near the price we'll actually have to pay on the day.
0:21:28 > 0:21:32It's going to cost approximately £300 more to use.
0:21:32 > 0:21:37The situation is slightly difficult because of the fact that your husband signed a contract.
0:21:37 > 0:21:40I would always say never sign something unless you've read it,
0:21:40 > 0:21:42even if you're being put under pressure,
0:21:42 > 0:21:44spend time reading the small print.
0:21:44 > 0:21:50Having said that, if you were induced into entering a contract through a misrepresentation,
0:21:50 > 0:21:53and had you known all the facts you would not have signed up,
0:21:53 > 0:21:55then that puts you in a very strong position.
0:21:55 > 0:21:59'And it seems Sarah isn't the only person in the area
0:21:59 > 0:22:03'to feel ripped off after buying a paintball package.
0:22:03 > 0:22:05'Gillian fell for the same package.'
0:22:05 > 0:22:11So you thought you were paying £59.99 for a full day for 10 people?
0:22:11 > 0:22:15Yeah. But actually when I went to book up, they had said "Oh, it's £9.99 per person."
0:22:15 > 0:22:19I think what you need to do is you need to write to the company and say
0:22:19 > 0:22:22that you were misled when you entered into the contract.
0:22:22 > 0:22:25Had they been honest with you, you would never have signed up for that contract.
0:22:25 > 0:22:27- You paid on credit card? - I did, yeah.
0:22:27 > 0:22:30When you pay on credit card, you're also covered by the Consumer Credit Act,
0:22:30 > 0:22:35so if the trader won't give you a refund, you can make a claim against the credit card company.
0:22:35 > 0:22:38- Oh, good. - It's very important you also speak to Trading Standards,
0:22:38 > 0:22:43because Trading Standards can look and see if the company are deliberately misleading consumers,
0:22:43 > 0:22:46and they can take action against the company in relation to the way they trade.
0:22:46 > 0:22:50- Yeah.- I hope you manage to find some way to celebrate your birthday soon.
0:22:50 > 0:22:53- Thank you very much for coming. - OK, thanks.
0:22:53 > 0:22:57'Travel expert Simon Calder has been listening to your holiday nightmares,
0:22:57 > 0:23:02'and there's something bugging our next consumer, Carol, after her recent family holiday to Turkey.'
0:23:02 > 0:23:08There were these black insects all over the headboard and all over my husband's pillow.
0:23:08 > 0:23:12We spoke to hotel reception the next morning, we showed them the insects
0:23:12 > 0:23:16and she said, "Yes, they're bedbugs." We expressed our disappointment.
0:23:16 > 0:23:20Since we've arrived home, I've sent two e-mails back to the hotel
0:23:20 > 0:23:23saying that, you know, it was a bit disappointing
0:23:23 > 0:23:26and would we be able to be recompensed in any way, you know?
0:23:26 > 0:23:29And what did they say?
0:23:29 > 0:23:31I've never had a reply from the e-mail.
0:23:31 > 0:23:35Simon I know you're ITCHING to sort this out,
0:23:35 > 0:23:37but that is horrific isn't it?
0:23:37 > 0:23:40Well, yeah. I mean this hotel wasn't, dare I say, UP TO SCRATCH.
0:23:40 > 0:23:44However, the hotel's in Turkey, it's outside the EU,
0:23:44 > 0:23:50so a lot of the consumer rights that you would normally get do not apply.
0:23:50 > 0:23:54If you'd bought the holiday through a tour operator,
0:23:54 > 0:23:55you might be a bit luckier.
0:23:55 > 0:23:58It is unsettling, but I'm afraid it's one of those things where
0:23:58 > 0:24:02there is no legal recourse for being unsettled.
0:24:02 > 0:24:05I'm afraid I can't see any way through this.
0:24:05 > 0:24:11It is a horrible story, and I'm really sorry you've all had to go through it. How awful!
0:24:11 > 0:24:14'We've been meeting consumers face to face
0:24:14 > 0:24:18'and hearing about their concerns all weekend.'
0:24:18 > 0:24:20- I've been a victim of card fraud.- Oh!
0:24:20 > 0:24:22- Come with me.- Let's go.
0:24:22 > 0:24:24I know, I won't lead you astray, I tell you.
0:24:24 > 0:24:25So nice meeting you.
0:24:28 > 0:24:32Big companies can spend millions on advertising because they know
0:24:32 > 0:24:36it really is the most effective way to get their message across.
0:24:36 > 0:24:39The trouble is, they can be so keen to push that message
0:24:39 > 0:24:42that sometimes they don't quite tell you the whole story,
0:24:42 > 0:24:45and you can end up being seduced by a claim
0:24:45 > 0:24:47that may not be completely true.
0:24:47 > 0:24:52So if you've ever felt had by an ad, here's an experiment you can play along with at home.
0:24:52 > 0:24:57Take a look at these ads and see if you can guess what they've all got in common.
0:24:59 > 0:25:01'Do you remember seeing these ads on television?
0:25:01 > 0:25:04'Well, you won't see them any more.
0:25:04 > 0:25:07'All were banned from being shown again in their current form,
0:25:07 > 0:25:10'after parts of them were ruled to be misleading.
0:25:13 > 0:25:15'So what was wrong with them?'
0:25:15 > 0:25:19Now, I want to find out how we're taken in by the adverts we look at,
0:25:19 > 0:25:22the impact that it has on us, the way we're misled,
0:25:22 > 0:25:26and ultimately the consequences to the advertising company.
0:25:26 > 0:25:29So we've set up an experiment.
0:25:29 > 0:25:34With the help of this man's expertise - Dr Dimitrios Tsivrikos.
0:25:34 > 0:25:36He's a senior lecturer in consumer psychology
0:25:36 > 0:25:39at the London Metropolitan University.
0:25:39 > 0:25:43My role at the university is to conduct research in order to
0:25:43 > 0:25:47understand how people may be affected and understand advertising.
0:25:47 > 0:25:52How to become aware of these strategies and avoid any unnecessary purchasing, if possible.
0:25:52 > 0:25:56'For our test, we've invited along some of the students
0:25:56 > 0:25:59'from the university where Dimitrios lectures.
0:25:59 > 0:26:03'We'll show them ads that have fallen foul of the Advertising Standards Authority,
0:26:03 > 0:26:05'and we'll see if they can work out
0:26:05 > 0:26:08'why they were ruled misleading in some way.'
0:26:08 > 0:26:11Good morning. Thank you very much indeed for joining in in our experiment.
0:26:11 > 0:26:15I'm going to show you a selection of TV ads
0:26:15 > 0:26:18and then we are going to ask you your opinions.
0:26:18 > 0:26:20The first ad to be put to the test is for Harvey's,
0:26:20 > 0:26:21the furniture store.
0:26:21 > 0:26:24- 'My furniture makes me feel like a woman.- There, you've said it.
0:26:24 > 0:26:28- 'I very much have.- The Harvey's eight day sale. Ends Monday, 8pm.'
0:26:29 > 0:26:32Well, there you have it, I can see you all analyzing, thinking,
0:26:32 > 0:26:34"What am I looking for here?"
0:26:34 > 0:26:39Well, I've just moved recently so I was definitely interested in the half-price deal
0:26:39 > 0:26:40because I have to buy sofas.
0:26:40 > 0:26:44Do you feel the urgency? Do you think you want to race before Monday at eight o'clock?
0:26:44 > 0:26:45I did, I did, yeah, yeah.
0:26:45 > 0:26:49OK. Now what is the truth about what happened after the sale finished?
0:26:49 > 0:26:53Well, the truth of the matter is that there was another introduction
0:26:53 > 0:26:54of another sale after the eight days,
0:26:54 > 0:27:00so the manufacturer and the company were not clear in terms of how long the sale will actually last.
0:27:00 > 0:27:04'In May, the Advertising Standards Authority upheld complaints
0:27:04 > 0:27:07'against the ad, because the last thing you would expect
0:27:07 > 0:27:10'after being told the exact time the sale would end,
0:27:10 > 0:27:14'would be that the next day prices would go even lower.
0:27:14 > 0:27:19'Well, we did ask Harveys if they wanted to comment on this, but they didn't.'
0:27:19 > 0:27:22How would you now feel if you'd rushed before Monday at eight o'clock?
0:27:22 > 0:27:25Cheated, because actually there's no sale at all, it sounds like.
0:27:25 > 0:27:26It's misleading.
0:27:26 > 0:27:29'Next, an ad from Center Parcs.'
0:27:29 > 0:27:33'What would you like your children to inherit? A house?
0:27:33 > 0:27:38'A clock? The family silver? Or something a little more valuable?'
0:27:50 > 0:27:53Interesting. Now, being a grandparent myself,
0:27:53 > 0:27:55I actually quite like the look of that ad.
0:27:55 > 0:27:57Who would like to kick this one off?
0:27:57 > 0:28:02Overall I would say it's a catchy ad and I guess this would sell.
0:28:02 > 0:28:05I noticed the price, as well, at the top.
0:28:05 > 0:28:09It was just very small, but it was "from" I think £249,
0:28:09 > 0:28:12so I think that might be a little bit misleading, if people
0:28:12 > 0:28:17are expecting to have as good a time as the family in the advert are having for that price,
0:28:17 > 0:28:19I don't think they'd be able to do it.
0:28:19 > 0:28:22- GLORIA CHUCKLES - So, Dimitrios, the idea seems pretty good in this case.
0:28:22 > 0:28:25Advertising is about a memory, a feeling and an experience,
0:28:25 > 0:28:28and they're showcasing lovely experiences for their kids.
0:28:28 > 0:28:31However, the interesting case about this particular ad
0:28:31 > 0:28:35- is that the offer is only available during the week.- What do you mean, during school time?
0:28:35 > 0:28:39- It's only available during school time?- Exactly, yes.
0:28:39 > 0:28:43- That's really misleading. - And it's also not available during school holidays,
0:28:43 > 0:28:45so how can you actually enjoy this particular ad
0:28:45 > 0:28:48for that particular age group of children they are showcasing?
0:28:48 > 0:28:53'So last May, the ASA pulled the ad from our screens
0:28:53 > 0:28:56'because they, too, thought that an ad so clearly aimed at families
0:28:56 > 0:28:59'was misleading, as the offer was available only during school term,
0:28:59 > 0:29:03'which would obviously make it impossible for most families to go.
0:29:03 > 0:29:05'Center Parcs tell us that they think
0:29:05 > 0:29:07'the ASA's ruling was rather harsh,
0:29:07 > 0:29:11'saying that they've always stuck to the advertising rules,
0:29:11 > 0:29:13'and at no point were they trying to mislead with this ad.
0:29:13 > 0:29:17'The family was a real one, used to depict a general representation
0:29:17 > 0:29:23'of the family experience at Center Parcs, regardless of the ages of the children.
0:29:23 > 0:29:27'And they point out that there was only one complaint about the ad.
0:29:27 > 0:29:31'Next, from holidays, to pay days.'
0:29:31 > 0:29:34So this ad is about Wage Day Advance, a rather interesting one.
0:29:34 > 0:29:35'There you have it.
0:29:35 > 0:29:38'Wage Day Advance helped Sam get the break she - sorry, they - wanted.
0:29:38 > 0:29:40'Back to the studio.
0:29:40 > 0:29:43'In other news, Kim, a teacher from Aberdeen
0:29:43 > 0:29:46'wanted to avoid her bank's unauthorised overdraft fees,
0:29:46 > 0:29:51'so she borrowed £70 at a cost of £20.65, payable on her next pay day.
0:29:51 > 0:29:55- 'Nice.- Wage Day Advance, making any day your wage day.'
0:29:55 > 0:29:59A lot of percentages there, a lot of information,
0:29:59 > 0:30:02and a lot of spending going on, apart from the debt.
0:30:02 > 0:30:04Have any of you got feelings about that?
0:30:04 > 0:30:08I think it's really, really wrong to kind of encourage people to take out loans to pay the bank.
0:30:08 > 0:30:13I couldn't see the APR on the bottom of the screen on that one.
0:30:13 > 0:30:16It was full of very upbeat people and smiling faces.
0:30:16 > 0:30:20I thought that was interesting, to maybe suggest if you are in debt
0:30:20 > 0:30:22and you take a loan from this company,
0:30:22 > 0:30:25you'll have a smile back on your face and you'll be very happy again.
0:30:25 > 0:30:28- Ultimately misleading then? - Yeah I would think, so. Yeah.
0:30:28 > 0:30:31These ads are not just misleading, but they're educating a nation in terms of easy debt,
0:30:31 > 0:30:33and they are targeting really, really young people.
0:30:33 > 0:30:36And at what point was this taken off?
0:30:36 > 0:30:39they were making complaints about the visibility of the APR.
0:30:39 > 0:30:42It was actually underneath the very fluorescent and colourful banner.
0:30:42 > 0:30:45So, distracting your attention from what is really meaningful.
0:30:45 > 0:30:48And the APR was over 2,000%.
0:30:48 > 0:30:51And that key detail is what the Advertising Standards Authority
0:30:51 > 0:30:56said in May, ruling that it should have been displayed more clearly.
0:30:56 > 0:30:59The company has told us they don't consider it misleading,
0:30:59 > 0:31:03pointing out they happily showed the APR on the ad,
0:31:03 > 0:31:07and always make the rate clear when anyone takes out a loan.
0:31:07 > 0:31:10They say of the millions of people who saw the ad,
0:31:10 > 0:31:13only 14 said they couldn't read the APR,
0:31:13 > 0:31:16at which point they immediately removed it.
0:31:17 > 0:31:21Remember that anyone can make a complaint to the ASA.
0:31:21 > 0:31:26In 2011 alone they received 31,000 complaints, and as a result,
0:31:26 > 0:31:30four and a half thousand ads were changed or withdrawn.
0:31:32 > 0:31:34Others ruled misleading were
0:31:34 > 0:31:37Sainsbury's promise that you could feed your family for £50.
0:31:37 > 0:31:39'That's why at Sainsbury's you can now feed
0:31:39 > 0:31:42'a family of four for a week for just 50 quid.'
0:31:42 > 0:31:44The regulator said that, in fact,
0:31:44 > 0:31:48you might need to buy extra food for some of the menus.
0:31:48 > 0:31:50And then there was this ad.
0:31:50 > 0:31:54'New Sanex Zero% contains just the ingredients you need
0:31:54 > 0:31:56'for clean, healthy skin.'
0:31:56 > 0:32:02The regulator upheld complaints that actually the product also contained man-made chemicals,
0:32:02 > 0:32:07as well as a fragrance that wasn't necessary for clean, healthy skin.
0:32:07 > 0:32:11Now, for our students, and indeed me, it's been a real eye-opening day.
0:32:11 > 0:32:14It made me think about some adverts that I've seen before,
0:32:14 > 0:32:16but made me think about them in a different way.
0:32:16 > 0:32:18I didn't realize so many of them were so misleading.
0:32:18 > 0:32:22I learned today that I can actually be quite gullible,
0:32:22 > 0:32:26because I found some of the ads to be really nice, really enticing, really wonderful,
0:32:26 > 0:32:29and then I found out later that they were taken off.
0:32:29 > 0:32:31From now on I'll be really thinking about what I see
0:32:31 > 0:32:34and what I go out and buy, and hopefully saving a bit of money from it.
0:32:34 > 0:32:39Just one complaint can lead to an ad being changed or withdrawn,
0:32:39 > 0:32:41so the message is, if you've come across one
0:32:41 > 0:32:44that you'd like the Advertising Standards Authority to investigate,
0:32:44 > 0:32:51well, the details on what to do are on our website...
0:32:56 > 0:32:58Sometimes, when you feel ripped off,
0:32:58 > 0:33:00it could be you that's made a mistake.
0:33:00 > 0:33:03Perhaps you didn't read the small print,
0:33:03 > 0:33:05or realize the consequences of what you signed up to.
0:33:05 > 0:33:08Well, whoever's at fault, when things go wrong,
0:33:08 > 0:33:11you need to know what to do about it.
0:33:11 > 0:33:14So, we've put together a booklet of tips and advice.
0:33:14 > 0:33:21Now, you can find a link to the new, free guide on our website...
0:33:21 > 0:33:24To receive a copy in the post, send a stamped, self-addressed,
0:33:24 > 0:33:27A5 envelope to the address which we'll give you
0:33:27 > 0:33:30right at the end of the programme.
0:33:32 > 0:33:38And now something that millions of people in the UK would say has revolutionized their lives.
0:33:38 > 0:33:46More than a quarter of adults and over half of teenagers now own a smart phone of some sort.
0:33:46 > 0:33:49High-tech gadgets that don't just make calls,
0:33:49 > 0:33:52they'll book your holiday, operate your TV,
0:33:52 > 0:33:54they'll even take money out of the cashpoint for you.
0:33:54 > 0:33:58So, it surely can't be too long before someone finds a way
0:33:58 > 0:33:59to get them to make you a cup of tea.
0:33:59 > 0:34:04But beware, because wherever there's a clever new technology,
0:34:04 > 0:34:11there's someone equally clever, thinking of ways that they can use it to trick you out of your cash.
0:34:14 > 0:34:17They're designed to make life easier.
0:34:17 > 0:34:21So is it any wonder that we love them so much?
0:34:21 > 0:34:27I'm so reliant on my smartphone and couldn't imagine my life without it.
0:34:27 > 0:34:29The thing I like most about my phone is how it has
0:34:29 > 0:34:32so many different ways of connecting with other people.
0:34:32 > 0:34:35It's a mini computer, literally, so I can just carry it around wherever I want.
0:34:35 > 0:34:38And what smartphone owners love most of all is the apps -
0:34:38 > 0:34:43software applications that you can download to do...
0:34:43 > 0:34:45well, just about anything.
0:34:45 > 0:34:48There are apps to tell you when to get on the next bus,
0:34:48 > 0:34:52and games to play while you're on it. All at the swipe of a finger!
0:34:52 > 0:34:53The cinema app on my phone is great,
0:34:53 > 0:34:57I can check what times films are on at and what cinema I can go to.
0:34:57 > 0:35:00When it comes to games on the phone, I've got Cut The Rope
0:35:00 > 0:35:03and Angry Birds, which quite a lot of people have.
0:35:03 > 0:35:05Indeed they have.
0:35:05 > 0:35:09The Angry Birds game has been downloaded a BILLION times.
0:35:09 > 0:35:12Even Prime Minister David Cameron says he's a fan.
0:35:12 > 0:35:16I downloaded it and my children got interested in it, and it is quite addictive.
0:35:16 > 0:35:21An app like Angry Birds might typically cost around 69p.
0:35:21 > 0:35:25But with so many people buying them, this is big business.
0:35:25 > 0:35:29A fact that hasn't gone unnoticed by fraudsters.
0:35:29 > 0:35:31They're now creating rogue smartphone apps,
0:35:31 > 0:35:34copying the original games,
0:35:34 > 0:35:37and designed to steal money from you without you realizing it.
0:35:37 > 0:35:39As John Gladstone discovered.
0:35:39 > 0:35:42What they've spotted is that the phone itself is actually a direct link
0:35:42 > 0:35:44to peoples' bank accounts.
0:35:44 > 0:35:50They can charge you and they can get to your money through your phone.
0:35:53 > 0:35:57John is an engineer from Southampton. He loves his gadgets.
0:35:57 > 0:36:00I like my toys. I like to play with things, I like to fiddle with new technologies.
0:36:00 > 0:36:04John got his very first smartphone in December of last year.
0:36:04 > 0:36:07And he couldn't wait to start downloading his apps.
0:36:07 > 0:36:09I was very excited.
0:36:09 > 0:36:14I started to download lots and lots of applications,
0:36:14 > 0:36:18and before I knew where I was, I'd already filled the phone memory up.
0:36:18 > 0:36:23The shiny new phone was an Android handset, developed by online giant, Google.
0:36:23 > 0:36:28They also run the site for downloading Android apps, Google Play.
0:36:28 > 0:36:31I found a website who recommended top ten apps.
0:36:31 > 0:36:35I downloaded the prerequisite Angry Birds and other apps
0:36:35 > 0:36:38that pretty much everyone has had on their phone at some point.
0:36:38 > 0:36:40A lot of them were free and so I thought, "Why not,
0:36:40 > 0:36:44"if it's free then what's the harm?"
0:36:44 > 0:36:47John had no reason to worry about anything that he'd downloaded.
0:36:47 > 0:36:50But he did notice that when he tried to use the apps,
0:36:50 > 0:36:53some of them wouldn't work properly.
0:36:53 > 0:36:55A few of them maybe didn't open properly,
0:36:55 > 0:36:58just the screen kind of went black, the phone crashed.
0:36:58 > 0:37:01Because they'd been free, John didn't worry too much about
0:37:01 > 0:37:03the apps that weren't working,
0:37:03 > 0:37:06or at least he didn't until a few weeks later
0:37:06 > 0:37:09when his phone bill arrived with some unexpected costs.
0:37:09 > 0:37:13I was quite shocked that I had £15 worth of text messages.
0:37:13 > 0:37:16My normal phone bill is only £5 a month, so I instantly knew something was wrong.
0:37:16 > 0:37:21John contacted his phone company, who explained that the £15
0:37:21 > 0:37:27was down to three premium rate text messages, which had cost £5 each.
0:37:27 > 0:37:29John was baffled.
0:37:29 > 0:37:31I have never sent,
0:37:31 > 0:37:34nor do I ever intend to send, a premium rate text message.
0:37:34 > 0:37:37I've got far better things to spend my money on
0:37:37 > 0:37:40than spending £5 on a message like that.
0:37:40 > 0:37:43Though John insisted he hadn't sent them,
0:37:43 > 0:37:48his phone company was adamant that the messages had come from his phone.
0:37:48 > 0:37:51They recommended that he contact Phonepay Plus,
0:37:51 > 0:37:55the body that regulates the UK's premium rate services.
0:37:55 > 0:37:58When I spoke to Phonepay Plus, it was pretty clear that
0:37:58 > 0:38:01I wasn't the only person in the country to have the same
0:38:01 > 0:38:05suspicious text messages on their mobile phone.
0:38:05 > 0:38:09In fact, they were already looking into 34 similar complaints
0:38:09 > 0:38:13from people who'd been charged for messages they knew nothing about.
0:38:13 > 0:38:16It turns out there'd been something very sneaky
0:38:16 > 0:38:21lurking inside a few of those apps that John had downloaded.
0:38:21 > 0:38:25Nitin Lanchani was involved in the investigation.
0:38:25 > 0:38:27Malicious applications were uploaded
0:38:27 > 0:38:29to the official Android market place.
0:38:29 > 0:38:32They were made to look like free games
0:38:32 > 0:38:35which otherwise you would need to pay for.
0:38:35 > 0:38:39Popular games such as Angry Birds, Assassin's Creed, Cut The Rope.
0:38:39 > 0:38:41By hooking up a computer to a phone,
0:38:41 > 0:38:45he can demonstrate exactly what happened to John
0:38:45 > 0:38:50and hundreds of others around the world who downloaded those free games.
0:38:50 > 0:38:52It's going to shed a light on any background processes
0:38:52 > 0:38:55which the user doesn't normally see.
0:38:55 > 0:39:00When the apps are installed the phone is blank, as if nothing is going on.
0:39:00 > 0:39:04But the computer screen shows that hidden away in the background
0:39:04 > 0:39:09is all sorts of secret activity, and Nitin can work out what that means.
0:39:09 > 0:39:11We grab that, and we can decode that,
0:39:11 > 0:39:14and it states, "You've been billed £5 for this message."
0:39:14 > 0:39:17So if we have a look at the phone itself
0:39:17 > 0:39:23and go to the inbox, none of that activity can be seen.
0:39:23 > 0:39:27So these fake versions of games like Angry Birds
0:39:27 > 0:39:30had caused a lot of angry customers, including John.
0:39:30 > 0:39:35It's not clear exactly which of the apps he'd downloaded was the culprit,
0:39:35 > 0:39:39but whichever it was, when he thought it had simply crashed,
0:39:39 > 0:39:43it had secretly been triggering those premium rate texts
0:39:43 > 0:39:46and racking up charges to his bill.
0:39:46 > 0:39:49It looks like a clever scam.
0:39:49 > 0:39:50But not clever enough.
0:39:50 > 0:39:54Phonepay Plus were able to take action and stop it,
0:39:54 > 0:39:58but only after whoever was responsible
0:39:58 > 0:40:01had earned themselves tens of thousands of pounds.
0:40:01 > 0:40:06And although THIS smartphone scam has been foiled, more are sure to follow,
0:40:06 > 0:40:09as Phonepay Plus chief executive Paul Whiteing explains.
0:40:09 > 0:40:11As more people are getting smartphones
0:40:11 > 0:40:15which are computers of a form,
0:40:15 > 0:40:18then risks of this malicious type of activity is growing.
0:40:18 > 0:40:21We expect it to grow further and consumers will need to be aware of this problem
0:40:21 > 0:40:23and try to take action to watch out for it.
0:40:23 > 0:40:28So, John will be keeping a close eye on his smartphone in the future.
0:40:29 > 0:40:32Certainly these days I'm a little more cautious before
0:40:32 > 0:40:35pushing the button to download the app,
0:40:35 > 0:40:41that I'm really sure I know what I'm downloading and I'm confident that it's not anything malicious.
0:40:45 > 0:40:49- JULIA:- Here at Rip-Off Britain, we're always ready to investigate more of your stories.
0:40:49 > 0:40:51Confused over your bills?
0:40:51 > 0:40:55Trying to wade through wadges of small print that leave you totally confused?
0:40:55 > 0:40:58When they sit you down to sign up for things, they don't really
0:40:58 > 0:41:01give you the chance or the time to read through all of that small print.
0:41:01 > 0:41:04Unsure what to do when you discover you've lost out,
0:41:04 > 0:41:08and that so-called "great deal" has ended up costing you money?
0:41:08 > 0:41:13You feel as though, because you've got a cheap deal, you are not worth their time in the same way.
0:41:13 > 0:41:15You might have a cautionary tale of your own
0:41:15 > 0:41:20and want to share the mistakes you made with us, so others don't do the same.
0:41:20 > 0:41:25I feel angry. I feel stupid that I'd allowed this to happen to me.
0:41:27 > 0:41:29You can write to us at...
0:41:38 > 0:41:41Or send us an email to...
0:41:44 > 0:41:49The Rip-Off team is ready and waiting to investigate your stories.
0:41:51 > 0:41:56You know, I think it's fair to say that very few companies deliberately set out to mislead.
0:41:56 > 0:41:59But, you know, on the whole we're a trusting lot,
0:41:59 > 0:42:02and not unreasonably, most of us do tend to believe what we're told,
0:42:02 > 0:42:07whether it's in an advertisement or because we hear it on the phone.
0:42:07 > 0:42:10In the end, the priority for even the most honest company
0:42:10 > 0:42:14is trying to get your custom, so before you agree to anything,
0:42:14 > 0:42:18let alone handing over money, make sure you've time to see if it's all as it seems.
0:42:18 > 0:42:20Couldn't agree more.
0:42:20 > 0:42:24I think the best advice is don't take anything at face value,
0:42:24 > 0:42:27especially if somebody's trying to get you to make a decision
0:42:27 > 0:42:31in a hurry, or indeed if they've contacted you right out of the blue.
0:42:31 > 0:42:34Well, with that advice, that's just where we've got to leave for today.
0:42:34 > 0:42:37Thanks very much for being with us and hopefully we'll see you again soon.
0:42:37 > 0:42:40- Until then, from all of us, bye-bye. - Bye.- Bye.
0:42:45 > 0:42:50Subtitles by Red Bee Media Ltd.