:00:41. > :00:45.We asked you to tell us who has left you feeling ripped off, and
:00:45. > :00:48.you couldn't tacted us in your thousands, by -- contacted us in
:00:48. > :00:51.your thousands, by phone, e-mail, even stopping us on the streets,
:00:51. > :00:56.the message could not be clearer. Things weren't right, it was
:00:56. > :00:59.costing me time and money, it was like, does anybody listen?
:00:59. > :01:02.Unfortunately these companies are more motivated by their share price
:01:02. > :01:05.than actually looking after the customer. You have told us with
:01:05. > :01:10.money tighter than ever, you need to make sure every pound you spend
:01:10. > :01:14.is worth it. How do I get my money back, I think I'm entitled to it.
:01:14. > :01:18.Whether it's a deliberate rip-off, a simple mistake, or a catch in the
:01:18. > :01:22.small print, we will find out why you are out of pocket, and what you
:01:22. > :01:26.can do about it. Keep asking the questions, keep, go
:01:26. > :01:33.to the top, if you have to. We do get results, that is the
:01:33. > :01:36.interesting thing. Your stories, your money, this is Rip Off Britain.
:01:36. > :01:40.Hello and welcome to Rip Off Britain, the series that tries to
:01:40. > :01:43.ensure that whenever you spend your money, whether it is pounds or
:01:43. > :01:49.pennies, you are really getting exactly what you paid for.
:01:49. > :01:52.But, unfortunately, that's often not the case. So today we are
:01:52. > :01:55.investigating situations where you have told us you have had a raw
:01:55. > :01:58.deal, either because you have had poor value for money, or bad
:01:58. > :02:02.customer service, or, in some cases, both at the same time.
:02:02. > :02:05.What makes the cases we have been hearing about especially
:02:05. > :02:10.frustrating, is it is the find of situation that could happen to
:02:10. > :02:14.every single one of us. As well as finding out what has gone wrong, we
:02:14. > :02:17.will have advice about how to stop the same things happening to you.
:02:17. > :02:22.Coming up, the secondhand car dealer who proves the industry
:02:22. > :02:29.still has its share of rogues. they have the money and the car. We
:02:29. > :02:35.felt we are being taken for ale foo. The true -- For a fool. The true
:02:35. > :02:41.value of high street gift vouchers, what happens when the shop won't
:02:42. > :02:47.honour them? They wouldn't take the voucher, to my mind that was a �10.
:02:47. > :02:51.The Rip Off Britain Pop-Up Shop tackles your problems head on.
:02:51. > :02:55.When you have paid top whack for a hotel that is supposed to be in a
:02:55. > :03:00.league of its own, you are bound to be a bit disappointed if it doesn't
:03:00. > :03:05.come quite up to scratch. While nobody expects everything to be pr
:03:05. > :03:08.effect, when even the rep says the place should have been downgraded,
:03:08. > :03:16.how much of that should you have been told about before you packed
:03:16. > :03:22.your suitcase. Clear blue skies, perfect beaches.
:03:22. > :03:28.No wonder the Maldives are marketed as the ultimate tropical paradise.
:03:28. > :03:33.It seemed the ideal choice when Dawn and Bill decided to blow their
:03:33. > :03:36.savings on a perfect getaway. special reason for the holiday was
:03:36. > :03:40.it was the first time that Bill and I were going on holiday together.
:03:40. > :03:43.We wanted it to be something really special. We both had pretty rough
:03:44. > :03:47.couple of years, and we decided that, actually, we were going to
:03:47. > :03:52.splash out and have a really nice holiday I had always wanted to have
:03:52. > :03:56.a holiday with one of the villas, where it was over the sea, and he's
:03:56. > :04:00.a mad, keen fisherman, we decided to go to the Maldives.
:04:00. > :04:04.Rather than booking on-line, they decided to visit a travel agent.
:04:04. > :04:08.must felt that by speaking to somebody we would be able to select
:04:08. > :04:11.a holiday that was much more appropriate to us, than just
:04:11. > :04:15.booking off the Internet. We shopped around, looked at other
:04:15. > :04:20.places, they weren't really that helpful, so we went into Thomson's,
:04:20. > :04:29.and sat down and chatted to them, and felt that they were giving us
:04:29. > :04:34.the right answers to the requirements we had. All they had
:04:34. > :04:39.to do now was decide where to say, they were recommend today one of
:04:40. > :04:45.Thomson's most impressive-sounding resorts, then called Cinnamon
:04:45. > :04:48.Island. It was a platinum hole day, a four/5-star, it was a gold medal
:04:48. > :04:54.winner, we thought it would be really nice. It certainly sounds
:04:54. > :05:00.like that on the website, which describes it as "the ultimate cast
:05:00. > :05:05.Ye experience", with a "tropical feel". When we saw pictures of the
:05:05. > :05:09.resort it looked lovely. It looked like a real paradise. We thought
:05:09. > :05:14.this is the one, this is the one we are going to chose. Dawn and Bill
:05:14. > :05:22.went ahead and booked, although paradise does come at a price, in
:05:22. > :05:27.this case �4,350. So, not cheap. But they couldn't wait to set off.
:05:28. > :05:31.Unfortunately, when they arrived, there wasn't much sparkle to
:05:32. > :05:35.Thomson's top-range platinum experience. When we arrived at the
:05:35. > :05:42.eye, my first impressions were that it was not quite how the pictures
:05:42. > :05:46.looked. It looked quite tatty, and quite worn. I was just thinking, oh
:05:46. > :05:51.dear. I hope that our Villa is a little bit better than what this
:05:51. > :05:55.looks like. Sadly, it wasn't what Dawn had expected for the money.
:05:55. > :06:00.When we got to the Villa, I have to say my heart dropped. There were
:06:00. > :06:06.wires hanging out of the wall. The roof was falling in, in some bits.
:06:06. > :06:11.When we looked at the outside bathroom we had green mould, algae
:06:11. > :06:18.all over the floor. The downstairs bathroom was outside, so for
:06:18. > :06:25.privacy it had wooden shrat, but you could also see through the
:06:25. > :06:30.shrats, so for privacy we had pieces of fabric, but they were
:06:30. > :06:34.frayeded with holes all over them. Things didn't improve, it was not
:06:34. > :06:39.an idyllic stroll to the beach. three days we had the rubbish boat,
:06:39. > :06:44.which had rusty pieces of metal, it had tanks on it, all sorts of
:06:44. > :06:50.rubbish on it, we had to climb, in rough seas, across this boat, to
:06:50. > :06:54.get on to our boat that would take us to the sand strip, on one case
:06:54. > :06:58.the sea was quite rough, we had to climb in the windows of our boat to
:06:58. > :07:01.get on to it. After the third or fourth day when the scrap boat came
:07:01. > :07:06.to the jety, I think we just thought we really just want to go
:07:06. > :07:11.home. Things weren't any better by the pool. Which the website had
:07:11. > :07:15.described as "styled to the nines". The sun loungers either needed
:07:15. > :07:21.painting, cleaning, or throwing away. The island was just so tired,
:07:21. > :07:27.and so, it looked wornout. I just thought, what's going on?
:07:27. > :07:31.This isn't what the brochure says. I was really, really unhappy.
:07:31. > :07:36.and Bill certainly didn't feel that they were getting a platinum
:07:36. > :07:40.experience worth more than �4,000. So they phoned the local Thomson
:07:40. > :07:43.rep to say so. She said she wasn't going to come to the island, it
:07:43. > :07:47.would take her a day to fly to the island, but that she would talk to
:07:47. > :07:50.the management and try to get them to sort it out, which it didn't
:07:50. > :07:57.happen. But the rep did pass on an intriguing piece of information,
:07:57. > :08:00.telling them that the resort had been downgraded. Her stance was
:08:00. > :08:03.that we should have been told before we went to the island and
:08:03. > :08:06.given the chance to choose a different place to go to. But that
:08:06. > :08:12.hadn't happened, and when we checked the website several months
:08:12. > :08:17.later, although the resort was now advertised under its new name, the
:08:17. > :08:25.J Resort Alidhoo, there was still nothing to suggest it had been
:08:25. > :08:29.downgraded in any way. I have to say I'm feeling completely letdown
:08:29. > :08:34.by Thomson's, I went into the branch who sold us the holiday. I
:08:34. > :08:37.spoke to the assistant manager, she was really helpful. She agreed we
:08:37. > :08:43.should get a refund, but head office did have the power to sort
:08:43. > :08:48.it out for me. Dawn contacted head office, who offered her �175 off
:08:48. > :08:56.another holiday, which she rejected. When they upped their offer to
:08:56. > :09:01.either �330 cash, or �500 voucher, to spend with them. She said no to
:09:01. > :09:04.that too. They increased their offer to �500, but that was off a
:09:04. > :09:07.holiday with them. I thought there is no way I'm having another
:09:07. > :09:12.holiday with you, because of what we have already had, so I was not
:09:12. > :09:16.going to send spend any more money on another holiday. We got in touch
:09:16. > :09:19.with Thomson, who said, they are sorry that Dawn and Bill were
:09:19. > :09:23.disappointed by their hole day, and having reviewed the complaint again,
:09:23. > :09:28.they -- holiday, and having reviewed the complaint again, they
:09:28. > :09:36.would like to increase the amount of the "goodwill gesture for the
:09:36. > :09:43.Ishinomaki use they have experienced", they have offered
:09:43. > :09:46.�1,500,. They said the resort was never downgraded, despite what the
:09:46. > :09:51.rep said, but they do regularly monitor hotels to meet high
:09:51. > :09:55.standards the customers expect. As a result this resort is no longer
:09:55. > :10:01.featured in Thomson's holiday programme.
:10:01. > :10:04.But Dawn is still disappointed that the memories of her holiday are not
:10:04. > :10:09.one that is she can treasure, next time she will be more cautious
:10:09. > :10:14.about how she chooses her destination. I'm very wary now
:10:14. > :10:17.about my holidays and who I book them with. I will now only book
:10:17. > :10:21.through recommendation. I certainly wouldn't book from a brochure. It
:10:21. > :10:28.is upsetting, because it is a holiday we can't get back, our
:10:28. > :10:33.first holiday together, you can't replace that. That was ruined.
:10:33. > :10:37.Next, a couple who made a purchase that they really thought was going
:10:37. > :10:42.to improve their lives. They bought a car. But, in fact, it did nothing
:10:42. > :10:48.of the sort. Because although they couldn't wait to hit the road, once
:10:48. > :10:55.they did, they soon came to a grinding halt.
:10:55. > :11:03.Every day last year an average of 18,500 secondhand cars were sold in
:11:03. > :11:09.England, Scotland and Wales. It's not long since Dr Kabas and his
:11:09. > :11:14.wife bought one of them. No more public transport for them, you
:11:14. > :11:18.might think. So why then, are they waiting for a bus? It all started
:11:18. > :11:21.back in September 2009, the couple both suffer from ill-health and
:11:21. > :11:25.needed car. So their friends and family lent them the money to buy
:11:25. > :11:28.one. I couldn't believe how lucky I am
:11:28. > :11:33.to have such a nice family and friends, that they were willing to
:11:33. > :11:37.collect money for us to buy the car. I'm really thankful forever for
:11:37. > :11:47.them. With the cash sorted, all they needed now of the perfect
:11:47. > :11:48.
:11:48. > :11:53.vehicle. They looked on the car trade website Autotrader, a seven-
:11:53. > :12:02.seater Mercedes, and ideal for their four children and them. They
:12:02. > :12:07.immediately called their dealer, of the The Old Stable Car Co, not to
:12:07. > :12:10.be confused with any other company, and all the arrangements were made.
:12:10. > :12:16.The arrangement was he delivered the car, because we couldn't go
:12:16. > :12:22.there, it was too many miles. deal was they would pay John
:12:22. > :12:28.Staniland a �2,000 deposit with a debit card over the phone, and the
:12:28. > :12:33.remaining, �4,300 would be due in cash on delivery of the car.
:12:33. > :12:37.were delighted, it is too good to be true, now we can have a car, we
:12:37. > :12:40.can be independent and our problems solved. The dealer delivered the
:12:40. > :12:45.car to their home as promised, although the couple wanted to take
:12:45. > :12:48.it out for a test drive straight away, but the couple were told that
:12:48. > :12:52.wasn't possible, as they didn't have insurance. As the car came
:12:52. > :12:58.with a three-month guarantee, they weren't that worried. So Dr Kabas
:12:58. > :13:02.handed over the remaining money, all �4,300, in cash.
:13:02. > :13:07.We were so sure that was the car we wanted, we were just quite happy.
:13:07. > :13:12.The following day, with the car now taxed and sured, the family took to
:13:12. > :13:17.the open road. But after just minutes, the car brokedown, as it
:13:17. > :13:22.approached a business -- insured, the family took the car on the open
:13:22. > :13:27.road, it brokedown on a round about. The children were screaming, the
:13:27. > :13:33.cars were going to hit us, it was a very bad experience. I was really
:13:33. > :13:38.shocked. I couldn't, I didn't know what to do. I just wanted to cry.
:13:38. > :13:42.Horrified, they took the car to a local Mercedes garage, where they
:13:42. > :13:47.were told the last thing they wanted to hear. Both the engine and
:13:48. > :13:55.the gear box were faulty. And it would cost around �3,000 to fix
:13:55. > :14:00.them. I couldn't believe it, I was just
:14:00. > :14:05.in tears, how can I afford this amount of money. Remember, they had
:14:05. > :14:10.only bought the car the day before. Still, at least it had come with a
:14:10. > :14:15.three-month guarantee. They phoned the dealer, John Staniland, asking
:14:15. > :14:20.for the car to be fixed, or the money back. Every time he made
:14:20. > :14:24.excuses, he didn't pick up the phone. He's busy, he's on the road
:14:24. > :14:33.driving. The couple contacted Trading Standards, who advised them
:14:33. > :14:38.to write to John S st, aniland -- Staniland, and reject the vehicle
:14:38. > :14:43.because the car was faulty. They were also advised to have an
:14:43. > :14:46.independent inspector to test the car. Within minutes when the engine
:14:46. > :14:51.started to warm it suffered from catastrophic power loss, it was
:14:51. > :14:55.unsafe to use on the road. might think the dealer might want
:14:55. > :15:00.to put right a dangerous car, even with Trading Standards on the case,
:15:00. > :15:05.it took John Staniland over a year to even agree to fix it. When he
:15:05. > :15:13.did finally come and collect the car, in April 2011, that was the
:15:13. > :15:18.last they saw of it. I think now he has the money and the car, we felt
:15:18. > :15:21.you know we are being taken for a fool.
:15:21. > :15:28.In desperation, nearly two years after they had parted with their
:15:28. > :15:31.cash, Dr Kabas decided the only option was to take John Staniland
:15:31. > :15:37.to court. They hoped they would find out what happened to their car
:15:37. > :15:42.and money. Unfortunately, he didn't show up.
:15:42. > :15:48.But it did seem as if their luck was beginning to change.
:15:48. > :15:53.judgment was in our favour to Mr Staniland to give us our money back.
:15:53. > :15:58.We thought justice had been done, but sadly enough, it wasn't.
:15:58. > :16:05.Despite being ordered by the court, John Staniland did not return any
:16:05. > :16:10.of the money. Refusing to give up, Dr Kabas paid a bailiff's company
:16:10. > :16:15.to enforce the court order, even they returned defeated. They said
:16:15. > :16:20.they went to his place a few times, but they can't speak to him because
:16:20. > :16:26.he has a very tall fence, they send him e-mails and tried telephoning
:16:26. > :16:29.him, all in vain, they could not locate Mr John Staniland. In March
:16:29. > :16:34.this year, there was a further twist, the couple received a letter
:16:34. > :16:40.from the DVLA, saying someone was trying to register the car, leading
:16:40. > :16:44.them to believe that John Staniland was selling on the car they owned.
:16:44. > :16:51.What a surprise he's trying to sell the car, he has the money and the
:16:51. > :16:54.car and he's trying to sell it again. We asked John Staniland to
:16:54. > :16:58.explain himself. But he hasn't bothered to answer any of our
:16:58. > :17:01.questions. We know he got at least one of our letters, because we
:17:01. > :17:09.delivered it to his premises ourselves. And when we did, we
:17:09. > :17:13.could see exactly what the bailiffs were up against. So, Dr Kabas and
:17:13. > :17:19.his family have been left high and dry. And with the police unable to
:17:19. > :17:26.help because it is a civil matter, the family are still without their
:17:26. > :17:29.car or their �6,300. I was deeply disappointed, because
:17:29. > :17:37.we lost the money that we got from family and friends, we let them
:17:37. > :17:42.down. The way I feel at the moment is disgusted with the whole ordeal.
:17:42. > :17:47.If you want to join the millions of people who do safely manage to buy
:17:47. > :17:52.a used car, then Sylvia Rook from Trading Standards has more advice
:17:52. > :17:55.on how to make that right purchase. When buying a car from a motor
:17:55. > :17:58.dealer you have rights under the Sale of Goods Act that the car
:17:58. > :18:04.should be of satisfactory quality, fit for purpose and as described.
:18:04. > :18:08.If you have a problem with the motorcar, you can go back to the
:18:08. > :18:11.dealer to get your money back or a repair. If you buy a car from a
:18:11. > :18:14.private seller, you have fewer rights under the Sale of Goods Act.
:18:14. > :18:18.The right you have is that goods should be as described, that means,
:18:18. > :18:21.if you have a problem with the car being faulty, you don't have a
:18:21. > :18:24.claim against the private seller. For that reason it is very
:18:24. > :18:29.important you ask lots of questions and do a lot of checks if you are
:18:29. > :18:36.buying from a private seller. If you have used a credit card to put
:18:36. > :18:41.a deposit down on a motorcar, then the credit card company is label
:18:41. > :18:45.under the credit card consumer act, then you can go to the dealer and
:18:45. > :18:51.the credit card company or both. Always examine a car thoroughly
:18:51. > :18:55.before you buy it, look for places where the paint doesn't match, it
:18:55. > :18:59.might be resprayed after an accident, look for spots of
:18:59. > :19:02.rewelding, if you have any doubts, won't buy T always make sure there
:19:02. > :19:08.is the correct documentation with the vehicle before you buy T check
:19:08. > :19:12.the registration document to make sure the VIN number matches the
:19:12. > :19:15.vehicle, and all names and addresses match up, that way you
:19:15. > :19:19.are less likely to have a stolen vehicle. Always get a history check
:19:19. > :19:22.on it, that will tell you if there was outstanding finance on the
:19:22. > :19:25.vehicle, whether it is an insurance write-off or the vehicle has been
:19:25. > :19:33.stolen. It may cost a little bit more, but it is worth it in the
:19:33. > :19:38.long run. Overnight we transferred this space
:19:38. > :19:44.into a drop-in consumer advice shop, where we met hundreds of you face-
:19:44. > :19:47.to-face. There is one particular group of
:19:47. > :19:51.consumers who felt they were getting a really raw deal. One of
:19:51. > :19:55.the big problems we get here in Rip Off Britain is all to do with
:19:55. > :20:00.motoring, cars, the cost of petrol, everything, in fact, to get your
:20:00. > :20:04.car on the road. And getting back behind the wheel of her new car is
:20:04. > :20:08.proving very difficult for Amily. bought a car in January, it was
:20:08. > :20:11.brand new, I only had it ten weeks and it developed a fault. I have
:20:11. > :20:15.taken it back to the garage four times, complained to head office
:20:15. > :20:18.twice, and I still don't have a resolution. You are covered by the
:20:18. > :20:21.Sale of Goods Act, when you buy a car it must be of satisfactory
:20:21. > :20:25.quality and remain so for a reasonable period of time. From
:20:25. > :20:29.what you are saying your car is not of satisfactory quality. If they
:20:30. > :20:33.areing saying they send it off to somewhere else they should provide
:20:33. > :20:38.a replacement car so you are not inconvienced at all. If you suffer
:20:38. > :20:40.any losses or miss any work, you can claim what is called
:20:40. > :20:44.consequential losses, you can claim those losses from the garage where
:20:44. > :20:49.you bought the vehicle. Do you feel better now? I do. Good luck, I hope
:20:49. > :20:54.you get it sorted. Also within our advice shop, the
:20:54. > :20:58.literacy and numeracy team from BBC Skills Wise, has put together a
:20:58. > :21:04.series of practical scenarios to test your consumer skills. There is
:21:04. > :21:11.one handy device in particular, that is helping make sure you are
:21:11. > :21:15.getting the best deal. I break out into a cold sweat when percentages
:21:15. > :21:22.are mentioned, you have something there that can help? Sometimes when
:21:22. > :21:26.you are in a shop where there is a discount, you can't work out the
:21:26. > :21:29.prices all the time. We have developed a tool that you can
:21:29. > :21:34.simply slide up the price, slide down the discounts, and it will
:21:34. > :21:40.tell you what the final price is. You can download it straightaway on
:21:40. > :21:45.to your phone? Yes details are on the Skillswise website. Another
:21:45. > :21:50.consumer was concerned she was getting a raw deal on her loan
:21:50. > :21:54.agreement, that was Margaret, she popped in to see our finance expert
:21:54. > :21:59.to get some advice. I took out a loan with a loan company 14 years
:21:59. > :22:03.ago, I'm still paying, I only took it out for �11,000, they are saying
:22:03. > :22:06.I still owe �26,000. Given the high rate of interest you are paying on
:22:07. > :22:13.the loan, you really do need to do something about it. I would
:22:13. > :22:16.strongly advise you to get some free advice, speak to the National
:22:16. > :22:19.Debtline and Consumer Credit Counselling service, and see what
:22:19. > :22:23.they think about challenging the agreement. It is the fairness of
:22:23. > :22:26.the agreement, is there anything they should have done, have they
:22:26. > :22:29.done anything that is subsequently wrong, you may find that if it is
:22:29. > :22:35.the debt might be written off. Thank you very much for your advice.
:22:35. > :22:39.Still to come, counting the cost and the words of that small print.
:22:39. > :22:42.The extraordinary length of the terms and conditions we sign up to
:22:42. > :22:49.every day. I think the small print is so small sometimes that people,
:22:49. > :22:52.they can't be bothered to read it, you could be signing your soul away.
:22:52. > :22:56.It is not always easy to know what to buy as a present, even if it is
:22:56. > :23:00.for someone you have known for years. Which is why rather than
:23:00. > :23:04.risk getting it wrong, most of us, at some point, have fallen back on
:23:04. > :23:08.the trustee gift voucher, you spend the money and they choose the
:23:08. > :23:11.present they want. Simple, isn't it. Why are some people finding they
:23:11. > :23:19.can't redeem their vouchers from the high street store, whose name
:23:19. > :23:22.is written all over the front. It's almost that time of year again.
:23:22. > :23:26.But finding the perfect Christmas present can take a lot of effort,
:23:26. > :23:30.and cost a lot of money. Which is why, when you're buying
:23:30. > :23:40.for a loved one, and you know exactly where they like to shop, a
:23:40. > :23:40.
:23:40. > :23:44.voucher, or gift card, can seem an ideal solution. Great Britain --
:23:44. > :23:50.that is exactly what Marie thought when she was looking for a present
:23:50. > :23:55.for her mother Pat. She wanted something easy to find and wrap and
:23:55. > :23:59.something they would definitely use. She plumped for a gift voucher from
:23:59. > :24:03.the clothing store Peacocks. It was a couple of weeks before Christmas,
:24:03. > :24:07.I had bought my sister and my mum a present, I thought because they do
:24:07. > :24:13.so much for me, I would like to give them something more, and I
:24:13. > :24:16.know they both like shopping at Peacocks. Unknown to Marie,
:24:16. > :24:20.Peacocks was about to become the latest high street shop to come
:24:20. > :24:25.into trouble. A few week after she handed over her presents, it was
:24:25. > :24:31.announced the chain was in administration. While a buyer was
:24:31. > :24:34.sought, its shops were still trading. Maria's mum thought she
:24:34. > :24:38.better spend the voucher at the local branch after seeing the news.
:24:38. > :24:43.I went into town and had a word with the staff, they said there was
:24:43. > :24:48.a problem, and they would probably all be losing their jobs. So I was
:24:48. > :24:52.quite happy that I got in with the voucher when I did. Two days later
:24:52. > :24:56.Pat returned to the same store, this time to spend her daughter
:24:56. > :24:59.Elizabeth's voucher on her behalf. I picked up a few things, when I
:24:59. > :25:04.got to the counter they said they are sorry they can't accept the
:25:04. > :25:08.vouchers any more, they are invalid. Pat was told the voucher was now
:25:08. > :25:12.useless. They just would not accept the voucher at all, despite the
:25:12. > :25:16.fact that, to my mind, that voucher was, in effect, a �10, so we were
:25:16. > :25:20.left with a voucher that we couldn't use. The store had, of
:25:20. > :25:23.course, already accepted the money to purchase the voucher, but,
:25:24. > :25:28.perhaps surprisingly, that didn't mean the store was obliged to
:25:28. > :25:32.honour it. Many people that vouchers or gift cars are as good
:25:32. > :25:37.as a bank note, they are real cash, they are not. They are a promise,
:25:37. > :25:40.by the company that issues them, to let you spend that much money. If
:25:40. > :25:44.that company goes out of business, goes into administration, or goes
:25:44. > :25:48.bankrupt, then that promise, of course, dies with the company. And
:25:48. > :25:51.this really does frustrate people, because when a company goes into
:25:51. > :25:55.administration, it will problem still be running in some way, they
:25:55. > :26:00.will still be the same shops on the high street, they will be owned by
:26:01. > :26:06.the administrators, not by the firm. And those administrators have
:26:06. > :26:11.absolutely no obligation to honour the promises that were made. Back
:26:11. > :26:14.in the Wirral, Pat of determined to get her money back for her daughter.
:26:15. > :26:19.But the official statement from the administrators didn't offer much
:26:19. > :26:23.hope. It said voucher holders will count as unsecured creditor, and as
:26:23. > :26:27.such could complete a form to make a claim. But it made clear that due
:26:27. > :26:34.to the financial situation at Peacock, they are likely to see a
:26:34. > :26:37.nominal return. Pat and Marie did make a claim, as
:26:37. > :26:42.the administrators advised, they were astonished by the response.
:26:42. > :26:46.the bottom of this letter we got back, it says "based on the current
:26:46. > :26:52.information, the dividend is estimated to be 0.7p in the pound,
:26:52. > :26:58.this means the likely return for a gift voucher with a value of �10
:26:58. > :27:02.will be 7p". Can you believe that? 7p, it is an absolute insult.
:27:02. > :27:06.Peacocks was bought by Edinburgh Woolen Mill last February, but the
:27:06. > :27:12.store has confirmed, gift karlds bought prior to administration,
:27:12. > :27:15.won't -- giftcards bought prior to administration, won't be honoured.
:27:15. > :27:19.KPMG said though they sympathise, they are bound by the law on how
:27:19. > :27:23.they deal with the claims of unsecured creditors, and it is
:27:23. > :27:26.common practice for administrators not to honour gift vouchers.
:27:26. > :27:31.So, whatever else this family give each other this Christmas, you can
:27:31. > :27:36.bet it won't be a voucher or a gift card. I certainly won't be buying a
:27:36. > :27:43.piece of plastic again, it is not worth it. It is a rubbish present.
:27:43. > :27:52.It was a nice thought. It's not your fault it went wrong. We might
:27:52. > :27:55.get 7p! If something is sold for one specific purpose, that is
:27:55. > :27:59.exactly what you are meant to get. So you can understand why the
:27:59. > :28:04.couple we're about to meet were livid after what they bought failed
:28:04. > :28:07.to live up to the one simple promise. It is a type of insurance
:28:07. > :28:15.that sounds clear-cut, but an increasing number of people have
:28:15. > :28:20.found it's far from that. Whether you get it new or secondhand, one
:28:20. > :28:23.of the most frustrating things about buying a car is how quickly
:28:23. > :28:28.it depreciate in value. Which is why what is known as gap insurance
:28:28. > :28:31.seems such a good idea. If your vehicle is written off, it covers
:28:31. > :28:38.the difference between what the car was worth at the time it was
:28:38. > :28:42.damaged, and what you paid in the first place.
:28:42. > :28:45.Neil and Denise Thomson had never heard of it until five years ago
:28:45. > :28:49.Denise bought a secondhand car on finance. And, immediately
:28:49. > :28:53.afterwards, the dealer rang suggesting gap insurance was
:28:53. > :28:57.something she would need. I asked him what the gap insurance was, and
:28:57. > :29:02.they explained that any loss on the vehicle, that it pays the
:29:02. > :29:09.difference, the outstanding difference to the finance company.
:29:09. > :29:12.I took the policy out, because it wasn't expensive. The dealer
:29:12. > :29:16.arranged the finance and gap insurance through the same company,
:29:16. > :29:20.although Denise and Neil didn't see the paperwork. The actual policy
:29:20. > :29:25.was sold to my wife over the phone, and she agreed to sign up for it
:29:25. > :29:29.over the phone. There was no paperwork. But the policy seemed a
:29:29. > :29:32.very good thing to have, because, if the car was declared a total
:29:32. > :29:37.loss, it would cover the shortfall between what the vehicle was valued
:29:37. > :29:43.at, and any remaining finance. Of course, the Thomson's hoped nothing
:29:43. > :29:48.would ever happen to the car. But, three years later, it did.
:29:48. > :29:52.August my son borrowed the car to go to his girlfriend's father's
:29:52. > :29:55.work place, he left the car there, and they came home, and we got a
:29:55. > :30:03.phone call from the police, I think it was, saying that the car had
:30:03. > :30:07.been set on fire. The unprovoked arson attack totally destroyed the
:30:07. > :30:14.car. Denise was gutted, it was her pride and joy, she used the car
:30:14. > :30:22.nearly every day, so, she was gutted. At the time the Thomson's
:30:22. > :30:26.owed �6064 to the finance company. �4475 of that was quickly paid off
:30:26. > :30:33.under their car insurance. And they were confident that the remaining
:30:34. > :30:41.shortfall of �1,589 would be paid off by their gap insurance.
:30:41. > :30:45.Afterall, the G-A-P in gap insurance, standed for guaranteed
:30:45. > :30:51.asset protection. Much to the couples' surprise the policy paid
:30:51. > :30:57.out only half of that, leaving them with �738 still owed. When it came
:30:57. > :31:02.down to what the primary insurer actually paid to the finance
:31:02. > :31:06.company, the gap insurance should have then paid the difference, they
:31:06. > :31:10.didn't, that is the whole crux of the matter, they didn't keep their
:31:10. > :31:17.end of the bargain on the gap insurance. The gap insurer, the
:31:17. > :31:21.London General Insurance Company Ltd, reduced to pay the amount,
:31:21. > :31:25.because they said when Denise bought the car, they paid more than
:31:25. > :31:27.market value, and they considered it to be negative equity and not
:31:27. > :31:31.their responsibility. But Neil didn't agree. And he was determined
:31:32. > :31:36.to get what he felt was owed. So, he asked the company to send him
:31:36. > :31:41.the policy documents. When we actually got the policy documents,
:31:41. > :31:44.the terms and conditions in it were so awkward to understand, as a lay
:31:44. > :31:50.person, who had never any dealings with insurance companies in this
:31:50. > :31:55.manner, it was very difficult. refusing to give up, Neil dug a bit
:31:55. > :31:58.deeper. He had a look at his insurer's website, and found a big
:31:58. > :32:03.gap between the way the insurance was described in the paperwork he
:32:03. > :32:07.was sent, and how it was explained on-line. When I looked at the
:32:07. > :32:11.website, it was dead clear, the policy that they were selling was
:32:11. > :32:15.dead clear. It was very, very simple to understand. So when we
:32:15. > :32:20.got the terms and conditions, it made it looks a though they were
:32:20. > :32:23.two different policies. The website wording seemed clear, that the
:32:23. > :32:28.policy would pay the outstanding balance at the time of the loss to
:32:28. > :32:34.the finance company. So, armed with this information, Neil took his
:32:34. > :32:38.case to the Financial Ombudsman Service. I formally wrote to them
:32:38. > :32:44.complaining about the gap insurance. I detailed all the paperwork that I
:32:44. > :32:48.had, and sent many, many reams of paper off to them for them to
:32:48. > :32:52.consider. The adjudicator came down on our side saying they were right,
:32:52. > :32:57.and the gap insurance should have said the correct amount and hadn't.
:32:57. > :33:00.But that wasn't the end of it. The insurers disputed that decision, on
:33:00. > :33:05.the grounds that although it was their policy, it hadn't been they
:33:05. > :33:09.that had sold it to Denise. I was annoyed and angry about, that they
:33:09. > :33:19.were trying to absolve their responsibility. So I think they
:33:19. > :33:19.
:33:19. > :33:25.were just being obstructive once again, not want to go pay what was
:33:25. > :33:32.due. It was left to the Financial Ombudsman Service to decide. They
:33:32. > :33:36.agreed Neil and Denise should have been paid the amount, and the terms
:33:36. > :33:39.and conditions were not clear enough, and the website was
:33:39. > :33:44.misleading. I was absolutely delighted because at every stage we
:33:44. > :33:48.have been right regarding what the policy was, and just vindicated for
:33:48. > :33:52.all the hard work we had put in over the two years to try to get it
:33:52. > :33:55.settle. When we contacted the insurance company, they reiterated
:33:56. > :33:59.in their opinion the issue here was to do with the way the policy was
:33:59. > :34:04.sold. And they believed they calculated the settlement correctly.
:34:04. > :34:08.But they confirmed they had accepted the ombudsman's decision,
:34:08. > :34:13.and paid the money. Neil and Denise aren't the only ones to find that
:34:13. > :34:16.gap insurance doesn't always do quite what it says on the tin. Over
:34:16. > :34:21.the last years complaints to the Financial Ombudsman Service about
:34:21. > :34:24.this kind of policy increased by 17%. If you are getting this kind
:34:24. > :34:28.of policy, keep in mind it may not always be as straight forward or
:34:28. > :34:31.clear cut as it appears. I would say to other people be very, very
:34:31. > :34:36.careful when you are taking gap insurance out, that you understand
:34:36. > :34:40.the terms and conditions that they may not pay out at the end of it.
:34:40. > :34:49.Because of certain elements within the terms and conditions, be very,
:34:49. > :34:52.very clear on what you are buying. Sometimes when you feel ripped off,
:34:52. > :34:58.it could be you that's made a mistake. Perhaps you didn't read
:34:58. > :35:01.the small print, or realise the consequences of what you signed up
:35:01. > :35:05.to. Whoever is at fault, when things go wrong, you need to know
:35:05. > :35:12.what to do about it. We put together a booklet of tips and
:35:12. > :35:18.advice, you can find a link to the new free guide on our website.
:35:18. > :35:21.Or to receive a copy in the post, send a stamped self-addressed A5
:35:21. > :35:26.envelope to the address we will give you right at the end of the
:35:26. > :35:29.programme. Here at Rip Off Britain we always
:35:30. > :35:35.say, don't forget to read the small print. But because the terms and
:35:35. > :35:38.conditions we sign up to are so long, and sometimes quite frankly,
:35:38. > :35:42.extremely confusing, you can understand why some people find it
:35:42. > :35:45.easier not to bother analysing the small print. In fact the Office of
:35:45. > :35:51.Fair Trading says one in ten of us are sign contracts without reading
:35:51. > :35:55.a single word. According to the experts, it is
:35:55. > :36:00.words like these in a contract, that are most likely to leave you
:36:00. > :36:05.drowning in a sea of small print. Words too many of you never
:36:05. > :36:13.question, and words some of you never even read. I never bother
:36:13. > :36:17.reading it t I just tick the box, and hope nothing -- I just tick the
:36:17. > :36:21.box and hope nothing happens. should read it, if you don't it is
:36:21. > :36:24.your own fault. They don't give you the chance and time to read through
:36:24. > :36:31.all the small print. The small print is so small people can't be
:36:31. > :36:38.bothered to read it, you could be signing your soul away. The Plain
:36:38. > :36:41.English Campaign continually hear from consumers who fail to read the
:36:41. > :36:45.small print. Many of us don't read the terms and conditions, the
:36:45. > :36:48.problem is as soon as you tick the box and put your name on the boted
:36:48. > :36:58.line, you have given up all chance -- dotted line, you have given up
:36:58. > :37:02.
:37:02. > :37:08.all chance of resource -- replying. It is written in tiny packed
:37:08. > :37:10.sentences, full of industry jargon and terminology we don't use on a
:37:10. > :37:13.regular basis. Why do companies make their conditions so difficult
:37:13. > :37:16.to wade through. The office in fair trading says one in five people
:37:16. > :37:21.would have had some sort of difficulty with a consumer contract
:37:21. > :37:26.just in the past year, and while not all of those will be serious,
:37:26. > :37:30.as we see all too often on this programme, getting caught out by
:37:30. > :37:34.the small print can result in a significant loss of money. Who are
:37:34. > :37:40.the worst offenders, and which industry do consumers have the most
:37:40. > :37:46.problems with, when it comes to contracts. A recent report carried
:37:46. > :37:50.out by YouGov, did a survey to work out exactly that. Telecoms and
:37:50. > :37:56.internet contracts came top of the list, where consumers had
:37:56. > :38:00.experienced problems in the last 12 months, closely followed by home
:38:00. > :38:04.entertainment products like television systems, mobile phones
:38:04. > :38:07.and delivery services featured high up on the list of complaints. Is
:38:07. > :38:12.one reason people fall foul of contracts simply that they are too
:38:12. > :38:17.long and wordy to wade through. To read or not to read, that is the
:38:17. > :38:22.question. With contracts and paperwork, how many words are too
:38:22. > :38:26.many words? Which? Magazine totted up the words in the terms and
:38:26. > :38:33.conditions for the Internet payment service PayPal, believe it or not,
:38:33. > :38:37.they found there were 36,000 of them, that is 6,000 words longer
:38:37. > :38:41.than Shakespeare's Hamlet. Then there is iTunes, they totted up the
:38:41. > :38:45.words in their terms and conditions, believe it or not there were almost
:38:45. > :38:48.20,000 of them, making them longer than Macbeth, which makes you
:38:48. > :38:52.wonder how many of the hundreds of thousands of people who have signed
:38:52. > :38:56.up to iTunes terms have actually read them. How many just ticked the
:38:56. > :39:00.box to say they had, but, in fact, didn't bother. The information is
:39:00. > :39:04.not presented in a way that is accessible for most people. I never
:39:04. > :39:08.read through anything I tick or sign, people know that. The very
:39:08. > :39:11.first time I got iTunes, years and years ago, every time there is an
:39:11. > :39:16.update, I have to say yes to something, I wouldn't, not any more,
:39:16. > :39:19.not on iTunes. ITunes didn't want to comment. But PayPal said, that
:39:19. > :39:22.although they recognise their user agreement is rather long, it
:39:22. > :39:26.contains a huge amount of information about their services,
:39:26. > :39:30.protection policies and much more. They say they summarised the key
:39:30. > :39:34.points at the start, and then links allow you to jump straight to the
:39:34. > :39:39.relevant section. And although they do think it is clear, they are now
:39:39. > :39:43.looking at how to make it shorter. The Plain English Campaign, has
:39:43. > :39:49.come up with a way to encourage big companies to make their contracts
:39:49. > :39:52.easier to understand. The Plain English Campaign decided they
:39:52. > :39:58.needed some kind of guide for the public to recognise clear
:39:58. > :40:03.information. That is what the Chris kal Mark provides, people -- the
:40:03. > :40:07.Crystal Mark provides, people should look out for it, whether in
:40:07. > :40:14.the doctors' surgery or medical leaflets, or in your energy bills,
:40:14. > :40:18.so if it has the Crystal Mark it has been through the Plain English
:40:18. > :40:22.he had bitting process. The best thing with a contract if you don't
:40:22. > :40:25.understand it, don't sign it. Take extra care going through the small
:40:25. > :40:28.print for anything that is particularly expensive, or you are
:40:28. > :40:31.dealing with a business you are not familiar with. If you are talking
:40:31. > :40:34.to someone on the telephone, get them to send your their terms and
:40:34. > :40:39.conditions before signing up. Don't get caught out because you haven't
:40:39. > :40:43.had the time or haven't bothered to even look at the paperwork. And we
:40:43. > :40:53.have seen more advice on this on our website. I think you know it by
:40:53. > :40:53.
:40:53. > :40:58.now, but it is below. Here at Rip Off Britain, we are
:40:58. > :41:01.always ready to investigate more of your stories. Confuses over your
:41:02. > :41:06.bills? Trying to wade your way through neverending small print?
:41:06. > :41:10.should read it, but it is not in plain English, it should be simple,
:41:10. > :41:14.ABC, very basic stuff. Unsure what to do when you discover you have
:41:14. > :41:19.lost out and that great dole has ended up costing you money. You get
:41:19. > :41:23.home and you get your bill, it is �70 and it is meant to be �35, it
:41:23. > :41:27.is just basically you get ripped off, don't you.
:41:27. > :41:31.You might have cautionary tale of your own and want to share the
:41:31. > :41:35.mistake s you made with us so other people don't do the same thing.
:41:35. > :41:45.feel angry and stupid that I had allowed this to happen to me.
:41:45. > :41:59.
:41:59. > :42:02.Don't forget the Rip Off team is ready and waiting to investigate
:42:02. > :42:06.your stories. I guess we all know that sometimes
:42:06. > :42:09.things do happen and it's nobody's fault. But as we have been seeing
:42:10. > :42:13.today, there are plenty of situations where, in truth, more
:42:13. > :42:17.could so easily have been done to make sure that you really did have
:42:17. > :42:20.the full picture before you ever handed over your cash.
:42:20. > :42:22.Because if something has been sold a certain way, it is not
:42:22. > :42:26.unreasonable for you to expect that is what you are going to get. If
:42:26. > :42:29.it's not the case, or for some reason things turn out to be less
:42:29. > :42:32.straight forward than you expected, it really should have been plainged
:42:32. > :42:36.up in advance. Not -- flagged up in advance.
:42:36. > :42:39.And not left for you to find out until it is too late. Keep your