0:00:02 > 0:00:06We asked you to tell us who's left you feeling ripped off
0:00:06 > 0:00:09and you contacted us in your thousands by post,
0:00:09 > 0:00:15email, even stopping us on the street, and the message could not be clearer.
0:00:15 > 0:00:19There's too much focus on profit and less on customer care.
0:00:19 > 0:00:23It's so hard to complain. Companies make it so difficult to complain.
0:00:23 > 0:00:28You told us, with money tighter than ever, you need to be sure that every pound counts.
0:00:28 > 0:00:34All my money is very hard-earned, so when I go to spend it, I expect value for money.
0:00:34 > 0:00:38Whether it's a deliberate rip-off, a 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 > 0:00:46Your stories, your money. This is Rip-Off Britain.
0:00:48 > 0:00:52Hello and thanks for joining us once again on Rip—Off Britain,
0:00:52 > 0:00:58the series that sets out to make sure that your money goes exactly where you would expect it to
0:00:58 > 0:01:00and buys you what you thought it would.
0:01:00 > 0:01:06But as you'll see today, the sad reality is that your cash isn't always as safe as you'd hope.
0:01:06 > 0:01:11There are always people coming up with new ways to try and relieve you of it,
0:01:11 > 0:01:16but money can be lost for all sorts of reasons and not all of them are malicious,
0:01:16 > 0:01:21so when you've been left out of pocket, it isn't always easy to know what to do or where to turn.
0:01:21 > 0:01:25As we look into more of the stories you've asked us to investigate,
0:01:25 > 0:01:29we won't just unravel what's happened to any money that's gone missing.
0:01:29 > 0:01:34We'll also try to make sure your cash stays where it belongs and if something goes wrong,
0:01:34 > 0:01:36you know exactly what to do.
0:01:36 > 0:01:42'Coming up, how this couple's plans of saving for the future have instead left them with nothing.'
0:01:42 > 0:01:47Looking back, I've got a whole raft of questions I should have asked, but I didn't at the time.
0:01:47 > 0:01:54'Why one of the biggest threats to national security probably isn't what you think.'
0:01:54 > 0:01:58I was angry when I realised I'd been scammed for this amount of money.
0:01:58 > 0:02:01A lot of it was personal pride that I hadn't checked up.
0:02:01 > 0:02:05'And our pop-up shop draws in the crowds in Liverpool.'
0:02:08 > 0:02:14We're used to you telling us about situations where things just haven't worked out the way you'd expected,
0:02:14 > 0:02:18but what happened to this next couple could hardly have been worse
0:02:18 > 0:02:22and the real shame of it is they only got caught up in the whole sorry mess
0:02:22 > 0:02:26because they were trying to make sensible choices for the future.
0:02:26 > 0:02:32But it's ended up with them losing a small fortune with absolutely nothing to show for it
0:02:32 > 0:02:37and rubbing salt into the wound is the fact that despite everything that they've lost,
0:02:37 > 0:02:40they are still having to pay a monthly fee
0:02:40 > 0:02:44for what, as far as they're concerned, is no good reason whatsoever.
0:02:44 > 0:02:48Of all the many kinds of unwanted cold calls,
0:02:48 > 0:02:52regulator Ofcom says 4% are about pensions and with good reason.
0:02:52 > 0:02:56Around a quarter of us have a pension we've forgotten about
0:02:56 > 0:03:00after changing jobs or even after losing the paperwork,
0:03:00 > 0:03:05and that adds up to almost £3 billion stuck in unclaimed pension pots.
0:03:05 > 0:03:12It's not something Ian and Karen Ross from Basingstoke had thought about until one evening in 2011
0:03:12 > 0:03:18when they got a cold call offering to help them find those pots and make use of the money.
0:03:18 > 0:03:22It was a very personable guy on the phone and he just asked me,
0:03:22 > 0:03:28did I have any pension provision, did I have any old works pensions that were frozen?
0:03:28 > 0:03:32I suspected that I did and he said he'd have a look into it for us
0:03:32 > 0:03:36and see if there was any value left in these pensions.
0:03:36 > 0:03:40What I know about pensions you could write on a very small piece of paper.
0:03:40 > 0:03:44I've just relied on advice that comes from my employer.
0:03:44 > 0:03:49Here was somebody saying, "I'll do all the work, I'll find out about these things and I'll help you."
0:03:49 > 0:03:53It was a relief and it was very exciting as well.
0:03:53 > 0:04:00A few weeks after that cold call, a financial adviser rang with news that knocked Ian for six.
0:04:00 > 0:04:06He discovered that Ian's old company pensions were now worth just over £23,000.
0:04:06 > 0:04:09At this news, I was really quite excited.
0:04:09 > 0:04:11It was a windfall.
0:04:11 > 0:04:15I would liken it, I suppose, to winning the Lottery.
0:04:15 > 0:04:20It was money that I didn't know I had, money I didn't really give any thought to,
0:04:20 > 0:04:26and there's somebody on the end of the phone, who I had developed a bit of a relationship with, telling me
0:04:26 > 0:04:31that I had a substantial sum of money and he had found it for me. I was very, very happy.
0:04:31 > 0:04:35But what do you do with £23,000 you never knew you had?
0:04:35 > 0:04:38The financial adviser had a suggestion.
0:04:38 > 0:04:43He recommended that Ian invest in a type of pension product called a SIPP
0:04:43 > 0:04:46which stands for Self-Invested Personal Pension.
0:04:46 > 0:04:52They give investors a greater choice over where their money goes, but they come with a considerable risk,
0:04:52 > 0:04:58so they're not normally recommended to people who don't know a lot about trading and investments.
0:04:58 > 0:05:04It seemed a good idea to invest in something that would be a growth for the future,
0:05:04 > 0:05:07especially as it was money I never knew I had anyway.
0:05:07 > 0:05:10Convinced that the investment was the best way to go,
0:05:10 > 0:05:14Ian signed the forms to invest his £23,000 pension pot.
0:05:14 > 0:05:19Over the next year, he and Karen thought little more about it
0:05:19 > 0:05:23until in March of 2012 when they received a very unwelcome letter.
0:05:23 > 0:05:26One day, I was at home and the post came.
0:05:26 > 0:05:32I opened a letter addressed to Ian and it stated that the company that we had our pension with
0:05:32 > 0:05:36was being investigated by the Serious Fraud Office
0:05:36 > 0:05:41and that our funds and our pension had been put in the hands of the administrators.
0:05:41 > 0:05:44It seemed that the company into which Ian had put his money
0:05:44 > 0:05:48was being investigated by the Serious Fraud Office
0:05:48 > 0:05:53and it soon became clear that Ian and Karen's investment was now worth next to nothing.
0:05:53 > 0:05:56I was distraught. I was really, really upset.
0:05:56 > 0:06:00I could not believe that this money had gone.
0:06:01 > 0:06:07I had a raft of feelings, emotions. I was angry. I didn't want to believe it.
0:06:07 > 0:06:10Karen called Ian at work to break the news.
0:06:10 > 0:06:15My initial reaction from the phone call was shock, as you can well imagine.
0:06:15 > 0:06:19I just suddenly realised, all this sales patter, I had fallen for it
0:06:19 > 0:06:24and now this money that I never knew I had, I no longer had.
0:06:24 > 0:06:31Karen was determined to get to the bottom of what had happened and to try and get some of the money back.
0:06:31 > 0:06:35I told our financial adviser what happened and he was very blase about the situation.
0:06:35 > 0:06:39He told me not to worry and everything would be OK.
0:06:39 > 0:06:44But Ian and Karen kept investigating and as they looked into the investment further,
0:06:44 > 0:06:50it seemed that not all of the £23,000 that Ian had started off with had gone into the same place,
0:06:50 > 0:06:52so it wasn't all lost.
0:06:52 > 0:06:56We noticed that once the funds had been released, they were split in two
0:06:56 > 0:06:59and several thousand pounds was left in a bank account,
0:06:59 > 0:07:02effectively, cash.
0:07:02 > 0:07:05But then Ian got his next shock.
0:07:05 > 0:07:09The bank account that the money was in was held in joint names.
0:07:09 > 0:07:12One was his, but the other in the name of a firm who specialise
0:07:12 > 0:07:16in managing the type of pension Ian had invested in.
0:07:16 > 0:07:21I tried to find out what I could do with this money, but I couldn't do anything with the money
0:07:21 > 0:07:24unless I had permission.
0:07:24 > 0:07:29Instead, the company administering Ian's SIPP were taking fees from the account to do so
0:07:29 > 0:07:34and though the company did suspend the fees while they investigated the situation,
0:07:34 > 0:07:40they reinstated them when they found their contract to administer the doomed pension still stood.
0:07:40 > 0:07:46I was amazed that they were still taking money to administer a pension that actually had no money in it.
0:07:46 > 0:07:50When I asked them why they were taking the fee,
0:07:50 > 0:07:55they said that they were legally entitled by the forms we'd signed and that's what they'd do.
0:07:55 > 0:08:00So the remainder of Ian's unexpected windfall is being whittled down in fees
0:08:00 > 0:08:03to pay for something he's been told has no value.
0:08:03 > 0:08:07That wasn't the end of his troubles. When Ian contacted the FSA,
0:08:07 > 0:08:13which has since become the Financial Conduct Authority, to see if any of his money could be reclaimed,
0:08:13 > 0:08:18he was horrified to learn that the firm their financial adviser had told them he worked for
0:08:18 > 0:08:25had no record of their investment at all. It turned out he'd no longer been working for them at the time.
0:08:25 > 0:08:30As a result, he didn't come under the FSA's jurisdiction and there was nothing they could do.
0:08:30 > 0:08:36The thing that I'm most angry about is that we did do our research, as far as we knew.
0:08:36 > 0:08:39We're not sophisticated people financially.
0:08:39 > 0:08:44We went to the FSA. The individuals at first appeared to be regulated by the FSA.
0:08:44 > 0:08:46We thought we were protected.
0:08:46 > 0:08:49But it turns out that we weren't.
0:08:49 > 0:08:55Ian and Karen have registered with the liquidators handling the company in which their money was invested,
0:08:55 > 0:08:59but it's not clear if they'll ever see any of their money again.
0:08:59 > 0:09:03I'm left feeling frustrated, humiliated, angry.
0:09:04 > 0:09:07The overriding emotion is one of embarrassment.
0:09:07 > 0:09:11Ian and Karen admit to not being fully aware of the risks
0:09:11 > 0:09:15and financial expert Paul Lewis says this is not the kind of scheme
0:09:15 > 0:09:19that ordinary investors should be persuaded to get involved in.
0:09:19 > 0:09:23Karen and Ian were encouraged to put their money into a risky SIPP
0:09:23 > 0:09:27and advisers will say, "High risk means high reward." No, it doesn't.
0:09:27 > 0:09:30High risk means the chance of a bigger reward,
0:09:30 > 0:09:33but also the chance that you will lose your money, as they did.
0:09:33 > 0:09:39If you know nothing about investing, the last thing you want is a self-invested pension.
0:09:39 > 0:09:42You should put it in a stakeholder pension or something like that
0:09:42 > 0:09:45which is relatively safe and charges are low.
0:09:45 > 0:09:51Ian and Karen wish they'd known all of that before they sank their money into a SIPP.
0:09:51 > 0:09:55I didn't understand what a SIPP was and it's only recently
0:09:55 > 0:09:59that I have actually understood what we've invested in.
0:09:59 > 0:10:04Looking back now, I've got a whole raft of questions I should have asked, but I didn't at the time.
0:10:04 > 0:10:10We contacted the financial adviser who got Ian into this mess in the first place,
0:10:10 > 0:10:13but he has not answered any of our questions.
0:10:13 > 0:10:18However, there was a bit of good news when we wrote to the company still taking a fee
0:10:18 > 0:10:20for administering Ian's pension.
0:10:20 > 0:10:24They explained that they were doing so because there's a prospect
0:10:24 > 0:10:28that some money may yet be returned to creditors over the medium to long term
0:10:28 > 0:10:34and during that time, they still have to produce annual reports to both Ian and the regulator,
0:10:34 > 0:10:37but in view of the position faced by investors
0:10:37 > 0:10:40and recognition of the lower volume of administration required,
0:10:40 > 0:10:44they have now reduced their annual fee by a third
0:10:44 > 0:10:47and what's left in the account, a balance of £2,080,
0:10:47 > 0:10:52Ian can now transfer to another scheme without the usual fee.
0:10:52 > 0:10:55But what happened to Ian and Karen is a reminder
0:10:55 > 0:11:01that you need to be very wary of any investment opportunity that comes in a cold call out of the blue.
0:11:01 > 0:11:06And if it's from someone offering to help you find any pension pots you may have lying around,
0:11:06 > 0:11:12you can do that for free through a government service. You don't need the help of the person on the phone.
0:11:12 > 0:11:16Of course, I'm angry. It was sold to me as money I never knew I had,
0:11:16 > 0:11:21so, looking back, maybe that should have rung an alarm bell for me.
0:11:21 > 0:11:25If somebody takes the attitude of "it's money you never knew you had",
0:11:25 > 0:11:28it might make me think, "I don't know I've got it, but you want it."
0:11:33 > 0:11:37If you were asked to name the biggest threat to British security today,
0:11:37 > 0:11:41you might say something like international terrorism,
0:11:41 > 0:11:45but categorised at the same level of risk is cyber crime,
0:11:45 > 0:11:50the very real danger of criminals and rogue states targeting computer systems in the UK.
0:11:50 > 0:11:54If all that sounds too much like the plot of a Hollywood blockbuster,
0:11:54 > 0:11:58the sobering reality is that every day, whenever we turn on a computer,
0:11:58 > 0:12:01most of us are already under attack,
0:12:01 > 0:12:06whether that's from hackers after your cash or some other kind of online fraudster.
0:12:06 > 0:12:10Here's what to watch out for to stay safe online.
0:12:11 > 0:12:13The British economy is under attack.
0:12:15 > 0:12:19The UK is now the number one target for internet gangsters
0:12:19 > 0:12:25with estimates that they and their crimes are costing the economy up to £27 billion a year.
0:12:25 > 0:12:30Cyber crime is a huge threat to the UK, Europe and the rest of the world.
0:12:31 > 0:12:37We do know that it's big and that it's significant and it's very, very difficult to quantify.
0:12:37 > 0:12:41British business earns one in every five pounds from the internet.
0:12:41 > 0:12:46It's a crucial part of the economy that allows us to trade around the world,
0:12:46 > 0:12:50but 93% of large companies and 76% of small ones
0:12:50 > 0:12:54reported an internet security breach in the last year.
0:12:54 > 0:12:56One of them was Jake Kelly's business,
0:12:56 > 0:13:00subject to a single, but very costly attack in May this year.
0:13:00 > 0:13:07It came after Jake ordered an expensive piece of kit from one of his regular suppliers in China.
0:13:07 > 0:13:09They had been working together for years,
0:13:09 > 0:13:14so Jake had no reason to think anything was wrong when he got an email about a change of address.
0:13:14 > 0:13:18Most of my correspondence with China is via email and via Skype.
0:13:18 > 0:13:25I received this email saying, "There's a potential virus, please use this email address from now on."
0:13:25 > 0:13:29I took it as read they got a virus and used the new email address.
0:13:29 > 0:13:33The email looked as if it was from his supplier, but unbeknown to Jake,
0:13:33 > 0:13:39that supplier had received a very similar email too, one that looked as if it was from Jake
0:13:39 > 0:13:43and it said that thanks to a virus, Jake had had to change his email address.
0:13:43 > 0:13:49Neither side had cause to suspect that what they were being told was untrue.
0:13:49 > 0:13:53I just carried on the communication as I normally would have done.
0:13:53 > 0:13:59Over the next few days, Jake and the supplier both sent emails to each other about the order
0:13:59 > 0:14:02and they both got replies that they thought were legitimate.
0:14:02 > 0:14:06Little did they know they were caught in a "man in the middle" attack.
0:14:06 > 0:14:13Every email was being intercepted by a fraudster who was leading Jake to believe his order was all in hand.
0:14:13 > 0:14:17I'm chasing now the delivery of the machine that we've ordered
0:14:17 > 0:14:22and I get a reply back saying the machine is now ready, please pay into this new account.
0:14:22 > 0:14:28It wasn't their normal account. It was a new bank account with an address of Spain.
0:14:28 > 0:14:33I was a bit suspicious, so I did ask them to re-confirm where they wanted us to send this money to.
0:14:33 > 0:14:37They confirmed the Spanish bank account, so we made the payment.
0:14:37 > 0:14:42But as the afternoon went on, Jake couldn't shake the sense of doubt
0:14:42 > 0:14:48and he slowly realised that the Spanish bank account he had just transferred almost £40,000 into
0:14:48 > 0:14:51had nothing to do with his supplier.
0:14:51 > 0:14:55The ball's dropping now slowly and this situation has become real
0:14:55 > 0:14:59that we've been scammed and I've just lost this huge amount of money.
0:14:59 > 0:15:04Hoping he was wrong, Jake called his bank, trying to stop the payment,
0:15:04 > 0:15:07but it had already left his company's account.
0:15:07 > 0:15:12I felt really angry when I realised I'd been scammed for this amount of money.
0:15:12 > 0:15:17A lot of it was personal pride that I hadn't checked up and seen what was happening.
0:15:17 > 0:15:20His next call was to his insurance company.
0:15:21 > 0:15:23I figured this was a theft,
0:15:23 > 0:15:28so we should have insurance on a commercial policy to cover this loss of money.
0:15:28 > 0:15:35So we asked the question to our insurance company whether we have insurance for this type of theft
0:15:35 > 0:15:40and the answer that came back was no, we don't, this is a cyber crime.
0:15:40 > 0:15:46Because Jake willingly transferred the money, there was nothing his bank or insurer could do.
0:15:46 > 0:15:51The police told him to report the crime to Action Fraud, the UK's national fraud reporting centre,
0:15:51 > 0:15:56but there wasn't sufficient evidence at that stage for police to investigate.
0:15:56 > 0:16:01Right now, I've accepted the money's gone. It's been stolen.
0:16:01 > 0:16:07It's gone from us and I really don't have any hope at all of reclaiming this money.
0:16:07 > 0:16:11If we weren't a strong company, that could potentially bankrupt us,
0:16:11 > 0:16:16so it was a real large amount of money and it hurts us, it does hurt us.
0:16:16 > 0:16:22More than three-quarters of small businesses like Jake's have reported an internet security breach
0:16:22 > 0:16:26in the year up to February 2013, and amidst growing concern,
0:16:26 > 0:16:30the Federation of Small Businesses has carried out in-depth research
0:16:30 > 0:16:33into the impact of cyber crime on its members.
0:16:33 > 0:16:37Cyber crime in a business sense can be the simplest phishing email
0:16:37 > 0:16:41that we all too often have come through our email boxes,
0:16:41 > 0:16:44right through to individual or corporate identity theft
0:16:44 > 0:16:48which can have a hugely damaging impact on the business.
0:16:48 > 0:16:52It's a big issue as far as government and our members are concerned.
0:16:52 > 0:16:56If you look at the figures that came out of that survey,
0:16:56 > 0:17:00then it is costing the average small business around about £4,000,
0:17:00 > 0:17:05which for the total number of businesses is around about 800 million.
0:17:05 > 0:17:11That's not an insignificant amount of money, so cyber crime is at the top of everyone's agenda.
0:17:11 > 0:17:16Keeping the UK safe in cyber space will later this year become the responsibility
0:17:16 > 0:17:19of the newly formed National Cyber Crime Unit.
0:17:19 > 0:17:23Many of your traditional offences that you would've seen taking place
0:17:23 > 0:17:26in a traditional, normal, physical world
0:17:26 > 0:17:28have a place now in the cyber world,
0:17:28 > 0:17:33so things like fraud, things like identity theft, things like child exploitation.
0:17:33 > 0:17:37The crimes may be common and the threat real,
0:17:37 > 0:17:41but a significant proportion of online crime isn't reported.
0:17:41 > 0:17:47One of the big issues we have is the reluctance of business and individuals to report these cases.
0:17:47 > 0:17:54For business, I think the main concern has always been around commercial reputation -
0:17:54 > 0:17:58is our money safe with them if they're the subject of cyber attack?
0:17:58 > 0:18:02And many individuals who are the victims of cyber crime don't report it
0:18:02 > 0:18:07because, "A", they're not sure if the police is the right agency
0:18:07 > 0:18:13and "B", because they go to their internet service provider and think that's an appropriate way to report.
0:18:13 > 0:18:17A new training programme will see all police officers trained in cyber crime,
0:18:17 > 0:18:24but in the meantime, there's a lot we can all do to stop the crimes happening in the first place.
0:18:24 > 0:18:25Please protect your computer.
0:18:25 > 0:18:31If you protect it, it's very unlikely that the vast majority of hackers will get anywhere near it.
0:18:31 > 0:18:37The analogy I use is, would you go out now in your car and park it in the high street
0:18:37 > 0:18:43and leave the doors wide open with all your goods on view and walk away?
0:18:43 > 0:18:45I would suggest you wouldn't do that.
0:18:45 > 0:18:49Then why are we prepared to leave our computers wide open
0:18:49 > 0:18:53and all of the very important private data we have on there
0:18:53 > 0:18:55available to people who could hack into it?
0:18:55 > 0:19:00But protecting yourself is about more than just getting the right software in place.
0:19:00 > 0:19:04For Jake, the scam that cost him £40,000 was carefully planned
0:19:04 > 0:19:07and it preyed on the trust he had with his supplier,
0:19:07 > 0:19:12so guarding against cyber crime requires vigilance too.
0:19:12 > 0:19:16I wish in hindsight I'd picked up the phone and spoke to somebody
0:19:16 > 0:19:21and checked out to see whether these emails I was receiving were from our supplier,
0:19:21 > 0:19:23not from a potential scammer.
0:19:23 > 0:19:28We lost £40,000. It's a huge amount of money that will have a big impact on our business.
0:19:33 > 0:19:38Still to come, a year after we first called in, what's happened to the family businesses
0:19:38 > 0:19:42driven to the edge by a product sold to them by their banks?
0:19:42 > 0:19:48It was the closest we came to closing the door for good because we were about to run out of money.
0:19:51 > 0:19:56We're in Liverpool, here for one weekend only with our pop-up shop.
0:19:56 > 0:20:01We've brought along a team of experts to give you advice...
0:20:01 > 0:20:07Make it clear that if they don't give you a refund within 14 working days, you'll pursue it through the courts.
0:20:07 > 0:20:11..so we could try and get your problems resolved.
0:20:11 > 0:20:15What did you make of the advice? Brilliant. Thank you very much.
0:20:15 > 0:20:20This year, for the first time, we were also out on the streets,
0:20:20 > 0:20:23so we could give you advice while you shopped.
0:20:23 > 0:20:26Think about the information you're giving away.
0:20:26 > 0:20:31You are often sharing information that criminals need to steal your identity.
0:20:32 > 0:20:39Gloria, don't you love the workshops that we've got? I've just done one on pensions. We had a great time.
0:20:39 > 0:20:43You've got a pension? I do. 5% from the company, 5% from me.
0:20:43 > 0:20:47Was that your idea or theirs? It was their fantastic idea.
0:20:47 > 0:20:52You wouldn't have thought to do it yourself? I would. I'm very financially savvy now!
0:20:52 > 0:20:58Liverpool has been a great place to pioneer that because the people here are so wonderful.
0:20:58 > 0:21:04John came to visit us after getting a letter about his pension that he didn't understand.
0:21:04 > 0:21:09I'm confused with the small print, the long words. I'm not that well up on that type of thing.
0:21:09 > 0:21:13This is what you call a final salary pension scheme.
0:21:13 > 0:21:19What it says in this letter here is that now the transfer value of what you've got in your pension
0:21:19 > 0:21:21is just under £18,000.
0:21:21 > 0:21:27John wants to know if it's worth withdrawing the money now as a lump sum or should he wait.
0:21:27 > 0:21:33Because this is a final salary scheme, it's probably not worth you taking any money out here.
0:21:33 > 0:21:38Reading on in the letter, it says if you try and cash it in, you'll have less than £9,000,
0:21:38 > 0:21:43whereas if you stay in this scheme, when you turn 65,
0:21:43 > 0:21:47this pension will start paying you an income for the rest of your life.
0:21:47 > 0:21:52James does the sums to work out exactly how much more John will end up with
0:21:52 > 0:21:55by leaving the money where it is.
0:21:55 > 0:22:02Probably you will get about £900 a year out of this paid from next year when you're 65 until you die.
0:22:02 > 0:22:04They're going to keep on paying.
0:22:04 > 0:22:08If you take this money now, it's nice to have it in the bank as it is...
0:22:08 > 0:22:15Financially, it probably won't make sense over the long run unless you died in the next ten years or so.
0:22:15 > 0:22:21What's the chance of me getting bumped off by these people? It's in their interest to get you bumped off!
0:22:21 > 0:22:25I'd say don't take your money out of this. Keep it in there.
0:22:25 > 0:22:27That's smashing. Good luck with it.
0:22:32 > 0:22:37There can't be many of us who haven't at some point dreamed of living a luxury lifestyle
0:22:37 > 0:22:41where our money works hard while we sit back and enjoy ourselves.
0:22:41 > 0:22:46Coming up next are a couple who were told they really could live the high life.
0:22:46 > 0:22:52All they had to do was invest in an exciting new market that came with almost guaranteed returns,
0:22:52 > 0:22:56but the truth was a far cry from the slick and elaborate sales pitch
0:22:56 > 0:23:02and the investments that cost them more than £65,000 are now worth little more than fresh air.
0:23:10 > 0:23:15The City of London, one of the biggest financial centres in the world.
0:23:15 > 0:23:17Billions of pounds change hands here every day.
0:23:17 > 0:23:21Fortunes are made and lost in a heartbeat. Money never sleeps.
0:23:23 > 0:23:27But away from the well-known markets in stocks and shares,
0:23:27 > 0:23:32London's traders also buy and sell commodities, ranging from precious metals to coffee beans.
0:23:32 > 0:23:36It was one of those alternative investments that Gareth Sleight
0:23:36 > 0:23:40and his fiancee Andrea Watson found themselves being talked into.
0:23:40 > 0:23:44In the process of setting up their own business,
0:23:44 > 0:23:47they were looking for opportunities to make their money grow
0:23:47 > 0:23:52and one that promised a return of more than 60% sounded the perfect way to do it.
0:23:55 > 0:24:00Gareth and Andrea were approached last August by a firm of brokers called Diffraction Limited,
0:24:00 > 0:24:02trading as Diffraction Investments,
0:24:02 > 0:24:09who told them about an exciting new market in carbon credits, something most of us would never have heard of,
0:24:09 > 0:24:10let alone totally understand.
0:24:12 > 0:24:18But the pitch was all very convincing and the couple decided to invest more than £2,500.
0:24:19 > 0:24:21Initially, we put in a small amount,
0:24:21 > 0:24:25just to test the water, which is what she suggested I did.
0:24:25 > 0:24:31Gareth and Andrea were told the investment in Andrea's name would mature in just four months
0:24:31 > 0:24:36which was perfect timing as they were looking to raise money towards setting up their own business.
0:24:36 > 0:24:41But that first £2,500 wasn't enough for Diffraction.
0:24:41 > 0:24:48The company's wealth manager started to befriend the couple and to offer them more investment opportunities.
0:24:48 > 0:24:52She'd be ringing me regularly to say, "Hi, how are you doing?"
0:24:52 > 0:24:55We decided to come down and meet them...
0:24:55 > 0:24:59Before we actually... Before we did any further investments
0:24:59 > 0:25:03because first of all, we wanted to see that it was a reputable company,
0:25:03 > 0:25:07that they were normal and reputable people
0:25:07 > 0:25:12and just to get some more information, see the offices and where they worked.
0:25:14 > 0:25:17And they weren't disappointed.
0:25:17 > 0:25:23First, the couple were whisked to a meeting at Diffraction's luxurious offices in the heart of the city
0:25:23 > 0:25:28in a building full of other brokers, investment firms and traders.
0:25:28 > 0:25:32The offices looked the part and the team from Diffraction could also talk the talk.
0:25:32 > 0:25:38They did give us a very good, comprehensive pack which looked very professional, I have to say.
0:25:38 > 0:25:44We were already thinking, "This is good. This will tie in with our business investment."
0:25:44 > 0:25:50The courtship continued as the couple were wined and dined at an exclusive London restaurant.
0:25:50 > 0:25:55I remember him saying, "Would you like to pick the red wine?"
0:25:55 > 0:26:00I looked at the prices and I thought, "Oh, my God, this is really expensive!"
0:26:00 > 0:26:03He went, "Don't pick the cheap one."
0:26:03 > 0:26:08Well, it was very difficult to find a cheap one, to be fair.
0:26:08 > 0:26:13We talked about our personal lives. We didn't talk much about carbon credits.
0:26:13 > 0:26:15So what exactly are carbon credits?
0:26:15 > 0:26:20They were created as a way of reducing greenhouse gas emissions.
0:26:20 > 0:26:24High-polluting companies are officially allocated a certain number of credits,
0:26:24 > 0:26:28allowing them to emit a particular amount of carbon dioxide.
0:26:28 > 0:26:34Clean companies who don't use all their credits can make money by selling them to dirtier companies
0:26:34 > 0:26:38who would otherwise face big fines for polluting the environment.
0:26:38 > 0:26:43But what Gareth and Andrea weren't told is that carbon credits aren't really suitable
0:26:43 > 0:26:46for everyday investors like them.
0:26:46 > 0:26:52Justin Urquhart Stewart is a financial commentator with experience of market trading and investments.
0:26:52 > 0:26:55The carbon credit market was designed,
0:26:55 > 0:26:59so that companies can buy the right to emit all those toxic fumes.
0:26:59 > 0:27:01Effectively, they're paying for it.
0:27:01 > 0:27:06Now, by buying these elements, they can then effectively be traded if they so wish,
0:27:06 > 0:27:12so it created a secondary market, but this is all about institutions, large institutions, oil companies,
0:27:12 > 0:27:17which need to make sure they are protecting themselves with these carbon credits.
0:27:17 > 0:27:21They all traded amongst themselves and some big institutions.
0:27:21 > 0:27:24It is very definitely not for the retail market.
0:27:24 > 0:27:29That didn't stop Diffraction convincing Gareth and Andrea that the carbon market was the key
0:27:29 > 0:27:32to their financial future.
0:27:32 > 0:27:35The way that they built it up was basically...
0:27:35 > 0:27:40"By this time next year, you probably will have X amount of pounds
0:27:40 > 0:27:45"and you'll be able to reinvest because there'll be that opportunity again.
0:27:45 > 0:27:50"In five years' time, you could be, you could be... Millionaires. Millionaires."
0:27:50 > 0:27:57The couple had spent the whole day in London being seduced by Diffraction's slick and persuasive sell.
0:27:57 > 0:28:03And it worked. Gareth and Andrea agreed to invest another £50,000 in carbon credits
0:28:03 > 0:28:07and transferred the money into Diffraction's account.
0:28:07 > 0:28:11They had now handed over £52,500.
0:28:11 > 0:28:14But Diffraction wanted more.
0:28:14 > 0:28:19Three months later, Gareth and Andrea were persuaded to invest a further £13,000,
0:28:19 > 0:28:24but just before Christmas, they received a text message from a member of the team at Diffraction,
0:28:24 > 0:28:30asking them to transfer the money into a different bank account than the one normally used.
0:28:30 > 0:28:36I had a weird sense to not do it and I should have gone with my instincts. Yeah.
0:28:36 > 0:28:40But because we were busy, I sent the money to that bank account.
0:28:40 > 0:28:44Gareth and Andrea have heard nothing of that £13,000 again.
0:28:44 > 0:28:48The new bank account they'd been asked to pay it into
0:28:48 > 0:28:52belonged to an entirely different company called Oswald Bradshaw.
0:28:52 > 0:28:57But why they were asked to send it there and what happened to it afterwards remains a mystery.
0:28:57 > 0:29:03All that is certain is that it's bought them nothing and, unfortunately, things only got worse
0:29:03 > 0:29:08as it soon became clear that the rest of their investment, all £52,500 of it,
0:29:08 > 0:29:11wasn't all they thought it was either.
0:29:11 > 0:29:15Diffraction Limited told them they'd stopped trading in carbon credits
0:29:15 > 0:29:19and had transferred the couple's investments to yet another company.
0:29:19 > 0:29:24But this third business said they were no longer in the carbon industry either,
0:29:24 > 0:29:28leaving Andrea and Gareth stuck with carbon credits they can't sell.
0:29:28 > 0:29:31They might as well have bought fresh air
0:29:31 > 0:29:36and sadly, financial commentator Justin Urquhart Stewart can only agree.
0:29:36 > 0:29:42What is the likelihood of us actually seeing a return from any of the carbon credits?
0:29:42 > 0:29:47You've still got the credits and they're sitting there with this custodian holding them there,
0:29:47 > 0:29:52but until you can find someone to trade them and assuming they can be traded,
0:29:52 > 0:29:55they are just paper and worth no more than that.
0:29:55 > 0:30:00Frame it, stick it on the kitchen wall and remind yourself, "Never again."
0:30:00 > 0:30:05When we contacted Diffraction, they disagreed that the carbon credits had been mis-sold,
0:30:05 > 0:30:09but said they only sold this type of investment for a short time.
0:30:09 > 0:30:15They told us issues in the carbon credit market were not apparent at the time of these investments
0:30:15 > 0:30:21and although they did believe the couple could sell the credits at a profit, this was not guaranteed
0:30:21 > 0:30:27and they did not promise specific returns. They stress their terms made it clear that there were risks,
0:30:27 > 0:30:32pointing to a clause that states investors may lose the whole amount paid
0:30:32 > 0:30:35and that a call was made to Andrea to check she understood that,
0:30:35 > 0:30:41but they cannot comment on that final investment made to Oswald Bradshaw as they have no link with the company
0:30:41 > 0:30:44and the consultant who sold it has now left the business.
0:30:44 > 0:30:50We spoke to Oswald Bradshaw who insisted they did purchase carbon credits for the couple
0:30:50 > 0:30:55and they sent them a certificate to prove it, but Gareth and Andrea say they never received it.
0:30:55 > 0:31:00The company also told us that while they no longer offer the facility to buy carbon credits,
0:31:00 > 0:31:04Gareth and Andrea's credits are still live and safe.
0:31:04 > 0:31:08We also put questions to the company that now holds the carbon credits
0:31:08 > 0:31:12Gareth and Andrea bought through Diffraction, but they didn't reply.
0:31:13 > 0:31:19To cap it all, Diffraction now focus on another high-stakes commodity - diamonds,
0:31:19 > 0:31:24and they couldn't resist offering the couple yet another investment of a lifetime.
0:31:24 > 0:31:29Even after all this, she sent me an email to my private email,
0:31:29 > 0:31:34asking me about whether I wanted to buy a pink diamond
0:31:34 > 0:31:41and, obviously, said, "What a lovely gift it would be for Andrea on your wedding day!"
0:31:41 > 0:31:47They shouldn't be allowed to trade certainly in this type of environment and get away with it.
0:31:47 > 0:31:50It's completely unacceptable.
0:31:56 > 0:32:02We've put together a free booklet of tips and advice to help safeguard your hard-earned cash.
0:32:02 > 0:32:05You can download it from our website.
0:32:07 > 0:32:11Or for a hard copy, send a stamped, self-addressed A5 envelope
0:32:11 > 0:32:14to the address we'll give you at the end of the programme.
0:32:14 > 0:32:18You'll also find on the website lots more information on the topics
0:32:18 > 0:32:22that we tackle with plenty of tips on how to save money
0:32:22 > 0:32:24and avoid being caught out.
0:32:25 > 0:32:28Last year, we highlighted the really dreadful situation
0:32:28 > 0:32:32that countless small businesses had ended up in because of their bank.
0:32:32 > 0:32:36They found themselves saddled with costs of tens of thousands of pounds
0:32:36 > 0:32:43and some faced going under thanks to something they never really wanted, but had been talked into buying.
0:32:44 > 0:32:48This is a tale about the banks, accusations of mis-selling
0:32:48 > 0:32:52and tens of thousands of businesses pushed to the brink
0:32:52 > 0:32:57by a financial product that many of them should never have been sold in the first place.
0:32:57 > 0:33:01These products have been sold to small traders, farmers,
0:33:01 > 0:33:06people who are not used to dealing with sophisticated financial products.
0:33:06 > 0:33:11In many cases, they didn't even want these products, they didn't ask for them,
0:33:11 > 0:33:15but were told by the bank, "You have to have it to get the loan."
0:33:15 > 0:33:20Small businesses taking out loans were offered products known as interest rate swaps,
0:33:20 > 0:33:25intended to protect them from a rise in interest rates, much like a fixed rate mortgage,
0:33:25 > 0:33:30so when interest rates went up, the amount these businesses paid would be capped,
0:33:30 > 0:33:36but borrowers say they were not told that when rates dropped, repayment amounts would increase greatly.
0:33:36 > 0:33:39That's exactly what happened to the Lilley family,
0:33:39 > 0:33:44owners of Darby's Glass and DIY Store in Marske-by-the-Sea in Cleveland.
0:33:44 > 0:33:49In our last series, they told us how when they took out a business loan of £450,000
0:33:49 > 0:33:56from HSBC in 2007, the bank also sold them an interest rate swap off the back of it.
0:33:56 > 0:33:59But a product they thought would protect them
0:33:59 > 0:34:04has instead ended up having a devastating effect on the family business.
0:34:04 > 0:34:10I always had the attitude that if you went to the bank, you went for help and you'd get the best advice.
0:34:10 > 0:34:13That seems to be something that's gone by the by.
0:34:13 > 0:34:18We've paid HSBC £50,000 towards this base rate swap so far.
0:34:18 > 0:34:23We've laid off staff. We've had to put back growth of the business.
0:34:23 > 0:34:26To be honest, I'm pretty tired.
0:34:26 > 0:34:31I have to work all the time. Most weeks, I work seven days a week and I just feel very bitter.
0:34:33 > 0:34:37That one's quite nice with the white border round it.
0:34:37 > 0:34:42As interest rates have come down since they took out the loan six years ago,
0:34:42 > 0:34:48their repayments have gone up by hundreds of pounds a month and since we filmed with them last year,
0:34:48 > 0:34:50things continued to get worse.
0:34:50 > 0:34:54We've struggled on. I've had to find money from my own finances.
0:34:54 > 0:34:58We've struggled with staffing levels and stock levels have fallen.
0:34:58 > 0:35:05The effect is we don't always sleep at night because we're worrying about how we'll survive the next day.
0:35:05 > 0:35:07It's a day-to-day existence.
0:35:07 > 0:35:12If it wasn't for the internet side which is mainly down to my daughter,
0:35:12 > 0:35:14the business would have folded.
0:35:16 > 0:35:23The big banks have agreed to review the sale of around 40,000 interest rate swap products like Darby's.
0:35:23 > 0:35:28Another of those badly affected we visited last year was the long-established electrical store
0:35:28 > 0:35:31run by Paul Adcock and his family in Watton in Norfolk.
0:35:31 > 0:35:35This is my great-grandfather, Ernest Adcock.
0:35:35 > 0:35:40Four generations on, we've survived two world wars, depressions, booms, busts.
0:35:40 > 0:35:45The company now is on its knees because the bank that supported us for all those years
0:35:45 > 0:35:48thought it wise that we have this horrendous product.
0:35:48 > 0:35:51Paul had also been left fighting to save his business
0:35:51 > 0:35:55due to an interest rate swap product sold to him by Barclays,
0:35:55 > 0:36:01one that has left him paying a huge £4,500 per month on top of the existing loan repayments.
0:36:01 > 0:36:07One year on and the doors are still open, but it's no longer the busy shop it used to be.
0:36:07 > 0:36:12The cash starvation that we had because of these extra interest payments
0:36:12 > 0:36:17had really made it more and more difficult to trade.
0:36:17 > 0:36:21Our levels of stock really were depleted
0:36:21 > 0:36:23because of the cash flow problems.
0:36:23 > 0:36:27We hadn't been able to keep up to date with payments to suppliers,
0:36:27 > 0:36:31so the major suppliers had not traded with us.
0:36:31 > 0:36:37And low stock levels mean empty shelves, something no retailer ever wants to experience.
0:36:37 > 0:36:42People who weren't aware of the situation assumed we were having a closing-down sale,
0:36:42 > 0:36:47but we assured people we weren't intending to close down, but in this situation, we had no choice.
0:36:47 > 0:36:54Businesses like Paul's were pinning their hopes on an investigation by the Financial Services Authority
0:36:54 > 0:36:59and in January this year, the FSA found that interest rate swap products had been mis-sold
0:36:59 > 0:37:04in over 90% of cases it reviewed as part of an initial study.
0:37:04 > 0:37:10The banking industry has set aside billions of pounds to compensate small business owners affected,
0:37:10 > 0:37:17but Business Secretary Vince Cable has criticised Britain's biggest lenders for stalling on paying out.
0:37:17 > 0:37:22We're now in the process whereby they're negotiating with the companies
0:37:22 > 0:37:25about the redress they will actually get, case by case.
0:37:25 > 0:37:31The worry of many of the companies that are now seeking redress is that the redress is not automatic,
0:37:31 > 0:37:35as it was in the case of Payment Protection Insurance, PPI.
0:37:35 > 0:37:39They're having to negotiate one by one with the banks.
0:37:39 > 0:37:44If they're dissatisfied with the outcome, they don't have any comeback.
0:37:45 > 0:37:50But for Paul's business, it's good news. It's been officially recognised that he was a victim
0:37:50 > 0:37:53of mis-selling by his bank Barclays.
0:37:53 > 0:37:59When we got the letter in the middle of June, it was a great relief, but it was also a sense of vindication
0:37:59 > 0:38:04that all we had been saying and complaining about had been recognised by the bank.
0:38:04 > 0:38:06It was the wrong product
0:38:06 > 0:38:12and at long last now, there was some relief in sight in forms of redress.
0:38:12 > 0:38:17With Barclays accepting responsibility for the mis-selling of the product,
0:38:17 > 0:38:23Paul is hoping that he'll soon be compensated and his business can recover, but he remains cautious.
0:38:23 > 0:38:29We're not popping the champagne corks just yet because we don't know when it will arrive
0:38:29 > 0:38:32and there are additional costs to consider as well,
0:38:32 > 0:38:35so we are hopeful that it won't be ever so much longer.
0:38:35 > 0:38:41When we contacted Barclays, the bank told us it continues to work with Paul
0:38:41 > 0:38:45to support his company through challenging market conditions,
0:38:45 > 0:38:48stressing it's in the interest of both Barclays and its customers
0:38:48 > 0:38:53to complete the review as soon as possible and it's progressing as fast as it can.
0:38:54 > 0:38:59The Lilleys in Cleveland are also hoping their troubles will soon be at an end.
0:38:59 > 0:39:05In June, they were told by the Financial Ombudsman that the product they had been sold by HSBC
0:39:05 > 0:39:10had been unsuitable and the bank should put right the effect it's had on their business.
0:39:10 > 0:39:16We're waiting for a response by HSBC to see what our final settlement will be,
0:39:16 > 0:39:19then we'll know exactly where we are financially.
0:39:19 > 0:39:25We want an outcome which shows that we haven't made any loss,
0:39:25 > 0:39:31the personal circumstances for us alter that we are then comfortable again.
0:39:31 > 0:39:34We want to get the situation solved,
0:39:34 > 0:39:37so that we can get the shop back on track.
0:39:38 > 0:39:43HSBC told us it would be inappropriate to comment on matters which are confidential,
0:39:43 > 0:39:47but assured us the bank is doing everything it can
0:39:47 > 0:39:50to complete its past business review as quickly as possible,
0:39:50 > 0:39:55prioritising cases where customers are experiencing financial difficulties.
0:39:55 > 0:39:59Now, it remains uncertain exactly when and by how much
0:39:59 > 0:40:03both Darby's and Adcocks will be compensated by their banks.
0:40:03 > 0:40:09However, both family businesses will never be able to get back the years lost worrying about the impact
0:40:09 > 0:40:11of being mis-sold a product.
0:40:11 > 0:40:18The whole experience has left me feeling quite bitter towards the bank and the way we've been treated.
0:40:19 > 0:40:24The bank haven't been forthcoming with what is our money and not the bank's
0:40:24 > 0:40:27and they've still not given us it back yet.
0:40:27 > 0:40:31The personal effect has been very stressful, needless to say,
0:40:31 > 0:40:35and as we're a family business, it affects all of the family
0:40:35 > 0:40:38because all of our livelihoods depend upon it
0:40:38 > 0:40:43and I'm sure this was the closest we came to closing the door for the last time
0:40:43 > 0:40:45as we were about to run out of money.
0:40:51 > 0:40:56Here at Rip-Off Britain, we're always ready to investigate more of your stories.
0:40:56 > 0:41:02Confused over your bills? Trying to wade through never-ending small print?
0:41:02 > 0:41:08When they sit you down to sign up for things, they don't give you time to read through all the small print.
0:41:08 > 0:41:14Unsure what to do when you discover you've lost out and that so-called great deal has cost you money?
0:41:14 > 0:41:18I was horrified. I haven't got that sort of money to waste like that.
0:41:18 > 0:41:20You might have a cautionary tale
0:41:20 > 0:41:25and might want to share the mistake you made with us, so others don't do the same.
0:41:25 > 0:41:29I feel that people have got to know about this business.
0:41:29 > 0:41:31You can write to us at this address.
0:41:41 > 0:41:43Or send us an email to:
0:41:47 > 0:41:51The Rip-Off team is ready and waiting to investigate your stories.
0:41:55 > 0:41:58As we hear all too often at Rip-Off Britain,
0:41:58 > 0:42:01money can be so easy to lose, but very hard to get back
0:42:01 > 0:42:05and that can apply whether you're dealing with companies
0:42:05 > 0:42:08that are respectable household names or ones not so familiar.
0:42:08 > 0:42:13And who knows, maybe one or two that aren't that respectable either!
0:42:13 > 0:42:19You have to be constantly alert to the possibility that someone might be trying to trick you out of your money
0:42:19 > 0:42:21or promising something they can't deliver.
0:42:21 > 0:42:26That can be especially true online where you can't always be sure
0:42:26 > 0:42:29exactly who you're dealing with or where they are.
0:42:29 > 0:42:34But the key advice is to make sure you don't accidentally give out any personal details
0:42:34 > 0:42:38or any clues that someone could use to get hold of your money
0:42:38 > 0:42:41and if you're signing up for anything in person,
0:42:41 > 0:42:46make sure, particularly if there are big sums involved, that you take independent advice.
0:42:46 > 0:42:51That's where we have to leave it for today, but we'll be back with more of your stories,
0:42:51 > 0:42:54so until the next time, from all of us, bye-bye. Bye. Bye.
0:43:15 > 0:43:18Subtitles by Red Bee Media Ltd