0:00:02 > 0:00:04We asked you to tell us what's left you feeling ripped off
0:00:04 > 0:00:06and you contacted us in your thousands.
0:00:06 > 0:00:09You've told us about the companies you think get it wrong
0:00:09 > 0:00:13and the customer service that simply is not up to scratch.
0:00:13 > 0:00:16I've complained and complained and nobody takes any notice of me.
0:00:16 > 0:00:20In all honesty, I think it's just a way for the shops to make more money.
0:00:20 > 0:00:23You've asked us to track down the scammers who stole your money
0:00:23 > 0:00:26and investigate the extra charges you say are unfair.
0:00:26 > 0:00:29You don't want to spend any more but, yet, they're always trying
0:00:29 > 0:00:31to offer you little things extra.
0:00:31 > 0:00:33And when you've lost out but no-one else is to blame,
0:00:33 > 0:00:36you've come to us to stop others falling into the same trap.
0:00:36 > 0:00:39Rang up the company and they went, "Oh, it isn't our fault."
0:00:39 > 0:00:41So, whose fault is it?
0:00:41 > 0:00:44So, whether it's a blatant rip-off or a genuine mistake...
0:00:44 > 0:00:47We're here to find out why you're out of pocket
0:00:47 > 0:00:48and what you can do about it.
0:00:49 > 0:00:53Your stories, your money, this is Rip-Off Britain.
0:00:55 > 0:01:00Hello and welcome to Rip-Off Britain where, as ever, we're all about
0:01:00 > 0:01:04making sure that you get what you expect from the companies with whom you do business
0:01:04 > 0:01:07without any unexpected surprises a bit further down the line.
0:01:07 > 0:01:09And, you know, that's particularly important when
0:01:09 > 0:01:13you've gone to them for some kind of expert help or assistance.
0:01:13 > 0:01:17You know, an awful lot of companies like to make a big deal about being
0:01:17 > 0:01:20there to help you sort out a problem or perhaps even escape a
0:01:20 > 0:01:23situation altogether but as the people we'll meet in today's
0:01:23 > 0:01:25programme found out - I'm afraid, to their cost -
0:01:25 > 0:01:27just because a company says
0:01:27 > 0:01:29that it's uniquely placed to help you out,
0:01:29 > 0:01:32it doesn't always mean that that's exactly what's going to happen.
0:01:32 > 0:01:36And, in fact, in some cases, they may end up doing the very opposite
0:01:36 > 0:01:39of what was promised and actually make things a whole lot worse.
0:01:39 > 0:01:41So, watch and learn.
0:01:41 > 0:01:44We'll have some tips and advice to help you tell which companies
0:01:44 > 0:01:46really are the experts they claim to be
0:01:46 > 0:01:49so that you don't end up in situations like the ones we're going
0:01:49 > 0:01:51to be hearing about.
0:01:51 > 0:01:52Coming up...
0:01:52 > 0:01:55How one family's house move went disastrously wrong when
0:01:55 > 0:01:58the remover men turned rogue after loading up the van.
0:01:58 > 0:02:01I actually felt at this stage that my goods were being held to
0:02:01 > 0:02:04hostage and I was just totally powerless.
0:02:06 > 0:02:10And a company supposed to help its customers become debt-free,
0:02:10 > 0:02:14but, instead, left them owing thousands more.
0:02:14 > 0:02:18I felt totally robbed. The job I'd paid them to do, they didn't do.
0:02:18 > 0:02:22Ten years down the line, we're in more debt than when we started.
0:02:26 > 0:02:28Now, moving house is said to be right up there among the most
0:02:28 > 0:02:31stressful events of your life.
0:02:31 > 0:02:33One of the worst moments of all comes right at the end when
0:02:33 > 0:02:36you pack up all your precious belongings and hope to
0:02:36 > 0:02:38goodness they all arrive in one piece.
0:02:38 > 0:02:41It's why many of us put our trust in the experts,
0:02:41 > 0:02:44booking a removal company to do the job for us.
0:02:44 > 0:02:49But here's a terrifying example of what can happen if that goes wrong
0:02:49 > 0:02:53and the removers fail spectacularly to live up to expectations.
0:02:58 > 0:03:00It was one of the worst days ever.
0:03:00 > 0:03:05And I would hate for anybody else to go through what we did that day.
0:03:06 > 0:03:10Val Churchill's removal experience soon became a nightmare even
0:03:10 > 0:03:13though she'd found a company she was confident she could trust -
0:03:13 > 0:03:18an apparently local firm offering what seemed a great deal.
0:03:18 > 0:03:21Reassurances that they'd actually offered was there'd be
0:03:21 > 0:03:26a supervisor and two movers and that they would take care of everything.
0:03:26 > 0:03:29So, they would professionally wrap our mattresses, they would
0:03:29 > 0:03:33wrap all of our televisions, it was all going to be taken care of.
0:03:35 > 0:03:38Val had gone for a business called Wilson Removals Oxford -
0:03:38 > 0:03:41not to be confused with companies of a similar name.
0:03:41 > 0:03:44And what had clinched the decision was that, unlike most of the
0:03:44 > 0:03:47other firms she had looked at, the company appeared to belong to
0:03:47 > 0:03:50one of the very few trade bodies in the removal industry.
0:03:50 > 0:03:53In this case, the Professional Movers Association
0:03:53 > 0:03:57which gave her the peace of mind to go ahead.
0:03:57 > 0:04:01I really believed that these guys were good, honest guys
0:04:01 > 0:04:03that were going to do a good job.
0:04:03 > 0:04:06The company was set to pack and wrap most of Val and
0:04:06 > 0:04:10her family's belongings as well as disassemble the furniture but
0:04:10 > 0:04:14on the morning of the move, Val's confidence in them took a dive.
0:04:15 > 0:04:18I looked out the window to see a large beat-up van,
0:04:18 > 0:04:21two guys got out and I'd actually gone out to ask them
0:04:21 > 0:04:26if they was lost and they said, "No, we're actually the removals."
0:04:27 > 0:04:28My heart just sunk.
0:04:29 > 0:04:32On top of that, there were only two removal men on the job
0:04:32 > 0:04:34instead of the promised three,
0:04:34 > 0:04:37leaving Val worried that all that wrapping and packing might
0:04:37 > 0:04:39not go as smoothly as she had hoped.
0:04:39 > 0:04:42I looked straightaway for the bags of wrapping,
0:04:42 > 0:04:47I asked about the wardrobe boxes, and I was told that,
0:04:47 > 0:04:49"No, we haven't got any wardrobe boxes."
0:04:49 > 0:04:53I realised, at this stage, that there was no wrapping material,
0:04:53 > 0:04:58there was no way that they were going to be dismantling my beds.
0:04:58 > 0:05:01All of the things that I'd been promised.
0:05:01 > 0:05:03She started to wonder whether Wilson Removals Oxford
0:05:03 > 0:05:05was actually up to the job.
0:05:05 > 0:05:08But says her calls to the company's office to query what was
0:05:08 > 0:05:10going on went unanswered.
0:05:10 > 0:05:13I decided to take some photographs
0:05:13 > 0:05:16because I realised the damage that was being done.
0:05:16 > 0:05:19My three-piece suite was being scraped along the wall and
0:05:19 > 0:05:23then it was being put in the van just on it's side and just
0:05:23 > 0:05:26being shifted straight along the ground.
0:05:26 > 0:05:29There was no coverings, there was no protection.
0:05:30 > 0:05:33Val's daughter asked the movers to prove they were insured
0:05:33 > 0:05:38for any damage and that stopped them right in their tracks.
0:05:38 > 0:05:41They both immediately walked outside, locked the back of the van.
0:05:42 > 0:05:47The movers said Val would need to settle the entire £450 bill
0:05:47 > 0:05:49for the job before they would carry on.
0:05:50 > 0:05:52They wanted that money
0:05:52 > 0:05:56and decided that they were going to drive away with our goods.
0:05:56 > 0:06:00I actually felt, at this stage, that my goods were being held to hostage.
0:06:00 > 0:06:03And I was just totally powerless.
0:06:03 > 0:06:04I decided to call the police.
0:06:06 > 0:06:09The police helped Val's husband convince the movers
0:06:09 > 0:06:12to come back and brokered a compromise that the company
0:06:12 > 0:06:15would be paid on the proviso that Val's husband travelled
0:06:15 > 0:06:17in the van with the family's belongings.
0:06:17 > 0:06:21After that, the family and their worldly goods made it here
0:06:21 > 0:06:22to their new home.
0:06:24 > 0:06:25- Hi.- Hi, Val.
0:06:25 > 0:06:28But it was only as they started to unpack their belongings that
0:06:28 > 0:06:31they discovered the extent of the damage.
0:06:31 > 0:06:36What kind of things went wrong and what did you notice had been done?
0:06:36 > 0:06:40We've got leather three-piece suites and they scraped those against
0:06:40 > 0:06:43brick work, our wooden furniture was all scraped.
0:06:43 > 0:06:47One of our televisions, that's never worked again since.
0:06:47 > 0:06:51Val has tried to complain to Wilson Removals Oxford but says the
0:06:51 > 0:06:54company hasn't responded to any of her calls or e-mails.
0:06:54 > 0:06:57I felt completely powerless to do anything.
0:06:57 > 0:07:00Presumably, you were hoping that they were insured and you would be
0:07:00 > 0:07:01able to claim on their insurance.
0:07:01 > 0:07:04They told us we would be insured for any damages.
0:07:04 > 0:07:07I don't see why I should claim on my own insurance
0:07:07 > 0:07:10for something that somebody else has done.
0:07:10 > 0:07:13The service that they promised me isn't the service I received.
0:07:13 > 0:07:17Well, Val's understandably fed up with her e-mails and phone
0:07:17 > 0:07:18calls going unanswered.
0:07:18 > 0:07:21So, to try to get some answers from the company in person,
0:07:21 > 0:07:26we got in the car and headed to the address on the company's website.
0:07:26 > 0:07:29And as far as you know, are the company still trading?
0:07:29 > 0:07:30They are still trading.
0:07:30 > 0:07:35A colleague of mine just recently enquired about moving
0:07:35 > 0:07:38and had telephoned Wilson's by accident because he...
0:07:40 > 0:07:43- He knew about your experience. - Yeah, he did.
0:07:43 > 0:07:46And then said to me, "Oh, yes, they're definitely still trading."
0:07:46 > 0:07:49But it turns out the address Wilson Removals Oxford
0:07:49 > 0:07:53uses on it website and paperwork isn't its office at all.
0:07:53 > 0:07:56Instead, it's an entirely unrelated company.
0:07:56 > 0:07:59Even this morning I went on their website and this is the address
0:07:59 > 0:08:01that they've given that they trade out of.
0:08:01 > 0:08:05Well, as you say, certainly not Wilson's.
0:08:05 > 0:08:09So, Val picks up the phone and tries calling the company again.
0:08:09 > 0:08:11This time, someone does pick up.
0:08:11 > 0:08:15And it starts to become clear that the main base of Wilson's Removals
0:08:15 > 0:08:18isn't even in this town let alone street.
0:08:19 > 0:08:21So, what's the outcome?
0:08:21 > 0:08:25She's going to see if she can locate somebody from Wilson's Cowley
0:08:25 > 0:08:28to contact me and they're going to ring me back.
0:08:29 > 0:08:32So, we found a firm called Wilson's and they're in the
0:08:32 > 0:08:36removals business but they're in Reading not Cowley and that's as
0:08:36 > 0:08:38much as we know and they're certainly not here.
0:08:38 > 0:08:39They're not here.
0:08:41 > 0:08:43Well, the explanation turns out to be that there is
0:08:43 > 0:08:46a company in Reading called Wilson Removals And Storage
0:08:46 > 0:08:50which had allowed an entirely separate contractor to pay
0:08:50 > 0:08:54a fee to operate under the name Wilson Removals Oxford.
0:08:54 > 0:08:57It was that business Val had ended up booking and though the
0:08:57 > 0:09:00original Reading-based removal operation is still trading,
0:09:00 > 0:09:04the Oxford subcontractor has since gone out of business.
0:09:05 > 0:09:08But, remember, one of the reasons Val had chosen it in the first place
0:09:08 > 0:09:11was because it proudly declared its membership of
0:09:11 > 0:09:13the Professional Movers Association.
0:09:13 > 0:09:15In normal circumstances,
0:09:15 > 0:09:18that would have meant it was signed up to a code of conduct and
0:09:18 > 0:09:22the trade body might have been able to help once things went wrong.
0:09:22 > 0:09:25Trouble is, as become becomes clear when we meet the association's
0:09:25 > 0:09:29managing director Jane Finch, Wilson Removals Oxford never really
0:09:29 > 0:09:31had been a member at all.
0:09:31 > 0:09:34It had simply used the association's logo to trick people
0:09:34 > 0:09:37into thinking it was.
0:09:37 > 0:09:40The fact that they thought that it was OK to just use
0:09:40 > 0:09:43a trade association logo without having permission shows the
0:09:43 > 0:09:46kind of rogues that they are.
0:09:46 > 0:09:49Only 10% of removal firms genuinely are members
0:09:49 > 0:09:51of the two main trade bodies.
0:09:51 > 0:09:54The Professional Movers Association and the bigger,
0:09:54 > 0:09:57longer-established British Association Of Removers.
0:09:57 > 0:09:59Both have websites where you can check if
0:09:59 > 0:10:02a business that claims to be a member is telling the truth.
0:10:02 > 0:10:06If they are, then the association should be able to provide some
0:10:06 > 0:10:11assistance, but if they are fibbing, Jane says, "Proceed at your peril."
0:10:12 > 0:10:15There aren't any rules or regulations in the industry
0:10:15 > 0:10:21to stop anybody from just putting up a website that looks like
0:10:21 > 0:10:25a removal company and, basically. taking your money.
0:10:25 > 0:10:29So, people can trust all their worldly goods and they could
0:10:29 > 0:10:32have just drove off into the night.
0:10:32 > 0:10:35And while at least Val's possessions were only damaged rather than
0:10:35 > 0:10:36disappearing altogether,
0:10:36 > 0:10:39she fears she'll never get compensated for that damage.
0:10:39 > 0:10:43I have a feeling that maybe they're not insured.
0:10:43 > 0:10:44It looks like I've got no case.
0:10:44 > 0:10:47There's nobody to be able to hold account, is there?
0:10:47 > 0:10:50There really isn't very much you can do,
0:10:50 > 0:10:53because they've effectively disappeared.
0:10:53 > 0:10:57They're not contacting you after the problems and them not being
0:10:57 > 0:11:00a member of our association, we can't do anything to,
0:11:00 > 0:11:03you know, to push them along either.
0:11:05 > 0:11:08Well, we tried contacting Wilson Removals Oxford,
0:11:08 > 0:11:10but I'm afraid we didn't get a response.
0:11:10 > 0:11:11And, when we got in touch
0:11:11 > 0:11:13with Wilson Removals And Storage in Reading -
0:11:13 > 0:11:17the company whose name the Oxford outfit was paying to use -
0:11:17 > 0:11:21it told us that this was the first it had heard of Val's case.
0:11:21 > 0:11:24It stressed that, apart from the arrangement over the name,
0:11:24 > 0:11:27it had no connection with the Oxford business
0:11:27 > 0:11:29and isn't responsible for its actions.
0:11:31 > 0:11:34Nevertheless, because the whole affair does involve its name,
0:11:34 > 0:11:38Wilson Removals And Storage said it was keen to "make it right",
0:11:38 > 0:11:40and would offer Val some compensation
0:11:40 > 0:11:43for her "unfortunate experience."
0:11:43 > 0:11:45So, a resolution of sorts for Val,
0:11:45 > 0:11:48but, if you want to make sure you pick the right firm
0:11:48 > 0:11:52to help you move house, Jane has plenty of advice to keep in mind.
0:11:52 > 0:11:53Look at customer reviews.
0:11:53 > 0:11:56See what past customers actually thought about them.
0:11:56 > 0:11:59If they say that they're a member of a trade association,
0:11:59 > 0:12:02physically go on the trade association's website,
0:12:02 > 0:12:05because they'll have a directory of all of their members.
0:12:05 > 0:12:09If they're not a member, ask to see references.
0:12:09 > 0:12:12If they're a good company, they will be willing to give you references.
0:12:12 > 0:12:16They'll also be willing to give you copies of their insurance,
0:12:16 > 0:12:19so that you do know that they are insured properly.
0:12:19 > 0:12:23But Val would like to see the removals industry properly regulated
0:12:23 > 0:12:27so that no-one else has to go through a similar experience.
0:12:27 > 0:12:31I really do believe that this needs to be a regulated industry.
0:12:31 > 0:12:35Unfortunately, anybody can take your goods.
0:12:35 > 0:12:39You're entrusting your worldly goods to anybody.
0:12:45 > 0:12:47Now, get this...
0:12:47 > 0:12:53The average British household is now around £12,000 in debt,
0:12:53 > 0:12:56and that's not taking into account our mortgages.
0:12:56 > 0:12:59But whether it's loans, credit cards, store cards,
0:12:59 > 0:13:01or indeed a mix of all of these and more,
0:13:01 > 0:13:04it can be very easy for what you owe to just get out of hand,
0:13:04 > 0:13:07which is why a whole industry has sprung up
0:13:07 > 0:13:10to help us manage our failing finances.
0:13:10 > 0:13:14But watch out, because the advice and assistance on offer
0:13:14 > 0:13:16is not always going to help.
0:13:16 > 0:13:20Indeed, sometimes, as with the case of the people we're about to meet,
0:13:20 > 0:13:23it may even do the very last thing you need,
0:13:23 > 0:13:26and simply get you even deeper into debt.
0:13:28 > 0:13:31It's estimated that some nine million Britons
0:13:31 > 0:13:33have serious financial problems,
0:13:33 > 0:13:35so it's perhaps little wonder
0:13:35 > 0:13:37that many of those who can't see any alternative
0:13:37 > 0:13:40turn to one of the 100 or so debt-management companies
0:13:40 > 0:13:42that have sprung up,
0:13:42 > 0:13:45claiming that they'll be able to sort everything out.
0:13:45 > 0:13:47But, as Sharon Pickering and her husband Brendan
0:13:47 > 0:13:49have realised too late,
0:13:49 > 0:13:52sometimes that may only make things worse.
0:13:52 > 0:13:55Their troubles began around 2005
0:13:55 > 0:13:58when they started struggling to pay off what - initially, at least -
0:13:58 > 0:14:01were relatively small credit card bills.
0:14:01 > 0:14:05You think, "Oh, I need some clothes. I'll get a credit card, pay it off."
0:14:05 > 0:14:06But it never happens. You can't do that.
0:14:06 > 0:14:09There's always something else round the corner
0:14:09 > 0:14:12that you need to pay off that's more crucial at that time.
0:14:12 > 0:14:15As interest payments pushed up what the couple owed,
0:14:15 > 0:14:16over the next few years,
0:14:16 > 0:14:21their total debt spiralled to a terrifying £25,000.
0:14:21 > 0:14:23So, when a friend recommended a business
0:14:23 > 0:14:26called Compass Debt Counsellors to help,
0:14:26 > 0:14:29it seemed that they'd found the perfect solution.
0:14:29 > 0:14:30The company came up with a plan
0:14:30 > 0:14:33that would see Sharon and Brendan pay £200 a month -
0:14:33 > 0:14:36much less than the interest they were paying at the time -
0:14:36 > 0:14:39and told the couple that their debt could be cleared
0:14:39 > 0:14:41in as little as six years.
0:14:42 > 0:14:44It was such a relief when they did that.
0:14:44 > 0:14:47It just felt as though a weight had been lifted.
0:14:48 > 0:14:51Compass was using some of the money for repayments
0:14:51 > 0:14:55and banking the rest in a pot that, once it was big enough,
0:14:55 > 0:14:57would be used to negotiate with creditors
0:14:57 > 0:14:59to get the debt written off.
0:14:59 > 0:15:01In the meantime,
0:15:01 > 0:15:04Compass held that fund and paid itself an administration fee.
0:15:04 > 0:15:08We didn't question it at all, cos it just seemed...
0:15:08 > 0:15:10"Yeah, I think that might work."
0:15:11 > 0:15:14And, for a while, it did seem to be working.
0:15:14 > 0:15:16Each month, we had a statement
0:15:16 > 0:15:18showing the amounts they'd paid to our creditors
0:15:18 > 0:15:20and the amount that was going in this pot.
0:15:21 > 0:15:23Over the years, this pot builds up
0:15:23 > 0:15:26and they said that what they do then is contact the creditors
0:15:26 > 0:15:30and say, "OK, she owes £1,000.
0:15:30 > 0:15:33"We've got £400. Will you accept that?"
0:15:33 > 0:15:36And the idea is they use that pot of money
0:15:36 > 0:15:38to pay your creditors off at a lower amount.
0:15:40 > 0:15:42The scheme also allowed flexibility
0:15:42 > 0:15:45in case money from the savings pot was needed for major expenses,
0:15:45 > 0:15:49and Sharon and Brendan twice took advantage of that,
0:15:49 > 0:15:51though still accumulating a pot of £5,000.
0:15:51 > 0:15:54But, to their horror, in March 2016,
0:15:54 > 0:15:57Compass went into voluntary liquidation.
0:15:57 > 0:15:58As the company fizzled out,
0:15:58 > 0:16:01so too did their plan for paying off their debts.
0:16:01 > 0:16:03I felt physically sick at that point.
0:16:03 > 0:16:07To think that we'd trusted this company. They've got money...
0:16:07 > 0:16:09We don't think we're going to get it back...
0:16:09 > 0:16:11It was really upsetting.
0:16:11 > 0:16:13To make matters worse,
0:16:13 > 0:16:16because the company had been saving much of the couple's money
0:16:16 > 0:16:20for a future pay-off rather than giving it all to the creditors,
0:16:20 > 0:16:23Sharon and Brendan now owe even more money.
0:16:23 > 0:16:28In fact, their debts have almost doubled over the last ten years.
0:16:28 > 0:16:33Originally, when we started, we were probably in debt about £25,000.
0:16:33 > 0:16:37To date, now, we're now in debt £48,000.
0:16:37 > 0:16:39I felt totally robbed.
0:16:39 > 0:16:42The job I paid them to do, they didn't do.
0:16:42 > 0:16:46Ten years down line, we're in more debt than when we started.
0:16:47 > 0:16:49The collapse of Compass Debt Counsellors
0:16:49 > 0:16:51has left at least 100 more customers
0:16:51 > 0:16:54in the same position as Sharon and Brendan,
0:16:54 > 0:16:56owing more than they had when they called in a company
0:16:56 > 0:16:59that was supposed to make things better.
0:16:59 > 0:17:02And that's a particularly bitter pill for Craig Johnston to swallow.
0:17:02 > 0:17:04A forklift truck driver from Yorkshire,
0:17:04 > 0:17:07he'd been diligently paying into his pot with the company
0:17:07 > 0:17:09for more than a decade, until, in February,
0:17:09 > 0:17:12Compass called with some welcome news.
0:17:12 > 0:17:14They rang me up and they said,
0:17:14 > 0:17:17"Get in touch with your bank, stop payments immediately,
0:17:17 > 0:17:21"because you've got enough in your pot to negotiate a settlement now."
0:17:22 > 0:17:24Craig had a fund of £2,300
0:17:24 > 0:17:29which Compass was confident would be enough to pay off his final debt.
0:17:29 > 0:17:31I've had ten years of grief.
0:17:31 > 0:17:35I knew, within five or six weeks, I'd be debt-free.
0:17:35 > 0:17:36Everybody's paid off.
0:17:36 > 0:17:41Then Compass crashed, taking Craig's money with it.
0:17:41 > 0:17:44He's now taken out a loan in order to settle the debts
0:17:44 > 0:17:46he'd believed he was finally about to clear.
0:17:46 > 0:17:49I should have owed nothing to anybody. Not a penny.
0:17:50 > 0:17:52And that's now not the case.
0:17:52 > 0:17:56We wrote to Compass Debt Counsellors to try to find out what went wrong,
0:17:56 > 0:17:58but we haven't received a response.
0:17:58 > 0:18:03Kate Briscoe is the chief executive of consumer forum LegalBeagles.
0:18:03 > 0:18:06She thinks anyone in financial difficulty should steer clear
0:18:06 > 0:18:08of debt management companies altogether,
0:18:08 > 0:18:11but she'd say that's especially the case
0:18:11 > 0:18:13if it's one that - as Compass did -
0:18:13 > 0:18:16relies on what's called the "war chest" model,
0:18:16 > 0:18:20building up a pot to pay off the debts further down the line.
0:18:20 > 0:18:23The war chest model is based around the idea
0:18:23 > 0:18:25of full and final settlements.
0:18:25 > 0:18:27And, yes, if you can offer your creditors
0:18:27 > 0:18:29a full and final settlement, you will get a better deal -
0:18:29 > 0:18:31if you owe £10,000,
0:18:31 > 0:18:34but you haven't got 10,000 and you've got 5,000,
0:18:34 > 0:18:38your creditor is much more likely to accept a settlement of £5,000,
0:18:38 > 0:18:40full and final, and that'll be it.
0:18:42 > 0:18:45But the money that Compass held in its customers' war chests
0:18:45 > 0:18:47wasn't protected by the Government's
0:18:47 > 0:18:49Financial Services Compensation Scheme,
0:18:49 > 0:18:54meaning there was no way that they could get their lost money back.
0:18:54 > 0:18:56While not all such companies operate the same way,
0:18:56 > 0:19:00Kate is in no doubt that signing up to any debt management company
0:19:00 > 0:19:04is high-risk and rarely the best or even simplest option.
0:19:06 > 0:19:09I am not a fan of private debt-management companies,
0:19:09 > 0:19:12because they take large fees for themselves
0:19:12 > 0:19:14and they put their own operating needs
0:19:14 > 0:19:19above the needs of the clients who are trying to repay their debts.
0:19:19 > 0:19:20It is not uncommon,
0:19:20 > 0:19:23for someone paying £300 into a debt-management plan monthly,
0:19:23 > 0:19:27for at least £180 of that to be going to the debt-management plan.
0:19:27 > 0:19:30So, in fact, you're actually reducing your debts far more slowly.
0:19:32 > 0:19:35Kate says there are far better ways to get your debts under control
0:19:35 > 0:19:38than relying on someone else to do it for you,
0:19:38 > 0:19:40and the starting point should always be
0:19:40 > 0:19:42contacting whoever you owe money to yourself
0:19:42 > 0:19:45to discuss what options might be available.
0:19:45 > 0:19:50As far as Kate's concerned, there's simply no need to pay a middleman.
0:19:50 > 0:19:54Tackle your debts head-on to get YOURSELF out of the situation.
0:19:54 > 0:19:57Don't rely on a third party to do it for you.
0:19:57 > 0:20:00They won't do any better a job than you can yourself.
0:20:01 > 0:20:05Organisations such as Citizens Advice and StepChange
0:20:05 > 0:20:07have free online tools to help you calculate
0:20:07 > 0:20:10how much money you can afford to pay your creditors,
0:20:10 > 0:20:14and Citizens Advice website will even generate the letters
0:20:14 > 0:20:17needed to try and negotiate manageable payments.
0:20:17 > 0:20:21You can find more advice on how to tackle debt on our website...
0:20:25 > 0:20:27Contacting her creditors directly
0:20:27 > 0:20:30is already paying off for Sharon and Brendan.
0:20:30 > 0:20:33They've been able to set up an affordable repayment plan
0:20:33 > 0:20:36without the risks that cost them so dearly before.
0:20:36 > 0:20:39I didn't realise how easy it would be.
0:20:39 > 0:20:43They have been great and I know that the amount I pay per month
0:20:43 > 0:20:47is coming off my debts straightaway.
0:20:47 > 0:20:50So, it is brilliant and it's well worth doing.
0:20:58 > 0:21:00Still to come on Rip-Off Britain...
0:21:00 > 0:21:01Caught on camera -
0:21:01 > 0:21:05the company that says it's there to help unhappy time-share owners
0:21:05 > 0:21:08desperate to sell, but do its claims stack up?
0:21:09 > 0:21:11That was really scary.
0:21:11 > 0:21:14They had my believing the only way I'd ever get out of this
0:21:14 > 0:21:18was by paying them the £5,100.
0:21:22 > 0:21:26Once again, we've taken Rip-Off Britain out on the road.
0:21:26 > 0:21:28- BBC. Rip-Off Britain programme. - I recognised you!
0:21:28 > 0:21:31And, this time, it's Manchester's Trafford Centre
0:21:31 > 0:21:33that's host to our annual pop-up shop.
0:21:33 > 0:21:36How are you, you gorgeous girl?
0:21:39 > 0:21:42When Paul Hollyoak spotted our pop-up shop,
0:21:42 > 0:21:44it was an ideal opportunity to discuss a problem
0:21:44 > 0:21:46that's never far from his mind.
0:21:46 > 0:21:5020 years ago, Paul's mum entered into an equity release scheme -
0:21:50 > 0:21:52an arrangement where you borrow money
0:21:52 > 0:21:54against the value of your home,
0:21:54 > 0:21:57giving the lender rights to a share of the property's value
0:21:57 > 0:21:58when you eventually sell up.
0:21:58 > 0:22:01But Paul has since discovered just how bad a deal
0:22:01 > 0:22:03that contract turned out to be.
0:22:03 > 0:22:06Martyn James from the Financial Ombudsman Service
0:22:06 > 0:22:10and solicitor Gary Rycroft joined forces to hear what happened.
0:22:11 > 0:22:15They borrowed her £14,000 to do some home improvements.
0:22:15 > 0:22:18The actual policy that she took out meant that,
0:22:18 > 0:22:23once the house was sold, whether it be she moving or she passed away,
0:22:23 > 0:22:28then the company would receive 75% of the value of the sale.
0:22:28 > 0:22:32If your mum sold the property today and they got 75% of it,
0:22:32 > 0:22:35how much would they be in line for?
0:22:35 > 0:22:38Ballpark figure, I'd say about 140,000.
0:22:38 > 0:22:40Incredible. So, that's actually ten times...
0:22:40 > 0:22:43Yes, because she's got a four bedroom semidetached house.
0:22:43 > 0:22:45If Paul's calculations are right,
0:22:45 > 0:22:48that's a 1,000% return for the company
0:22:48 > 0:22:50which initially lent the cash,
0:22:50 > 0:22:53a pretty high interest rate by anyone's standard.
0:22:53 > 0:22:56For me, this is a total rip-off and the money that the company
0:22:56 > 0:23:00are going to receive when the house is sold, absolutely,
0:23:00 > 0:23:04totally is way out of sync with what she actually borrowed.
0:23:04 > 0:23:07Back in the 1980s, equity release grew in popularity.
0:23:07 > 0:23:10But regulation of the market was limited.
0:23:10 > 0:23:12These days, the rules are more stringent,
0:23:12 > 0:23:15but it's the legacy of this first draft of deals that Martyn
0:23:15 > 0:23:17and Gary are concerned about.
0:23:17 > 0:23:20It's been reined in a lot since those bad old days,
0:23:20 > 0:23:23but these old-style schemes have, of course, led to lots of problems
0:23:23 > 0:23:27and I've seen it a lot in my office and I'm sure, Martyn,
0:23:27 > 0:23:29you've seen it at the Financial Ombudsman Service.
0:23:29 > 0:23:32Absolutely, and what we generally say when we're talking about
0:23:32 > 0:23:36this is, it's not about the profit that your house would've made.
0:23:36 > 0:23:39If your house has got too big, if the expenses are too much,
0:23:39 > 0:23:42and you want to downsize, you're walking away with 25%
0:23:42 > 0:23:45of your profit and what can you buy for that?
0:23:45 > 0:23:47And that's the real issue here.
0:23:47 > 0:23:50This was my point. My mum was 60-odd when she did this.
0:23:50 > 0:23:51She's not...
0:23:51 > 0:23:54She hadn't the financial background in terms of paying bills.
0:23:54 > 0:23:56It was all done by my dad, which is old-school,
0:23:56 > 0:24:01which it was years ago, and if she was aware that 75% of that
0:24:01 > 0:24:04was going to the company, she'd be devastated.
0:24:04 > 0:24:08Trouble is, all these years on, there's not always much
0:24:08 > 0:24:12that adjudicators like the Financial Ombudsman can do to help.
0:24:12 > 0:24:14I have to say, unfortunately,
0:24:14 > 0:24:17mortgage lending wasn't regulated till 2005.
0:24:17 > 0:24:20There is a slim chance that this firm may have been.
0:24:20 > 0:24:23If it is, we can look at a complaint against them.
0:24:23 > 0:24:27If it isn't, I would still encourage you to write down how you feel
0:24:27 > 0:24:29your mum's been let down.
0:24:29 > 0:24:31They could at least acknowledge the impact on your mother
0:24:31 > 0:24:32and see what can be done,
0:24:32 > 0:24:35even if it's just appealing to the better nature of the lender.
0:24:35 > 0:24:37But thank you for telling us your story about this, Paul.
0:24:37 > 0:24:40- You're welcome. Thanks for your time.- Thank you.
0:24:40 > 0:24:42Thank you very much indeed.
0:24:42 > 0:24:45After filming, Martyn did investigate Paul's case but,
0:24:45 > 0:24:49as he suspected, this particular scheme was not regulated
0:24:49 > 0:24:50back when the money was lent,
0:24:50 > 0:24:54which makes it difficult for Paul to find any redress.
0:24:54 > 0:24:56And while today's equity-release schemes
0:24:56 > 0:24:58do have to follow tighter rules,
0:24:58 > 0:25:02the advice from Gary and Martyn is that it can prove a very expensive
0:25:02 > 0:25:05way of borrowing, particularly if you live to a ripe old age,
0:25:05 > 0:25:07so be wary.
0:25:07 > 0:25:10And before taking the plunge, consider all other options.
0:25:12 > 0:25:14Next into the shop were Rob and Michelle,
0:25:14 > 0:25:18who were looking for advice from technology expert David McClelland.
0:25:18 > 0:25:20Tell him what's been going on.
0:25:20 > 0:25:22It's just a complete nightmare, basically.
0:25:22 > 0:25:25I had a mobile phone and I woke up one day and the screen was black.
0:25:25 > 0:25:27I couldn't see anything.
0:25:27 > 0:25:30Michelle contacted the shop where she purchased the phone
0:25:30 > 0:25:34only seven months earlier and it was sent off for repair.
0:25:34 > 0:25:36But when the phone company got back in touch,
0:25:36 > 0:25:39it wasn't with the resolution the couple expected.
0:25:39 > 0:25:43They rang and they actually accused Michelle of damaging it
0:25:43 > 0:25:46by just, basically, having it in her pocket for everyday...
0:25:46 > 0:25:49- Caused by condensation. - Damp and condensation from her leg.
0:25:49 > 0:25:52- I've never heard of that. - And neither had we.
0:25:52 > 0:25:53They said that, for it to be mended,
0:25:53 > 0:25:56somebody would have to foot the bill for £94.
0:25:56 > 0:26:00Rob and Michelle refused to pay up and the phone was returned to them.
0:26:00 > 0:26:03But left with a device she couldn't use,
0:26:03 > 0:26:06Michelle decided to stop making the monthly payments on her contract,
0:26:06 > 0:26:09in the hope that that might prompt some action.
0:26:09 > 0:26:12And it did, but not in the way they'd wanted.
0:26:12 > 0:26:15The phone company threatened to call in debt collectors.
0:26:15 > 0:26:18- You were left in tears. - Yeah, yeah, it were awful.
0:26:18 > 0:26:21They've brought along all of their paperwork and right away
0:26:21 > 0:26:24David spots an error in the way they've been treated.
0:26:24 > 0:26:25The thing that gets me here is
0:26:25 > 0:26:28that they're saying your phone is out of warranty.
0:26:28 > 0:26:31It's not out of warranty, it's still in warranty, so they're incorrect.
0:26:31 > 0:26:34Have you got some proof of the fact that it's still in warranty?
0:26:34 > 0:26:36Yes, I've got the full receipt.
0:26:36 > 0:26:40David's advice is for Rob and Michelle to put their complaint
0:26:40 > 0:26:43in writing, making crystal clear what they're asking for.
0:26:43 > 0:26:46You need to de-stress the situation,
0:26:46 > 0:26:49write an official letter of complaint, don't go in store,
0:26:49 > 0:26:52don't phone them up, and say, "I'd like to advise you that the
0:26:52 > 0:26:56"phone is in warranty, I would like to repair or replacement, please."
0:26:56 > 0:26:59Now, if they come back and for whatever reason they say "no",
0:26:59 > 0:27:01then that means you're at deadlock.
0:27:01 > 0:27:03We are agreeing to disagree.
0:27:03 > 0:27:06A deadlock letter is your key to taking your complaint
0:27:06 > 0:27:09to the next stage, an independent adjudicator
0:27:09 > 0:27:11separate to the company involved.
0:27:11 > 0:27:12In this case,
0:27:12 > 0:27:16it would be the Ombudsman Services Communications, a regulated
0:27:16 > 0:27:19organisation that looks at cases involving mobile phone companies.
0:27:19 > 0:27:22And David thinks Rob and Michelle have a strong case.
0:27:22 > 0:27:26Given the facts as you've told them to me, I find it very difficult to
0:27:26 > 0:27:29understand how an alternate dispute resolution service would find
0:27:29 > 0:27:31in anything other than your favour.
0:27:31 > 0:27:34- Thank you for your help. - Thank you so much.
0:27:37 > 0:27:39Now, since the time-share bubble burst,
0:27:39 > 0:27:43one of the most common complaints we hear about comes from people
0:27:43 > 0:27:46who really did buy into that holiday dream, but who now feel the deal
0:27:46 > 0:27:49wasn't quite as sunny as they thought it would be
0:27:49 > 0:27:50when they signed up.
0:27:50 > 0:27:53They're desperate to cut their losses and get rid of their
0:27:53 > 0:27:54time-shares once and for all.
0:27:54 > 0:27:58And with so many people in the same boat, it's led to a whole host
0:27:58 > 0:28:00of companies springing up saying they can help.
0:28:00 > 0:28:04But when one Rip-Off Britain viewer was contacted by a firm
0:28:04 > 0:28:06offering to do just that - for a fee, of course -
0:28:06 > 0:28:10something didn't quite seem right. So, she invited us along when
0:28:10 > 0:28:14she went to meet them so we could see if her suspicions were correct.
0:28:15 > 0:28:19A summer holiday really can feel like the antidote to all ills.
0:28:21 > 0:28:24So, when, as a result of entering a competition, Heather Harvey
0:28:24 > 0:28:28was offered the chance of a free one just weeks after her family business
0:28:28 > 0:28:31had been forced to close, she jumped at the chance.
0:28:32 > 0:28:36We weren't having a lot of luck, life wasn't going great for us
0:28:36 > 0:28:39at the time and this opportunity came along, we thought,
0:28:39 > 0:28:44"Maybe this is good, this could be great for us and the family."
0:28:44 > 0:28:46So, in 2012, Heather and her husband, Rob,
0:28:46 > 0:28:48and their two kids jetted off to
0:28:48 > 0:28:52Tenerife to stay at a resort run by global travel firm
0:28:52 > 0:28:55Club La Costa, a company that many, many moons ago,
0:28:55 > 0:28:58long before this programme came along,
0:28:58 > 0:29:00I briefly did a little promotion for.
0:29:00 > 0:29:03But the family soon realised that the whole point
0:29:03 > 0:29:06of their free holiday was a sales pitch to get them to buy
0:29:06 > 0:29:09a time-share and sign up to full membership
0:29:09 > 0:29:11of Club La Costa's holiday club.
0:29:11 > 0:29:15We were to go for breakfast with one of the sales reps, so,
0:29:15 > 0:29:17"All right, we'll go along to that."
0:29:17 > 0:29:22And from there, it turned into the whole day - taking us around,
0:29:22 > 0:29:25looking at all their resorts,
0:29:25 > 0:29:28all these different packages and options.
0:29:28 > 0:29:31And the rep came up with what initially seemed an
0:29:31 > 0:29:33attractive way to pay for what was on offer.
0:29:33 > 0:29:37We just said that we aren't in a position financially to do
0:29:37 > 0:29:39anything like this...
0:29:39 > 0:29:42They said, "Don't worry about that, we can sort something out for you,
0:29:42 > 0:29:44"We can come up with a plan."
0:29:44 > 0:29:49They said to us they would get the finance for us, they would also give
0:29:49 > 0:29:53us a free holiday, they would give us a year of the maintenance, just
0:29:53 > 0:29:58loads and loads of offers, really, for us to sign on the dotted line.
0:29:58 > 0:30:02So, persuaded by the finance deal that this was something they
0:30:02 > 0:30:05could afford after all, Heather and her husband signed up.
0:30:05 > 0:30:09Somehow, miraculously, they came up with something, which kind of made
0:30:09 > 0:30:12us think, "Well, maybe the things aren't so bad after all."
0:30:12 > 0:30:17So, Heather and Rob agreed to a 20-year contract with Club La Costa,
0:30:17 > 0:30:22with the whole cost of £18,180 covered by the finance agreement.
0:30:22 > 0:30:25We were low. You know, we hadn't been in a good place
0:30:25 > 0:30:27and it sounded like a way out of,
0:30:27 > 0:30:30you know, something nice to look forward to.
0:30:30 > 0:30:35But back home, the reality of what they signed up to came to look a lot
0:30:35 > 0:30:38less attractive than it had in the Tenerife sunshine.
0:30:38 > 0:30:43They agreed to pay just over £285 every month for 15 years,
0:30:43 > 0:30:48which meant that, at the end, their £18,000 contract
0:30:48 > 0:30:53would actually set them back a total of more than £51,000.
0:30:53 > 0:30:57Add to that the extra costs of owning the time-share itself,
0:30:57 > 0:31:01such as annual management fees of up to around £800,
0:31:01 > 0:31:04and Heather felt much less happy with the deal.
0:31:04 > 0:31:11I just felt we were stuck with this great, big, hefty finance agreement
0:31:11 > 0:31:13that we couldn't get rid of.
0:31:13 > 0:31:15We just thought, "We just want out of this."
0:31:15 > 0:31:19But when Heather contacted Club La Costa, she certainly didn't
0:31:19 > 0:31:22get the impression that the company would be prepared to release them
0:31:22 > 0:31:26from the contract and with the bank unwilling to cut the finance
0:31:26 > 0:31:30payments either, they weren't sure of the best way forward.
0:31:30 > 0:31:32They stopped paying their admin and membership fees,
0:31:32 > 0:31:36but keeping up the monthly finance payments remained a struggle, and,
0:31:36 > 0:31:40over the next three years, Heather says she tried in vain to find
0:31:40 > 0:31:44a way to get rid of a time-share that they simply couldn't afford.
0:31:44 > 0:31:46Went online, looked at forums,
0:31:46 > 0:31:51got in touch with lots of time-share advice centres.
0:31:51 > 0:31:55Then, out of the blue, I had a phone call from ITRA.
0:31:55 > 0:31:58ITRA, or International Time-share Refund Action,
0:31:58 > 0:32:02says that they're there to help customers who feel that they'd
0:32:02 > 0:32:06been mis-sold a time-share, can't afford to keep it and want out.
0:32:18 > 0:32:22Heather was told that ITRA was considering a class action
0:32:22 > 0:32:25against Club La Costa on behalf of potentially hundreds
0:32:25 > 0:32:29of time-share owners, all hoping to get compensation
0:32:29 > 0:32:32for being wrongly sold their time-shares in the first place.
0:32:32 > 0:32:35It was exactly what Heather wanted to hear.
0:32:35 > 0:32:38But ITRA's rep cut an initial meeting short because
0:32:38 > 0:32:40Heather's husband wasn't there.
0:32:40 > 0:32:42However, what she'd heard up to then
0:32:42 > 0:32:45left Heather wondering if the company really can do
0:32:45 > 0:32:47what it promises, so she got in touch with us.
0:32:47 > 0:32:50We've featured companies offering to help
0:32:50 > 0:32:53unhappy time-share owners before, and in our experience,
0:32:53 > 0:32:56it's not always as simple as might be made out,
0:32:56 > 0:32:59so when Heather asked if we'd like to accompany her
0:32:59 > 0:33:01to a second meeting with ITRA,
0:33:01 > 0:33:03we, of course, said yes.
0:33:05 > 0:33:08A member of our team, wearing a hidden camera, went along, too,
0:33:08 > 0:33:11posing as Heather's husband, Rob.
0:33:11 > 0:33:14It didn't take long for ITRA's rep to cut to the chase.
0:33:14 > 0:33:17Less than two minutes after walking through the door,
0:33:17 > 0:33:20Heather was assured that she was in a prime position to join
0:33:20 > 0:33:23the class action being planned against Club La Costa and
0:33:23 > 0:33:27the rep seemed pretty definite that she could expect a big cash pay-out.
0:33:42 > 0:33:44As for the cost of joining that class action...
0:33:57 > 0:33:59It sounds like the answer to Heather's prayers,
0:33:59 > 0:34:03especially when the rep passes on dire warnings about what he claims
0:34:03 > 0:34:07will happen once Club La Costa calls in the debt collectors
0:34:07 > 0:34:09to recover the management fees she's not paid for
0:34:09 > 0:34:11for the last three years.
0:34:22 > 0:34:24But Heather's told if she signs up with ITRA,
0:34:24 > 0:34:28there'll be no debt collectors, no further finance payments
0:34:28 > 0:34:30and, best of all, no time-share.
0:34:41 > 0:34:44There is, however, one further detail,
0:34:44 > 0:34:48because signing up with ITRA does come with a cost.
0:34:48 > 0:34:52Heather will need to pay the company £5,100,
0:34:52 > 0:34:55although it's not clear exactly what that's for.
0:34:55 > 0:34:56At various points in the meeting,
0:34:56 > 0:34:58she's a given differing explanations,
0:34:58 > 0:35:00and more than once is told that
0:35:00 > 0:35:04it's purely to cover the cost of getting rid of her time-share.
0:35:13 > 0:35:17The rep explains that that would be done through what's called
0:35:17 > 0:35:20a deed agent, which he's keen to stress is a good thing.
0:35:30 > 0:35:32In fact, that's not strictly true,
0:35:32 > 0:35:36because some time-share companies do have procedures that they claim
0:35:36 > 0:35:39allow owners to surrender their time-shares.
0:35:39 > 0:35:41That might leave owners out of pocket,
0:35:41 > 0:35:44but they won't be liable for any future fees.
0:35:44 > 0:35:47And even if Heather's particular case might be complicated
0:35:47 > 0:35:50by the fact that she owes so much in finance,
0:35:50 > 0:35:54the big no-no with what she's been told is that the law says
0:35:54 > 0:35:57no company should ever take money for selling
0:35:57 > 0:36:00a time-share before it's actually sold it.
0:36:00 > 0:36:02One of our regular experts, Sylvia Rook,
0:36:02 > 0:36:05is a lead officer at the Trading Standards Institute
0:36:05 > 0:36:08and we asked her to take a look at the footage from Heather's meeting.
0:36:08 > 0:36:11I do think that the whole presentation is very misleading
0:36:11 > 0:36:14and you're left not understanding what it is that's being offered
0:36:14 > 0:36:16or what your money is for.
0:36:16 > 0:36:18From the off, one of the things that makes Silvia sceptical
0:36:18 > 0:36:22about what's hearing is the speed with which Heather was assured
0:36:22 > 0:36:26she'd definitely be able to join ITRA's apparent action
0:36:26 > 0:36:28against Club La Costa.
0:36:28 > 0:36:30The individual says to Heather that he's there to assess whether
0:36:30 > 0:36:33she's got a claim, but he doesn't actually ask her any questions
0:36:33 > 0:36:36about how the product was sold and then he goes on to say
0:36:36 > 0:36:39she's definitely got a claim, but having looked through the video,
0:36:39 > 0:36:41I don't actually know what that claim is
0:36:41 > 0:36:42that he thinks that she's got.
0:36:42 > 0:36:43Adding to the confusion,
0:36:43 > 0:36:46throughout the meeting the agent makes the class action
0:36:46 > 0:36:49and the sale of the time-share feel like one and the same thing,
0:36:49 > 0:36:51but they're not, and there's actually
0:36:51 > 0:36:54no reason that Heather should need to get rid of her time-share
0:36:54 > 0:36:57to argue that it had been mis-sold.
0:36:57 > 0:36:58You can take a class action
0:36:58 > 0:37:00whilst you're still in possession of the property
0:37:00 > 0:37:02and then you can give it back at the end of the case anyway.
0:37:02 > 0:37:06But that isn't quite what the rep tells Heather and it certainly felt
0:37:06 > 0:37:11to her that his main concern was getting her to pay that £5,100 fee.
0:37:20 > 0:37:22The agent does tell Heather that she'll get her money back
0:37:22 > 0:37:25if things don't go according to plan, but, of course,
0:37:25 > 0:37:28that's something that he's confident won't happen.
0:37:46 > 0:37:50As the meeting draws to a close, Sylvia's not sure signing up
0:37:50 > 0:37:53would get Heather any closer to having her problem solved,
0:37:53 > 0:37:57but it would leave her £5,100 further out of pocket.
0:37:57 > 0:37:59I think there's an awful lot of confusion
0:37:59 > 0:38:01at the end of this presentation.
0:38:01 > 0:38:04When Heather's left, I don't think she'll actually know
0:38:04 > 0:38:07what was being offered, what her rights were, whether she's part
0:38:07 > 0:38:10of a class action or not and, if so, what that action is for.
0:38:10 > 0:38:12I think Heather would have gone away thinking the only way that
0:38:12 > 0:38:15she can get rid of the time-share and possibly get her money back
0:38:15 > 0:38:19is using a deed agent and giving money to the company.
0:38:19 > 0:38:22That is not the only way of getting rid of your time-share.
0:38:22 > 0:38:26And Heather herself can see how easy it would be to leave the meeting
0:38:26 > 0:38:28thinking there's only one way forward.
0:38:30 > 0:38:32That was really scary.
0:38:32 > 0:38:35They had me believing the only way I would ever get out of this
0:38:35 > 0:38:39is by paying them the £5,100.
0:38:39 > 0:38:41I could see how so many people would just,
0:38:41 > 0:38:43if they had the money there and then, they'd go off and do it.
0:38:45 > 0:38:48Well, we spoke to both ITRA and Club La Costa about all of this,
0:38:48 > 0:38:51but with both of them dead set on rubbishing the other,
0:38:51 > 0:38:54it's very easy to see why this kind of situation can be
0:38:54 > 0:38:56so hard for consumers to navigate.
0:38:58 > 0:39:01For its part, ITRA strenuously "denies any wrongdoing"
0:39:01 > 0:39:04and stands by most of what its rep told Heather,
0:39:04 > 0:39:09apart from a few details it accepted he hadn't been trained to say.
0:39:09 > 0:39:12But it did rein back on the timeframe she'd been given
0:39:12 > 0:39:15for the legal action, saying that while its lawyers are...
0:39:21 > 0:39:24..joint action is just one option that's being considered.
0:39:24 > 0:39:26It claimed its lawyers
0:39:26 > 0:39:29have identified "numerous contractual breaches"
0:39:29 > 0:39:33as well as "irresponsible lending of finance" and "misrepresentation".
0:39:33 > 0:39:36ITRA went on to say its rep so quickly confirmed
0:39:36 > 0:39:38that Heather had a claim
0:39:38 > 0:39:41because of the information she had already provided
0:39:41 > 0:39:45and the advice that its lawyers have given in similar cases.
0:39:46 > 0:39:47As for that £5,100 fee,
0:39:47 > 0:39:51it says that's "to cover a complete service",
0:39:51 > 0:39:56including legal and administration fees and various other costs.
0:39:56 > 0:39:59Clearly mindful of the law around this point,
0:39:59 > 0:40:03it insisted that it doesn't resell time-share,
0:40:03 > 0:40:05but assists with ownership relinquishment
0:40:05 > 0:40:09so the regulations which prohibit taking money for selling
0:40:09 > 0:40:12a time-share simply do not apply.
0:40:12 > 0:40:16Meanwhile, Club La Costa was keen to stress it's a regulated business
0:40:16 > 0:40:18with "absolute cancellation rights"
0:40:18 > 0:40:22and that members who wish to exit are free to do so.
0:40:22 > 0:40:27As such, there's no need to pay what it calls an excessive upfront fee...
0:40:30 > 0:40:34It insisted that despite what ITRA's rep claimed, it doesn't use
0:40:34 > 0:40:38debt collectors to recover unpaid fees or take members to court.
0:40:38 > 0:40:41What's more, it said if there really were to be any legal action,
0:40:41 > 0:40:42it would be...
0:40:47 > 0:40:50..and while the holiday company disputed several details
0:40:50 > 0:40:52of Heather's story, in particular,
0:40:52 > 0:40:56claiming that its finance deals would be subject to the same checks
0:40:56 > 0:40:57as they would be home,
0:40:57 > 0:41:01it told us it has various options for how she and her family
0:41:01 > 0:41:03could resume the membership "with the slate wiped clean"
0:41:03 > 0:41:05on those unpaid fees.
0:41:05 > 0:41:08Of course, whatever the truth of all of this,
0:41:08 > 0:41:11there are plenty of other companies that offer to help people
0:41:11 > 0:41:14like Heather get rid of their time-shares and Sylvia says
0:41:14 > 0:41:17they should all initially be approached with caution.
0:41:17 > 0:41:21At Trading Standards, we'd always warn people to be very careful
0:41:21 > 0:41:24if you're approached by somebody who says they can sell your time-share.
0:41:24 > 0:41:25If you're not careful,
0:41:25 > 0:41:28you may find yourself putting good money after bad.
0:41:28 > 0:41:30Don't get sucked into using a company
0:41:30 > 0:41:31who's going to take money from you.
0:41:31 > 0:41:34Do your own independent research, speak to a lawyer,
0:41:34 > 0:41:37speak to Trading Standards before you part with any money
0:41:37 > 0:41:40to make sure you know exactly what you're doing
0:41:40 > 0:41:42and you've got the best possible advice.
0:41:42 > 0:41:45You can find more about all of that on our website, it's...
0:41:56 > 0:41:58If you've got a story you'd like us to investigate,
0:41:58 > 0:42:01then you can get in touch with us via our Facebook page
0:42:01 > 0:42:03"BBC Rip Off Britain".
0:42:03 > 0:42:08There's our website bbc.co.uk/ripoffbritain
0:42:08 > 0:42:09or e-mail...
0:42:13 > 0:42:16..and, of course, you can send a letter to our postal address...
0:42:29 > 0:42:32You know, there can't be too many of us who haven't, at some time
0:42:32 > 0:42:35or another, needed to call on an expert for help.
0:42:35 > 0:42:39Whether that's because, like the people that we've just met today,
0:42:39 > 0:42:42we were looking for advice on a situation that we really found
0:42:42 > 0:42:45hard to manage ourselves or to try and escape from something
0:42:45 > 0:42:49that perhaps we now regret having signed up for in the first place.
0:42:49 > 0:42:50But, indeed, as we've just heard,
0:42:50 > 0:42:53because a company sounds like it knows what it's talking about,
0:42:53 > 0:42:56doesn't mean that you shouldn't do your best to check them out
0:42:56 > 0:42:59before agreeing to whatever it is they're offering.
0:42:59 > 0:43:01Doing that bit of research really could stop you losing out,
0:43:01 > 0:43:05- or, worse still, throwing really good money after bad.- Absolutely.
0:43:05 > 0:43:09Choosing the right expert can save you a whole lot of bother later on,
0:43:09 > 0:43:11but, sadly, that's where we have to leave it the today.
0:43:11 > 0:43:14You can find more nuggets of advice
0:43:14 > 0:43:17on our website bbc.co.uk/ripoffbritain
0:43:17 > 0:43:19or join the chat on our Facebook page,
0:43:19 > 0:43:20but for now though,
0:43:20 > 0:43:24thanks for joining us and till the next time from all of us, goodbye.
0:43:24 > 0:43:25- Bye-bye.- Bye-bye.