Episode 18 Watchdog Daily

Hello and welcome to Watchdog Daily. We are with you live for the next

45 minutes. This morning, buying gift vouchers for Christmas? We but

some of the most popular to the test of find out what they already

worth. See him, steaks, big penalties. How

some airlines are penalising customers for the smallest booking

errors. And why Boots can no longer say

these pills help cut the carbohydrates.

Also today... You owe me 700 -- �3,700!

The Consumer Cops to track down those accused dealing in debt

collection and violence. First, gift vouchers, one of the

most popular Christmas presents and a perfect option when you cannot

think what to buy. Or are they? Judging by your complaints and Anna

instigation by mystery shoppers from us, it seems some vouchers

could be a better present for the companies than for your family and

friends. We will spend an estimated �4.4

billion on gift vouchers this year, so a family and friends can

exchange them for clothes, of books, music. But 6% of the money, that is

�264 million, will go on spend. We lose them and forget to exchange

them before they expire. And then a rather vouchers so riddled with

restrictions they are hardly worth using. Some can even end up costing

us more. When I retired from work last year my colleagues gave me

about us to spend. �50 worth of Jet2 vouchers. They knew I would

spend a year travelling and they thought that would come in useful

in some of my plans. When I came in May this year to book for flights

online and I looked at the small print, it said you had to phone

their customer service desk on a number. Yes, Jet2 would not let

Rosie redeem the voucher online. She had to call them. The flight

prices had approach in our increased. The bottom line, without

a voucher, she could have booked through the website for... �219.96.

Whatever was I had �50 worth of vouchers I would have to spent --

and I would have to spend �180 in order to get �50, so when net loss

to me of �130 for having to book through the help desk. I know my

friend but a lot of effort into having a collection for me and

thought into what would be good but unfortunately I have not been able

to use them so I feel they have been let down. You would expect you

could redeem them online given they are an online company. So if one

company can put expensive restrictions on, what about the

others? Time to find out. Over two days, our mystery shopper has

studied the terms and conditions on several of the most popular gift

vouchers and cards. Unlike cash, they can have a very limited life

span. In the industry, the expiry date is in fact part of the way the

business works and if they have an expiry date innings after a certain

length of time, that money can go into their account. -- it means.

Otherwise they have to keep it in case you turn up 12 years later.

Some companies are prepared -- prepared to do this. Like John

Lewis and BhS. But others have time limit. The most popular period is

24 months but look carefully. one from Dorothy Perkins is another

good example because this expires 24 months from the date of purchase.

That is used for mind it is not 24 months after you open your

Christmas present. - -- that is used for because. The cards you get

now usually do have an expiry date. Some companies have uneven it shot

-- even short expiry time. With Selfridges, it is only 12 months.

Can I ask why it has this time limit? I think it is the shop

policy. Selfridges also restrict your choice of how to spend the

money. The store stocks thousands of products but if you want to use

your card to buy these they will not let you. And why are they these

restrictions? I don't know, it doesn't even make sense, to be

We also found restrictions on the House of Fraser gift voucher. You

are unable to use this to buy a large kitchen appliances or

Montgomerie made-to-measure curtains, accessories and fabrics.

The gift card sort of says, you know you like computer games or

clothing or a particular retailer, so they give you the gift card. It

is better for the giver but not necessarily for the receiver,

because what the recipient wants his flexibility and nothing is as

flexible as cash. But in some cases, a gift card is not such a good deal

for the giver either. Take the one from Ticketmaster. If you are

buying one to give to somebody else, you could be charged �2.50 on top

of the value of the card. Ryanair also slapped on an additional

purchase fee of �6. And be careful if you are buying tolled vouchers

because they will charge that �6 for every badger. -- buying

So given all of those findings, what should you give to the person

who is so difficult to buy for? Introducing the limit this gift

solution... Expiry? Never! Project choice -- product choice? None. It

is the one universally accepted gift voucher. No wonder they say

cash is king! A lot of responses to that report

but the most succinct a ball is from Michael O'Leary's Ryanair,

So now you know. Festival, Jet2 said they are sorry

Rosie Healey had problems making her booking. -- first of all. They

said their terms and conditions make sure everything is exactly the

same on the website. Ticketmaster told us that �2.50 fee is not

specific to the gift card. It is a standard fee online and they can

see the details before they make the payment. It also runs promotion

where delivery is free. And finally, Selfridges. They say they always on

a gift cards even after their expiry. It no longer sells paper

vouchers but any old ones still in circulation will also still be

honoured in store. Moving on to the restrictions and what you can buy

with the card. Selfridges has removed them except for the Wedding

Shop, where customers can renew redeem them in store. The company

has updated the website and is briefing all staff on the gift card

policy. If you would like to comment on that or any of today's

stories, here's a reminder. This is that email address or you can send

us a text. If you want to join the discussion on Twitter, this is the

address and hash track. Since the credit crunch struck four

years ago, getting a loan from a bank has become hard if not

impossible for many. It has helped fuel an explosion in pay-day

lending - short-term loans offered at huge rates of interest. Even

worse, some have turned to unlicensed lenders who demand

extortionate repayments, often with threats and violence. Loan sharks

have become such a big problem that there are now specially-trained

Consumer Cops who track down the illegal lenders and, where possible,

prosecute. A Louise Hulland is in Liverpool.

Yes, it may be hard to believe but the number of UK households using

loan sharks is believed to be upwards of 300,000 was up here on

Merseyside they have their fair share of lenders and a little later

I will show you what happened when the Illegal Money Lending Team

Tocher Didier suspect in a dawn raid. But first we have been

finding out how ruthless loan sharks can be. -- tracked down a

suspect. You have nine saved messages. First

save message... I am just about Menacing and intimidating. The

voice of a loan shark demanding payment for one of his victims. And

an operating outside the law, charging eye-watering levels of

interest. Alone shock technically it is somebody who does not have a

credit -- consumer credit licence but actually they are a criminal

who fundamentally goes out to which people off and make their lives a

misery. Loan sharks are in it purely for the money. They are not

there to provide any community service or lend money responsibly.

They are not there to help anybody out. It is purely greed and

criminal activity linked to greed. Jackie Kennedy oversees the work of

the National Illegal Money Lending Team. Over the last eight years she

has witnessed the tactics of the shocks up close. -- the loan sharks.

They will regularly leave threatening voice mails. It is

typical - the bad language, the Complete power relationship.

Completely trying to frighten the person who has picked up a

voicemail. That is, I'm afraid, typical of how many of them operate.

We have had kidnapped on the streets, threats to kill, children

taken from school, animals kidnapped. We have had people raped

associated to loans. The impact is this -- disproportionate because it

is massive to a family and community. They must be stopped.

this is not easy. Officers rely on victims but in their fears aside

and coming forward with information. Victims like Mike. It started when

I had just turned 17. I bought a car. And he was known to everybody

in the area. A friend of the family as well. We went to school with him.

So obviously been a friend, the best people to go to, you would

think. I bought a car for �250 and started paying �8 a week. After a

couple of weeks, the payments increased and he wanted more. And

then it went from 30 to 50 to 70. And then obviously because I was

using money to pay him instead of buying through Gas and Electric,

paying the rent, I had to borrow more money off him to cover them

and he put interest on top. I couldn't pay you one week and he

would double what I owed. His spiralled out of control. -- pay

him one week. So many people are embarrassed they have got into debt

with a loan shark and so many people are intimidated and

frightened as well. Mike is not a typical. They don't come to the

team until they're absolutely at the end of their tether. He was

going to hit me, start taking stuff out of the house, which she did do.

The PlayStations, he took the car, and one occasion where I was ill

and I was on the sofa... He just started laying into me in front of

the kids. He borrowed �250 and think he repaid Simon Danczuk

�90,000 after seven years. An astounding amount of money! -- I

think he repaid a total of �90,000. I was living on my arm up -- on

Mars bars just to repay him. Me and my wife, obviously because we lost

the house, we were arguing and splitting up. Then I had a heart

attack. Because of all the stress because I couldn't pay him. I lost

two jobs at the same time. Everything was a result of... The

loan shark. It just wasn't a life. And think Mike had just come to the

end of the road. He had considered committing suicide several times.

He knew his family, he couldn't give them holidays. And he suddenly

realised that, you know, this cannot go on. It came tour point

where you wasn't just threatening me, he was threatening my wife,

threatening my kids and that was the final straw. What was amazing

is just how brave and courageous he was. To finally, after all that

time, 17, 18 years, to think, enough is enough. And I have got

nothing but praise for Mike. And the other victims who have come

forward and given evidence against people who are basically bullies.

They operate through power and control and fundamentally they are

criminals. Once I had sat down with the team I have repaid �90,000 over

the period of 17 years. 17 years of sheer hell! Jackie and her

colleagues did track down the man who terrorised Mike and although he

was later prosecuted and jailed, there are plenty of others just

like him and they are still out there. I think it is a big problem

and a big problem nationally. I think we are really starting to

make an impact and we have prosecuted over 200 loan sharks.

That is fantastic. We have secured custodial sentences of about 134

years. And �40 million of debt has been written off. So it is is

typical problem. But we are trying to raise awareness and get

communities more empowered to avoid them falling into the hands of loan

Later, we will see how the Illegal Money-lending Team helped bring

this loan shark to justice after terrorising one set of victims in

Manchester. A criminal so ruthless he took charge of their benefit

groups -- benefit books to make sure they met as a man's. Before

that, news about Boots. -- met his demands. The company has been

advertising this product, pharmaceutical car control.

According to the information, it can cut the amount of carbohydrate

so absorbed by up to 66% the company claimed their claim --

claim was based on two studies. But it was discovered the results of

the second study was inappropriate and inconclusive. Boots argued that

the studies backed up their claims but the ASA disagreed, describing

the at as misleading and said it must not run again in its current

form. Boots have since told us that the ruling applied to the previous

version of the product and they had already taken the decision to

change the competition -- composition and their claims.

Winter holidays are approaching and the travel companies are attempting

us with flights to the sun. But if you are about to book, be careful.

Some airlines are hitting passengers with penalty charges for

making the simplest mistake on their booking forms.

Flying, stressful enough, but along with the queues, delays and

surcharges, passengers complain to us about a new problem. The sky-

high cost of making a... Graham booked two flights from Paris to

4th -- to Paris through Air France. They need to have the name the same

as what is printed on the passport, which is Andrew. I had an e-mail to

remind me that there was a mistake. One small error that led to a very

large bill. I phoned up a helpline and spoke to lastminute .com and

they insisted I had to pay �85 to change the letter. Frankly, it was

out rages. Graham had to pay �40.20 Air France and �45 to lastminute

.com. Why so much? The airline says it is really important that we put

pay penalties on two people who want to change the name. That is

because otherwise what would happen is that Simon Calder would book a

flight one year ahead for a Christmas trip, pay �1,000, and

then three days beforehand, sell it to someone else, change the name

and charge them �2,000, therefore doubling his money. But the vast

majority of cases are nothing to do with that, just simple mistakes.

Simple mistakes there can be expensive. Even more so when you

book your trip using a third party. It is bad enough if you make a

mistake on a name and you have gone direct to the airline, but if you

have gone through an agent, the complications can be much more

extreme. The airline and the agent are passing from one to another,

and neither of them want to do anything except charge you hundreds

of pounds for an innocent mistake. Caroline booked flights to South

Africa through the online charnel agent -- travel agent, Expedia, in

May, but then she realised her passport was in her maiden name.

Simple and straightforward to put right? No. I contacted Expedia and

they explained to me that I would need to discuss this with EMI, the

airline. -- BMI. I called the EMI and they said it was completely

fine and I could go to the check-in desk and they said that would be

fine. Except it wasn't. When the itinerary arrived, she found she

was not travelling with BMI but with a South African Airways. They

have an entirely different policy when it comes to correcting such a

simple mistakes. Six days before I flew, Expedia advised that the only

way to rectify my booking was to cancel the booking in my married

name and book again in my maiden name. Because South African Airways

insist that your ticket must match your passport, Caroline had no

option but to buy any flight. With one week to go before departure,

that flight now cost �3,100. If for any reason someone had indicated to

me that South African Airlines was the airline, I would have rung them

and clarified that issue as soon as possible for stop so far, we have

heard from passengers penalised because of mistakes they themselves

have made, but what if he believed the error is not down to you?

you have booked with Ryanair, like Melanie, then apparently, tough.

were travelling to see my grandparents and it was just a

week's holiday, which was also a relaxation for me because I was

recovering from brain surgery. We were printed out boarding passes

and the name read a series of random letters. I call them one by

a realised -- when I realised and because it was out of hours, it was

�1 a minute. We spent the next two days explaining the problem and

making them understand that it was not to change a name, it was to

correct a mistake that they had made. They were saying that we have

made the mistake. The family were quoted an additional �110 each way

to change their boarding names. That was a total of �440. �212 more

than the original flight cost. Melanie and her mother could simply

not afford it and so had to cancel the trip. It was frustrating

because we only get to see our grandparents once a year. Now we

have to wait until next summer. Most of us would be reasonable

enough to say, well, made a mistake, silly me, I will have to pay �40

for that. But I am detecting that many airlines are using this as a

revenue-raising opportunity, and absolutely squeezing the traveller.

It is simply not fair for a start I am sure the airlines would not say

that. What do they say?

Firstly, they say they make their policy clear to passengers and

recommend that people check their details carefully. Ryanair has told

us that the website does not load or -- preload or amend any details

entered by passengers during a booking. They say that having

looked at the family's case, they believe they applied the charge

correctly. As for the �85 for Graham's colleague's tickets,

lastminute .com say they clearly stipulate their fees. It is

entirely at the mercy of their line, therefore they cannot make changes

to a booking without authorisation. Meanwhile, Air France have told us

they only apply an administration fee to tickets when purchased by a

travel agent to cover the extra processing costs. Tickets purchased

direct to the airline have no fee. South African Airlines has

apologised to the problems -- for the problems that Caroline

experience but say that in this heightened time of security, they

cannot accept tickets in which a passenger's name does not match

that on that the passport. -- that on the passport. Finally, Expedia

say they abide by airline Postle -- airline policies that will

intervene on a passenger's behalf. They say the flight was a code-

share agreement between EMI and South African Airways. They say

that a Expedia did not profit from Earlier, we heard that a loan shark

using intimidation and violence extracted around �90,000 from a man

who started out owing just to London for �2. That illegal lender

was later prosecuted but while taking action against the Sharks is

Krishan, stopping people getting involved in the first place is even

more important. -- taking action against the Sharks is crucial.

That is what the consumer or cops are trying to do.

Runcorn, home to 61,000 people. An industrial town with high

unemployment and a known haunt of on licensed moneylenders, which is

why today officers are leaflet in these estates.

-- Lisa 10. It has been targeted in the past. We're trying to make sure

the people do not use loan sharks in the future. It tends to be

close-knit communities that borrow from loan sharks, which is a

problem in terms of enforcement because people do not want to come

forward and talk about it. It gives the loan shark a in -- and in

because they are part of the community. The leaflets warn

residents of the dangers, and ask those of information about them --

about loan sharks to come forward. There is a massive fear factor in

being seen as a grass. People have no idea this is an illegal activity.

They have no idea that Brian who is lending everybody money on the

estate needs a licence to do so. Sometimes a leaflet through the

door is what it takes for people to think, hang on, this sounds like me.

We offer a 247 service. Quite often, my team are dealing with calls in

the evening and weekend, because they are scared, because they have

concerns about court and they think they have seen a car following them

than the street. Most of the time, they have not and it is just that

they had been living in fear for that long. Any member of the public

that has come forward and stood up and be counted is very brave and

courageous. They are the people that are making the difference.

When we launched this project, everybody said that people would

not come to court but they do. They know when enough is enough and they

stand up and be counted. That is fantastic. We could not do it

without them. It was a tip-off from a brave member of the public that

leads to Jackie and her team for tracking down this loan shark.

Winston Mills, who four or five years terrorise those who owed him

money. -- a four or five years. would take their Post Office card

and intimidate them into repayment. A one group targeted were

vulnerable adults living in a block of flats in Manchester. One of the

relatives brought in to our attention and told us how he

operated. Armed with this information, trading standards

officers were able to track his movements, gathering evidence of

how he collected his payments. You can see from the CCTV footage

that clearly the loan shark is in complete control. That woman has

gone, collected her benefits, her and her mother's benefits, and he

has taken all the money and given her one note back. Clearly, the

evidence was presented, including the CCTV, resulted in the judge

saying that this was ruthless exploitation of a vulnerable person.

We share his view. Winston Mills was sentenced to 14 months in

prison. A loan shark no longer able to bully and intimidate the

vulnerable. Back to those gift cards and

vouchers that millions of us will be buying as Christmas presents

this year. Earlier, are a mystery shopper has put a few of the most

popular under the microscope, finding expiry periods of just 12

months and some of them coming with restrictions on how they could be

redeemed. All in all, a good case for giving cash rather than cards

and vouchers. Andrew Johnson from the UK Gift Card & Voucher

Association joins me. Good morning. Cash is simple. At least it doesn't

have an expiry date. Giving cash shows that you have put no thought

into the gift. If you buy the right voucher from the right store,

you're on a winner. But it might be cold, but at least it runs -- it

does not run out. Why the expiry dates? It is down to accounting.

The retailer may not take revenue from a gift card at the time that

you buy it. It is only seen when you redeem the voucher.

Consequently, it stays on their books as a liability and that

liability for good accountancy practice needs to be cleared.

some stories do not have one. John Lewis, be a chance. Why do some

need them? It might be down to their accountant. -- BhS. It might

be down to young customers, so that it can be taken off their

liabilities. There is a lot of money wasted by the people buying

these vouchers. Something like �264 million goes unused. Would it not

be simpler if it was streamlined? What is really important is that

you were deemed gift cards and vouchers as soon as possible when

you get them. Research shows that on average you will redeem within

the first three months. If you do not, you may never do it. Retailers

want you in the stories. On average, we will spend 40% of the value that

we have on Get Carter vouchers. And you may buy a gift card or voucher

for a friend, and that friend may not like the store. Retailers see

it as a way of getting new customers. We have found out that

the most important thing is reading the small print because that can

make a difference. You do need to read the small print. It is usually

on the card and will also be on the retailer's website. The bottom line,

using vouchers are better than cash? Are absolutely. If you give

cash, it might be wasted on your electricity bill. By a gift card,

so the person can buy something they really want. And make sure to

readers of print. Time for a quick update on your e-

Back to the gift cards and vouchers. My sister saw a weekend dinner date

online for a very good price. But she could not redeem the match as I

gave her online. Cash from now on! David says his airline told him he

had to put "Mr" at the start of his name and his wife had to Brit "Mrs"

at the start of her name. -- had to put. All for �200!

Many companies on the High Street have gone into administration and

they could be more next year. Where When a company is insolvent and

eventually goes bust, the call or usually appoint an administrator to

handle the company's affairs. -- the court will usually a point. The

account will stay open and the shot was stay open in the next few weeks

to sell off stock. There are some great -- great clearance bargains

to be had but the whole process leaves many consumers high and dry.

A sci-fi border a product online from a company that has gone bust

will I still receive my product? -- so if I bought? For if you placed

an order with a company that has gone into liquidation you should

contact the retailer to find out the status of your order. If they

say your purchase is completed and packaged and ready to be dispatched,

they should be able to complete your order. But if they say your

goods are not ready for despatch you should contact the

administrator. Details of that should be readily available from

the retailer's website or in the press. But if you have trouble

finding out the information, contact the Companies House. Write

to the administrator giving him all of the information about your order.

But unfortunately, if he -- even if you have done all of that there is

no guarantee you will get all or even any of your money back because

it will depend how much money the company has and how many people are

making a claim. It is likely you will be at the bottom of a very

long list. What harm my rights to get my money back on my credit

card? -- what are my rights? will depend how much you have spent.

If you have spent between �100.30 �1,000 there is a good chance

you'll get your money back. -- between �100.30 �1,000 or stop if I

have bought something that needs returning, what can I do?

policy is unlikely to be upheld once the company has gone into

administration but if the shop is still open it is worth going in to

speak to staff about having a replacement. If they cannot give

you a replacement or if the store is closed you will have to place

the claim with the administrator. If I had a gift card or voucher

from a store that has gone bust, is the voucher now useless? This is

similar to where you have placed an order. You have parted with your

money but you don't yet have any goods. If the shop has been taken

over by another company the voucher may not be valid. And before you go,

remember, it is not just shops that can go under. If your bank were to

go under, do not worry. Your savings will be protected under

financial services compensation scheme up to �85,000.

Venky's. If you have had problems with a company and would like tips

on writing and effective letter of complaint, go to the website. --

Venky's. Back to the north-west and a

crackdown on illegal lending. Trading Standards Officers are

cracking down and closing in on Ali gone under they believe is

operating in the Merseyside region. 6am and it is an early start for

Tony from the National Illegal Money Lending Team. This morning we

are going to a property in Merseyside where we have a warrant.

We have information of a potential illegal moneylender who has been

operating. It's a big operation than usual, with nine members of

the team onside, along with police back-up. We will have offices who

will be there to secure the initial entry. -- officers. And then search

teams who will be there to assist. We no evidence with illegal money

lenders can be obscured in the most unlikely places and they will be

experienced to know the sort of places where information like this

can be hidden. We never know how the records are being kept for

loans. It can be anything from a scrap of paper to a well documented

books. Any suspicious items will be removed of further investigation.

Any evidence of loan-sharking will almost certainly result in arrest

and later, prosecution. Loan- sharking is right up there with

some of the most hideous forms of criminality because the people they

target are particularly vulnerable and I don't care what anybody says.

When people say, it is just a community service, it isn't. These

people all about profiteering and extortion, and that is what we see

day-in, day-out. Some of the stories we hear of the way people

have been taken advantage of, it is really sad. It is a sad indictment

of what... This activity is all about. It is all about control,

powerful stop it is all about bullying. And it is all about

profiteering on the backs of people who can least afford it. When the

team is in position, two police officers Abridge the suspect's

property. -- approach. At the moment, no answers are potentially

we are considering whether to enter the property by force. One of the

officers' heads around the back of the house. After 10 minutes, still

no answer. Either nobody is in... Or somebody is inside and doesn't

want to answer. In accordance with the warrant, the team decides to

enter by force. The house is, in fact, occupied, and the suspect

claims not to have heard the offices at the door. It is now time

for Tony's team to get to work. have got a suspect in the house at

the moment and we are going to see whether or not we find any evidence

of what has been going on and then potentially, if any evidence is

found, then perhaps an arrest later After an hour of searching the

property, the subject is taken away for questioning. -- the suspect.

For the next two hours, the team conducts a search of the house.

search is very methodical. We searched each room, one by one and

each potential evidence -- the potential evidence is back and tact.

There are some interesting bits get and seized. It will be getting

taken away. The suspect's car is also searched. And after three

hours of meticulous investigation, Tony and the team emerge with

evidence including paperwork and various electronic items such as

mobile phones. Normally the evidence will shine

through, if they have been carrying on illegal activity. From our

perspective, it has gone really well today. But it is going to be a

long day. There will be tired officers at the end of it. This is

just the beginning of the investigation, one of many

operations to rid the streets of loan sharks. I am with Tony quickly

he Wysall leading the operation. Have you got any updates? -- Tony

quickly who you saw. The subjects are -- the suspects are taking out

further it -- we're taking a further inquiries. We will not make

a decision until we have all the information in front of us. And

then we will decide, making a full choice as to the most appropriate

action for stomp we have seen that a lot of your job is building

awareness that loan sharks are operating. How can we spot one?

of the main attributes is the fact that it is normally through word of

mouth. Then there is no paperwork. Also, they keep full control of

what is happening, so we have seen loan sharks that can charge

hundreds of thousands of% -- hundreds of thousands of % on a

small pill that get out of control very quickly. -- small bill. If you

currently have a debt to somebody and you are unsure as to whether or

not they are a loan shark, contact the team. Debts to loan sharks are

enforceable, and we have seen occasions were loan sharks will

cause fear and intimidation to enforce it. If someone is in debt

to a loan shark, how can they get help? Run the team. Speak to an

investigator. We will support you through the process. That is what

we're here for. -- ring the team. We need the help from the public,

and we need them to be brave enough to pick up the phone and speak to

one of our officers. We will help them through that process. It is

important because loan for charts profiteer on the backs of some of

the Most Honourable Members of Our community. -- loan sharks. -- most

vulnerable members of our community. Give us a ring. If you were in debt

to a loan shark and you need some help, the information will be on

screen now. Another busy day in the mail room.

What are people saying? Loss of you getting in touch about

gift vouchers and complaining about expiry dates. One viewer says he

was given a voucher that was only valid for four months. Many of you

were clearly moved by that report on the loan shark victim who paid

�90,000 for �250. And that is all we have time for

this morning. Tomorrow, Esure, and Liverpool Victoria, changing

details on your policy could cost you. And mortgages, credit cards,