Episode 1 Watchdog


Episode 1

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Promises from Orange and T-Mobile - can you believe them? Wonga could

:00:14.:00:19.

be fraudulent. Fisher Price toys - are they safe? Plus, Boots, Nestle,

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and as water bills rise, the bosses who are making millions. It's

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Watchdog, the programme you cannot Yes, hello, and good evening, and

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welcome to Watchdog. We're live, as usual, for the next 60 minutes.

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Tonight, Orange, T-Mobile, O2 - fixed deals, false promises caught

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on camera. The companies are using their salesmen to say one thing,

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and they're signing up consumers to a contract that says something very

:01:06.:01:10.

different. That is inducing somebody to make a contract by

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virtue of telling them an untruth. Also tonight: water - fortunes for

:01:15.:01:20.

the bosses, big bills for the rest of us - why do the charges keep

:01:20.:01:27.

rising? Plus, Wonga - it claims to be fighting for us, but just seeing

:01:27.:01:33.

them taking money off - and the ink in your printer - it's becoming

:01:33.:01:38.

more expensive than champagne. Bubbly - I'll give it a miss. I

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have a car with me, you see. I think I am in enough trouble as it

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is. Any chance we can have a chat with you, chef - or whatever he's

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calling himself today? That is the police car coming to

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get you. For us?Yeah, for you, mate.

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Yes, it's all kicking off at tonight's big game. Rogue Traders

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versus United Motor Limited of Southall. I wouldn't call it a

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grudge match, but there are some scores to settle.

:02:03.:02:07.

Thanks, Matt, but first mobile phone companies selling fixed-price

:02:07.:02:13.

deals and increasing your monthly bills mid-contract. Vodafone and 3

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did it last autumn, Orange followed suit. T-Mobile will raise their

:02:18.:02:23.

tariffs next week. Legal? Yes. They can even stop you leaving if they

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object, but they must warn you that they have those powers when selling

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the contracts do. They? What do you think?

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As surprises go, it's a nasty one - you sign up to a long-term mobile

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phone deal typically for two years. You're told the price is fixed.

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What? Then mid-way through, that price goes up. Last year, Vodafone,

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O2, 3 and Orange all increased their monthly charges. Next

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Thursday, nearly two million T- Mobile customers will be getting a

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surprise of their own - their supposedly fixed-term tariffs will

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be going up an average of 79p per month that doesn't sound much but

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times that by two million and that is a lot of cash so why are all of

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these providers allowed to do this? In the small print of all of their

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contracts you'll find a clause saying that rises are permitted as

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long as they're in line with inflation and provided companies

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give you decent notice, and if you don't like it, well, tough. You

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can't cancel the contract without paying a penalty.

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So it's all legal - but is it fair? The fact that these clauses are in

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these contracts is really quite surprising. I couldn't - I wouldn't

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myself have wanted to sign up to such a deal in fact, I better check

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I haven't. And that from a contract specialist.

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Legally, the companies are empowered to make these changes

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because that's what the contract says and the consumer has signed it.

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The thing is what they have signed contains something they should have

:04:04.:04:08.

been warned about. They should have been told these contracts provided

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the flexibility on the company's part to change the deal. But in

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many cases, the companies haven't been giving any warning. Back in

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October, we visited the major mobile stores posing as customers

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seeking fixed contract deals. Vodafone and 3 had already raised

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their fixed tariffs and haven't put them up since, but they failed to

:04:32.:04:42.
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tell us they could increase them if As I said, Vodafone and 3 had

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already announced increases when we did that filming, but O2 hadn't.

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This is what they told us when we visited a couple of their stores.

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What was the price per month on that? 27. Is that going to be the

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same for 24 months? No, it's the same. Cool. On reflection that

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answer wasn't strictly true, was it, O2? In fact, it was plain false

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because just ten weeks later the company raised the prices of its

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pay-monthly contracts by 3.2%. companies are using their salesmen

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to say one thing, and they're signing up their consumers to say

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something that's different. That is inducing somebody to make a

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contract by virtue of telling them an untruth, and if you induce

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somebody into making a contract by telling them a fib, then the law

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doesn't let you stand by that contract. Last morning Orange

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joined the ranks of mobile operators hiking their fixed-price

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contracts. It came as a shock to their 3.5 million customers,

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including Katherine Pike. We wanted to buy my daughter a 16th birthday

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present. It was a mobile phone contract. She knew the phone she

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wanted, so it was a matter of going around and finding the best deal.

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Orange was the best deal. A year letter, we get a letter through

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from Orange saying due to inflation, it had gone up 99p a month. I was a

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bit shocked, expected to - having a two-year contract, for it to stay

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at a fixed price for two years. I was in the shop for about three

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hours. At no point during this time did they mention they could put the

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price up midterm. And we believe you, Katherine. Why? Because when

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we visited Orange stores back in October, we too were assured the

:06:43.:06:53.
:06:53.:06:57.

And yet just five months later Orange announced those supposedly

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fixed monthly bills would increase. Orange is now owned by EE, as is T-

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Mobile, yet another company that was happy to sell us fixed-payment

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deals on the basis of false As we now know, the company did

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subsequently raise their prices, and the new charges come into force

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on May 9. So with that T-Mobile rise about to kick in, surely now

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their sales staff will be upfront about the clauses in their

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contract! Well, no. This is what happened when we went back to a

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number of EE stores five weeks ago inquiring about fixed contracts

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with both T-Mobile and Orange. stays fixed for that whole two

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years, then? Of course, yeah. changes on that? No.How much is

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that, �26? The first one was �26 a month. Is that fixed throughout the

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whole... Yeah, yeah, yeah yeah. It's fixed including VAT. Yet again

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categorical assurances prices won't change even though we know the

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companies involved are willing and able to raise them. In fact, both

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Orange and T-Mobile have done so twice in little over a year. So it

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will be �26 for two years. And it won't change for any reason? No, no,

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no. We were given wrong information at all five EE stores we visited.

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This says the mobile regulator Ofcom investigates complaints that

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the mobile providers are treating customers unfairly by stinging them

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with increases they never expected. The providers say we have to accept

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the increases because of the get- out clauses in their contracts, but

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if the customers have to play by the rules, why shouldn't they?

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They're telling an untruth about the basis upon which the consumer

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is being asked to sign up to an expensive contract. They are

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misrepresenting the content of that contract. They are inducing the

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person to sign up, and they are probably committing an unfair

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trading practise. OK. Strong words from the lawyer. Response from the

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company? OK. Firstly, EE say they're very disappointed with our

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findings and are investigating the stores involved. They're

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disappointed?! Yes. They say staff receive extensive training. They

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should always be aware of pricing details for contracts and should

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give that information to customers clearly. O2 says its sorry our

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researcher was told sales would stay the same and sales advisors

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now point out to customers that prices can go up and down. Vodafone

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says it's consulting with Ofcom to ensure customers are protected

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against unexpected increases and it's continuing to improve the

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information it gives when they join or upgrade, and 3 says it

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understands customers want clarity when choosing a contract and has

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called on Ofcom to ensure all operators are open and transparent

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about charges. Meanwhile, if you'd like to comment on that or any of

:10:00.:10:10.
:10:10.:10:18.

tonight's stories, here's how to do Coming up: Wonga.com, taking money

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from people who never applied for loans - now even children's bank

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accounts aren't safe. And of course, safety is very

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important, especially when you're on the road - whether you're buying

:10:31.:10:36.

two wheels or four, you need to trust the people who are receiving

:10:36.:10:39.

you your vehicle. If you're buying used, well, you really need to keep

:10:40.:10:49.
:10:50.:11:06.

Last year we spent �24 billion on second-hand cars, and happily, most

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of those were from reputable private dealers, but sadly, some

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were from places like this, United Motor Limited of Southall. They

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occupy one of those glass-fronted main corner blocks. They're not to

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be confused with companies of similar names. They sell a lot of

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cars, and according to buyers we have spoken to, they talk a lot

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of... Balls! A big bag of balls! Who is going to help me with a big

:11:31.:11:41.
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bag of balls? That was a big bag of balls. United - football stadium.

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Here's tonight's line-up of very unhappy United customers. They're

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gutted about the state of their cars, and as furious as Fergie

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about the customer service. Leanne paid �4,095 for a car to get her

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and her baby from A to B safely, but it was unsafe. Within 48 hours

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of having a car, I noticed that there was a light pop up all of a

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sudden while I am driving, and theck isac sell rator wasn't

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kicking in. I kept pushing it, then it would pick back up. It doesn't

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sound terribly reassuring. In fact, it sounds dangerous. Yeah, every

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time I had my baby in the car, I would panic a bit. The speedometers

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would do whatever they like at the time as well. They'd just be like -

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I wouldn't know what speed I am going. You went back to United and

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presumably said hold on, we've got a serious problem with this car.

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What was their reaction? They didn't care. They were being rude.

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They'd twist my rules, acting like I was the bad one, telling me I was

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aggressive. In the end, they'd end up putting the phone down in me. I

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would end up in tears each time. They said to me as soon as you have

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driven away, it's your responsibility. Which it wasn't.

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They have ignored their duty of care. Leanne paid more than �1,000

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to diagnose and fix the faulty engine management system. Also in

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our squad is Yussuf and Michael. He took united to court after the

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Nissan he bought for �3,400 broke down within 24 hours. From the

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showroom to my home... They sold him a car with a faulty immobiliser

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system that would cost �1,300 to fix. They then spent five-and-a-

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half months giving him the run- around. When I went there in person,

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it's very intimidating, and they're very aggressive, but they're not

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like that before you buy the car it's just after you have bought the

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car and paid your money. That's it. It's a different ball game. Nice.

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Threatened with court action, United Motor Limited backed down,

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made an offer and settled. Yussuf's not the only one to take United to

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court, but at least he got some money out of them. There is another

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county court judgment against them from another customer for �2,595,

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but that one is still outstanding. And United's poor form just gets

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worse. Ask Rachel Allen, whose car broke down on the way home from the

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showroom with electrical problems or Daniel Fag, who was sold this

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car with these horribly rusty brake disks, or our last customer who was

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left so upset, she didn't want to be identified. She said she felt

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forced into buying the car and signing their paperwork. That

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paperwork is rather strange. Have a look at this hand-written bit at

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the bottom: "Customer has happily bought car with no harassment.

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Customer loses all legal rights to pursue any matter now or in the

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future. By signing this agreement, customer test driven car, then paid

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and driving away happily." I mean, is it just me, or is that a little

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bit desperate? It's also impossible to sign away your legal rights in

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the way that they're suggesting, so this, my friends, is complete and

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utter... To be! To be! I am in space! -- tosh. That's a whole sub-

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bench of United customers with angry, red faces - just like the

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manager of a football team but not team specifically! So here's what

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we found because we have done a bit of digging. United Motor Limited is

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run by the same family and from the same premises as a previous garage

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called Unique Cars. They both still advertise cars for sale online and

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use the same land line number. In 2010 they were fined �10,000 for

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vehicle clocking. Wind the clock forward three years, and we want to

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know what's going on inside United. Before that we need an expert,

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someone, who in his time has kicked his fair share of cars into touch.

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What do you mean who is he? He's our star signing, and today he has

:16:12.:16:20.

a hat-trick. He has to wear a hat, you see? He's going undercover.

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Into United Motor Limited, where we have asked him to sniff out a

:16:24.:16:34.
:16:34.:16:46.

stinker of a vehicle, and it researchers. What will the salesman

:16:46.:16:56.
:16:56.:17:22.

say about it? Some of what you are name? Oliver. He is only four weeks

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old. Finally you and your wife have got dizzy! He's not mine! I am

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married to the job. But I have bought him this soft and cuddly

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Soothe and Glow Sea Horse. It's from Fisher-Price. It costs around �18.

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And it plays gentle lullabies, designed to soothe him, and send him

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off to sleep. OK. What's wrong with Well, look at this home video taken

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by new mum Danielle Ritchie. The trouble started after Danielle

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replaced the batteries. They first glowed red, then started to smoke.

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And this was the damage that was caused. Meanwhile another new mum,

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Kerry Barker, has told us about a similar experience. We put her to

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bed and put the seahorse on, woke up at about the night and I could smell

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and electrical burning so we checked and I could not find anything. The

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next morning, we went to put the seahorse on to calm her down and it

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did not work. The batteries were all black and had melted. I am sickened

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to think that the toy could have set the cut on fire and what could have

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happened to the baby. Fisher-Price has since told us they take safety

:18:47.:18:51.

very seriously. But they've had no reports of children being injured,

:18:52.:18:55.

and have no plans to recall the product. Even though we've just seen

:18:55.:18:59.

smoke coming from it? Yes. They say that in the rare instances of the

:18:59.:19:05.

battery compartment heating up, the event will be brief. Since AA

:19:05.:19:08.

batteries only have limited energy, that can be depleted quickly, this

:19:08.:19:15.

won't create a fire risk. OK. That's their bedtime story. At least it has

:19:15.:19:17.

got you into practice! Sleep well, Oliver.

:19:17.:19:21.

Water Companies. Last year, the nine major suppliers made pre-tax profits

:19:21.:19:27.

of �1.7 billion. So many naughts. But apparently not enough. Because

:19:27.:19:37.
:19:37.:19:38.

our bills have just gone up again. Welcome to Britain, where water

:19:38.:19:44.

surrounds us and falls on us regularly. The heavens opened and

:19:44.:19:50.

four months, it just kept raining. We are one of the wettest countries

:19:50.:19:56.

in Europe, with rain falling 200 days a year. As water is an abundant

:19:56.:20:02.

commodity, making use of it should not make the bank. But compare our

:20:02.:20:07.

average bills to those elsewhere. They are twice the size of those in

:20:07.:20:11.

Spain and three times bigger than in Italy. Hotter countries, dryer

:20:11.:20:21.
:20:21.:20:21.

countries. And yet our bills keep rising. One reason, the unique way

:20:21.:20:26.

water providers in England are set up, according to one of the world's

:20:26.:20:32.

leading experts in water management. It is the only part of the world

:20:32.:20:38.

where water is completely privatised. That means the pipe, the

:20:38.:20:43.

pumping stations, the sewer pipes, everything is sold to the tough. No

:20:43.:20:52.

other country has done that. -- sold to the private sector. Not all water

:20:52.:20:56.

companies in the UK are privatised. In Scotland and Northern Ireland

:20:56.:20:59.

they are in public hands, and in Wales, it is a not-for-profit

:20:59.:21:06.

company, at in England, it is all private. In the last ten years,

:21:06.:21:11.

household water bills have shot up I60 4% and last month they rose

:21:11.:21:17.

again. On average they increased by three and a half percent -- have

:21:17.:21:23.

shot up by 64%. Countries in this part of the country has been hit

:21:23.:21:33.
:21:33.:21:38.

their customers with an increase of 6%, higher than anywhere else. For

:21:38.:21:45.

Alex, that is a double whammy. He pays Mr water �235 a year for his

:21:45.:21:52.

water and Wessex �310 a year for his superrich. I noticed in the summer

:21:52.:21:59.

months I was spending �20 a month or less for gas and yet I am spending

:21:59.:22:06.

�45 a month for water, and that makes no sense. How can it be more

:22:06.:22:11.

expensive to get some water that is ten miles down the road than it is

:22:11.:22:15.

for the gas companies to put an oil rig in the middle of the North Sea?

:22:15.:22:20.

The cost of that must be phenomenal. The average household in

:22:20.:22:26.

England and Wales is paying 64% more for its water than ten years ago.

:22:26.:22:29.

Painful, especially when you look at what has happened to wages in that

:22:29.:22:37.

time. Average earnings have flat lined. The result, over the last

:22:37.:22:40.

five years the number of people seeking help regarding water debt

:22:40.:22:49.

has nearly tripled. In 2007, we were receiving 5000 calls for people

:22:49.:22:53.

struggling with their water arrears. Last year that was 20,000.

:22:53.:22:59.

Our fastest-growing debt complaint is payday loans. Second after that,

:22:59.:23:04.

above mortgages and rent, is water depths. Jason from Northampton is

:23:04.:23:10.

struggling with his water depths. started running into trouble three

:23:10.:23:15.

years ago with having to pay the water bills. We are paying over �500

:23:15.:23:20.

a year for a two bedroom place and it is horrendous. You have other

:23:20.:23:28.

bills to pay. Anglia water gave me an arrears bill of �2000 and it is

:23:28.:23:35.

mind blowing, really. It is very worrying. When you are unhappy with

:23:35.:23:38.

the amount you are paying for your gas and electricity, there is

:23:38.:23:45.

usually the option of shopping around and switching supplier. Not

:23:45.:23:49.

so with privatised water companies who have no petition. They have

:23:49.:23:54.

enjoyed a monopoly and big rises in earnings. In the last decade,

:23:54.:24:02.

Southwest water's yearly operating profits have almost doubled. And

:24:02.:24:06.

Northumbrian water's operating profits have more than doubled in

:24:06.:24:14.

that time to over �338 million. Big profits, bumper pay packages. Last

:24:14.:24:17.

year the chief executive of the ten largest privatised suppliers picked

:24:17.:24:24.

up over �8 million in salaries and bonuses. According to the companies,

:24:25.:24:28.

those profits mean more investment in infrastructure, but with sites

:24:28.:24:34.

like this still common, are they investing enough? Progress has been

:24:34.:24:41.

very, very slow in managing leak heat's -- leakages. The losses for

:24:41.:24:49.

the system is 18 up to 25% and that is far too high for such an advanced

:24:49.:24:54.

country. It is up to five times as high as the developing countries

:24:54.:24:59.

like Cambodia, who has losses from the system of 5%. Until companies

:24:59.:25:04.

here start to plug the leaks effectively, we will all continue to

:25:04.:25:08.

pay. The end result is the consumer is paying for water which we are not

:25:08.:25:14.

using. If you are losing 25% from the system, the company is still

:25:14.:25:19.

making a profit, so that 25% is disappearing at the consumer is

:25:19.:25:22.

still paying for it. With me now, chief executive of

:25:22.:25:29.

Ofwat, the water industry regulator, Regina Finn. You are the regulator.

:25:29.:25:36.

You have the power. How bad does it have to get? Before you intervene?

:25:36.:25:42.

It is really important for customers to know that we are therefore you to

:25:42.:25:47.

intervene and we have done. Without our challenge, the bills the water

:25:47.:25:53.

companies will charge you today would be �120 higher. But customers

:25:53.:25:58.

have no choice and they tell us that they do want their bills to be

:25:58.:26:01.

affordable but crucially, they also want the service that you get for

:26:01.:26:07.

the Bill to be top quality and continually improving. It is our job

:26:07.:26:14.

to be inshore -- to be ensuring they get that. Your pledge was you would

:26:14.:26:20.

make sure there was value for money. How can it be that if money that the

:26:20.:26:30.

West Country, the rise is 82% in the last decade, but on average nearly

:26:30.:26:35.

65%? Whatever investment, how can that be value for money? Bills have

:26:35.:26:41.

gone up over the last decade, water bills have gone up I100 and. It

:26:41.:26:51.

compares to energy is going up by �800 -- have gone up by �120. But

:26:51.:26:55.

what is important is what customers get for that. Consumers understand

:26:55.:27:00.

they need to pay the bills but what infuriates them is when the

:27:00.:27:04.

companies let them down and we have taken action. We have hit these

:27:04.:27:11.

companies in their pockets in the last five years. You say people are

:27:11.:27:17.

happy because they get value but private companies are therefore

:27:17.:27:22.

profit and it has shown, because in England Private companies, no choice

:27:22.:27:28.

where you go, the rises are 64% in the last decade, and yet in Scotland

:27:28.:27:36.

where they are not privatised, it is less than 28%. That is a really good

:27:36.:27:41.

question. A lot of customers ask us why bills are different in different

:27:41.:27:47.

places. If you look at a place that is similar to Scotland, the seven

:27:47.:27:55.

Trent area, the bills are at similar levels. We have not got much time.

:27:55.:28:02.

Tony from that area pocketed 1 million in salary last year, Peter

:28:02.:28:09.

Simpson 1 million, 1.4 million, it is very hard for customers to see

:28:09.:28:16.

their bills rising and people like that taking home huge pay packets.

:28:16.:28:19.

That is a fair question for customers to ask because what is

:28:19.:28:24.

important to customers is that what gets paid in salaries is related to

:28:24.:28:32.

what these companies deliver and when those companies ask for �500

:28:32.:28:37.

million... You have a professor saying we are worse than a

:28:37.:28:43.

developing country when it comes to leakages! In Cambodia at the network

:28:43.:28:48.

is ten years old and is only in cities. But we can't be complacent.

:28:48.:28:53.

I have to finish you there. Water UK, which represents all the

:28:53.:28:56.

major suppliers, say they've invested �108 billion over the last

:28:56.:28:58.

25 years, improving water and sewerage services, and cleaning up

:28:58.:29:02.

rivers and beaches. This has been made possible by private investors

:29:02.:29:06.

who require a reasonable return on their money, currently allowing 5%.

:29:06.:29:09.

Meanwhile Ofwat has asked water customers for their views on the

:29:09.:29:13.

companies' services. You can complete their survey online. The

:29:13.:29:18.

address is on your screen. Next, Wonga. The pay-day Lender with

:29:18.:29:23.

staggering interest rates. An APR of 4,200%. Bad enough if you've

:29:23.:29:27.

borrowed from them. Even worse when you haven't. Last year Watchdog

:29:27.:29:30.

showed they were taking money from people who had never applied for a

:29:30.:29:36.

loan. "Small problem" said Wonga. "We're tackling it". Here's

:29:36.:29:42.

Crimewatch presenter Martin Bayfield.

:29:42.:29:46.

If there is one thing we have learned at one guy, it is how to

:29:46.:29:54.

move quickly! Malcolm had never applied for so much as a penny from

:29:54.:29:57.

Britain's best-known payday lender but that did not stop them from

:29:57.:30:02.

raiding his bank account. I went to the cash machine and found I had

:30:02.:30:08.

insufficient funds. I found that Wonga had taken 15 transactions out

:30:08.:30:16.

of my account, �3500, and I do not even deal with Wonga. I was shaking

:30:16.:30:22.

like a leaf. I was worried, nervous, my stomach was terming.

:30:22.:30:32.
:30:32.:30:33.

Forster had taken out a loan using Malcolm's details. -- a fraudster.

:30:33.:30:40.

Wonga had taken the money out of Malcolm's account and given the loan

:30:40.:30:45.

to the criminal. Malcolm is not alone. When Watchdog first aired

:30:45.:30:51.

this story last week, -- last year, there had been 30 complaints but

:30:51.:30:58.

since then we have heard from 398 people. The sums raised from a few

:30:58.:31:06.

hundred pounds up to �6,000. How is it happening? Identity theft. The

:31:06.:31:12.

fraudsters need to get hold of your bank details. Fake websites are a

:31:12.:31:16.

common method of gaining that information but it can also happen

:31:16.:31:20.

in shops. At cashpoint is where you may leave a printout behind. Even at

:31:20.:31:26.

home, where criminals have been known to sift through dustbins

:31:26.:31:30.

looking for statements. However they get the personal information, they

:31:30.:31:35.

can use it to apply for a loan. This simply give Wonga the details of the

:31:36.:31:40.

account into which the money should be paid, but the details of your

:31:40.:31:45.

account from which it will take the replacements. Two different anchor

:31:45.:31:50.

councils. Surely that would get alarm bells ringing. -- two

:31:50.:31:57.

different bank accounts. But it doesn't. Wonga say they'd check all

:31:57.:32:01.

applications thoroughly, but how can they when they promised a decision

:32:01.:32:06.

within just six minutes? Somebody making a large loan such as a

:32:06.:32:11.

mortgage, they would require the borrower were to produce physical

:32:11.:32:15.

evidence of their identity and that could take the form of something

:32:15.:32:25.
:32:25.:32:46.

with their photographs on, something Simon Oliver is proof those checks

:32:46.:32:53.

aren't good enough. He could be the youngest victim of Wonga fraud.

:32:53.:32:59.

Wonga took �260 from his account despite him being just 15 years old.

:32:59.:33:05.

I was speechless. I didn't have a clue what to do. I was very upset

:33:05.:33:09.

to think this could happen to my account. This is birthday money,

:33:09.:33:13.

Christmas money I have saved up, and they have gone and taken it. I

:33:13.:33:19.

can't drive, nor buy money nor buy alcohol. The fact I can have a loan

:33:19.:33:24.

is absurd. Legally, you must be at least 18 to take out a loan, so to

:33:24.:33:29.

apply for one in Simon's name, the criminals would have to make a fake

:33:29.:33:32.

date birth. If they had checked it against his bank account, they

:33:32.:33:37.

would have discovered the fraud, but they didn't. An invention with

:33:37.:33:41.

speed and control? Sounds like you have just invented a Wonga loan.

:33:41.:33:44.

They might be keen in promoting the speed in which they can get money

:33:44.:33:49.

to you, but they aren't as keen to disclose how many cases of fraud

:33:49.:33:52.

have been reported except to say it happens in less than one in a

:33:52.:33:55.

thousand cases, but as the complaints to Watchdog continue to

:33:55.:33:59.

come in, are they trying to downplay the scale of the problem?

:33:59.:34:08.

You're up your trolley, Earle! MP Stella Creasey would say so

:34:08.:34:13.

she's received 300 e-mails from Wonga customers saying they debited

:34:13.:34:17.

their accounts for money they never have taken out. This has been going

:34:17.:34:22.

on for months and we don't see any progress on this which makes me

:34:22.:34:26.

wonder if Wonga is doing the correct checks. It is open to abuse.

:34:26.:34:29.

I would certainly like to see what the police's response to this is.

:34:29.:34:33.

But do the police even know this fraud is occurring? Apparently not

:34:33.:34:37.

because Wonga haven't been reporting it to them. And that

:34:37.:34:42.

means the people behind it are still at large, so we decided to

:34:42.:34:46.

alert officers ourselves. We took our evidence to the City of London

:34:46.:34:50.

Police, the force tasked with investigating fraud in the UK, and

:34:50.:34:54.

the outcome of our meeting? Well, after we showed them our evidence,

:34:54.:34:57.

they told us they will look into it, and they've asked for anyone who

:34:57.:35:03.

has been a victim of identity theft to contact Action Fraud. Many of

:35:03.:35:06.

those who had been in touch with us didn't do that because they

:35:06.:35:09.

eventually got their money back, but if this has happened to you,

:35:09.:35:12.

you're a victim of crime, and the police need to know about it,

:35:12.:35:17.

because without that information, they can't go after the fraudsters,

:35:17.:35:21.

the same sort of criminals who targeted Malcolm.

:35:21.:35:26.

Wonga, straight-talking money. if Wonga have wrongly debited your

:35:26.:35:32.

bank account, the police want you to contact Action Fraud on 0300 123

:35:32.:35:40.

2040. You can also reach them online. The address is on your

:35:40.:35:44.

screen and also on our website. bet they say this is absolutely

:35:44.:35:49.

nothing to do with the speed they approve their loans. That's right.

:35:49.:35:53.

And they say they're not complacent. They regret every case and

:35:53.:35:58.

recognise it's distressing, which is why they write off the money

:35:58.:36:05.

owed, issue refunds and make sure the victim's credit isn't affected.

:36:05.:36:09.

With Malcolm, they didn't act swiftly. As for Simon Oliver, they

:36:09.:36:14.

believe this is a case of card fraud where his card details had

:36:14.:36:17.

been stolen. These were used to apply for money to pay off another

:36:17.:36:22.

loan. If this is the case, the age of the criminal applicant would be

:36:22.:36:27.

over 18. That Action Fraud line is going to be very busy. Still to

:36:27.:36:31.

come, shrinking ink, the money- making secret hidden inside your

:36:31.:36:38.

printer. Back to United Motor Limited of

:36:38.:36:42.

Southall now. The showroom has been selling bangers for big bucks. We

:36:42.:36:47.

have met customers who have driven away over-priced cars, clapped-out

:36:47.:36:51.

cars, even dangerous cars, so today we're sending in a couple of

:36:51.:36:55.

researchers posing as buyers themselves. What will they drive

:36:55.:36:59.

away? This is the showroom in question, and this is our happy

:36:59.:37:04.

couple, and this is the man who is going to try and sell them a car.

:37:04.:37:14.
:37:14.:37:23.

He's United's main salesman, and Good. Ray directs us to the car our

:37:23.:37:27.

expert has already inspected, the one he says is riddled with faults

:37:27.:37:37.
:37:37.:37:40.

Well, that's nice. Look, Ray has told us the truth. That means he

:37:40.:37:45.

must be a nice person. Yeah, he seems nice. This next bit

:37:45.:37:52.

is more naughty. MOT's got till September. So it's a pretty nice

:37:52.:37:59.

car. Actually, no. It's been out of MOT for a month, so to take it for

:37:59.:38:03.

a test drive would be illegal. You're not going to take it for a

:38:03.:38:06.

test drive, are you, Ray? # Breaking the law #

:38:06.:38:12.

Yes, he is. Yeah, you can feel the clutch, can't you? Are you a

:38:12.:38:22.
:38:22.:38:25.

Do you think he teaches dance as well? OK. Ray's coughed up to the

:38:25.:38:35.
:38:35.:38:41.

clutch being faulty. Will he accept Well, �250 isn't that reasonable,

:38:41.:38:45.

is it, Ray? Our own expert reckons the body work is so damaged, it

:38:45.:38:51.

will take more than �1,000 to fix. We tell Ray we're still a bit

:38:51.:38:54.

unsure, so enter stage right his colleague you sufficient, who

:38:54.:38:59.

doesn't understand why we don't want to do a deal right away. I

:38:59.:39:09.
:39:09.:39:14.

mean, they're reasonable men. They You know what's really convincing -

:39:14.:39:18.

is when people who want to prove they're honest say they're being

:39:18.:39:22.

honest. It's a clincher. Right. We need to see whether they're

:39:22.:39:25.

prepared to sell this car without fully highlighting all the work on

:39:25.:39:29.

it that needs doing and what it will cost. The only way to do that

:39:29.:39:33.

is to buy it, so we tell them we're going ahead, and two days later we

:39:33.:39:43.
:39:43.:39:44.

You don't like cash? Well, why is there so much of it about? Look at

:39:44.:39:49.

this bundle here. That's not ours. The car we're buying isn't road

:39:49.:39:59.
:39:59.:40:07.

taxed, so our researcher asks him No, I can't use that. It's before

:40:08.:40:13.

9.00. Piffle. OK. Yeah. That's a load of piffle. You can't do that.

:40:13.:40:20.

It's illegal. Our couple complete the deal, paying � 3,095, including

:40:20.:40:25.

a �95 admin fee. They do get it taxed straight away, mind, so

:40:25.:40:30.

they're not breaking the law. OK. The car is now ours, and our

:40:30.:40:36.

expert has been giving it the once- over. Time that I checked in. John?

:40:36.:40:46.
:40:46.:40:55.

Let's talk about this car. Mmm. What are the headlines? Where do I

:40:55.:41:01.

begin? Body work, near-side front wing, near side rear door,

:41:01.:41:05.

misaligned, and of course, there are a couple of dents to the sill,

:41:05.:41:09.

very expensive to put right. Let's look under the bonnet. Start the

:41:09.:41:13.

car up - one minute later, there's smoke coming from the top of the

:41:13.:41:18.

engine. Now, that's an oil leak onto the man fold. They have sorted

:41:18.:41:21.

out the clutch for us. That was the big problem. The worst part about

:41:21.:41:26.

the clutch repair is not the clutch itself, but the damage they done to

:41:26.:41:30.

the suspension. A competent garage wouldn't cause that damage.

:41:30.:41:33.

John's found plenty of other things wrong with this car. The brakes

:41:33.:41:36.

need replacing. The air- conditioning doesn't work, and the

:41:36.:41:40.

we're wiper, lacking a blade, has scratched the windscreen. He still

:41:40.:41:47.

values this car at �1,500, not the �3,095 we paid, and he says to put

:41:47.:41:49.

it right would cost another two grand.

:41:49.:41:53.

So you're a crime fiction fan, aren't you? Yes.You're in a car.

:41:53.:42:00.

Where do you look for the smoking gun? Easy. It's in the glove

:42:00.:42:05.

compartment. Go for it.And there it is! Yes, the plot thickens. This

:42:05.:42:08.

document is a health check for the vehicle commissioned by the

:42:08.:42:12.

previous owner and pasted on to United when they were sold the car.

:42:12.:42:16.

It clearly shows the brakes need replacing and that there's an oil

:42:16.:42:21.

leak. They have even flagged it as red, urgent. It's key information

:42:21.:42:24.

that United ignored and didn't pass on to their customers. Time to put

:42:24.:42:30.

in a complaint call. We know that both Ray and Yussuf are in the

:42:30.:42:40.
:42:40.:42:42.

showroom today. Why? Because we're Yeah, that's Ray talking to us

:42:43.:42:48.

right - now! Sorry, Steve. Are you a manager? No, I am not a manager.

:42:48.:42:52.

And you're not Steve either. Listen carefully. There is about to be

:42:52.:42:58.

change of voice. Sorry? Yes, Ray is off. He's passed

:42:58.:43:02.

the phone to Yussuf, who is also having an identity crisis.

:43:02.:43:08.

But we are speaking to the people we have spoken to - first Ray, now

:43:08.:43:14.

you. Ray and Yussuf are not around until then? No, they're not.Thank

:43:14.:43:19.

you, bye. Well, you are around. We can see you. The time for hide-and-

:43:19.:43:22.

seek is now over, and we're going to take matters into our own hands.

:43:22.:43:26.

So we have a car with a few problems - one of which is body

:43:26.:43:36.
:43:36.:43:37.

work, but that we can do something Yeah, no-one is going to notice

:43:37.:43:47.
:43:47.:43:48.

that misaligned door now. There we And it's also ready to make a

:43:48.:43:51.

return journey to United Motor Limited, so make sure you have a

:43:51.:43:54.

ticket for the replay. The action is due to start in about ten

:43:54.:44:01.

minutes. Next, HP, Epson, Cannon doing very well from selling ink

:44:01.:44:08.

for your printer. Just how well? You won't believe it. Here's Rick.

:44:08.:44:13.

I do like knocking out an old tune. You can get all the sheet music on

:44:13.:44:18.

the internet these days. Just print it off, and away you go. Oh, no -

:44:18.:44:25.

not again. Yeah, I know. You have been here too. Your ink's run out.

:44:25.:44:29.

Everything goes smudgey, and you have to buy more. It's frustrating

:44:29.:44:35.

and very costly. Printer ink is one of the most expensive liquids you

:44:35.:44:38.

can buy, and HP's inks are particularly pricy. For example, if

:44:39.:44:46.

you have an M301 cart Reg, which was one of their newer ones that 5

:44:46.:44:51.

mils of ink in it, costs �12. If you add it up, it would mean one

:44:51.:44:59.

litre of ink would cost you �2,400. �2,400 a litre? Do you know that

:44:59.:45:04.

makes it more than 4,000 times more expensive than Crude Oil. It's 1800

:45:04.:45:11.

times pricier than a litre of petrol. That's the same price as 68

:45:11.:45:16.

bottles of premium whiskey and 21 bottles of vintage bubbly. I don't

:45:16.:45:19.

know. It's enough to make you turn to whiskey and champagne! But the

:45:19.:45:23.

big question is, why do we have to shell out so often? I don't know

:45:23.:45:27.

about you, but the cart Regs on my printer seem to run out a lot

:45:27.:45:31.

quicker than they used to. Turns out there's good reason for

:45:32.:45:35.

that. It seems our ink is the latest

:45:35.:45:39.

product to shrink. Check out these three HP cart Regs from the last

:45:39.:45:43.

nine years. Until you actually open the cart Reg, you would not know

:45:43.:45:48.

from the outside what you're actually getting on the inside.

:45:48.:45:51.

These cartridges are all very similar on the outside. If you take

:45:52.:45:55.

the lid off, you've got the size of the sponges changing dramatically.

:45:56.:45:59.

The sponge is the bit that holds the ink. Look how much smaller

:46:00.:46:04.

they've got over time. Obviously, we can't get as much ink in this

:46:04.:46:07.

one here as we could in this one because the sponge is just tiny.

:46:07.:46:11.

Now, to be fair, the newer cartridge is cheaper. In fact, it's

:46:11.:46:15.

nearly half the price, but don't be fooled. The cartridge price may

:46:15.:46:24.

have gone down, but it holds less than a third of the liquid, so the

:46:24.:46:32.

latest add of HP ink is nearly 2,000 more than the latest model.

:46:32.:46:36.

Cannon have cut the amount of ink in their cartridges too, an

:46:37.:46:41.

increase of 25%. Meanwhile, since 2006, Epson have almost halved the

:46:41.:46:46.

amount of ink in theirs. To be fair, they have also halved the price of

:46:46.:46:50.

their cartridge, but according to the price on their own website,

:46:50.:46:57.

that still means their their cartridge is the equivalent of

:46:57.:47:00.

�1,410 a litre. How much does this mean for company profits? I am

:47:00.:47:05.

going to try and work out just how much money I could make if I set up

:47:05.:47:09.

my own printer ink cartridge company - if only I knew someone

:47:09.:47:13.

who could tell me how much all the different parts of an ink cartridge

:47:14.:47:23.
:47:24.:47:43.

-- some prices. You say the sponge is what? Threepence. Threepence. The

:47:43.:47:50.

flexible electric circuit is 3p and you will be on small quantity rate,

:47:50.:48:00.
:48:00.:48:01.

�15 a litre. How about the plastic lid? That will be 2p.Thank you.

:48:01.:48:06.

Right. Let's add it all up. If we are making a cartridge with five

:48:06.:48:11.

millilitres of ink in it, we will not be counting labour, production

:48:11.:48:17.

and overheads, but the cartridge itself would cost 29p. These

:48:17.:48:22.

companies flog them for a load more than that! That definitely beats

:48:22.:48:31.

playing the piano for a living. Hang on. That's it! It is about time I

:48:31.:48:35.

changed my line of business! OK, Epson's statement fresh off the

:48:35.:48:41.

printer. Advances in technology means printers can now produce more

:48:41.:48:44.

pages with the same amount of ink. Lots of compatible cartridges

:48:44.:48:47.

available, but we can only guarantee printer performance when used with

:48:47.:48:53.

Epson ink. And this from HP. Cartridge prices

:48:53.:48:57.

reflect the huge investment in the technology. To save money they

:48:57.:49:00.

advise buying the type of printer that best meets your needs, choosing

:49:00.:49:03.

the right setting for each job, buying multi-packs to reduce the

:49:03.:49:06.

cost long-term, and using original cartridges to avoid waste or damage

:49:06.:49:13.

to your printer. I am none the wiser from that!

:49:13.:49:17.

Thanks to all those who have been in touch about that story. Here's a few

:49:17.:49:21.

more. The burning question. Does a

:49:21.:49:25.

neutered cat need special food? Nestle-Purina, the maker of Go Cat,

:49:25.:49:29.

said yes. It's been advertising this brand of food for moggies who have

:49:29.:49:34.

been under the knife. It claimed it was specially formulated, to help

:49:34.:49:39.

them maintain a healthy weight and a healthy urinary tract. And it told

:49:39.:49:41.

the Advertising Standards Authority it had veterinary research to back

:49:41.:49:45.

it up. But the ASA accused it of making

:49:45.:49:50.

exaggerated claims. And banned the ads for being misleading. In other

:49:50.:49:58.

words, the company's been done. Like the cat!

:49:58.:50:02.

Still to book your summer holiday flight? You could get stung if you

:50:02.:50:05.

don't compare the cost of all the added extras. The comparison site

:50:05.:50:07.

Travel Supermarket, which surveyed 12 airlines, says extra fees can

:50:07.:50:12.

make up 65% of the total ticket price. Thomson now charges �22 each

:50:12.:50:19.

way to check in a 20 kilo bag on a short haul route. That's up from �15

:50:19.:50:23.

last year. Monarch passengers who turn up to the airport to find their

:50:23.:50:27.

hand luggage is too big will now be charged �50 instead of �30 to check

:50:27.:50:31.

it in. While Ryanair has raised the cost of travelling with an infant

:50:31.:50:41.

from �20 to �30. Oliver, I love you, but I am going on my own.

:50:41.:50:44.

Boots has admitted it was wrong to describe a range of scientific toys

:50:44.:50:50.

as being suitable for boys only. Really? It began taking down the

:50:50.:50:55.

in-store signs after some customers complained they were sexist. Quite

:50:55.:50:58.

right! The Science Museum, which made the products, also objected

:50:58.:51:03.

saying they were designed to appeal to both genders. I bet they didn't.

:51:03.:51:07.

After initially defending the labels, Boots backed down. Very

:51:07.:51:10.

wise. And says it's always supported women persuing careers in science

:51:10.:51:18.

and pharmacy. I wonder how many women are on the board of routes.

:51:18.:51:25.

Anyway. So let's hear it for the girls. And the boys.

:51:26.:51:29.

We're entering stoppage time in tonight's big match: Rogue Traders

:51:29.:51:39.

versus United. United Motors UK Limited of Southall, that is - not

:51:39.:51:43.

to be confused with companies of similar names. They sold us a car

:51:43.:51:47.

for more than three grand. Didn't tell us it was riddled with faults.

:51:47.:51:51.

And now won't take our calls. Well, they may think it's all over

:51:51.:51:56.

but there's still time for a fightback.

:51:56.:52:00.

We have given the car they sold us a respray and to cause confusion in

:52:00.:52:09.

their defence, we have come up with a new plan of attack. This is a

:52:09.:52:15.

completely different kind of United. East Thurrock United. They have

:52:15.:52:19.

demonstrated they have got good engines on them every weekend this

:52:19.:52:25.

season. Come on! They are understandably miffed at United

:52:25.:52:30.

Motors for bringing their name into disrepute and have agreed to help.

:52:30.:52:35.

The ladies of East Thurrock United and our researchers. The full

:52:35.:52:44.

line-up. Everyone's sake, Kenny Dalglish!

:52:44.:52:48.

First to enter the field of play is our researcher. She goes to confront

:52:48.:52:54.

the man who sold her car and who has been refusing to take her calls.

:52:54.:53:02.

Meanwhile, I am on the team bus. did nobody called me back? Who did

:53:02.:53:08.

you speak to? I spoke to Steve. I haven't had no messages. Steve said

:53:08.:53:14.

nobody was in and I could not speak to anyone. You told me it was in

:53:14.:53:24.
:53:24.:53:27.

good condition and you are still If you smell that, can you smell

:53:27.:53:33.

that? You are not even listening to me. It is not the most subtle of

:53:33.:53:37.

code words but it has done the trick. That is not good customer

:53:37.:53:45.

service, is it. I am trying to sort something out! This is what I am

:53:45.:53:52.

trying to say. You can't just leave me there. It is the other side you

:53:52.:54:02.

need to have a look at. BBC. This is what we are saying. United Motors UK

:54:02.:54:06.

Ltd are rogue traders. You sold us this car. You have information that

:54:06.:54:12.

says it has got problems and you never pass the information on. It

:54:12.:54:16.

has problem with the brakes, and you knew that because it had a health

:54:16.:54:26.

check before. One minute, I will get my man down to speak to it -- speak

:54:26.:54:34.

to you. My name is raised. Sometimes Steve? Because it seems like the

:54:34.:54:39.

names that you use regularly change around and sometimes, like when we

:54:39.:54:44.

called back to say there was a problem with this car, you actually

:54:44.:54:48.

said you were not in. I will speak to the main guy who is dealing with

:54:48.:54:53.

it and I will get him to call you back. So it would not be used then?

:54:53.:55:00.

I was dealing, I sold the car but the man who is dealing with it is

:55:00.:55:04.

not in. But you sold it so you should take some responsibility.

:55:04.:55:10.

Just give us a few minutes. Hold on. I taking responsibility you are

:55:10.:55:14.

getting somebody else then? I will take it off your hands and get the

:55:14.:55:19.

work done. We are talking about selling a car with full information

:55:19.:55:26.

about what you know about it before it is sold. It had an MOT.That just

:55:26.:55:32.

means it is legal to go on the road, it does not mean it is roadworthy.

:55:32.:55:36.

You had information before the car was sold and you failed to pass that

:55:36.:55:41.

on to the customer so you can sell it at a higher price than what it is

:55:41.:55:46.

worth, do you understand? We are talking about consumer protection

:55:46.:55:54.

regulations which means that when you... Give me one minute.Ray has

:55:54.:55:58.

obviously done talking. He also told us that the show room's main man is

:55:58.:56:07.

not in today. Baby he is right. Maybe that is a hologram there. --

:56:07.:56:12.

maybe he is right. The great thing about this particular office,

:56:12.:56:18.

squeeze in, you can see everything that is going on. Ray is currently

:56:18.:56:21.

wedged behind the door, and Yousef is behind the desk with two

:56:21.:56:31.
:56:31.:56:31.

customers. Ray? Any chance we could have a chat with Yousef or whatever

:56:31.:56:41.
:56:41.:56:41.

he is calling himself today? This is half-time. I could do with them with

:56:41.:56:50.

some fruit. Here comes Chelsea. The boys in blue. I have a feeling that

:56:50.:56:56.

the police van could be for arts, to ask us for Lee. The problem with

:56:56.:57:01.

this is is when you know people are not telling you the truth, it casts

:57:01.:57:06.

a shadow of doubt about all the cars in the show room. How can you be

:57:06.:57:14.

sure? That is why it is time for us to place spot the balls. We are

:57:14.:57:18.

questioning the way they deal with their customers and why they cannot

:57:18.:57:23.

simply play fair. Defensively, this is what is known as parking the bus

:57:23.:57:33.
:57:33.:57:34.

across the face of the goal. OK, that seems to have pushed United

:57:34.:57:38.

Motors over the edge. They have asked the police to give us our

:57:38.:57:45.

marching orders. We have been asked to leave the premises so we will go.

:57:45.:57:50.

I would just remind them that if you are selling a car, you have two give

:57:50.:57:55.

the whole truth about that car. Otherwise, you saw it coming. It is

:57:55.:58:05.
:58:05.:58:09.

a red card. That is the final whistle. And the other lesson, if

:58:09.:58:14.

you run a dodgy shop, call the cops. Meanwhile we called them and they

:58:14.:58:21.

still have not given us any further action. Yousef, there he is. And he

:58:21.:58:25.

becomes the latest face on our Rogues' Gallery.

:58:25.:58:34.

Graham says one guy took money from his son's account even though he is

:58:34.:58:36.

only 16 -- Wonga. Keep sending us your stories and

:58:36.:58:41.

tip-offs. Coming up next week: Thomas Cook.

:58:41.:58:45.

Monarch. A new rule says they must compensate you for delayed flights.

:58:45.:58:50.

So why are they refusing to pay up? Indesit. Hotpoint. The design flaw

:58:50.:58:54.

that makes machines explode. And as doctors predict the worst

:58:54.:58:56.

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