Episode 5 X-Ray

You're watching X-Ray. Bringing you the stories that

matter. Mike paid almost �35,000 to a

company who promised to manage his debts, but today he's worse off

than ever. New ID, the company selling a

makeover and photoshoot for �50, but is that all you'll pay?

And recycling your old mobile phone, good for the environment and your

Hello. Tonight we are in Merthyr Tydfil. Later on, we will be

finding out how parents here are saving money on school uniforms.

First, though, paying off debts can be a slow and painful process, and

there are plenty of companies out there who are keen to help you

manage your money problems. Rachel's been to meet one man who

turned to the experts for help, only to find himself in worse

Sometimes, when you've got a problem, you need to call an expert.

Everyone knows that. OK, then, class, if I've got a toothache, who

would I need to call? Dentist! a dentist. And what about when your

car breaks down? Mechanic! Yes, you call a mechanic! Now then, If

you've got problems with money, If you cannot pay all the bills who do

you think you call then? Bank? it says here you should call a

bankrupt. That can't be right. Can it? When father of two Mike Jones

from Cwmbran found himself struggling with debt he turned to

the experts, debt management specialists Apex DCM. Today, Mike

likes nothing more than relaxing with his 4-year-old son, Jackson.

But seven years ago, a bitter custody battle over his older child

left him tens of thousands of pounds in debt. You feel trapped.

And you are going down an even deeper black hole. It was just

spiralling downwards. Mike owed nearly �39,000 when he sought

expert help. Apex DCM offered to take over the debt, deal with

Mike's creditors and negotiate repayments, whilst Mike paid them a

lump sum each month. But what Mike did not realise was that the

company was being run by a former bankrupt, John Baird, shown here on

local news. But, at the time, Mike believed the company was offering

him a lifeline. It feels like someone just chucked a ladder down

a hole. It's a way out. It's the best feeling you could possibly

have. You are in a position where you have got no help and you can't

get out and then someone comes along and says, "We're going to

help you". Mike struggled to make the monthly repayments of between

�450 and �650 every month. There was times when my eldest son needed

clothes and I couldn't get them for him because I didn't have the money.

My whole life revolved around DCM getting paid. And he kept on paying,

because he had been told he would be debt-free within six years. Then,

last December, after a period on the sick, Mike called DCM to ask

how much was left to pay. She says, "�36,000" and I say, "Hang on, that

is not far off the start figure and I've been with you nearly six years

so you must be looking at the wrong figure." Then, in March this year,

there was another shock. Apex DCM went into administration. They

clearly seemed to need a little help with their maths. So Mike came

to Apex DCM with debts of 38,900. When the company went bust he still

owed �34,600. So the company paid off just �4,300 of Mike's debts,

even though he had paid them more than �34,000. There's �30,000

missing. �30,000. That's nearly a whole year's full wages before tax.

Tell me how you felt when you saw that. An abyss just opens up

underneath you and you just wants to suck you in. You look inward and

you ask how you could allow yourself to be scammed for �30,000.

Amazingly, other customers have been even worse off. More than 500

customers have seen their debts stay the same or go up since they

signed with DCM Apex. So where has all the money gone? The answer, it

seems lies with not one, but two former bankrupts. John Baird, who

died in 2009, started Apex DCM with Sentley Wilson. He was later made

bankrupt and was also banned from working as a solicitor for

misappropriating clients money. It turns out that Baird and Wilson

were directors of many other companies, several of which have

gone out of business. It appears that more than �1.3 million of Apex

DCM's cash, including Mike's money, was loaned to these companies.

These loans may have been made entirely legitimately and with the

best intentions to help other companies. At the other end of the

spectrum, it could be that these payments were deliberately made to

defraud creditors of Apex DCM and move that money out to benefit

ultimately someone else. What do you think the chances are that

customers will get some money back from all of this? Unfortunately, it

is unlikely that people will get their money back on this occasion.

It seems Sentley Wilson, the only survivor of the two men who started

the company in 2002, has a lot of questions to answer. But he has

refused to respond to any of our letters. Administrators are still

investigating the company and both the police and the Insolvency

Service say they will look at their findings. But Mike has been left

with only one option, to declare himself bankrupt. I could have gone

bankrupt seven years ago and be out and be putting my life back

together again. But there was a pride in me in paying back what I

borrowed. We are back on near breadline again. Any father would

want to do the best for their children, and I can't.

What a dreadful situation. It is, and cruel because Mike had

really tried to do the right thing and pay off his debts.

Is enough being done to regulate the industry?

Well, DCM is an extreme example, but the Office of Fair Trading, who

are the regulators, are clearly concerned about the practices of

some debt management companies. In the last nine months, they have

taken away the licences from 11 companies offering debt management,

and they have given 129 warnings to businesses. They have also issued

revised guidance for the industry so that firms are in no doubt about

the standards they expect. So what's the advice for those who

find themselves in debt? The main thing to say is you do not

have to pay for debt management services, because there are various

organisations who will provide those services completely free of

charge. We have put their contact details on our website.

Good advice. Now, what's Rhod up to? Well, this series we are

looking at how local communities across Wales are saving money and,

here at Gellifaelog Primary School, it is all about saving money on

school uniforms. What are you up to here? We're

preparing for a fate will we will sell these close that are being

recycled. They are out to groan and unwanted pieces of school uniform.

They were collected on a weekly basis and taken to an organisation

that we are in partnership with four people set for in from all

wore long term health problems. -- people suffering from long-term

health problems. They are then brought back to each school and

available for resale in the community. How much of the need is

there for a scheme like this? huge need. What we found is that

parents were actually going to doorstep lenders and paying

extortionate amount of interest has to be able to buy the school

uniforms. As an example, this is the blue uniform for a three to

four-year-old girl. What would that be? That would be 25p. You could

have this call -- the whole school uniform for just over �1.

Next, Lucy's been looking at a company whose offers should not

always be taken at face value. In the UK, the hair and beauty

industry is worth a whopping �14 billion and employs over 150,000

Some photo studios are trying to tap into the success of the beauty

market. They offer makeovers followed by professionally taken

photographs. In Cardiff, New ID Studios do just that. Hair and make

up on a discount and free photos as mementos of the day. But their

sales techniques are causing concern. Sharon Hale was cold

called by New ID Studios. She bought a makeover for herself and

her friend Linda Cook. They knocked on the door saying, "How would you

like to have your hair done, facial head massage, make up and a free

photograph for �25 for you and a friend?" And I told her I was

partially sighted so I couldn't see what it said on the brochure. And

she read all through the brochure and I said, "What's the catch?" And

she said there was no catch. Sharon paid �50 and looked forward to a

day of pampering for her and Linda. She then rang New ID Studios for an

appointment. But she was in for her first rude shock. They said they

wanted another �50 deposit. I said, "What's that for?" And they said,

"Just in case you don't turn up". And they said, "You'll get your

money back as soon as you go in, you'll get your money back on your

card". So Sharon paid another �50. But on the day, things didn't go to

plan. Included in the package was supposed to be a glass of bubbly.

Well, they couldn't even give us a cup of coffee because they didn't

have any milk there. But that aside, they did cut our hair and it was

excellent. Supposed to be a head massage, well, that turned out to

be a conditioner that they put on our head, then full facial, was,

for Sharon, baby wipes and for me was nothing. We've been in there

over four hours then. So we went back to ask for the �50 being

reimbursed on Sharon's card and they said, yet again, we couldn't

have the �50 reimbursed, unless we go ahead with the photo shoot.

Sharon and Linda had their photo shoot. They were then taken to

another room at New ID Studios. They say the company told them

there was no such thing as a free photograph. We had to pay for them

and I looked at the cost at the beginning of the folder that they

gave us to see their prices started at a thousand pounds, for a basic

photograph with six more prints going up in stages of �200. A

beauty experience, whether a haircut or make up, should be a

pleasurable experience not something where you go inside a

building and you feel like a prisoner that can't get out. Sharon

and Linda stood their ground and refused to pay New ID any more

money. But Sarah Hughes from Port Talbot ended up spending a lot more

than she had planned. Sarah had received a voucher as a 30th

birthday gift from her friends. She took her mum along and was looking

forward to a day of being spoilt. was pleased with the makeover.

did your hair. Yes, then went on to have my hair done, but she didn't

seem that competent in doing my hair well, really. I wanted it

curled but she was having some difficulty curling it. Sarah

enjoyed the photo shoot. But after that, just like Sharon and Linda,

she was taken in to a small room and asked to choose the photos she

would like to buy. We were told that we couldn't have our three

photos that we had already paid for and the three complimentary ones,

that we would have to do a package if we wanted more photos. So it was

all kind of confusing and throwing all these figures at us. I didn't

quite understand what was going on quite, you know. After hours of

saying no, Sarah finally paid up. But after having paid �550 in all

her 14 photos didn't arrive for another six months! Just bitter

about it all. Just feel gutted about the whole situation. What

could've been a lovely experience has just been a lot of hassle. My

friends are obviously gutted that they bought this as a birthday

present for me as a lovely experience and this has come out of

it and all this hassle to follow. Jamie Roberts from Consumer Direct

says that customers need to remember that if they do end up

agreeing to buy it counts as a legally binding agreement. The key

is to remember your rights. Remember you are not under any

obligation to say yes. You can say no without feeling rude. Sellers

sell, it is their job to try and sell you a product and they will

try and get you to say yes. The key is to realise you don't have to say

yes. You don't have to offer an explanation as to why you are

saying no. We contacted New ID Studios and told them about Sarah,

Sharon and Linda's concerns. In their response they say they are

extremely sorry. They say their pricing policy is clearly stated on

their website and in their studios, and the price will change when

promotions launch or expire. Once orders are placed. Due to the

nature of their business they can't offer refunds when people cancel.

They add that the vast majority of their 50,000 customers are happy

with their services. Sharon and Linda got a refund last year. We

also know from Sarah that New ID have called her, apologised and

I bet they were pleased to get their money back. Yes, in the last

few years, some companies have sprung up that will buy your old

mobile phone, but not all of them offer a good deal.

Most of us have got old mobile phones line around the house, in

fact, it is thought that there are many used and unused handsets in

our house holds. How many have you got? A couple, three or four, maybe.

They are in the draw at home, there are about eight of them there.

have got nine. I only ever had two. Whereas the first one? It is at

home! With the average value of be used handset coming in at �66,

there is a market willing to take them off your hands, promising you

handsome amounts of cash for you're old mobile phones. But is the offer

transforming this into this simply too good to be true? Back in March,

Carleen Carlson found a company on the internet calls Fonecraze

offering good prices for goods used phones. They are pretty good price

on the website. They told me what address to send the mobile phone to.

Immediately, that is what I did. She sent the mobile phone away and

waited for the money. Nearly one month later she heard from the

company but it wasn't the long awaited 81p 50. They contacted me

saying that the money, we're not going to give it to you, we will

give you �61.50 instead. It was because of a couple of scratches. I

was outraged. I said that the mobile phone was used.

The company said they would have to pay �12 to get the phone back if

she wasn't happy with the revised price. She reluctantly accepted

Bill Law offer but is still waiting for payment. I feel very frustrated

that they have my mobile phone. They had not given me anything back.

It is like they had been robbed by company. It is the principle. If

somebody says they will do something, they should actually do

what stay safe. Rather than actually let me carry on feeling

frustrated. They have got your product. Yes, they have my mobile

phone. What do I have in return? She isn't the only one that has

made this mistake, it is estimated more than 200,000 phones are sent

off each month in return for cash, and even though some companies are

legitimate, a few of you have had problems with companies that are

not. James Price was strapped for cash, so he contacted internet

company Skyphones Europe to see what they would pay for his Old

iPhone 3. I found them online. I sent the phone to them. They said

they would offer me �227 for the mobile phones. Very generous.

higher than everybody else, but it was a good price. James sent away

the phone and waited for the money but nothing came. Instead, they

lowered their offer and as in Carleen Carlson's face, said they

would have to pay �12 to get the phone back. There were no scratches

on the phone, so we were annoyed. We accepted this, and they sent me

an e-mail saying they were transferred the money to my bank

account, but then I received it. It was very frustrating. �200 is a lot

of money for me, so it would have helped me. It would have told me

get food and pay the bills. does it make you feel? Can't, you

put the trust in the company and if they are quite well known and the

internet and they have got a big name, then, yes, you're

disappointed and tricks, really. discovered that both companies,

Skyphones Europe and Fonecraze have the same London address and

telephone number. We got in touch with them but had no response.

Chains and Carlene are no closer to getting their payments. -- James.

What can you do to stop falling into the same trap? Kier McConomy

runs a comparison website, sellmymobile.com, and he is giving

us advice. How can you make sure a company is legitimate? If when you

sell your mobile phone, a one company is paying a lot more than

the other company, then I would be very wary. Is there any chance of

me getting my cash? Unfortunately, I think it is very unlikely. I do

not know why these companies are still trading, the website should

be shut down. How do I avoid the same thing happening again? I would

use a price comparison website been selling mobile phones. These work

very hard to endure the companies they deal with a reputable

companies and state tends to give star ratings to companies to show

what has the best customer feedback. -- they tend to give. If you want

to turn your phone into cash use a reputable company and have a look

at our website to make sure Badger handset doesn't vanish into thin

air. -- made sure that your handset doesn't vanish.

Now, back to this school uniform sale, and recycling the uniforms is

growing in popularity. This is working for you. Absolutely. It is

a cracking scheme. I have one daughter, and we get items between

25 and 50p, and it is a great saving, really. What about the

condition? Fantastic condition. Newer brand new. They take them

away, I do not know what they do them -- to do them, but they come

back like new. I have been doing this since last year. You can save

up to �50 a year. How does this scheme work for you? I have three

children and I can buy their uniforms for less than �5, were is

normally it could cost up to �60, so some great savings. Thank you.

Next, Chinese lanterns are becoming popular at weddings and parties,

but Lucy has done to Wrexham to see why some people want them banned. -

- gone to Wrexham. They can be beautiful and are of

spiritual significance to some people. They create amazing

displays in the night sky and influence advertising campaigns,

even. Paper lanterns like these are very cheap and can cost less than

�1 each and create a spectacular display. It is no surprise that

people use them to mark occasions across the country. They are easy

to get hold of, on the internet and at some high street shops. How do

they work? They had very simple to use. He simply liked this the fuel

area at the bottom and wait for it to warn the air inside the land to

run which inflates it and lifts it. -- inside the paper lantern. They

have the potential to cause serious injuries. At a party last year,

three-year-old Cael Jones from Wrexham was injured by one of these

lanterns. His mother once more advice on how to use them. I would

like the safety regulations to be higher on them and better

instructions so that everybody knows how dangerous they can be.

She is not the only one that is worried. Anne Wrench arms catalogue

in Flintshire and last year, she found at least 20 of these burnt

out lanterns on her land and showed us where they were found. As their

popularity grows, she is concerned about the effect on her land and on

the livestock. It started last year when I was looking at the kitchen

window and dies all these white bags that appeared in front of

house. There were six of them. When my husband went out, there were six

in the field on that one day and they were Chinese lanterns. We had

never heard of them before. Since then, we regularly find them all

over the fields in the hedgerows. Why are be such a problem for you?

We are walking through a barley field right now, so there is a fire

risk. These fields, there are acres and acres of cereals, wheat, barley,

and if the lanterns burn out into the field, we could lose all of the

crop. We could lose it in one night. That is an enormous loss to us.

is not just the risk of fire that is worrying. Stray pieces of bamboo

and wire left in the fields could cause a big problem at harvest time.

The remains of the lanterns get chopped up by the machinery and go

into the silos for the winter feed, and at winter time, we do not

realise it is there, and when we see to the livestock, they can't

eat it, and it could cut up their insides, like glass does, and it

could kill the animals. Her fears are justified. John has experienced

their dangers first hand. One of his animals in Port Talbot died

last year after one of these luncheons fell into his field.

is not moving, standing by herself, I went to get the vets to have a

look, and said that it is likely there is a wire in her gut. We hope

she would stay alive long enough to give birth, but unfortunately,

three weeks before her calf was born, she died. So we lost the cow

and the calf. It was an expensive loss. The animals were worth �2,000.

Devastating to lose an animal. Things like this could be prevented.

Some manufacturers now claim that their lanterns are biodegradable.

We can see on the instructions here, it says they are made from

biodegradable materials, it means they decompose in a short space of

time. What you think about that? Let's have a look at it. It has

still got the wire like you did before, the bamboo appears to have

been changed. This, Timmy, would take years and years to decompose,

and it only takes a couple of days to kill an animal. Emergency

services are worried as well. The recent dry spell lead to an

increase in fires across the country with fire crews called out

to huge blazes. North Wales Fire and Rescue Service say they have

had 11 incidents connected to the Chinese lanterns since 2008. The,

the message we're trying to give... Andy Robb wants people to be aware

of the risks. When these lanterns are released, they are on controls,

you do not know where they can go. -- they are not controlled. Begin

caused extensive fires that tie up a lot of resources in the fire

service. There are some services that hour concerned about the

release of these Chinese lanterns, particularly on the coast where

they can be confused with distress there has -- flowers. Because card

service has -- the Coast Guard has recorded call-outs totalling

�10,000. Eight months since his accident, Cael Jones has recovered

from his accident. There is a call for banning these lanterns. Many

countries have banned them, we should have them banned here.

Ideally, we would say, do not use them. If you release them, take

great care with them. That is all we have time for this

evening, if there is anything you would like us to investigate,