0:00:02 > 0:00:04Money's tight. Every pound is precious.
0:00:04 > 0:00:06But wherever you turn, big companies
0:00:06 > 0:00:10are determined to squeeze you even more with their tricks.
0:00:10 > 0:00:13It's not even as if they're trying to hide it.
0:00:13 > 0:00:16But this is the series that's determined to stop them.
0:00:17 > 0:00:20- SHE LAUGHS - I foiled that trick.
0:00:20 > 0:00:24Each week, we go undercover to expose their tactics.
0:00:25 > 0:00:28Even if I bring it back half full, I don't get a refund?
0:00:31 > 0:00:33We talk to the whistleblowers...
0:00:33 > 0:00:34This is quite a trick.
0:00:34 > 0:00:36It is a trick. Nothing but a trick.
0:00:36 > 0:00:40And reveal how YOU can fight back.
0:00:44 > 0:00:48Yes, whether we're going on holiday, buying a car,
0:00:48 > 0:00:51furnishing our homes or enjoying time off,
0:00:51 > 0:00:54there can be shocking underhand ploys to avoid.
0:00:54 > 0:00:58Do YOU want to know the secrets too? Then keep watching.
0:00:58 > 0:01:00This is Your Money Their Tricks.
0:01:19 > 0:01:22Tonight, the biggest names in the furniture trade.
0:01:22 > 0:01:24Inside DFS -
0:01:24 > 0:01:29uncovering the tactics used by some salesmen to make you spend.
0:01:34 > 0:01:38Is it just me or did he just tell us how to commit insurance fraud?
0:01:39 > 0:01:41"Hurry, ends midnight."
0:01:41 > 0:01:43Sales - can you believe them?
0:01:43 > 0:01:46I reveal the truth behind Dreams and Harveys ads.
0:01:48 > 0:01:51- My goodness.- Naughty Harveys. - That's really bad.
0:01:51 > 0:01:52And shoppers strike back -
0:01:52 > 0:01:56how you can slash your household bills in a matter of minutes.
0:01:56 > 0:02:00So, would you like to know what in total you managed to save?
0:02:00 > 0:02:04- £1,293.- Wow.- Oh, my God.
0:02:10 > 0:02:12Our homes - we buy them,
0:02:12 > 0:02:15we rent them, we improve them,
0:02:15 > 0:02:18we love talking about them.
0:02:18 > 0:02:20Yeah, but you want everything to run smoothly.
0:02:20 > 0:02:23If something's broken, make sure you get it fixed.
0:02:23 > 0:02:25You don't want to keep spending money on buying new things.
0:02:25 > 0:02:30- Oh, Nicky. That's very old fashioned.- I'm all about keeping up with the latest technology.
0:02:30 > 0:02:32There are loads of deals on offer that can help you do that.
0:02:32 > 0:02:35For some, a good home is all about the look and the feel,
0:02:35 > 0:02:37and the furniture has a lot to do with that,
0:02:37 > 0:02:40everything from the sofas, dining-room tables and beds.
0:02:40 > 0:02:44If you can get a good deal on your furniture, then all the better.
0:02:46 > 0:02:50Yes, we all like to splash out occasionally.
0:02:50 > 0:02:52And what better way to give a room a fresh look
0:02:52 > 0:02:54than by getting in new furniture?
0:02:55 > 0:02:58Of course, it can be expensive.
0:02:58 > 0:03:01But we can always wait to see what's in the sales.
0:03:01 > 0:03:03In fact, why wait at all?
0:03:03 > 0:03:06There's 60% off hundreds of beds.
0:03:06 > 0:03:10Time was when those sales happened at traditional times...
0:03:10 > 0:03:13Harveys eight-day sale starts Boxing Day, 9am.
0:03:13 > 0:03:18..like Boxing Day, New Year's Day and other bank holidays. But now?
0:03:18 > 0:03:20Well, how many days have you got?
0:03:20 > 0:03:24There's 12-hour sales, half-price sales...
0:03:24 > 0:03:26The list goes on.
0:03:26 > 0:03:30And sales are not only everywhere, they're urgent.
0:03:30 > 0:03:32Want to bag those bargains?
0:03:32 > 0:03:34You really must get a move on.
0:03:34 > 0:03:36Harveys up-to-half-price sale now with extra savings
0:03:36 > 0:03:38which end Monday, 8pm.
0:03:38 > 0:03:40Or so the ads would have you believe.
0:03:40 > 0:03:44As for us, we don't take anything at face value.
0:03:51 > 0:03:55For five months, we monitored 15 different sales,
0:03:55 > 0:03:59all advertised by two of the UK's biggest furniture stores,
0:03:59 > 0:04:02Dreams and Harveys.
0:04:02 > 0:04:06Between them, they spend tens of millions a year on advertising.
0:04:06 > 0:04:09Yours for an amazing 999. Harveys.
0:04:09 > 0:04:12They also employ a number of tricks in their marketing...
0:04:12 > 0:04:15Until Sunday, save 60%...
0:04:15 > 0:04:19..to bamboozle the rest of us into parting with our cash.
0:04:19 > 0:04:23Now, believe me, you do not want me to go into all the specific details
0:04:23 > 0:04:27of our findings. So, here are the headlines...
0:04:27 > 0:04:32presented to you in our own ads, featuring our own furniture.
0:04:32 > 0:04:34Trick number one.
0:04:37 > 0:04:38Since November last year,
0:04:38 > 0:04:43- we haven't found a day when there hasn't been a sale on.- Cut.
0:04:43 > 0:04:47We tracked a number of products in those sales or promotions.
0:04:47 > 0:04:50And in the majority of cases, when the sale or offer came to an end,
0:04:50 > 0:04:52they simply stayed at the sale price,
0:04:52 > 0:04:54went straight into another sale
0:04:54 > 0:04:58or another offer was applied. The result?
0:04:58 > 0:05:01Consumers are uncertain about when the best time to make
0:05:01 > 0:05:03their purchase is going to be.
0:05:07 > 0:05:09Trick number two.
0:05:12 > 0:05:14Do we really need to hurry?
0:05:16 > 0:05:19We found sales at Harveys being extended without warning.
0:05:19 > 0:05:24This up-to-half-price sale was meant to run from 3rd April to 7th May,
0:05:24 > 0:05:27but in reality, ran until 7th June.
0:05:30 > 0:05:33And what about this supposed 12-hour sale from Harveys?
0:05:33 > 0:05:35Shoppers might have rushed to buy THIS sofa
0:05:35 > 0:05:38because they were told to. "Hurry, ends midnight."
0:05:38 > 0:05:42In reality, the sofa stayed on sale for four whole days.
0:05:42 > 0:05:46That's eight-times longer than Harveys said it would.
0:05:46 > 0:05:49Now, that's bad practice according to Deborah.
0:05:49 > 0:05:53The consumer is being rushed into taking a transactional decision
0:05:53 > 0:05:57which, given proper thought, they might not have taken.
0:05:57 > 0:06:01If a trader extends a sale at very short notice,
0:06:01 > 0:06:03this can be misleading for the consumer
0:06:03 > 0:06:06as they thought they had very limited time
0:06:06 > 0:06:08in which to make their purchasing decisions.
0:06:08 > 0:06:12There could be a breach of the law in these circumstances.
0:06:15 > 0:06:17Trick number three.
0:06:20 > 0:06:23After-event price?
0:06:23 > 0:06:24Well, that seems clear to me.
0:06:24 > 0:06:27It's the price the furniture reverts to
0:06:27 > 0:06:31after the event or sale finishes, isn't it?
0:06:31 > 0:06:34Well, a quick call to Dreams should tell us.
0:06:43 > 0:06:44And what about Harveys?
0:06:50 > 0:06:53On nine out of 19 calls to Harveys,
0:06:53 > 0:06:55ten out of 15 calls to Dreams,
0:06:55 > 0:06:59they said that sale items WOULD revert to their full price
0:06:59 > 0:07:03as soon as the sale finished. So, that's their promise.
0:07:03 > 0:07:04As for their practice,
0:07:04 > 0:07:07well, it could be up to two months after a sale ends
0:07:07 > 0:07:10that an item goes back to full price.
0:07:10 > 0:07:13Look at this. They've each got a clause on their website
0:07:13 > 0:07:17that allows them to put those items into as many sales as they like
0:07:17 > 0:07:18up until that time.
0:07:18 > 0:07:21Harveys - detailed on the product page itself.
0:07:21 > 0:07:23Dreams - buried in the terms and conditions.
0:07:26 > 0:07:28The consumer may well not take on board the fact that
0:07:28 > 0:07:32the after-event price will not apply for maybe two months.
0:07:32 > 0:07:36They therefore have much more time in which to take the decision
0:07:36 > 0:07:39before the higher price is charged.
0:07:40 > 0:07:44Last but not least, trick number four.
0:07:50 > 0:07:55What?! They wouldn't drop the price AFTER the sale ends...
0:07:55 > 0:07:57would they?
0:07:57 > 0:07:59Well, Harveys would.
0:07:59 > 0:08:01They offered these three sofas
0:08:01 > 0:08:04as part of their 12-hour sale in January...
0:08:04 > 0:08:07and this dining table in their February sale.
0:08:07 > 0:08:12Yet when those sales were over, the prices of all the items went down.
0:08:12 > 0:08:15And it was a similar story with Dreams.
0:08:15 > 0:08:18Four of the beds in their half-price sale in December
0:08:18 > 0:08:21were actually cheaper afterwards.
0:08:23 > 0:08:26Where a price falls after the end of the sale,
0:08:26 > 0:08:30there is a potential misleading action.
0:08:30 > 0:08:32Consumers, if they knew the true situation,
0:08:32 > 0:08:35would take a different decision
0:08:35 > 0:08:38and delay purchasing until after the sale.
0:08:38 > 0:08:40There is a potential breach of the law here.
0:08:43 > 0:08:45The Office of Fair Trading has expressed concern
0:08:45 > 0:08:48over misleading time-limited offers.
0:08:48 > 0:08:52The evidence from the practices shown by Harveys and Dreams
0:08:52 > 0:08:56may well be of interest to the Office of Fair Trading here.
0:08:58 > 0:09:01Dreams told us they DO follow pricing guidelines.
0:09:01 > 0:09:03But in the light of the issues raised,
0:09:03 > 0:09:07they'll be working harder to ensure future sales' practices are clearer.
0:09:07 > 0:09:10They say they take their responsibilities very seriously,
0:09:10 > 0:09:13make their customers their first priority
0:09:13 > 0:09:15and always strive to offer them products
0:09:15 > 0:09:17at the best available price.
0:09:20 > 0:09:22Well, that's what Dreams has got to say.
0:09:22 > 0:09:25As for Harveys, first I want to hear what the public has to say.
0:09:25 > 0:09:28So, I'm going to meet them on a bank holiday Monday,
0:09:28 > 0:09:31one of the busiest shopping days of the year.
0:09:31 > 0:09:35We're here to let customers know it might just pay to wait.
0:09:35 > 0:09:37Time to reveal the tricks of the trade.
0:09:45 > 0:09:48Anyone here about to shop at Harveys?
0:09:48 > 0:09:50Hello. Would you like me to save you money? No, not interested.
0:09:50 > 0:09:53- Hello.- Hello, how are you? - I'm very well, thank you.- Good.
0:09:53 > 0:09:56- You've been attracted, I can see, sir, by our advert.- Indeed.
0:09:56 > 0:09:59- I saw it from halfway down the road.- Did you?
0:09:59 > 0:10:01Did you know that since last November,
0:10:01 > 0:10:05we haven't seen a day when there hasn't been a sale on at Harveys?
0:10:05 > 0:10:07- I didn't know that.- Really?!
0:10:09 > 0:10:12Hurry, ends midnight. We found that, actually,
0:10:12 > 0:10:14it could go on for four days.
0:10:14 > 0:10:15My goodness.
0:10:15 > 0:10:17No rush, then.
0:10:18 > 0:10:22- After-event price...? - Usually goes up.- It goes back up.
0:10:22 > 0:10:25All these three items and the dining-room table
0:10:25 > 0:10:26were cheaper after the sale than
0:10:26 > 0:10:29- they were when they were in the sale.- Naughty Harveys.
0:10:29 > 0:10:32That's really bad that they dropped after a sale.
0:10:32 > 0:10:34- We're going to buy furniture today.- Were you?
0:10:34 > 0:10:37Maybe we should hold off just in case.
0:10:37 > 0:10:39- What were you going to buy, a sofa?- A sofa.
0:10:39 > 0:10:41- Good luck.- Thank you.
0:10:41 > 0:10:44It might pay to wait. I think everybody knows that now.
0:10:44 > 0:10:46I think they'll be looking at Harveys adverts
0:10:46 > 0:10:48a little more closely.
0:10:48 > 0:10:52Meanwhile, Harveys have also promised to take a closer look.
0:10:52 > 0:10:54Despite an absence of customer complaints,
0:10:54 > 0:10:57they say they'll take our feedback into consideration
0:10:57 > 0:10:59when planning future advertising.
0:10:59 > 0:11:02They say they work hard to ensure they offer the best deal possible
0:11:02 > 0:11:04and that they work within the guidelines.
0:11:04 > 0:11:06They're retraining customer service staff
0:11:06 > 0:11:09to ensure all promotions are as clear as possible.
0:11:16 > 0:11:19Do you know the UK market for small kitchen gadgets
0:11:19 > 0:11:23is worth more than £530 million a year?
0:11:23 > 0:11:25Some of them are very complicated.
0:11:26 > 0:11:29I'm not entirely sure what this does...
0:11:29 > 0:11:30..or this.
0:11:30 > 0:11:33But there's one word for these big ones,
0:11:33 > 0:11:34and that's "essential".
0:11:34 > 0:11:37There's another word for what to do when they're not working
0:11:37 > 0:11:39and that's "panic".
0:11:39 > 0:11:42Yes, when your washing machine or fridge-freezer goes on the blink,
0:11:42 > 0:11:44you want to get it fixed ASAP. You are desperate,
0:11:44 > 0:11:47you'll pay good money and the manufacturer knows it,
0:11:47 > 0:11:51which is why some make sure that they are the ones who'll benefit.
0:11:52 > 0:11:54How? By freezing out the competition.
0:11:54 > 0:11:57You see, unlike car makers, who are legally obliged
0:11:57 > 0:12:00to share technical information with independent garages,
0:12:00 > 0:12:02domestic appliance manufacturers
0:12:02 > 0:12:05can keep all those details to themselves.
0:12:05 > 0:12:08So, if something goes wrong with your machine
0:12:08 > 0:12:10when it's out of warranty,
0:12:10 > 0:12:13an independent repairer might not be able to help you
0:12:13 > 0:12:17and your only choice could be to go through the manufacturer.
0:12:18 > 0:12:22The result? Fixing one simple fault could end up costing you
0:12:22 > 0:12:24up to three times more than you thought it would.
0:12:26 > 0:12:29So, how many of our biggest manufacturers are doing this?
0:12:29 > 0:12:32Could we actually be looking at an industry-wide trick
0:12:32 > 0:12:35that triples our repair bills?
0:12:35 > 0:12:36I'm going to find out
0:12:36 > 0:12:39by becoming an independent Mr Fix It.
0:12:40 > 0:12:42Welcome to Nicky's Repairs.
0:12:44 > 0:12:46BELL RINGS
0:12:46 > 0:12:49OK, the name could do with some work.
0:12:49 > 0:12:50And the signs.
0:12:50 > 0:12:54But I'm committed to getting you a good deal and a great price.
0:12:54 > 0:12:57Although, to be honest, I'm no engineer,
0:12:57 > 0:13:00so I might need a little bit of help with this.
0:13:00 > 0:13:02What I need is a man who's been training
0:13:02 > 0:13:04independent engineers for 40 years,
0:13:04 > 0:13:10a man who has literally written the book on appliance repairs.
0:13:10 > 0:13:11How can I help, Nicky?
0:13:11 > 0:13:13Well, there's a stroke of luck!
0:13:13 > 0:13:15Graham Dixon is an appliance expert
0:13:15 > 0:13:17with a series of repair manuals to his name.
0:13:19 > 0:13:21- Well, Graham, it's good of you to help me...- Pleasure.
0:13:21 > 0:13:25..in my venture. In order to get up and running, what information
0:13:25 > 0:13:27will I need to have to fix machines?
0:13:27 > 0:13:29From the manufacturers, what you really need is
0:13:29 > 0:13:32- the technical fault codes...- Right.
0:13:32 > 0:13:35..wiring diagrams and hopefully technical manuals.
0:13:35 > 0:13:36What is a fault code?
0:13:36 > 0:13:41Nearly all machines have some means of displaying an error code system.
0:13:41 > 0:13:44That can be a series of lights that flash in certain sequences
0:13:44 > 0:13:48or a digital display with something like "F1", "F12".
0:13:48 > 0:13:52This will then give you some guide to what the problem can be.
0:13:52 > 0:13:55We even get problems where faults occur, you can put them right,
0:13:55 > 0:13:58but you can't clear the fault code from it.
0:13:58 > 0:14:00So you can actually fix something
0:14:00 > 0:14:02but the fault code will keep coming up?
0:14:02 > 0:14:05Unfortunately, you can repair things these days,
0:14:05 > 0:14:08- but you need to tell it it has been repaired.- Right.
0:14:08 > 0:14:10I'm going to make some phone calls
0:14:10 > 0:14:14- and I'm going to get some information.- I wish you luck.
0:14:14 > 0:14:17Posing as independent repairers, we called the top 12
0:14:17 > 0:14:21global appliance manufacturers and asked this question...
0:14:21 > 0:14:25Basically, I'm after a list of fault codes
0:14:25 > 0:14:28for your range of products,
0:14:28 > 0:14:30technical information about your products
0:14:30 > 0:14:32and safety bulletins.
0:14:34 > 0:14:36First up, the good guys. Beko were the only company
0:14:36 > 0:14:39to agree to send us technical information free of charge.
0:14:46 > 0:14:49Two other companies, Candy Hoover and Whirlpool,
0:14:49 > 0:14:53said we could have access to some technical information for a fee.
0:14:53 > 0:14:55But the other nine either refused to give us
0:14:55 > 0:14:57the full information we would need
0:14:57 > 0:15:01or were unable to help with our query. They included Indesit.
0:15:08 > 0:15:09And Miele.
0:15:11 > 0:15:13Is it highly classified?
0:15:14 > 0:15:17Most manufacturers told us that whilst we couldn't have full information,
0:15:17 > 0:15:20they might help out with a specific enquiry.
0:15:20 > 0:15:23So we put that to the test.
0:15:24 > 0:15:26- ON PHONE:- Hi, may I help you?
0:15:26 > 0:15:28Yeah, we're an independent repair company
0:15:28 > 0:15:30and I'm looking to get some advice and some information
0:15:30 > 0:15:32on technical error codes.
0:15:32 > 0:15:34OK, Graham's pretending to be an independent repairer
0:15:34 > 0:15:37who's just been called out to fix a broken washing machine.
0:15:37 > 0:15:39So he calls the different manufacturers
0:15:39 > 0:15:43asking for access to their fault codes and re-set information.
0:15:43 > 0:15:47After all, there's a customer here whose washing machine has bust!
0:15:47 > 0:15:49So first up, Miele.
0:15:55 > 0:15:57Oh, that's a pity.
0:15:57 > 0:15:59Come on, Whirlpool, can you help us out here?
0:15:59 > 0:16:01You did say you might be able to!
0:16:04 > 0:16:07But I've done the repair, I've got the item,
0:16:07 > 0:16:09I've got the genuine Whirlpool item.
0:16:17 > 0:16:22OK, Indesit. Surely you can help us get this machine working again?
0:16:22 > 0:16:24It's an emergency!
0:16:27 > 0:16:29Well, thanks a lot, guys(!)
0:16:29 > 0:16:31All your refusals to share information
0:16:31 > 0:16:32mean the customer has no option
0:16:32 > 0:16:35but to get the manufacturers to send out their own engineers,
0:16:35 > 0:16:38who can then charge whatever price they want.
0:16:38 > 0:16:39In the case of Miele,
0:16:39 > 0:16:43that could be as much as a £129 minimum call out charge -
0:16:43 > 0:16:47nearly three times more than the £45 an independent repairer
0:16:47 > 0:16:49like Graham is likely to charge.
0:16:53 > 0:16:56So what were their excuses for not sharing information?
0:17:04 > 0:17:06A nice analogy, but a wrong one.
0:17:06 > 0:17:10As we know, car makers do have to share such information
0:17:10 > 0:17:11with independent garages.
0:17:11 > 0:17:13Any other excuses, Bosch?
0:17:20 > 0:17:23What about the safety concerns? Do you buy that?
0:17:23 > 0:17:25In a way, no.
0:17:25 > 0:17:30Because, to be quite honest with you, I've never known anyone been injured
0:17:30 > 0:17:33with knowledge, but I've known lots of people injured by ignorance.
0:17:33 > 0:17:36And by keeping somebody deliberately ignorant,
0:17:36 > 0:17:40surely you're part of the process of anything that happens in the future.
0:17:40 > 0:17:43Of course, there's a much more plausible reason why some
0:17:43 > 0:17:46manufacturers refuse to share technical information
0:17:46 > 0:17:47with independent repairers.
0:17:47 > 0:17:51So, well done, Indesit, for spelling it out.
0:18:00 > 0:18:02I did hear that right, didn't I?
0:18:07 > 0:18:09Yeah, thought so.
0:18:11 > 0:18:14Indesit reject claims that manufacturers restrict
0:18:14 > 0:18:16competition in the market.
0:18:16 > 0:18:18They say they do provide information, parts
0:18:18 > 0:18:21and tooling to independent repairers in the vast majority of cases,
0:18:21 > 0:18:24but they sometimes withhold information for health and safety
0:18:24 > 0:18:28reasons, or because they consider a repair economically unviable.
0:18:28 > 0:18:30They're reviewing procedures to ensure
0:18:30 > 0:18:33they pass all enquiries to the right place.
0:18:33 > 0:18:36Miele says it's committed to high standards of customer care
0:18:36 > 0:18:39and offers extensive training to independent technicians
0:18:39 > 0:18:40within its network.
0:18:40 > 0:18:43But it's unable to support those outside the network
0:18:43 > 0:18:46with the required training and documentation.
0:18:46 > 0:18:49Whirlpool told us some independent repairers can access
0:18:49 > 0:18:51technical information for a fee,
0:18:51 > 0:18:54but only trained repairers within their network have the
0:18:54 > 0:18:57correct equipment and training for all faults.
0:18:57 > 0:18:58As for Bosch,
0:18:58 > 0:19:01they say once they've validated a repairer's qualifications,
0:19:01 > 0:19:05they will offer full advice within the limits of their expertise.
0:19:09 > 0:19:11Meanwhile, during our research,
0:19:11 > 0:19:15we uncovered one more trick you might want to watch out for.
0:19:15 > 0:19:18If you call an appliance manufacturer about a repair direct,
0:19:18 > 0:19:22you'd expect to speak to someone from that company, wouldn't you?
0:19:22 > 0:19:24Especially when they tell you that you are.
0:19:28 > 0:19:31However, we discovered on some occasions,
0:19:31 > 0:19:34despite the fact you call the number on the manufacturer's website,
0:19:34 > 0:19:38you are automatically put through to a Domestic & General salesman,
0:19:38 > 0:19:41something they only tell you if you ask.
0:19:47 > 0:19:51Domestic & General are the UK's leading warranty provider,
0:19:51 > 0:19:54and this is obviously the perfect time to try
0:19:54 > 0:19:57and sell you one of their extended warranties.
0:19:57 > 0:19:59So if you are stuck in a jam
0:19:59 > 0:20:03and just want to get your washing machine repaired, you may hear this.
0:20:08 > 0:20:11Electrolux have since confirmed that they may transfer customers
0:20:11 > 0:20:14to the Electrolux team operated by Domestic & General
0:20:14 > 0:20:17to offer peace of mind, repair and warranty solutions.
0:20:17 > 0:20:20And we should point out they're not the only company
0:20:20 > 0:20:21to operate in this way.
0:20:21 > 0:20:24They confirm that they don't restrict the availability
0:20:24 > 0:20:27of technical information to independent repairers.
0:20:27 > 0:20:30Domestic & General say their repair and protect option
0:20:30 > 0:20:33offers many advantages over a standard repair.
0:20:33 > 0:20:36They clearly inform all customers that the plan's provided
0:20:36 > 0:20:39by Domestic & General, and they're under no obligation to take it.
0:20:42 > 0:20:45But remember, a washing machine is an expensive product
0:20:45 > 0:20:48that should last for a reasonable length of time,
0:20:48 > 0:20:50and if there's an inherent fault with yours,
0:20:50 > 0:20:53you're likely to be protected by the Sale of Goods Act,
0:20:53 > 0:20:57so you can expect the shop where you bought it to offer a free repair
0:20:57 > 0:21:00or replacement, whether its within warranty or not.
0:21:01 > 0:21:04But if you're tempted to take out an extended warranty
0:21:04 > 0:21:07with any company, this is what you need to be aware of.
0:21:09 > 0:21:13Make sure you do your research to find the best deal for you.
0:21:13 > 0:21:16Smaller insurers are often much cheaper than retailers.
0:21:20 > 0:21:21Check out how long it will last
0:21:21 > 0:21:24versus how long you're likely to keep the item.
0:21:24 > 0:21:27Do the terms provide a new-for-old replacement
0:21:27 > 0:21:30if the item can't be repaired?
0:21:30 > 0:21:32Check the exclusions.
0:21:32 > 0:21:35Do you have to use an authorised repairer?
0:21:35 > 0:21:39And beware of extended warranties where you pay monthly.
0:21:39 > 0:21:43Over the long term these can work out to be very expensive.
0:21:43 > 0:21:45If you want to see this advice again,
0:21:45 > 0:21:48then please visit our website:
0:22:00 > 0:22:03I'm a sucker for the latest gizmos on the market.
0:22:03 > 0:22:07And you know what? I'm in good company.
0:22:08 > 0:22:09Bit of sharp focus for me.
0:22:09 > 0:22:11CAMERA BEEPS
0:22:11 > 0:22:13Soothing sounds.
0:22:13 > 0:22:15Personally, I like a high-tech gadget
0:22:15 > 0:22:18that combines lots of functions.
0:22:18 > 0:22:21Like this Galaxy tablet. It can do all sorts.
0:22:21 > 0:22:22No chance!
0:22:22 > 0:22:24And what's even better,
0:22:24 > 0:22:27if I'd bought it late last year from Currys or PC World,
0:22:27 > 0:22:29I'd have got one of those cashback deals.
0:22:29 > 0:22:31£80 no less!
0:22:31 > 0:22:35'The amazingly powerful Samsung Note multitasks like a PC.
0:22:35 > 0:22:38'Buy the Note with a case and £80 cashback makes it £319.
0:22:38 > 0:22:41'At Currys PC World.'
0:22:41 > 0:22:43Not bad, eh? But that got me thinking.
0:22:43 > 0:22:46If they're happy to give you back cash,
0:22:46 > 0:22:50why don't they just reduce the price of the item instead?
0:22:50 > 0:22:54Cashback is pure behavioural economics,
0:22:54 > 0:22:57because what retailers have found is that the consumer
0:22:57 > 0:23:02is keener on being given a cashback than actually paying a lower price.
0:23:02 > 0:23:06And this might seem irrational but it's often the way people are.
0:23:06 > 0:23:08Irrational, moi!?
0:23:10 > 0:23:11But could there be another reason?
0:23:11 > 0:23:14Is it such a hassle actually claiming the cashback
0:23:14 > 0:23:17that lots of us just give up trying?
0:23:18 > 0:23:20Well, I'm going to find out.
0:23:20 > 0:23:24Let's say I'd bought my tablet, along with a case as required,
0:23:24 > 0:23:26and now I want my £80.
0:23:26 > 0:23:30Cashback - how hard can it be?
0:23:30 > 0:23:34OK, firstly it says here I'd have to wait 30 days to apply.
0:23:34 > 0:23:36No problem.
0:23:40 > 0:23:41Ow.
0:23:41 > 0:23:43Second, fill in an online form.
0:23:43 > 0:23:45Then scan receipt.
0:23:47 > 0:23:50Photograph serial number.
0:23:50 > 0:23:52Oh, that's it! Oh, that's your best side.
0:23:52 > 0:23:56And finally e-mail off to Currys PC World.
0:23:56 > 0:23:58SHE EXHALES
0:23:58 > 0:24:02Now all I'd have to do is wait up to 42 days for my £80 cheque.
0:24:03 > 0:24:05SHE SIGHS
0:24:05 > 0:24:08- Er, Becca, before you get comfortable.- What?
0:24:08 > 0:24:11You were meant to claim £30 from Currys PC World
0:24:11 > 0:24:13and £50 from Samsung Direct.
0:24:15 > 0:24:20Yes, on this deal I might have waited a long time for the full £80.
0:24:20 > 0:24:22That's because Currys PC World customers
0:24:22 > 0:24:24had to make two separate claims.
0:24:24 > 0:24:25Hmmm!
0:24:25 > 0:24:28One to Currys PC World and one to Samsung,
0:24:28 > 0:24:30in order to receive the full £80.
0:24:30 > 0:24:33And a quick call to Samsung posing as a customer showed
0:24:33 > 0:24:35it wasn't just us who found this confusing.
0:25:01 > 0:25:05Definitely might? That doesn't sound too convincing.
0:25:05 > 0:25:09Almost five months after the deal started, Currys PC World
0:25:09 > 0:25:12finally said they'd pay customers the outstanding £50.
0:25:12 > 0:25:14Hooray!
0:25:14 > 0:25:17Only it would take another 42 days.
0:25:17 > 0:25:19SHE SIGHS EXASPERATEDLY
0:25:19 > 0:25:22All those hoops you have to jump through, makes you wonder
0:25:22 > 0:25:24how many people are actually going to bother claiming?
0:25:26 > 0:25:29If you have to go to two different websites and fill in a form
0:25:29 > 0:25:33and copy this and copy that, it does become morally wrong, I think,
0:25:33 > 0:25:37because many people say, "I bought it to get the cashback
0:25:37 > 0:25:40"and I just can't be bothered, it's too difficult."
0:25:41 > 0:25:45Samsung say they clearly explained the dual claim process,
0:25:45 > 0:25:47but as a goodwill gesture, they allowed customers
0:25:47 > 0:25:52to apply for cashback for a further 89 days after the promotion ended.
0:25:52 > 0:25:54Currys PC World say the vast majority of customers
0:25:54 > 0:25:56claimed without issue.
0:25:56 > 0:25:59But they admit the process caused difficulties for some,
0:25:59 > 0:26:02and they'll look to resolve any outstanding claims swiftly.
0:26:02 > 0:26:05Both companies believe they've resolved the queries
0:26:05 > 0:26:07from customers who contacted them.
0:26:07 > 0:26:09But they've told us they'll learn from this
0:26:09 > 0:26:11when planning future campaigns.
0:26:12 > 0:26:15But if you think claiming that cashback was difficult,
0:26:15 > 0:26:19wait till you hear about another deal from Currys PC World.
0:26:19 > 0:26:21I thought it was outrageous they should ask me
0:26:21 > 0:26:25to pay three times the amount I was promised at the time of sale.
0:26:25 > 0:26:28Find out about that deal a little bit later.
0:26:35 > 0:26:39DFS. They're one of the biggest sofa retailers in the UK.
0:26:39 > 0:26:40Their sales are up.
0:26:40 > 0:26:44And they've become sponsors of ITV's This Morning programme.
0:26:46 > 0:26:50Mind you, not everyone inside DFS is happy.
0:26:50 > 0:26:53I'm about to meet an ex-employee who's really
0:26:53 > 0:26:57uncomfortable at the way staff were selling added extras to customers.
0:26:57 > 0:27:00It's a practice he says is known as assumptive selling.
0:27:00 > 0:27:02Here he is.
0:27:08 > 0:27:11This assumptive selling, how does it work, what is it?
0:27:11 > 0:27:14ACTOR'S VOICE: It's very clever psychology.
0:27:14 > 0:27:16We talk about the sofa, we talk about the service
0:27:16 > 0:27:20and then just add everything on, congratulate you,
0:27:20 > 0:27:23thank you very much, make you feel really good and show you the door.
0:27:23 > 0:27:25So the default position is that you have bought it,
0:27:25 > 0:27:28even know you don't know you've bought it?
0:27:28 > 0:27:29Yes. Definitely.
0:27:29 > 0:27:32According to our insider, although extras are detailed on their
0:27:32 > 0:27:36final bill, customers may not notice it has suddenly inflated because
0:27:36 > 0:27:40staff quote them the price as a finance deal, in monthly payments.
0:27:41 > 0:27:44You say it's going to be £40 a month,
0:27:44 > 0:27:46and then say "thank you very much" and get them to sign.
0:27:46 > 0:27:48But in the meantime you've added
0:27:48 > 0:27:51all those things because I've mentioned them, I mentioned that..
0:27:51 > 0:27:53So merely mentioning them is adding them?
0:27:53 > 0:27:56- Is adding them, yes. - And they're not checking the monthly payments?
0:27:56 > 0:27:59They're not checking, they're not doing the maths, no.
0:27:59 > 0:28:01Serious stuff, and it gets worse.
0:28:01 > 0:28:03They sometimes over-sell the benefits
0:28:03 > 0:28:06of their stain protection insurance.
0:28:06 > 0:28:11So are the exclusions explained properly when selling insurance?
0:28:11 > 0:28:13No, we never explain the exclusions at all
0:28:13 > 0:28:16but you keep explaining the benefits. We just sell it to everybody.
0:28:16 > 0:28:19Even if a customer asked, we say it's covered,
0:28:19 > 0:28:21"Don't worry, we cover everything.
0:28:21 > 0:28:24"I mean, we sell this insurance to landlords."
0:28:24 > 0:28:26The landlords cannot have this service.
0:28:26 > 0:28:30You want them basically to take the goods, take the services and leave.
0:28:30 > 0:28:31This is quite a trick?
0:28:31 > 0:28:34It is a trick. Nothing but a trick.
0:28:34 > 0:28:37His testimony has been backed up by another DFS whistleblower
0:28:37 > 0:28:39who still works for the company.
0:28:39 > 0:28:42My biggest concern is the huge pressure that staff members
0:28:42 > 0:28:44are under to sell extras.
0:28:44 > 0:28:47The level of targets that people are expected to meet are
0:28:47 > 0:28:50so high that people have to sell however they can.
0:28:50 > 0:28:52The pressure can also lead to assumptive selling, where
0:28:52 > 0:28:56items are added to a customer's bill without checking if they want it.
0:28:56 > 0:28:59The idea is that you talk about it,
0:28:59 > 0:29:02you don't explain it fully, then move on.
0:29:03 > 0:29:08Well, it sounds like there are some sneaky things going on inside DFS.
0:29:08 > 0:29:10But we can't just take the insiders' word for it.
0:29:10 > 0:29:14We need to put the DFS sales staff to the test ourselves.
0:29:18 > 0:29:22So we're taking our hidden cameras into ten different DFS stores
0:29:22 > 0:29:23up and down the country...
0:29:27 > 0:29:29..to meet ten different salesmen...
0:29:32 > 0:29:34..from all over the UK.
0:29:41 > 0:29:42Well, we thought we did.
0:29:42 > 0:29:44But then we discovered the selling tactics
0:29:44 > 0:29:46you and some of your colleagues use.
0:29:46 > 0:29:47Find out what they are later.
0:29:53 > 0:29:55'Now, earlier, I told you about a cash-back deal
0:29:55 > 0:29:57'that was on offer at Currys PC World
0:29:57 > 0:30:00'that made you jump through so many hoops that it makes you wonder
0:30:00 > 0:30:03'how many people are actually going to bother to claim.'
0:30:03 > 0:30:06If you have to go to two different websites and fill in a form
0:30:06 > 0:30:08and copy this and copy that,
0:30:08 > 0:30:11it does become morally wrong, I think.
0:30:11 > 0:30:14'But if you think claiming THAT cash-back was difficult,
0:30:14 > 0:30:17'wait till you hear about THIS deal from Currys PC World.'
0:30:17 > 0:30:21This time you would have to wait two years for the cash-back,
0:30:21 > 0:30:25and even then you're not automatically entitled to it.
0:30:25 > 0:30:27'And this scheme could end up costing you
0:30:27 > 0:30:29'even more than you thought it would.
0:30:32 > 0:30:36'At least according to some customers. Like Jeff.'
0:30:36 > 0:30:38I didn't realise that we'd end up paying
0:30:38 > 0:30:43over £2,300 for a laptop that only cost £999.
0:30:43 > 0:30:46'Jeff signed up to a monthly plan for a £999 laptop
0:30:46 > 0:30:49'that he knew would cost him around £2,000.
0:30:49 > 0:30:51'But he didn't realise he'd be asked
0:30:51 > 0:30:54'to pay as much as £300 on top of that to keep it.
0:30:54 > 0:30:56'How can a laptop end up costing so much?
0:30:56 > 0:30:58'Am I missing a trick here?'
0:31:02 > 0:31:04'It must be time for a Mystery Shop.'
0:31:06 > 0:31:09'Fortunately we were in the market for the latest laptop,
0:31:09 > 0:31:12'so we made 15 visits to branches of Currys PC World
0:31:12 > 0:31:15'to find out for ourselves what the deal was.'
0:31:22 > 0:31:27'In every store, we asked about paying on finance for a £499 laptop.
0:31:27 > 0:31:30'However, the staff at 11 out of 15 stores
0:31:30 > 0:31:32'were quick to bring up something else.'
0:31:34 > 0:31:36'Infinity? What's that, then?'
0:31:45 > 0:31:50'Renting? Leasing? That doesn't sound like a finance deal!'
0:31:53 > 0:31:54That's because it's not.
0:31:54 > 0:31:58It says here KnowHow Infinity means you can choose any laptop,
0:31:58 > 0:32:04desktop or tablet, and lease it for two years by paying a monthly fee.
0:32:05 > 0:32:09'It's supported by KnowHow's whatever happens breakdown service
0:32:09 > 0:32:11'worth £179.'
0:32:14 > 0:32:18'Comes with insurance cover, worth around £100 on this laptop.
0:32:18 > 0:32:19'Cloud back-up software...'
0:32:22 > 0:32:25'..and Norton 360 anti-virus protection.
0:32:25 > 0:32:27'Together worth £78.
0:32:27 > 0:32:32'Then after two years, if you sign up to another two-year agreement,
0:32:32 > 0:32:34'you can upgrade to the latest technology
0:32:34 > 0:32:39'and receive 25% of the value of your original laptop back in cash.'
0:32:43 > 0:32:46'Ah, the lure of cash-back again.'
0:32:48 > 0:32:49Just one problem.
0:32:49 > 0:32:53Unlike a finance deal, you never own your laptop.
0:32:53 > 0:32:56And if you choose not to upgrade, you have to give it back,
0:32:56 > 0:33:00despite the fact you've already paid over and above its original value.
0:33:00 > 0:33:03'But what happens if you don't want to give it back?
0:33:03 > 0:33:06'After two years, you might have grown quite attached to it. Jeff?'
0:33:06 > 0:33:08The only reason we decided to go down the Infinity agreement
0:33:08 > 0:33:12was the fact we were told we would be able to buy the laptop back
0:33:12 > 0:33:15after two years for a nominal fee of around £100.
0:33:16 > 0:33:20'OK, that's what they said to Jeff. What would they tell us?'
0:33:36 > 0:33:39'Mixed opinions all round. Two said we couldn't.
0:33:39 > 0:33:43'Four said we could for a fee, but failed to mention how much.
0:33:43 > 0:33:47'And of the remaining nine stores who did mention the size of the fee,
0:33:47 > 0:33:49'four said it would only be a small one.'
0:33:54 > 0:33:57'One even went as far as to say it would only cost us £40
0:33:57 > 0:34:00'to be able to keep the laptop at the end.
0:34:00 > 0:34:03'So why are some stores so unsure what will happen?'
0:34:05 > 0:34:08Maybe it's because your contract isn't with Currys PC World.
0:34:08 > 0:34:11It's with a third party company called RentSmart.
0:34:11 > 0:34:14And it's up to them what happens.
0:34:14 > 0:34:17'Something only three sales advisors mentioned to us.
0:34:17 > 0:34:20'So what did RentSmart tell Jeff?'
0:34:20 > 0:34:23I contacted RentSmart to find out what the nominal fee was,
0:34:23 > 0:34:26and was told they do not allow you to buy back the laptop
0:34:26 > 0:34:28at the end of their two-year agreement.
0:34:30 > 0:34:34'Eventually RentSmart agreed that Jeff could buy his laptop back.
0:34:34 > 0:34:38'But instead of a nominal fee of around £100, as promised by PC World,
0:34:38 > 0:34:42'RentSmart wanted £336.'
0:34:42 > 0:34:45I thought it was outrageous they should ask me to pay
0:34:45 > 0:34:48three times the amount I was promised at the time of sale.
0:34:48 > 0:34:50'After more persistence from Jeff,
0:34:50 > 0:34:54'they finally agreed to reduce the figure to £233.
0:34:54 > 0:34:58'Jeff paid. But he wasn't entitled to the 25% cash-back
0:34:58 > 0:35:02'as he didn't take out another two-year agreement.'
0:35:02 > 0:35:05By virtue of these deals, retailers are trying to lock
0:35:05 > 0:35:08consumers into the longer term.
0:35:08 > 0:35:11So because, if you like, you started off with this scheme, you're now
0:35:11 > 0:35:15locked into buying products again and again from this company.
0:35:15 > 0:35:19And the problem for the consumer is that what seems a great deal now
0:35:19 > 0:35:21may not be so good in two years' time
0:35:21 > 0:35:24and may not be any good in four years' time either.
0:35:24 > 0:35:28And the great danger there is you lose your freedom of choice.
0:35:29 > 0:35:30Currys PC World told us
0:35:30 > 0:35:34many Knowhow Infinity customers are extremely satisfied.
0:35:34 > 0:35:36But as we've highlighted inconsistencies in some
0:35:36 > 0:35:39staff explanations, they're refreshing training.
0:35:39 > 0:35:42They say they recently re-launched the service
0:35:42 > 0:35:44as Knowhow Infinity Leasing
0:35:44 > 0:35:47to make it clearer for customers from the outset.
0:35:47 > 0:35:51RentSmart say they're sorry Jeff was unhappy with his agreement.
0:35:51 > 0:35:53As a goodwill gesture, they've offered him
0:35:53 > 0:35:56the laptop at the original, lower price.
0:35:56 > 0:35:59But remember, before you take out any scheme,
0:35:59 > 0:36:02check how much it's going to cost you overall, and whether it would be
0:36:02 > 0:36:06cheaper to buy the laptop outright and pay for the extras separately.
0:36:13 > 0:36:17You know, all these big purchases for your home are one thing,
0:36:17 > 0:36:19but it's the small things that add up.
0:36:19 > 0:36:21Like your everyday bills.
0:36:21 > 0:36:24The average household spends almost £3,000 a year on these,
0:36:24 > 0:36:28even though it could cut them simply by shopping around.
0:36:28 > 0:36:31Trouble is, some people just don't have the time to do
0:36:31 > 0:36:35all the research. Others, when they find a company or a service
0:36:35 > 0:36:38that's reliable, prefer to stick with them.
0:36:38 > 0:36:42Now those customers may be loyal. But are they valued?
0:36:43 > 0:36:45Kirsten Garratt thought she was.
0:36:45 > 0:36:50She'd insured her home with the same provider for more than a decade.
0:36:50 > 0:36:53My renewal came through with my home insurance, the contents
0:36:53 > 0:36:54and buildings.
0:36:54 > 0:37:00And it came through as £577, which I felt was very expensive.
0:37:00 > 0:37:03So I looked at the previous year and it was £484.
0:37:03 > 0:37:07And I couldn't understand why it had gone up, so I researched online.
0:37:07 > 0:37:12I went on as a new customer and I was offered £272.
0:37:12 > 0:37:15Which I was completely shocked about as it is the same policy,
0:37:15 > 0:37:19so I phoned up. They were more than happy to give me the price
0:37:19 > 0:37:23I'd been quoted at £272. They made all the changes for me,
0:37:23 > 0:37:25saving just over £300.
0:37:26 > 0:37:30So, cut-price premiums for new customers, inflated premiums
0:37:30 > 0:37:34for loyal ones - unless they call up and challenge it.
0:37:34 > 0:37:37Loyalty is a great thing, both for the company and the customers.
0:37:37 > 0:37:41So some companies have departments that they usually call
0:37:41 > 0:37:45retention departments. You've got trained individuals who are going
0:37:45 > 0:37:48to try and keep you, especially if you're a good customer.
0:37:48 > 0:37:50Anything from listening to your problem
0:37:50 > 0:37:52and perhaps something they can solve on the spot,
0:37:52 > 0:37:56perhaps giving you more products for the price you were paying before,
0:37:56 > 0:37:59or giving you a better price for what you were buying.
0:38:01 > 0:38:05Think this is only true of insurers? Think again.
0:38:05 > 0:38:08In fact, a lot of companies are doing it, from phone, television
0:38:08 > 0:38:11and broadband providers to the utilities.
0:38:11 > 0:38:15And just like the insurers, many of them will offer you a better deal
0:38:15 > 0:38:18if you tell them you're thinking of leaving them.
0:38:18 > 0:38:20How much better?
0:38:20 > 0:38:22Let's put it to the test.
0:38:25 > 0:38:27Meet busy mums.
0:38:29 > 0:38:30Abbie,
0:38:30 > 0:38:31- Kim...- Hello.
0:38:31 > 0:38:35..Sarah, Sarah and, of course, Kirsten.
0:38:35 > 0:38:37Nearly all of them tend to stick with the same energy,
0:38:37 > 0:38:40communications and insurance providers.
0:38:40 > 0:38:43I don't pay attention to my bills because I'm busy,
0:38:43 > 0:38:44I've got three children
0:38:44 > 0:38:46We always just tend to just go with the renewal notice.
0:38:46 > 0:38:50I've just taken what they've offered me just for ease, really.
0:38:51 > 0:38:53Like most of us,
0:38:53 > 0:38:56these mums have been allowing better deals to pass them by.
0:38:56 > 0:38:58All of them could slash their bills.
0:38:58 > 0:39:02How? By making a few simple phone calls.
0:39:02 > 0:39:05All they need to do is contact their providers, tell them
0:39:05 > 0:39:09they're thinking of leaving and ask to be put on a better deal.
0:39:09 > 0:39:12So, that's just what we got them to do.
0:39:13 > 0:39:17AUTOMATED: Please listen carefully to the following options.
0:39:17 > 0:39:20I was just wondering whether there's a better deal for me to be on?
0:39:20 > 0:39:23And then see if I'm missing any offer or deals?
0:39:23 > 0:39:24I seem to paying an awful lot.
0:39:24 > 0:39:29Some providers were at first adamant no savings could be made.
0:39:29 > 0:39:32And there's no way you can reduce my bill at all?
0:39:32 > 0:39:36But then they were transferred to cancellations, which some
0:39:36 > 0:39:38of the companies we called actually referred to as
0:39:38 > 0:39:42Customer Relations - so what could they offer?
0:39:43 > 0:39:46"That's great, that's £5 off my line rental a month,
0:39:46 > 0:39:48"that's brilliant."
0:39:48 > 0:39:50The first guy that I got through to couldn't do anything,
0:39:50 > 0:39:53so went through to the cancellation department.
0:39:53 > 0:39:58£60 cheaper a year, just from one phone call.
0:39:58 > 0:40:00I'm really happy about that!
0:40:01 > 0:40:04No, that is amazing, actually.
0:40:04 > 0:40:07Another way to make sure you get the best deal is to carry out
0:40:07 > 0:40:11a quick cross-market comparison online before you make the call.
0:40:11 > 0:40:16"I have seen a comparable tariff that's cheaper."
0:40:16 > 0:40:19Think about, with all these price comparison engines,
0:40:19 > 0:40:21we now, in the space of a click,
0:40:21 > 0:40:25we can figure out exactly which particular provider is offering
0:40:25 > 0:40:29the best tariff or the best plan, the best product at a given price.
0:40:29 > 0:40:33Initially, the representative told me that I was already on the best
0:40:33 > 0:40:36tariff and when I mentioned to her that I had shopped around
0:40:36 > 0:40:38and managed to find something a little bit cheaper,
0:40:38 > 0:40:42they managed to take down my monthly payments from £86
0:40:42 > 0:40:47down to £65 a month, a total saving of £21 a month,
0:40:47 > 0:40:50and that was just from one phone call - good outcome.
0:40:50 > 0:40:54Some of our mums were simply switched to a cheaper tariff.
0:40:54 > 0:40:57Managed to save £362.17.
0:40:57 > 0:41:00That's a very good result for a very short phone call.
0:41:00 > 0:41:03And even if they here were already on the best tariff,
0:41:03 > 0:41:05they still found other ways they could save.
0:41:05 > 0:41:08If I change the meter, which is free of charge,
0:41:08 > 0:41:11I could save about £40 over the year.
0:41:11 > 0:41:13And even bigger savings could be made
0:41:13 > 0:41:16just for playing the loyalty card.
0:41:16 > 0:41:19So is there nothing you can move on for that at all
0:41:19 > 0:41:24to bring any of that costing down, to retain a loyal customer?
0:41:24 > 0:41:28I phoned up my TV and phone provider and in a very quick
0:41:28 > 0:41:31phone call of eight minutes, I've managed to save £174 a year.
0:41:31 > 0:41:33Which is fantastic.
0:41:33 > 0:41:36Now, it's worth remembering, before you rush into accepting any
0:41:36 > 0:41:40offers, to check how long they expect you to sign up for.
0:41:40 > 0:41:43These are fast-moving markets and it's always worth
0:41:43 > 0:41:46thinking about whether you want to be signed up for that long.
0:41:46 > 0:41:50Always remember to ask, has anything else changed?
0:41:50 > 0:41:52Just in case they throw in any last-minute wobblers.
0:41:52 > 0:41:56And we should point out our mums didn't make a saving with every call
0:41:56 > 0:41:59they made. But if you follow these simple rules with one call,
0:41:59 > 0:42:02you too could make great savings.
0:42:02 > 0:42:07£343. So, it's a huge amount of money, yeah.
0:42:07 > 0:42:09You know, it's a very good result
0:42:09 > 0:42:11and I could have so easily not made that phone call.
0:42:17 > 0:42:20Time to find out how much they've saved overall.
0:42:20 > 0:42:21SIAN RINGS DOOR BELL
0:42:21 > 0:42:26- Hello. Thank you very much. - Hi!- Hello, how are we?
0:42:26 > 0:42:28Firstly, how did you find it?
0:42:28 > 0:42:31A revelation, really - I didn't realise I could save
0:42:31 > 0:42:34as much money as I did just with a few phone calls.
0:42:34 > 0:42:37It was amazing how simple and straightforward it was.
0:42:37 > 0:42:41I didn't realise how quick, really, that it could be.
0:42:41 > 0:42:43So, to the results.
0:42:43 > 0:42:46Shall we go round and find out? Because you don't know, do you,
0:42:46 > 0:42:51what each other has saved? Sarah C - £29.50.
0:42:51 > 0:42:53- It's something. - It something, isn't it?
0:42:53 > 0:42:55Who's the next saver?
0:42:55 > 0:42:57Sarah G! £100.
0:42:57 > 0:43:00I'm really pleased with that. Really pleased.
0:43:00 > 0:43:02Let's look at the next one.
0:43:02 > 0:43:06- Wow!- Oohh, Abbie, big chunk. £252.
0:43:07 > 0:43:08It's like amazing.
0:43:08 > 0:43:13£252 saved from one phone call to gas and electric supplier.
0:43:13 > 0:43:14I'm very impressed.
0:43:14 > 0:43:19Shall we have a look and see who's next? Oooh, Kirsten.
0:43:19 > 0:43:22£376.20, and bearing in mind when you came to us,
0:43:22 > 0:43:25you had already saved £300.
0:43:25 > 0:43:29Yeah. The majority was with my TV and broadband.
0:43:29 > 0:43:31That is amazing amount, isn't it?
0:43:31 > 0:43:34So it's only you left, isn't it, Kim?
0:43:34 > 0:43:36Shall we have a look and see how much Kim saved?
0:43:36 > 0:43:38It is amazing!
0:43:39 > 0:43:40Wow!
0:43:40 > 0:43:43- My God.- Yeah, I know, it's incredible.
0:43:43 > 0:43:47So, how did you manage to save £536.17?
0:43:47 > 0:43:49I've been very, very silly over the years.
0:43:49 > 0:43:53Basically, the tariff we were on was costing us far too much,
0:43:53 > 0:43:57so we switched. And the other small proportion was our phone line -
0:43:57 > 0:44:00basically, I got it free because we were loyalty customers.
0:44:00 > 0:44:02That's a huge saving!
0:44:02 > 0:44:06So would you like to know, in total, how much you saved?
0:44:06 > 0:44:09- Yes.- Bearing in mind it's only five of you, Right?
0:44:09 > 0:44:11Here we go, here are the results.
0:44:15 > 0:44:19- Wow!- Oh, my God!- That is good.
0:44:19 > 0:44:22£1,293.87.
0:44:22 > 0:44:24- Wow.- Fantastic.
0:44:24 > 0:44:26With five people.
0:44:26 > 0:44:27And a few phone calls.
0:44:27 > 0:44:29It's amazing.
0:44:29 > 0:44:32- Wow. What are you going to spend that on?- I'm going to spend it on
0:44:32 > 0:44:35my children, on our summer holiday.
0:44:35 > 0:44:38- Family holiday. - It's got to go towards the holiday.
0:44:38 > 0:44:41We're going to contribute the 500 to a holiday in Rome.
0:44:41 > 0:44:43Well done, congratulations.
0:44:43 > 0:44:45'Great results!
0:44:45 > 0:44:48'So if your relationship has gone a bit stale with your service
0:44:48 > 0:44:51'providers, give them a call to rekindle the magic.
0:44:51 > 0:44:55'And you never know, you too could save hundreds of pounds.'
0:45:06 > 0:45:10Earlier, we heard from two DFS insiders who told us how staff
0:45:10 > 0:45:13sometimes get customers to buy added extras. Persuading people
0:45:13 > 0:45:16to do this is commonly known as upselling.
0:45:16 > 0:45:20Tricking them into doing it is known as "assumptive selling."
0:45:20 > 0:45:24Items are added to a customer's bill without checking if they want it.
0:45:24 > 0:45:28The idea is that you talk about it, you don't explain it fully,
0:45:28 > 0:45:29then move on.
0:45:32 > 0:45:35But we couldn't just take these insiders at their word.
0:45:35 > 0:45:39We needed to put the DFS sales staff to the test ourselves.
0:45:39 > 0:45:42So we sent our cameras to ten different DFS branches
0:45:42 > 0:45:44up and down the country.
0:45:44 > 0:45:47Our team are looking to buy the Jive sofa. There it is.
0:45:47 > 0:45:48Doesn't it look nice?
0:45:50 > 0:45:54In fact, it's apparently a bargain - on offer for £479,
0:45:54 > 0:45:57reduced from £958. Not bad.
0:45:57 > 0:46:01Unless, of course, any of the sales staff were prepared to add
0:46:01 > 0:46:04an extra to our quote, without telling us how much that would cost
0:46:04 > 0:46:06or the fact it was optional.
0:46:12 > 0:46:15In this store, the salesman automatically added
0:46:15 > 0:46:18the protection plan to our quote, without telling us it would
0:46:18 > 0:46:21cost us an extra £80, or that the plan was optional.
0:46:23 > 0:46:25Not only that, he failed to mention
0:46:25 > 0:46:28there'd be an extra delivery charge of £45.
0:46:29 > 0:46:33So how did he manage to add these extra costs without us noticing?
0:46:33 > 0:46:36Simple. He hid them in the monthly finance deal.
0:46:49 > 0:46:53We had already agreed to buy a footstool and superior foam seats
0:46:53 > 0:46:55and we knew the individual prices of those.
0:47:09 > 0:47:12But when telling us what we'd be paying in total,
0:47:12 > 0:47:17he just quoted the monthly payments. That is, until we asked him.
0:47:26 > 0:47:30So we'd agreed to buy the sofa, footstool and superior foam seats,
0:47:30 > 0:47:34but hadn't been told the fabric protection would cost an extra £80.
0:47:34 > 0:47:38Or the fact it was optional. Sounds like assumptive selling to me.
0:47:38 > 0:47:40I'm no expert, though.
0:47:41 > 0:47:44But luckily, I know the very person to ask.
0:47:44 > 0:47:47If a consumer is being sold a package and isn't aware that
0:47:47 > 0:47:51some of the items in that package are optional and there's
0:47:51 > 0:47:55an extra charge for them, then this will be assumptive selling.
0:47:55 > 0:47:59In addition it may also be a misleading omission
0:47:59 > 0:48:02in breach of consumer protection legislation.
0:48:02 > 0:48:05All of the other nine stores did tell us the protection plan
0:48:05 > 0:48:09would cost us an extra £80. But three of those failed to tell us
0:48:09 > 0:48:13it was an optional extra. They didn't explicitly ask us
0:48:13 > 0:48:16if we wanted it and just rolled it into our quote.
0:48:50 > 0:48:52They may have given us the paperwork to approve at the end
0:48:52 > 0:48:56of the sale. But that would have been too late, according to Deborah.
0:48:56 > 0:48:59This is exactly the sort of assumptive selling
0:48:59 > 0:49:01the company insiders were telling us about?
0:49:01 > 0:49:04Some of the stores were better than others,
0:49:04 > 0:49:08but in many cases, even where the cost of the insurance was explained,
0:49:08 > 0:49:13the consumer didn't explicitly agree to having it included.
0:49:13 > 0:49:15The item was simply added.
0:49:16 > 0:49:19In one instance, there was definite assumptive selling,
0:49:19 > 0:49:24and in other cases consumers were being led to purchase
0:49:24 > 0:49:28something without fully realising what they were being committed to.
0:49:28 > 0:49:32DFS say processes in place should ensure staff make details
0:49:32 > 0:49:35of every order, including any optional extras,
0:49:35 > 0:49:39clear at every step, and confirm or amend them at the end of the sale.
0:49:39 > 0:49:43They say we pulled out of our orders before this final stage, at which
0:49:43 > 0:49:47point we would have received a formal written quotation to approve.
0:49:47 > 0:49:49Their sales guidelines are audited and endorsed
0:49:49 > 0:49:52by the Institute of Sales and Marketing Management.
0:49:52 > 0:49:55They're designed to be realistic, to reflect customer demand
0:49:55 > 0:49:57and not to place staff under undue pressure.
0:49:57 > 0:50:01If there are cases where customers haven't received a transparent view
0:50:01 > 0:50:03of their options, that's against training
0:50:03 > 0:50:05and business beliefs.
0:50:05 > 0:50:07But there was another trick all ten salesmen had
0:50:07 > 0:50:10when selling a sofa that comes with fibre-filled cushions
0:50:10 > 0:50:12as standard - like the Jive.
0:50:12 > 0:50:16The headline sofa price was for fibre-filled cushions.
0:50:16 > 0:50:20But they all tried to persuade us to upgrade to foam-filled ones.
0:50:21 > 0:50:23Let's have a look.
0:50:47 > 0:50:50So basically, they're slagging off their own product.
0:50:50 > 0:50:55Exactly. The headline price is for the fibre-filled cushions,
0:50:55 > 0:51:00but the staff work very hard to get you to buy the foam-filled version.
0:51:00 > 0:51:04Although this is technically not a breach of consumer protection
0:51:04 > 0:51:07rules, it comes very close to the prohibited
0:51:07 > 0:51:09bait and switch provisions.
0:51:09 > 0:51:13Which is when people are kind of baited in and lured
0:51:13 > 0:51:15because of the cheap items.
0:51:15 > 0:51:18Those items are not actually available or they're shown
0:51:18 > 0:51:22a defective item, and thereby they're persuaded to buy
0:51:22 > 0:51:23a pricier one.
0:51:23 > 0:51:28Exactly, yes, that's what it is. And in this case, the mystery shoppers
0:51:28 > 0:51:32were being persuaded not to choose the fibre option.
0:51:32 > 0:51:35They were being told it was difficult to maintain,
0:51:35 > 0:51:39it would be a nuisance, it wouldn't look as good and they were
0:51:39 > 0:51:42being pushed into buying the more expensive foam version.
0:51:42 > 0:51:46That's tricky, isn't it? Because you wouldn't necessarily notice.
0:51:46 > 0:51:49Yes, it is, it's subtly done but it is trying to persuade
0:51:49 > 0:51:53the consumer to spend more than they planned to from the outset.
0:51:53 > 0:51:56DFS told us they train staff to explain the difference
0:51:56 > 0:51:59between different sofa fillings and that fibre-filled sofas
0:51:59 > 0:52:02require regular plumping and turning to maintain their look.
0:52:02 > 0:52:05They say the choice of the foam option applies to less than
0:52:05 > 0:52:07one-fifth of sofas in their range.
0:52:07 > 0:52:10And add that if there are cases where staff have not
0:52:10 > 0:52:13presented a balanced view, they'll investigate.
0:52:13 > 0:52:19And now to the final trick - overselling. All ten salesmen
0:52:19 > 0:52:22spoke to us about the five-year fabric protection insurance.
0:52:32 > 0:52:33Impressive.
0:52:38 > 0:52:40Really? Anything?
0:52:54 > 0:52:57Yes, eight of the ten stores gave us the impression that anything
0:52:57 > 0:53:01we could do to the sofa would be covered by the protection plan.
0:53:01 > 0:53:03But that's simply not true.
0:53:03 > 0:53:07The terms and conditions of the plan list a number of exclusions.
0:53:07 > 0:53:10Exclusions that these sales staff failed to mention.
0:53:10 > 0:53:12So how would staff in all stores react
0:53:12 > 0:53:15when we asked about specific exclusions directly?
0:53:27 > 0:53:29Over half the stores gave us
0:53:29 > 0:53:32the impression we'd be covered for vermin damage.
0:53:35 > 0:53:40Even though the terms and conditions state it as a specific exclusion.
0:53:40 > 0:53:42As is putting the sofa in a rental property.
0:53:45 > 0:53:49But that didn't stop four out of the ten stores telling us
0:53:49 > 0:53:50we'd be covered for that too.
0:54:09 > 0:54:10As for these three...
0:54:16 > 0:54:20Is it just me, or did he just tell us how to commit insurance fraud?
0:54:22 > 0:54:25Wait a minute. Did she? Didn't she?
0:54:37 > 0:54:38And him as well?
0:54:38 > 0:54:42Several of the staff encourage fraudulent claims to be made
0:54:42 > 0:54:45with regards to the sofa being used by tenants.
0:54:45 > 0:54:48Not only would this void the insurance policy,
0:54:48 > 0:54:52but it could also be a criminal offence under the Fraud Act.
0:54:52 > 0:54:55Just as I thought.
0:54:55 > 0:54:59DFS say it would be unacceptable for staff to advise customers on how
0:54:59 > 0:55:04to manipulate insurance claims and they'd deal with any cases severely.
0:55:04 > 0:55:07They describe their fabric protection policy as excellent
0:55:07 > 0:55:10value, offering extensive coverage against the most common
0:55:10 > 0:55:13forms of accidental damage with only very limited exclusions.
0:55:13 > 0:55:16They say in-store leaflets state that exclusions apply
0:55:16 > 0:55:20and these are explained in the sales contract and on their website.
0:55:20 > 0:55:23DFS told us 9 out of 10 claims are successful
0:55:23 > 0:55:26and they've helped more than 25,000 customers in the past year.
0:55:26 > 0:55:30But, they apologise if they've given anyone incorrect information about
0:55:30 > 0:55:34the policy, and have reminded staff of its coverage and exclusions.
0:55:37 > 0:55:40Now - remember how DFS sales staff didn't seem too impressed
0:55:40 > 0:55:42with their own sofa cushions?
0:55:55 > 0:55:59Well, we also asked them about their frames - and they said:
0:56:06 > 0:56:09So we decided to put those to the test.
0:56:17 > 0:56:21We bought the Jive sofa, and asked a sofa expert to rip it apart.
0:56:29 > 0:56:31And this is what he found.
0:56:31 > 0:56:34We have got a mixture of materials.
0:56:34 > 0:56:38We have some hardwood framing and also some modern-day
0:56:38 > 0:56:43panel products, some MDF, which they've used as well.
0:56:43 > 0:56:45So finally some good news.
0:56:45 > 0:56:47The load-bearing areas are made of hardwood, as promised.
0:56:47 > 0:56:50And as for whether it is built to last...?
0:56:50 > 0:56:53The main areas that are going to be under the most load,
0:56:53 > 0:56:54they've used increased section sizes
0:56:54 > 0:56:58and it's resulted in a fairly robust construction.
0:56:58 > 0:57:01DFS say they regard customer service as paramount.
0:57:01 > 0:57:03During extensive staff training,
0:57:03 > 0:57:05they stressed the importance of treating customers fairly,
0:57:05 > 0:57:08openly, honestly and of having the best product knowledge.
0:57:08 > 0:57:10They say that out of 40,000 orders each month,
0:57:10 > 0:57:15less than 0.05% of customers raise concerns about the sales process.
0:57:15 > 0:57:19But they constantly try to improve their services, and apologise
0:57:19 > 0:57:22unreservedly if any customers haven't been treated fairly.
0:57:22 > 0:57:24They say they're rigorously investigating the issues
0:57:24 > 0:57:26we've raised, they have a zero-tolerance policy,
0:57:26 > 0:57:29and, where necessary, will take action.
0:57:29 > 0:57:31If customers want to discuss any element of this programme,
0:57:31 > 0:57:34they should contact their customer services team.
0:57:34 > 0:57:35Details on our website.
0:57:37 > 0:57:38Now...if you're buying a sofa,
0:57:38 > 0:57:41ripping it apart's probably out of the question.
0:57:41 > 0:57:45So, how do you ensure it's of the quality you'd expect? Well...
0:57:46 > 0:57:50Sit on it. Don't be afraid to stretch out and stay a while.
0:57:50 > 0:57:52A sturdy frame means a long-lasting sofa.
0:57:52 > 0:57:56Sustainable and certified kiln-dried hardwoods are the best.
0:57:56 > 0:58:00Have a friend lift one corner while you hold down the corner
0:58:00 > 0:58:03diagonally opposite. Give it a wiggle.
0:58:03 > 0:58:06If the sofa twists or bows, keep looking.
0:58:06 > 0:58:07Bounce on it this tells you
0:58:07 > 0:58:10whether the suspension system is right for you.
0:58:11 > 0:58:13Finally, examine the fabric,
0:58:13 > 0:58:16make sure patterns or textures line up and the stitching is tight.
0:58:16 > 0:58:20Most manufacturers offer a ten-year warranty covering the frame and
0:58:20 > 0:58:24the suspension system when subjected to conditions of normal wear.
0:58:24 > 0:58:27But check the conditions of the policy before you buy.
0:58:34 > 0:58:36Right, after all that, I could do with some time out.
0:58:36 > 0:58:40Cup of tea, and feet up on our new sofa. That kind of thing.
0:58:40 > 0:58:41You read my mind.
0:58:41 > 0:58:44You're not going to like this,
0:58:44 > 0:58:46but there could be a wee bit of a problem with that.
0:58:50 > 0:58:51Bagsy the beanbag.
0:58:51 > 0:58:53Well, it is your money.
0:58:53 > 0:58:54Their tricks.
0:58:54 > 0:58:56Goodbye.
0:59:02 > 0:59:06Subtitles by Red Bee Media Ltd