| Description |
1 online resource (streaming video file) (44 min. 59 sec.) ; 272895565 bytes |
| Summary |
An investigation revealing how telco finance scams have chated customers, in deals worth hundreds of millions of dollars.Everyone knows that telecommunications is a highly competitive business. Empires have been built on cheap phone calls and businesses are always looking to get a better deal from phone companies. But now Four Corners reporter Stephen Long blows the whistle on highly questionable phone deals. He finds evidence that phone plans have been misrepresented; contracts have been altered or filled in after they were signed and in one case a client was billed for products they already owned. How do the companies get away with it and why is one of the country's biggest banks involved?In the world of telecommunications it's called "bundling". You sign up for a deal that gives you telephone services and electronic goods - in principle, there is nothing wrong with that. In practice, you've been scammed.The sales rep tells you you'll get cut-price calls and just to make it even more attractive, a computer, a plasma television and a phone system thrown in. You are told these extra items will be yours for free. Then mysteriously the phone company goes broke.What you now discover is that you are actually renting the so called "free items" from a finance company for absolutely top dollar. And although you aren't getting the cheap phone calls anymore, you still have to pay up under the rental contract.When you protest, the finance company takes you to court and you are forced to pay tens of thousands of dollars for goods that are worth just a fraction of that amount.This may sound extreme, but Four Corners has discovered that thousands of small business owners have fallen foul to this type of scheme. In some cases salespeople from telcos and finance companies have signed up nearly all the businesses in a country town. The result? Devastating losses and major financial hardship for small businesses.In some cases, reporter Stephen Long discovers, these deals have been done by misrepresenting the nature of the "bundling" deal to clients. In other situations, it's straight out fraud. Four Corners has found evidence that contracts have been altered after they have been signed, signatures forged or transposed from one document to another, and goods added to the bill that people never saw or signed for. Finance companies have directly debited money from people's bank accounts without authorisation. In one case the direct debit authorisation was a forgery.If these were simply isolated cases they would be cause for concern, but Four Corners has found these deals form the basis of a business model employed by many companies across Australia, involving thousands of customers. The Australian Competition and Consumers Commission (ACCC) says it is deeply concerned."You'd have to say that's clear evidence of evil genius." Graeme Samuel, ACCCThis concern led the ACCC to ask a major bank and other financiers to stop pursuing clients through the courts. The response? Forget it, we want our money! The harsh reality is that thousands of people are being punished financially by these legally dubious contracts and the courts are being clogged with cases.How did this happen? Who are behind these swindles and what can be done to protect consumers? |
| Notes |
Closed captioning in English |
| Event |
Broadcast 2010-11-01 at 20:30:00 |
| Notes |
Classification: NC |
| Subject |
Bundling (Marketing)
|
|
Deceptive advertising.
|
|
Finance companies.
|
|
Telecommunication -- Corrupt practices.
|
|
Telephone -- Rates.
|
|
Australia.
|
| Form |
Streaming video
|
| Author |
Braddy, Stuart, contributor
|
|
Cocks, Stephen, contributor
|
|
Crowe, Dylan, contributor
|
|
Emsley, Sally, contributor
|
|
Gommers, Des, contributor
|
|
Long, Stephen, reporter
|
|
Magasdi, Lauren, contributor
|
|
Millane, Melanie, contributor
|
|
Nunan, Simon, contributor
|
|
O'Brien, Kerry, host
|
|
Perryn, Andrew, contributor
|
|
Samuel, Graeme, contributor
|
|
Stevenson, Greg, contributor
|
|
Stilson, Caroline, contributor
|
|
