Scratch cards | | Winners and losers - could you win a sports card from scratch? |
Meet multi millionaire businessman Gavin McConnon - he's young, rich, and driving a £100,000 Ferrari. He's in business with his brother Iain - and together they're worth over £5 million.
They make their money from premium rate telephone promotions which guarantee generous prizes.
Inside Out investigates the story behind the company's prize winning promises.
From scratch to prize?
Scratch cards are sent to tens of thousands of homes in Yorkshire and Lincolnshire.
Scratch off the panels, and you'll find that you're a winner. You may win a fabulous Lotus Elise - or maybe not.
Inside Out tried out a scratch card and found that we had won £50,000, a car, or various other valuable prizes guaranteed.
All we had to do was call the number and claim our prize. But the calls were not cheap - at £1.50 per minute. Inside Out got a long message that eventually cost £10.
We found that we hadn't won the car, or any of the other guaranteed prizes. In fact we'd won a DVD and some vouchers. Now we just have to post the form off and claim our prize.
Strangely there was no company address on the scratch card - just a PO Box number based in Leeds. Prizes galore?
We also found another promotion - this time a mock cheque book offering massive prizes - coming from the same Leeds PO Box number 161.
But when Nin Hammond called the number on the chequebook, she found there was a catch. | "I don't suppose anybody gets any money. I certainly didn't." | | Nin Hammond |
"One of these things came in the post - it said calls cost £1.50 a minute or something. I suppose I had nothing better to do so I dialled the number. I didn't think for one minute that my number would be the top prize," says Nin. "Oh when it came to the £100 - the number that tallied with mine, it was £100 - I thought 'oh well that's not bad for a £1.50 telephone call'. And so I claimed it, and nothing happened."
Nin never received her £100 prize - not a penny.
As for Inside Out, it took several weeks to claim our prize - and we had to make a reminder phone call before it turned up.
But when it arrived, we received vouchers, apparently worth a £1,000, which sounds great until you look at the small print. We found that we've have to spend a small fortune of our own money before any of these vouchers counted.
Tracking the numbers
Inside Out decided to investigate the company behind these promotions.
We traced the PO Box number to an address in Holbeck in Leeds. It belongs to Griffin Direct Mail - a mailing house and distribution centre on an industrial estate. Nobody from Griffin Direct Mail wanted to talk to us. They are paid to send out the scratch cards and chequebooks on behalf of other companies, but they won't tell us their names.
We found various scratch cards and other promotions based at Griffin. They all have one thing in common - to claim your prize, you have to call a premium rate phone line - usually an 0906 or 0907 number which is always expensive at around £1.50 a minute. Trading Standards are well aware of the problem, but say a lack of legislation means there's little they can do.
The premium rate lines are a very valid service, but this is a misuse of these lines for essentially just a straightforward scam.
Companies are making millions of pounds out of the process, and there are numerous companies operating these scams.
So I think we're talking about many millions of pounds each year being taken out of consumers' pockets by deception.
They've fallen through the gaps in the enforcement and regulation regimes we've got in this country, and something needs to be done to put a stop to them. The Irish connection Although the PO Box distributing the material is in Leeds, it turns out the premium rate telephone number on our chequebook is owned by an Irish company called Prime Media Services, based near Dublin. Prime Media runs the cheque book phone lines for another company who've got a bit of history with prize-winning telephone promotions. Inside Out decided that it was time to visit Dublin, home of the McConnon brothers.
Dublin has boomed in recent years - and so have a string of premium rate promotion companies run by 28-year-old Gavin and 26-year-old Iain McConnon.
According to the latest accounts lodged at Irish Companies House, the McConnons are worth Euro7.5 million or £5 million. In the last year alone, Inside Out found four premium rate telephone promotions run by the McConnons have breached guidelines set by the phone regulator ICSTIS. These breaches included our chequebook, which ICSTIS said was misleading, exaggerated the chances of winning, and didn't display the phone call cost clearly enough.
We paid a visit to the McConnon's offices in the heart of the city, but they were not available.
So we visited Gavin McConnon's riverside apartment at Clarion Quay - one of the priciest addresses in Dublin - where we caught up with him in the underground car park.
We asked Gavin about his premium rate promotions, but the elusive Mr McConnon didn't want to talk to us. Inside Out wanted to find out just how he and Prime Media Services repeatedly get away with flouting the rules set by phone regulator ICSTIS.
ICSTIS say that it can fine companies, and can bar access to the services, or, as in the case of Prime Media Services, it can stop them running a certain type of service ad infinitum.
So why hasn't ICSTIS stopped the McConnon's? Inside Out discovered that the phone regulator only has power over the premium rate phone companies, not the people who employ their services. Despite imposing a ban on Prime Media Services, the company flouted it, and was running phone lines up until about a month ago. Prime Media Services have subsequently been fined a further £25,000, and ICSTIS says that it is dealing with the network separately, because it didn't act on its instructions straight away. That doesn't help Nin Hammond very much though. Her details have now been sold to other competition companies, and she has been inundated with mail. Nin reflects on her experiences with the benefit of hindsight, "Nobody's going to give you £10,000 for the sake of a phone call or a stamp on an envelope."
She feels that she has been duped: "Because I did have to spend some money making these phone calls. But I never did it again. I did learn a lesson from it."
There are thousands of people like Nin Hammond who dream of striking it lucky.
A very small number of people who ring up will win prizes, most will just get vouchers. But we should point out that the McConnon brothers and the other companies who work for them aren't doing anything illegal. Just remember, you never get something for nothing. And if you do get a scratch card through the post, be extremely cautious.
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