Tonight ` It's like walking into Santa's grotto. Are they a treasure trove on wheels? You've got food. You've got videos and DVDs. You've got clothing, bedding. Or a temptation that's targeting the vulnerable? How do the owners of these trucks sleep at night? Is this a cover-up? To me, it was a problem. New evidence about a problem we've been asking questions about for months. It's a bad look, though, Simon. It's not a good look. And where is the bear? You can put it into the oven and heat it up there. Children can take it into their beds. There's no danger of overheating. Welcome to Fair Go. Door-to-door truck shops ` they're selling all sorts of stuff. They may not be in your neighbourhood, but they are up and running around the country. How convenient. Shopping on your doorstop. Credit when you need it. But are they just temptation on wheels, sucking in those who can least afford it? Here's Hannah. It's like walking into, just, Santa's grotto. So you've got food. You've got videos and DVDs. You've got mobile phones, washing machines, clothing, bedding. Oh, shucks. That's not the right colour, dude. Oh, shucks. That's not the right colour, dude. You can get all the colours in it. > If it's not on the truck, they have glossy magazines. Kambrook four-slice toaster ` $99. They're throwing credit at you, and it's credit that most people can't afford to repay. Uh, landed me with a debt. (CHUCKLES) And I'm paying it off really slowly. You don't have to start your payments. Not today. Not next week. The following week. But you get the stuff right now. And being able to have it then and there instead of waiting so long. Here at Mangere Budgeting Services, they've had years of dealing with the fallout from mobile shops. Really, they're preying on the vulnerability o-of the most vulnerable. And the only way that I can describe is they're` they're piranhas circling. They're like` like sharks targeting those who` who truly, um, are not making, um, smart money choices. We tracked the trucks down, cruising the streets of South Auckland. The convenience of goods at your doorstep and ` as we found out when we filmed inside a couple of them - no money upfront, dangerously easy. For the clothing, bro, it's only $10 per week. $10 per week? $10 per week? $10. You can get $150 or $160 stuff straight away. Do you think the mobile trucks are actually targeting certain people? Certain areas? It's been suggested they provide a good community service. If it's such a good community service, why are they not in Ponsonby? Why aren't they in Remuera? Torbay? The more affluent communities? They tend to be in places like Mangere, Otara. Not just South Auckland. We've had complaints about mobile shops in... Areas where there's high levels of unemployment, low wages if there is work available. You're talking about society's most vulnerable? Families who are struggling to put good, healthy food on the table, and also, it includes our pensioners. And people are simply buying on credit because there's no disposable cash. There's no cash to` to buy food or no cash to` to buy the washing machine. So they are ticking it up t-to the HP and the credit. And ended up spending up large and getting myself into a bit of... (CHUCKLES) pooh, basically. And, yeah, um, I'm slowly in the process of paying it back. So the trucks are cashless treasure troves. But what they do sell,... Oh, DVD player. > ...like a DVD for $99, is expensive. You don't get retail bargains here. Nappies ` $15 for 20. That's 75c a nappy. We found them online for 44c a nappy. We're seeing a duvet that you could buy at The Warehouse for, uh, $29 being sold for $90. Oh, kids ones. $39 for... Oh, kids ones. $39 for... Oh, is that, like, for a little set? Like, a pants and a top? > School uniform. School shoes. Nobody wants to send their kid to school with bare feet. But instead of going to, like, Number One Shoe Warehouse, where you can buy a-a reasonable pair of shoes for $25, $30, you'll buy them on the truck and spend three times that amount. You know, I've got no problem with business making a profit, but when they're making a profit off the back of vulnerable families who can least afford to repay, when they get in 300%, 400%, 500%, 600% mark-up, then I have an issue. Buying a TV ` what ways that, uh, can you purchase an item like this? Getting into debt happens to the very young in South Auckland. HP ` hire purchase. Can you think of any other ones? Can you think of any other ones? Trucks are one. The trucks. > This group are learning the real cost of buying on the never-never. If you put stuff on credit, you better be sure you can pay it back. We want to try and ensure that the students that come through this class actually understand that so they don't fall into that trap. David Bureta already fell. He bought a tablet he couldn't afford. Why? It came with a free keyboard. Yeah, that was with, um, like, cos I'm into music. Yeah, I really love music. Lured in by a freebie. We also got the lure; the bait. You can get two of these Rihanna, um, Kim Kardashian or get to buy two of these for only $10. And that one's $79? > And that one's $79? > They're $79 each, but I'll give you this for $7 each. If we sign up today? > If we sign up today? > Sign up today. You can go` go crazy and buy more stuff. Basically getting hooked in. And the more you use the trucks, the more credit you get. Uh, it depends how long you've been with us. Th-The company gives you a limit. If you've been with us for two months, you get $700 to spend on HP. If you` Like, she's a gold customer. She can spend $1500 on HP. Darryl says, on top of inflated prices, some companies are charging massive interest rates. So there was a-a deaf client that we had who bought a television. If she'd had the cash and gone to one of th-the leading electricity stores, the TV there was $948. She bought it on a truck. By the time she finished paying off that television, she had paid $3998. That is obscene, in my opinion. Darryl's biggest concern recently is that some trucks are now selling food, hugely marked up. I-It's unbelievable to me that people are prepared to pay $6, $7 for 2 litres of milk when you can buy it at the dairy for $2.95. when you can buy it at the dairy for $2.95. For basic groceries? I get it. If you've got a child in the house and you can't afford to` to buy a loaf of bread or a packet of noodles t-to feed the child, you'll do whatever it takes, and you'll buy on the trucks. How do the owners of these trucks sleep at night, knowing that, you know, th-they're hurting those that can least afford to repay? The people who own and run the trucks have a different view, and we will get to that in a minute. First, we go back to Mangere's Budget Advisory Service to see what they're doing to help their communities get out and stay out of debt. You know what I'm gonna do? I'm going to give you a couple of minutes to answer all these questions from this contract. Some students in this financial literacy class have already been stung by debt. Brya found out that her goods could be repossessed for bad debt and felt... Pretty stink. (CHUCKLES) And David is still paying off his debt. What I learned is to never go back. (CHUCKLES) That's the last time. So your time... starts... now. Dion's job's to scare them and empower them. They're working out the cost of buying a car on HP. What is the cash price of the contract? Brilliant. You know what the annual interest rate is? One moment, please. One moment, please. ALL LAUGH < Excellent. Obviously you're reading the contract. Can you tell me what's the total amount that they actually have to pay back? Excellent. > Excellent. > That's a lot of money, eh? Excellent. > That's a lot of money, eh? That's huge. > So this is a bunch of 16- to 18-year-olds, and you're hoping they'll go back to their families and communities and spread the word? I call it pay it forward. So that they will be able to, one, help their parents and that they can help direct them because they actually have a bit more financial knowledge now. Um, and also, two, the fact that when they become parents themselves that they will be able to share that knowledge. Did your family talk about money? Did your family talk about money? No, my parents weren't ones to actually share about money matters. So, when I teach my class, i talk to them about don't be afraid to talk about it, and it shouldn't be something that they should be afraid about because you can get help out there. Knowledge. I'm trying to get all these long words in my head, eh? (CHUCKLES) I'm not used to long words. Learning how to spend your money wisely and thinking of things you need, not what you want. What Darryl Evans wants is law change ` tightening up on those who offer credit on the trucks. The Government have spoken for a long time about, 'Let's regulate them. 'Let's have them all listed. Let's know who's` who's in this business, um, and let's have best practice.' There's been an awful lot of talkfest, and I have been involved in those talks. Now we need to see the action, an-and let's say to these trucks, 'OK, go about your business. Do what you need to do, but make it fair, and make it reasonable.' We approached mobile shopping companies. Home Direct, one of the biggest players, has been around 40 years. They agree with Darryl that the law needs strengthening. They say their pricing reflects the true cost of their direct-selling service. It allows them to provide products to people who don't have cash and can't shop elsewhere. They say the cost of credit isn't hidden in the price. They don't sell food. They charge 19.5% interest, and they say they work hard to explain credit and repayment costs. They do credit checks. They say they'll turn clients down if they are over-extended and say they're responsible lenders who'll adjust repayments if clients have difficulty. The Good Guys Truck Company, not featured but also big players. They've been around 25 years. They say their prices are reasonable and compare to retailers like Farmers. They say they don't sell food or charge interest, and they work hard to make sure customers can manage repayments. That is the Good Guys Truck Company, not to be confused with the Good Guys appliance and electronics stores. We also got a call from the Direct Shopping Network. They say they've had some problems ` got too big too fast ` and will work to sort out the complaints we've had about them. We had no response from the other truck companies featured in our story. After the break - Is this a cover-up? We have new evidence that raises the same questions we've been asking Monier for months. Did you tell Monier about that problem? Yeah. Two other companies tell the same story in writing. It's a bad look, Simon. You didn't tell your major client about problems you had been personally been told with their roofs. It's not a good look. Welcome back. The Commerce Commission is investigating Monier, the roof-tile company. This year, we've done a series of stories about cracks in Monier concrete tiles. Tonight we reveal big problems for Monier's biggest customer ` a retirement-village chain. Monier knew. It didn't tell. Monier won't tell us what's causing these. Definitely a crack. So we asked Karl Schoenrock what they are. That's what we are looking for. He worked in sales and technical advice for Monier in Germany for 15 years. This is a production fault, in my understanding anyway. Later we'll tell you what he thinks that fault is. We've been banging on about cracking Monier tiles because we think Monier isn't being upfront with its customers. We know Monier wasn't upfront with one customer ` its biggest customer ` Ryman Healthcare. This is Ryman's Anthony Wilding Village in Christchurch. That roof has a problem. To me, it was a problem, um, because I've seen it before, and I just thought, 'It'd get sorted.' Did you tell Monier about that problem? Did you tell Monier about that problem? Yeah. Ryman has 26 villages across the country. We reckon at least 10 have the flat tile we've been doing stories about. The Anthony Wilding Village is one. I went there to do a repair one day. Um, fix a leak. And, on the other side, I noticed all the fracture marks. < Hi, Mr Herriott. Kerry the roofer says he told this man, Simon Herriott, Monier roofing general manager. < Is there evidence you told them? < Is there evidence you told them? They could deny it, but I told them cos I thought they'd want to know. Kerry Saggers is not a lone voice. Two other companies tell the same story. In writing, they told Monier about problems on Ryman roofs. Top Cat Roof and Brick in Christchurch confirmed they told Simon Herriott about tile damage. Tasman Brick and Tile in Nelson confirmed they saw hairline marks at Ryman's Ernest Rutherford Village in Nelson, and they informed Simon Herriott. Again, he clearly didn't tell Ryman. Back in June, I asked Ryman about tile damage at Anthony Wilding. Ryman Healthcare told me there are no issues here. But there are issues at Anthony Wilding. We say Monier knew and didn't tell Ryman. I did. So now Monier has had to front up and tell Ryman the full story. This is Ryman's Grace Joel Village in St Helier's, Auckland. Even from space, something looks very wrong with those tiles. We don't know if they've been cracking, but it sure looks like plenty have been replaced. Ryman's checked a number of roofs, hasn't found any leaks, and has an assurance from Monier. Do you accept that you didn't tell them what you knew? We put all this to Monier later. First, let's recap. Back in June, we reported on these funny looking cracks on two Christchurch roofs. Monier had blamed the quakes, then admitted to me that simply wasn't the case. Then it snowballed. We got complaints of similar cracks all over the country, going back as much as 20 years. We found a 2001 Monier letter mentioning stress cracks. A 2012 letter blamed the earthquakes for damage to another Christchurch house, but in July, Monier admitted cracks and manufacturing defect on those first two Christchurch homes. In Australasia, Monier is part of a huge Australian building products group called CSR, run by Rob Sindel. CSR has sent inspectors out from Australia but won't say what they find, and it won't reveal test results from Australia's national science agency. Here, uh, we've really got th-the example very badly. So we asked Karl Schoenrock for his opinion based on his 15 years of Monier experience. Surface water is seeping through that crack. These cracked tiles were on Geoff Pullin's Wanaka home. The green concrete needs a lot of` The fresh concrete? The fresh concrete? The fresh or green ` they call it green concrete ` needs a lot of moisture, constant moisture, t-to make sure, when the concrete dries up, that it doesn't dry up too quickly. So they come in special chambers, door closed, and then they spray moisture in. Karl reckons the tiles haven't cured properly in that chamber. So do you think the problem is that the humidity in that chamber wasn't high enough? Or it wasn't there for long enough? Or it wasn't there for long enough? Or not long enough. Not high enough or not long enough. Monier has inspected Geoff's roof but hasn't bothered telling him what's wrong. Karl reckons there's only one choice. It has to be replaced. That roof has to come off. And I went for the best tile I could get. And I went for the best tile I could get. Yeah. Now I'm disappointed because it certainly isn't. Now I'm disappointed because it certainly isn't. Clearly straightforward, really. We got fed up waiting for Monier to front up, so last Friday, I went for a chat. Hello, is Mr Herriott here? It became a surprisingly helpful encounter. Always a pleasure. Always a pleasure. Indeed. Yeah, thank you very much. Ordinarily, by now, we've been kicked out. You've actually caught me on my way out. So can we walk and talk? You've actually caught me on my way out. So can we walk and talk? I'm more than happy to do that. It's a bad look. Simon. You didn't tell your major client about problems you had personally been told with their roofs. It's not a good look. I'm won't discuss specific situations. However, we are working with all clients involved, and we will be addressing their concerns fully. and we will be addressing their concerns fully. What is wrong with those tiles? We're working with all homeowners that have presented us concerns, and we will be responding to their claims fully. Then I asked him something I've never asked before on Fair Go. Is this a cover-up on Monier's part? No, Monier strongly denies any... any accusation of cover-up. We're simply working with all concerned homeowners to respond to them about the concerns. What about the Commerce Commission...? We found out last week the commission is investigating. Simon Herriott seemed shocked we knew. Are you concerned about a Commerce Commission investigation? We'll work with all homeowners and all parties to address any concerns that have been presented. You looked a little bit worried there. No, not at all, not at all. Just probably surprised. Mm. We've long thought Sydney is calling the shots, leaving this bloke to take the heat. Why isn't Rob Sindel in Sydney fronting up? I take responsibility for the, uh, for the company in NZ, and I think that, um, I'm well-placed to provide the answers to our customers. Thank you for speaking to me. I can't imagine Sydney's given you permission to. Thank you for your time, Mr Harcourt. Thank you for your time, Mr Harcourt. OK, cheers. If you or someone you know is a Ryman resident, the last thing we want to do is alarm you. And, of course, neither does Ryman. Ryman says residents' welfare is its main concern and disruption from any repair work will be minimised. We were expecting a statement from Monier today. None came. We think the CSR boss in Sydney should front up. Rob Sindel, your NZ branch is being investigated by authorities. Some of your NZ customers fear their roof will leak. You are not giving those customers the information you are getting. Mr Sindel, we think you should be talking to us to show your integrity, your company's integrity and the structural integrity of your products. After the break - Really wanted the bear for him. Um, put it into the oven and heat it up there and then take it into their beds. Wanted ` one warm bear for one little boy. This address here, where would they have got it from? This address here, where would they have got it from? From the package. So why is Beddy Bear with his grandmother in Germany? He'll probably learn a bit of German and have some German food. (CHUCKLES) Welcome back. Here's one to tug the heartstrings. A poor, defenceless creature bounced from country to country as a little boy waits. It's a Beddy Bear. It's lost in the post and, it seems, lost in translation. Now, a warning. This next story contains bad puns. Here's Mark. Somewhere near One Tree Hill, a little boy waits... I have told him, and I was very excited. ...for a warm gift from a cold country. I really wanted the bear for him. A teddy bear from his German grandmother. She thought it would be a surprise. But not just any bear. It's a special bear. Um, it is, uh, called a Beddy Bear. This is Sibylle Reiuke and her 11-month-old son, Rayhan, and this is not a Beddy Bear. Back in March, her mother sent Rayhan a Beddy Bear from Germany, parcel post, to keep him warm over the cool Kiwi winter. You can, um, put it into the oven and heat it up there, and it's supposed to stay warm for about two hours and, uh, children can take it into their beds. There's no danger of overheating or, um, yeah, um, pouring... having hot water pouring out. The Beddy Bear's secret ingredient? Lavender seeds. It's to, um, make a nice, um, uh, fragrance and to settle the baby. March gave way to May. No Beddy Bear here, which seemed odd. Sibylle's mum is a conscientious grandmother. She sent me quite a few things. Like, um, uh, sweets, uh, from Germany. Uh, treats. Um, a few clothes for the baby. And they've always arrived, and it was actually quite speedy, within two or three weeks. Rayhan continued to wait. Luckily he could be distracted. Then, out of the blue, something arrived in the mail. This is the letter that I have, um, received from the Ministry of Agriculture and Forestry, um, advising that the, um, bear has arrived and that it needs treatment because the lavender seeds. This was the first you'd heard of the bear since your mother told you it was coming? That's right. The Beddy Bear had been on the road for almost four months. Because it has lavender seeds in it that it needs treatment to be able to released, um, to be released into the country, which I agreed to, so I have, um, paid for a heat treatment, which was $15, and I was thinking, 'Yeah, everything is fine from there.' (CHUCKLES) Surely soon Rayhan would have his Beddy Bear. I just waited and waited. It was only a couple of kilometres away, safely looked after by MAF, near Auckland Airport. But a couple of weeks later, a shock. Uh, the bear's in Germany with my mum. (CHUCKLES) NZ Post said they couldn't read the address on the parcel and returned it to sender. But here's the funny thing ` MAF had been able to send a letter to Sibylle, saying they had the bear. This address here ` where would they have got that from? This address here ` where would they have got that from? From the package. So they were able to read the address on the package? So they were able to read the address on the package? That's right. But NZ Post? But NZ Post? No, they weren't able to. No, they couldn't find the address. Eight months of waiting and Rayhan's Beddy Bear's back to where he started. He'll probably learn a bit of German and have some German food. (CHUCKLES) But that's not where he belongs, is it? But that's not where he belongs, is it? No, he belongs to my son. It's, uh, a bear for, uh, babies. Not for the grandmother. So close, and yet so far. It's more than a small boy can bear. NZ Post say they will probably never know what went wrong, but they are keen to get it sorted. They will get the Beddy Bear to be collected from Sibylle's mum in Germany and couriered door-to-door free of charge. They look forward to saying, 'Willkommen, Beddybar,' ` Welcome, Beddy ` at their international mail centre in Auckland. From there, NZ Post will dispatch him quickly to Sibylle and little Rayhan. And, pun warning, 'Thanks for bearing with us.' Now, our very last reminder about the Fair Go Best and Worst Ads Show. Remember ` the Canon SX50 camera is up for grabs. It is going to one lucky viewer who sends in their vote for the best and worst ad of the year. Send those votes to... Now all you have to do is tell us the ads you love and the ads you love to hate. The deadline for entries is in just two days ` this Friday, October 25th. If you want to go into the draw for the camera, vote now. So that's the show. Now, I won't be on Facebook tonight. Going out for my wife's birthday. But I will be. Now, if you want my help or just to let us know what you think, do get in touch. We're on Facebook. Email us or write to us. That's us. Goodnight. Copyright TVNZ Access Services 2013