Captions by James Brown. Captions were made with the support of NZ On Air. - Tonight, with the deadline looming for COVID credits, we ask one airline if they're giving customers a fair chance to use them. - I actually sat down and went through every single plane on every single day for the rest of the year. I was mortified. - They told me they allocate two seats per flight for Future Flight credits. It leaves four of us back in New Zealand, while two can go to Australia. - Plus, sold a lemon? - I took the car away, and on the third day the vehicle died out on me. - He's actually ghosted me. We don't know where he is. - So where is the car dealer who was ordered by law to pay the money back? - And how to avoid buying a dud. - Tens of thousands of cars are stolen, have money owing on them or have a dodgy odometer. So how do you know if both the car and the sale are legit? www.able.co.nz Copyright Able 2023 - Tena koutou katoa. Welcome to the show. Now, cars ` they are a major purchase. So it can be a major blow when things go wrong. - But imagine if things go wrong within hours or days of driving your newly purchased vehicle out of the yard. Here's TVNZ's Indira Stewart. - This is Ema Latu, solo mum from West Auckland, who legally challenged this guy ` twice ` and won. Joseph Skudder sold her a lemon in 2021. - I took the car away, and on the third day the vehicle died out on me. - Her story is similar to his story. - I was thinking I bought a lemon, to be honest. - In 2021 Alexis Pantelides also bought a car off Joseph, drove it away from the car yard, and... - I got literally about a kilometre down the road, at a set of lights, and the vehicle stopped, and it wouldn't start again, and I wasn't able to put it into gear. - And their story is like many others who bought faulty cars from Joseph Skudder and ended up in the Motor Vehicle Disputes Tribunal and the District Court, fighting for justice. - I wasn't even able to drive the car home. And since then, I've been in an ongoing dispute to try and get him to take the vehicle back. - So, I ended up going back to him to reject the vehicle. And it went downhill from there. He didn't agree with it. He told me, 'No, you're not gonna get your money back. There's nothing wrong with the car.' - So Ema took her case to the Tribunal. The Tribunal ordered Joseph to fix her vehicle within 10 days. But it took him two months. I assumed that the car was fixed, but when he handed me the keys and I went to go start the vehicle, there was a weird sound. It was the same sound it made when it died out on me. So I knew then, nah, the vehicle's not... he didn't actually fix the problem. So we got into an altercation. - This is a video of that verbal altercation. And Ema admits to swearing and yelling at Joseph, in what became a heated argument. - It just blew out of proportion. I was trying to stay calm, but I lost my plot when he called me dumb. Yeah, I was so pissed off. I was ready to... You wanna go? Let's go. (CHUCKLES) - And she did go ` back to the Tribunal, that is. And that's when an independent mechanic said in a report to the adjudicator, 'In my professional opinion, 'the issues presented here with the car pre-dates Ema's ownership of the car.' So he had to pay within 10 days, and he had to uplift your vehicle, pay you $5401.25. And that's never happened? - No. - It's been more than two years since Ema bought the car and more than a year since that Tribunal decision, with the car still sitting in storage here in Otahuhu, gathering dust. - I was so close to giving up, but I was like, I worked hard for this money. I'm a solo parent. I've got two kids. You're not stealing just from me, you're stealing from my kids too. I'm frustrated. - And so is Alexis. He bought this 2013 Ford Focus for his elderly father and planned to drop it to him in Wellington, where he lives. But after it broke down the day he bought it, it took nearly two months for Joseph to fix it, and Alexis had to buy another car for his Dad to use instead. Alexis went to the Tribunal, and the adjudicator found he was entitled to reject the vehicle from day one. - He was supposed to refund the full amount immediately ` or within 10 working days. And on receipt of the payment, we were to arrange a time for me to return the vehicle. - That was when? - That was... That was July last year. - And did you hear from him? - No. - And the car's still sitting in his driveway and hasn't been driven since. - So, I paid $9500 for the vehicle. I paid just under $500 for the first year's insurance. I've paid around about $250 to the courts for court fees. I have thrown away a plane ticket from Wellington to Auckland which I wasn't able to use. I have filled the vehicle with gas which hasn't been used. But to be honest, that kind of pales in comparison to the actual ordeal. It's been sitting here for a long time. You can see all of the cobwebs and the dust on it. I mean, it actually runs fine, but it's 100% surplus. - And it gets worse. Because Joseph is supposed to take it back, he has a legal claim to the vehicle, so Alexis can't even get rid of it. - I'm stuck. I can't sell the vehicle. I can't dispose of it. I'm in this sort of limbo. - Last year he was surprised to learn he wasn't the only one in this predicament. Alexis discovered Ema was having similar issues. But where's Joseph? Have you heard from him since? - No, he's actually ghosted me. I've tried to show up to his car yard, and when I was there, it's totally gone. It's gone. We don't know where he is. Yeah, no contact whatsoever. - I don't get any replies to phone calls. I don't get any response to emails any more. I've tried with the court. - We decided to call him. - Hi. Thanks for calling. Please don't leave a message. Please text us for a quick response. Thank you. - No luck. So we tried his addresses. This Remuera address turned out to be a hotel. I just talked to the hotel manager. Unsuccessful. It is a hotel, it's been a hotel for a number of years, and you can't in fact live here. It's not a residence. So no luck. We also tried this address, but no luck there either. That's because it's a boat pier. A manager confirmed no one can reside on the mooring or receive mail here. We found out Joseph was due to appear in court again, so we headed there too. Well, he's just sent me an email. He's not available to do any interviews, and it looks like he's not coming today. He's sick. And I've just heard from inside, he didn't show up there either. So no luck today, either. The Companies Register shows Joseph has registered almost 20 different companies in the last two decades. His latest company, registered last year, is classified as a financial service. In 2022 he received a $4000 COVID business grant for his company Forward Motion 101 Ltd, which he used to sell cars. And despite multiple appearances in the Tribunal in 2021, the Motor Vehicle Trades Register renewed his trading licence again. - Look, it's incredibly disappointing, because you look at those organisations as providing some legitimacy. It doesn't provide any protection at all. I would very much have liked to have just given up on this and walked away. I felt really let down by Joseph personally. But I also feel a little bit let down by the New Zealand courts, the Companies Office and the Motor Vehicle register. - The Ministry of Business, Innovation and Employment, or MBIE, are in charge of the Motor Vehicle Trades Register, and they declined both our requests for an interview and sent a brief statement. But after we went back to them with more questions about Joseph Skudder's conduct, Ema says a staff member called her asking questions. The department then told us,... Behind me is where Joseph's car yard, Easy Sell, used to be. It's no longer there. But he did tell me that of the roughly 650 sales he made, only about nine ended up in the Tribunal. He also says Ema and Alexis' cases are the only two that he's aware of that haven't yet been resolved. He said he deeply regrets losing his composure in this video but said Ema was rude and argumentative when asking for a refund. He also says it's not unusual to have matters heard in the Tribunal. He appealed both Tribunal decisions, but his appeals were dismissed. And just days after MBIE sent us a statement, it slapped Joseph and his company with a five-year trading ban, which means, after failing to comply with their Tribunal orders, Ema and Alexis say they're pleased to see him finally banned. But they're still out of pocket, though. - Oh, look, it's pretty clear, he is the sort of guy that does this repetitively, and he's very, very slick at it. - If nothing happens after this story, what will you do? - I'm not gonna give up. I'm gonna keep fighting to get my money back. And if he doesn't wanna pay up, I'll just keep pushing, pushing, and hounding and hounding. Because he came for the wrong one! (BOTH LAUGH) - E haere ake nei, coming up ` how do you protect yourself from buying a lemon? We're gonna stay with cars. - So, if you're asking for information and either the information is not forthcoming or you're getting some vague answers, unfortunately, that means you should probably just walk away, because you don't want to be buying that car. - And an industry insider blows the whistle on just how difficult it can be to use one airline's COVID credits. - I have tried and tried and tried. And the thing is, I'm a travel agent. - Kia ora. Nau mai, hoki mai. Welcome back. Now, airline credits ` they're a hot topic, and we need to use them quick-smart. - Yeah, time is running out. And when Fair Go heard from a Queenstown travel agent that customers were struggling to book with their Virgin credits, I went along to find out more. (CURIOUS MUSIC) Just a stone's throw from Queenstown Airport, at a travel agency, Victoria Keating is digging deep inside an airline's booking system. - I have direct access into Virgin Australia's inventory every day. I know that not every single plane is leaving Queenstown completely full. - And when she has the figures she wants, she emails Fair Go for a sit-down. So I came and sat with Victoria. - And when I actually sat down and went through every single plane on every single day for the rest of the year, I was mortified. - Victoria had stumbled across a big travel problem affecting possibly thousands of New Zealanders. - The thing is, it's not actually my pain, Hadyn. It's the pain of the thousands of New Zealanders who hold this credit. - There's Nerily, who paid $2000 and can't get a seat; Val's $3200 out; Steve $5000 on flights he'll never use; Esther is down $1700. There's more. Lots more. But for now, we have to go back to go forward. - An unprecedented lockdown of our country. - COVID ` you remember COVID. In 2020, as the world stayed at home, the airlines argued they'd go under if they issued refunds. So everyone got credits. - Virgin Australia has just gone into voluntary administration. - This wasn't enough for Virgin Australia, which crumbled under $7 billion of debt. - It is the worst aviation crisis we've ever seen in our history. - With the money gone, people like the Griffins from Dunsandel were left with tickets to nowhere. - Pissed off (CHUCKLES) would be the politically incorrect term. - They had credits but were unsecured creditors. - Oh, yeah. - Kurstie Griffin has a big family ` look at the shoes. Four kids, her and her husband ` six in total. They'd booked the classic Gold Coast holiday. But COVID meant no go. And when people did start flying again, they took their COVID credits from Virgin and got booking. - All right, here we go. Log in. - Virgin, you see, had been bought by BainCapital, one of the largest investment firms in the world. And the new owners graciously honoured the credits. However, the first problem was Virgin had gone from flying out of four New Zealand cities pre-COVID to just one post-COVID. That was Queenstown. Still, she found tickets. $2167.36. - But when she goes to pay with her $2000 of credits... - Oh, it can't be used for my fare. - She's phoned and emailed Virgin. - They told me they allocate two seats per flight for Future Flight credits. - It's tough for a family of six to have a holiday two at a time. - It leaves four of us back in New Zealand while two can go to Australia. - There are thousands upon thousands of Kiwis who have credit with Virgin who want to fly. And rightfully so. And they're not going to be able to. - Back in Queenstown, travel agent Victoria Keating has gone through every Virgin flight out of Queenstown between mid-August and New Year's Eve, when their COVID credit scheme expires. - We don't know exactly how many they've loaded into the system. We only know how many we have available to book. - The good news? Their planes carry 176 passengers, so... - There are 68,712 economy class seats, and there's 3272 business class seats. - The bad? There's only a handful of seats per flight Virgin allow you to buy with credits. And even less left. 53 total? - 5-3. Yep, 53 total for the rest of the year. - As a percentage? - In economy class, it's 0.07%. And in business class, it does go up ` it's 8.98%. - So your chances of using your Virgin credit before it expires are... - Pretty much nothing. - Other airlines let you buy any seat on any flight. Not Virgin. - Let's say you want to go in three days' time. - When we visited on August 9, Victoria had another check for availability. - You cannot go. - For a COVID credit seat on a Virgin flight to Brisbane from Queenstown... - The 5th of September? Nope, nothing there. I have tried and tried and tried. And the thing is, I'm a travel agent. - There's seats available. - This plane looks like it's virtually empty, but if you've got a credit, you can't fly on it. It's diabolical. If you've paid for something, why can't you use it? - What's worse, other airlines have extended their COVID credit scheme till the end of 2024. Not Virgin. All travel must be booked and completed by New Year's Eve. - This really does have me. - What makes Victoria even madder is Virgin is making lots of money. - And it looks like the balance sheets are back in order. - Virgin is buying planes, staff get bonuses, and the revenue is back in the billions per year. - Why can't they add on some extra capacity in the seats that can be used for credits? - We're not getting very far at all. - Stranded Kiwis have pleaded with Virgin for more seats. This weird nightmare that is the COVID credit. - Victoria asked, the Travel Agents Association raised it, and when we asked, they sent us a statement ` with some good news. 'Virgin Australia constantly monitors popular routes, including Queenstown, 'to make as many seats available as possible. 'The most recent review has added an additional 5000 seats 'available to book with Future Flight credits on this route. 'People interested in this route should try to be flexible with their dates.' Which means, back in Queenstown... - There's not an awful lot of availability in December. - ...Victoria is searching for seats again. A lot of availability now for the next week, and there's no availability in September. - She's giving Virgin's offer of 5000 new seats mixed reviews. - Great that they've given us the extra seats. But if you can't travel within the next week, or you can't give yourself enough lead-in time, it's gonna be really difficult for people to actually be able to use these credits. - So if you want to enjoy flights you've already paid for, you'd better get cracking. - We love people like Victoria. Awesome. Virgin says they encourage people who are having trouble booking to get in touch with their Guest Contact Centre. - Good luck there. - E haere ake nei, coming up ` we look at how other major airlines are dealing with their credits. For Qantas, Air New Zealand and Jetstar, you can use your credits on any seat, on any flight, but you must book by this New Year's Eve. - And a warning to keep it real if you're buying a used car. - Don't expect a $20,000 performance from a $8000 car. - Kia ora. Nau mai, hoki mai. Welcome back. Now, like the yogurt at the back of the fridge, COVID flight credits are starting to go off. - But each airline has their own rules for use, So we sent Hadyn on a journey to find out how to navigate your credits. - We are back flying. And if you've still got COVID credits, well, they don't get better with age, so now's the time to use them. For Qantas, Air New Zealand and Jetstar, you can use your credits on any seat, on any flight, but you must book by this New Year's Eve ` that's the cut-off. Virgin customers have to have flown by December 31 this year. And as you may have heard, they have limited seats. For Jetstar, you must travel by December 1 next year. For Qantas, it's December 19 2024. And for Air New Zealand, it's New Year's Eve 2024. So they are all slightly different. With Jetstar and Air New Zealand, you can gift your credit to someone else. You can even use them on hotels with Jetstar. But as for refunds, that's trickier. Emirates says yes to refunds on COVID credits. Most other airlines say no, but you can apply on compassionate grounds. Air New Zealand, for example, will issue refunds if you can't fly due to ongoing ill health. If you don't want to travel at all, this doesn't automatically mean you can get a refund. The Commerce Commission says it depends on the conditions of the ticket that you purchased at the time. If you aren't sure when you want to travel, you could try booking a flight before cut-off and then amending it later. The Commerce Commission says one thing the airlines can't do is mislead you about your rights to a refund. So know what your rights are before you want to take off. So book right now. Well, after the show ` then you can do it. - Yes, we have got tips coming out of our ears, and there's more to come. - At the start of the show, we saw the worst-case scenario on what can go wrong when buying a car. - So if you or one of your whanau are in the market for a used vehicle, what can you do to make sure you come away with a decent deal? (ENGINE RUMBLES) - Whether you're looking for the car you dream of, the car you need, or the car you can actually afford, it's best to arm yourself with more than just a credit card or a wallet full of readies. You need smarts. OK, so let's start with who to buy from ` a dealer or a private sale? If you're a bit of a novice, don't know much about cars, then you do have greater protection buying from a dealer. You'll be covered by the Consumer Guarantees Act, and you'll get a Consumer Notice which will give you information about the condition and history of the car, the mileage and any money owing on it. But you may find more choice and cheaper cars buying privately. The onus is on you to kind of protect yourself as much as you possibly can. And that can be through things like asking the person you're buying off for records of service and maintenance, also doing a pre-purchase inspection, which is probably gonna set you back about $100, but that's money that's really well invested ` it will protect you from buying a lemon. - And ask for a WOF that's no more than a month old, so you know that the vehicle's safety and general condition is passable. And don't go thinking that a current WOF covers it off. Remember, a WOF is a general safety check ` it doesn't mean that the car is mechanically sound. A full mechanical inspection ` around a hundred bucks ` will pick up any serious niggles. And be realistic about what you get for what you've paid. In other words, don't expect a $20,000 performance from a $8000 car. - But by the same token, if you buy a car from a dealer and if it has major faults pretty quickly, then you have rights to redress under the Consumer Guarantees Act, so you should go back to dealer and state your case, and they have to put that right for you. - Did you know, every year tens of thousands of cars are stolen, have money owing on them or have a dodgy odometer? So how do you know if both the car and the sale are legit? - So, you can pay for something called a Vehicle History Check. So, the AA offers these for about $30. And that will let you know whether there's any finance outstanding, which would mean that, you know, heaven forbid the car is repossessed after you've bought it. It also will tell you about the mileage of the car ` how that's kind of figured over time when it's had its various WOFs. It will also let you know whether the car is registered with the police as stolen. You can also look on the police website yourself, just to give yourself that peace of mind you're buying something that is above board and safe. - And what if the seller fails to supply any of the info you've asked for? - So, if you're asking for information and either the information is not forthcoming or you're getting some vague answers, unfortunately, that means you should probably just walk away, because you don't want to be buying that car. - Be very careful with buying vehicles sight unseen. You may miss signs of wear and tear and poor maintenance. And of course, actually driving the vehicle will help pick up any problems. One final tip. - You know, you can be ruled by your heart rather than your head and see something that looks absolutely stunning, and you think, 'I really have to have that car.' But you really need to take your time. Don't rush into purchasing a vehicle. Do the due diligence that we've talked about already. But also, you know, it's not just likely to be a financial risk if you buy a lemon. You're also talking severe health and safety risks if you buy something that's unsafe. So take your time, make a sensible decision, and then enjoy the new car once you've got it. - Phew! We are done. That is a chock-a-block show ` that's the technical term for a very busy show. You can watch it all again, plus past episodes on the Fair Go page on TVNZ+. I dare you. - And because our programme is all about you, we want you to keep in touch. - You can get us on Facebook, TikTok, Instagram, go to our webpage, tvnz.co.nz, email us ` fairgo@tvnz.co.nz or write to us ` PO Box 3819, Auckland 1140. - Love a good letter. Thank you for watching. Until next week, do you wanna come play with my Lego collection? - Love to. - BOTH: Pomarie.