Money tips: Three fees you don't have to pay (CBC Marketplace)

Hello Canada, welcome to a special edition of the market. I'm Erica Johnson and Tom Harrington and this week it's all about the Vault. We are going to reveal some secrets so you can save your

money

in it. We are going to inform, we are going to act undercover and so will you. We've never done anything like this, so we feel like a secret AG here revealing who has their hand in your pocket. Oh wow, I'm just the G bar, it's just not like that. true, people are being Hood, from sneaky

fees

to upselling lies to people, stop fooling them, we will show you how to defend yourself.

Yes, I did something good in my life thanks to Market so you can save your

money

. We are in Niagara. Falls Ontario, one of the country's top tourist destinations among regulars Kim and Rick Deo, is a good place to visit from time to time, there are many good restaurants here, only this time it's not just tourists. Rick and Kim

have

come from nearby St. Catherine you should do some research for us this is your camera here is the power source you are going to record so guys I see you are equipped with the latest in modern hidden camera equipment it is the latest fashion, yes, what has been your experience?

With this kind of thing, oh, it's all new to us, we've never done anything like this, so we feel like a secret agent. Here they want more people to know about a sneaky fare they've come across and don't like. Have you ever heard of something called target marketing fee? No, that sounds interesting. I don't know if I like that sound. Do you know what a destination marketing fee is? No, depending on where you go in Ager BS or other local tourist places. In Canada, you may be charged a destination marketing fee or DMF, a tourism infrastructure fee or Tif or a destination productivity fee, a DPF. couple here when they get to the city's hot spots what is a fight it is a feeding part of tourist infrastructure some restaurants in this area participate in it the funding goes towards fireworks displays at the falls and concerts in the park what is a DPF is a destination productivity tax in AAR Falls, oh yes, yes, it is a tax, yes, in this tourist area, yes, they charge the tourist Fe, yes, what is that for?

It is for the tourist area, like all tourist places charge the tax, it is not a legal tax. Janice Wing has never liked these

fees

she is a counselor for Agri Fall City you

have

been fighting this for a long time right yeah why is it just not right uh people are being tricked into paying for something they don't have to pay wait just What they don't have is not good. You have to pay. Do they charge the tourist? Yes, it is voluntary. You don't have to pay. It's up to the diner or hotel guest to notice, question it, and demand it be removed.

Let's check back with our undercover partner to see. What they tell you at Applebee's restaurant there is a big debate: we can't really take it off our bills. What we do is it's in a different category. It's a discount at the IMAX theater. This employee offers to take it off his bill later. they ask what it is about, oh yeah, move over and at Outback Steakhouse they applaud, same thing is that's a mandatory tax, it's not mandatory, but again they have to ask before the fee is removed, okay yeah, but yeah It's not mandatory, so someone could opt out.

Of that, absolutely yes, it's just that if you ask the fact that people have to ask about this fee, it's actually voluntary. Do you think companies are deceiving people? Oh, definitely, the way it's included on the bill, like it's presented as another tax. along with the HST is misleading most people don't question it many tourists get excited at Clifton Hill in the heart of the city center but many tell us they are not excited about this cash grab. What if I told you it was a voluntary position? that you don't have to pay that's not right I think they should tell you oh wow I'm just barrel acid I can't believe that I just don't understand how they can get away with it like it feels just not like the right thing, the right thing, the wrong thing, that's it all there is to it, yes, Tom Harington, Wayne Thompson, says there's more, he's president of Niagara Falls tourism and former mayor, if a family spends $1,000 at Nar Falls for the week, they could end up paying maybe $38 more or whatever, maybe it's a negligible amount of money to you, but to them it could be something and it's money that they feel like they don't have to pay because they've already invested money in this community, why?

Why do they pay more? This is a destination. All you have to do is look out the window and see the beauty of the falls. All the wonderful attractions you have here. This is a destination. He says tourism in Niagara Falls does not impose the fee, but he is speaking on behalf of the companies that charge it if a tourist comes to Nager Falls to spend their money and go stay in hotels, eat in restaurants, go to attractions , why and pay for that, and then some people would argue that pay. higher prices than they could pay elsewhere, well, let me, let me just interject.

I really have to make an exception for that. Have you ever stayed here and compared the prices here within Toronto? Have you ever parked here and paid the prices you park in Toronto and you're talking about 3% OMG this is ridiculous not ridiculous for people who don't think it's fair and what about other Canadian cities that have this rate ? We did a little research in other tourist spots in the country. It is mandatory, but even when it is voluntary, the money is tracked by a third party who ensures it goes to tourism. So what about Niagara Falls?

How do you know where the money these companies are raising goes? No, we have to trust his word. There are defined ways to pay for lights and fireworks and open and transparent budgets that are approved by public bodies, but there is no paper trail of what is paid and we don't know what happens to the money after that, whether we like it or not. . and there is no real rhyme or reason to how it is done, it is simply a corporate whim, not all companies in the area charge the fee, but for those that do, there is no one to independently track how it is done. spend that money.

We catch up with Kim and Rick, our undercover couple sits down to breakfast at International House of Pancakes when they ask about the fee, this time the waiter is honest, they don't have to pay for it, I'm just wondering if it's voluntary so yeah You ever come back here anyway and you don't, they don't want to pay you, you just say, I'll just take off the Tiff, now it's time for Rick and Kim to review Sheran's Four Points, what's a tiff, it's a fee that any tourist has to pay has to pay is mandatory is a fee yes yes we have heard a lot of inconsistency and information about this fee but Wayne Thompson disagrees with the people calling it sneaky this is something that has been looked at. uh, Revenue Canada, they've been to all the properties here, these people pay taxes on this, there's nothing illegal about it, there's nothing turbulent about it, but tourists tell us it feels turbulent, they want businesses to be clear. that they are a choice. not paying the liability because they are not the people who collect it, they are not accounting for it publicly, right, and the staff of these various companies are giving wrong information about what this fee is for calling it a tax and that's what you know, system that is broken and needs to be repaired.

I would say it could improve. There is a constant effort to ensure that staff are informed and unfortunately the turnover of people is not informed and therefore becomes an issue. Since our interview, they are trying to solve that problem. Niagara Falls businesses that charge the fee are told to give this card to anyone who asks about it, although that card does not mention that they do not have to pay. City Councilwoman Janice Wings says the entire program shouldn't be a mystery. What should these companies tell their customers about these rates? They should be upfront about the fee and point out what is a tax and what is mandatory and what is voluntary, but I think if they did, those people.

I would refuse to pay for the house after 24 hours in the honeymoon capital of the world. The honeymoon is over for our undercover couple. Well, how was your experience with the destination marketing fee or whatever they called it? Yes, yes, it was interesting, it was very. interesting and different everywhere different names different offal so I always had to ask what it was you were here for 24 hours at the hotel you ate some attractions the total you paid was $125 now people might say that doesn't It doesn't seem like a lot, what do you think about that? It all adds up, it's just one day for two of us, we don't need to pay extra for anything, so after this experience, next time you come to Niagara Falls, what are you going to do?

Well, obviously check our bill and you don't pay, tell them we're not going to pay Clifton's fee. A visitor we spoke to earlier takes our advice on how to save your cash. She comes back from her hotel with some news about the tourist fee and they said yes, it's voluntary, you don't have to pay, so I said, well, I don't want to pay then and they said they'll take it away, so thanks. Well I'm happy to help, it was fun and we have More ways to help you save your cash coming soon, including collateral that doesn't pay off and how you can avoid bank fees and we all hate them.

Why did not anyone tell me? And according to Scotia Bank, they don't have to tell me. How do you save money? Give us your two cents on Facebook and Twitter. Welcome back to Marketplace. Companies may make you think that extended warranties are as good as gold, but shelling out extra money for them really gives you security. We're in downtown Toronto talking. for you about your electronics and what happens when things go wrong. Many stores sell extended warranties to protect a new purchase. What do you think an extended warranty plan means? That when it breaks they will fix it.

I know they go for two maybe 3 years I honestly don't know much about it if there is a problem, extended warranties seem to guarantee that your broken device will be repaired or replaced but is it worth paying more money or should you save your money ? I thought it would be a good way to protect my investment, that's what college student Thomas Baka believed when he bought a tablet a little over 2 years ago, he bought it at Future Shop for about $500 and that's when the problem started, it kept failing, it didn't respond well, so after a while I decided to retire it.

Thomas believed it wouldn't be a problem because he also purchased the service plan from him for an additional $100. What was his understanding of what this hassle-free plan meant for his tablet in case there was a problem? If I have any problems with the product, any performance problems, I can bring it back and they will replace it for me. When Thomas got his tablet back, it became a two-month ordeal that required a lot of effort and a lot of time, so it was anything but that. No problems, he hedged, he says, because of what's in the fine print, the chain has

three

chances to repair the tablet before replacing it.

This is some of the fine print that Future Shop explains when they describe his plan, it's like maybe five. pages yes, you read all that, aren't you sure? No, no, no, no, no, no, do you think they misrepresented what this plan was? I think they use deception. I think they try to sell more of the product we wanted to see exactly what future. Store associates are informing customers about their warranty plan, so last spring we sent a Marketplace producer with hidden cameras to six Future Shop stores in the Toronto area. Good things, how are you? At each location, sellers boost the value of their service plan for 2 years.

We cover the battery, anything. Just don't drop the hardware, don't spill water. Everything else is covered. Future Shop's sales staff are on commission, so at least if you get that, at least you know that when you leave, that will protect you and convince you. Buying the plan means more money in your pockets, so it's no problem, except like I told you, if you drop it and break it, it's not covered. Of the six stores we visited, only two give us the full story of the months of the Future Shop plan. Future Shop later hires Geek Squad to handle its extended warranty program, but it appears the plan itself doesn't change.

It turns out that many of you are complaining about future store warranties. The Better Business Bureau has heard a lot and gives the chain an F rating. It's a cash cow for their marketing. Professor Steve Tison Bal once ran the extended warranty program for a major computer manufacturer, who is the most trusted benefits from the sale of these extended warranty plans, the retailer benefits because that is a flow ofcash for them immediately. The only person left wondering what she is. What will happen is the consumer, what will happen when he needs the service. Thomas Baka learned the hard way he ends up making Seven Trips to the Future Shop after complaining to the head office, he gets another tablet but says it's used and guess what happens next? allowed in the fine print, if you could talk to the managers at Future Shop, what would the message be, stop lying to people, stop misleading them, just tell them honestly what it is you are selling after Marketplace starts asking questions.

Thomas finally gets a new tablet We asked Future Shop why their warranties seem to promise more than they deliver and they say we believe customers should have the option to ensure the consumer electronics they buy from us are protected when they leave the store . We are happy to continue offering our plans to customers across Canada, but our expert says that when it comes to extended warranties, I don't recommend you buy them, you should save your money now, that's a happy Marketplace viewer and stay tuned, we have many more measures to save money. Many of you could be putting cash back in your pockets with banking fees you don't have to pay.

I want that. They give me my money back I want it back It's mine What bank fees bother you? You vote for the worst on cbc.ca Marketplace. Welcome back to Marketplace. You've heard the expression money in the bank. It's about reliability. Something you can count on. Like this Vault. built in 1913 an ironclad way of telling people that their money would be safe, but the following story shows that there may not be a good reason to trust banks when it comes to giving you a discount on certain banking fees. We're scouting these dumb players. to see if they qualify not for the All Stars or the NHL, but for something that could help them save their money, you too, and how do we know if they make the cut.

It's as easy as being 60 or older. 78 61 65 77 what we're talking about. Senior benefits offered at the big five banks, things like free transactions with no monthly fees and discounted plans that can help seniors really save. the right, those who are not on the left and surprisingly about 40% are not getting a break, are you on a senior account? I know when I turned 60 they didn't say anything 61 62 34 uh, nothing at all for 2 years you were paying service charges that you could have avoided if someone had told you at the bank, yeah, oh yeah, for these guys, that's it a cheap shot from the banks, they are certainly our ages, they all have the information they need, maybe they think they could get a few more. money from them Adele Lynn first contacted Mark Market Place after realizing that she too had been missing out.

No one at her bank mentioned the senior discount until she turned 67. He said to me: "Oh, Adele, you're not Scotland and what a Scotland plus me." He said, he said: well, from the age of 59 you don't have to pay bank charges, what did you think when you found out that? Well, I went completely crazy why no one told me and according to Scotia Bank, the lady doesn't have to tell me. If you had met Adele, we estimate she could have saved around $1,400. How can I ask about this if I don't know? They are disgusting after 30 years of treating me the way they have and I want that money back.

I want it back. it's mine, they would say it's just a business, you know, they have these different programs, they can't tell everyone everything they offer, well, they managed to tell you how to get loans and everything else they want you to have. do that Adele complained to Scotia, who refunded her a year's fees. Other banks told us they made information available so seniors could ask about Adele. That's not good enough. She believes discounts should be automatic. What they could be doing is putting this on their computers. The person is now 60 years old and it should automatically be that there are no bank charges.

She is now helping us check whether the big banks have changed their ways, visiting each one to ask about their policies at B Mo and RBC. She hears that repayments kick in automatically when she turns 60, so her basic account is free. I think it's good because then I wouldn't have to worry about it, but at CIBC and TD Canada Trust they say it's still up to seniors to ask, they know it's a problem but they just don't do it. I don't care so I can't do more than I have done and what about Scotia Adele's bank that she waited years before telling her she could save?

What will they say today? Yes, I did something good in my life, they are automatically saying. seniors now about bank charges, yes, senior savings now kick in as soon as you turn 60, as for hockey equipment, as we told them about the discounts they were missing out on. 100% are now generating their own savings. You have made us more aware. of what's happening and what's available to us so I think it's really fantastic thanks to Marketplace so if your banks drop the puck make sure you get the discounts you deserve then like everyone else you'll also have reasons to smile, thank you. you're great it's always great to see how our stories can help you get scores and put money back in your pocket thanks for joining us here's what's coming next week next week on

marketplace

the hidden cost of a trip that will save your life worry about bills when you're worried about your child dying those two things shouldn't be in the same picture ambulances that are desperately needed in an emergency can't afford it I can't afford it if almost half the people in your province say they could delay the call to an ambulance, doesn't that tell you that there is something wrong with the system?

We investigate why there is no free ride.