‘Sky’ protection racket that the regulator must bring to an end
F.F. writes: I received a phone call from Sky Protect about renewing cover for our Sky TV system. The caller asked me to confirm my bank details, which I gave. I did not think any more about this until I found £249 had been taken from my account by Sky Protect Limited. As I normally pay by monthly direct debit, I phoned Sky and found that the caller was not from the official Sky Protect scheme. My bank says it cannot help as I had nothing in writing. I WARNED against this scam a couple of weeks ago. Sky Protect is the name of an insurance scheme backed by the genuine Sky TV company, covering equipment against damage and breakdown.
But tricksters have registered a limited company with the same name, so people think calls are coming from the real insurance scheme. Anyone who pays then gets a cover contract of sorts from a separate company called UK TV Care Limited. Both companies have their registered office at an address in Wenlock Road, North London, but they appear to be run from Spain.
Neither is licensed by the Financial Conduct Authority to offer any kind of insurance, which means they are breaking the law. Both have failed to respond to repeated invitations to comment.
The real Sky told me it was unlawful for the bogus firms to pass themselves off as being endorsed by Sky. A spokesperson added: ‘We were concerned to hear about these particular cases. We will investigate them fully and take appropriate action in order to protect our customers from this type of misselling.’
It would be nice to be able to report that the regulator is doing the same. In a recent speech, FCA boss Andrew Bailey emphasised that protecting consumers is one of the regulator’s top aims.
He said: ‘In the context of meeting our objectives, fighting financial crime has been and continues to be a high priority for the regulator.
‘Whatever the progress we do not intend to reduce our focus on financial crime – particularly given the evolving risks that exist and the level of public interest in ensuring the cleanliness of financial services.’
Fine words. But I can say that the regulator did not contact me for any details after I exposed this scam two weeks ago. A few days ago, it declined to comment.
The better news is that I contacted your bank, Danske Bank in Belfast. I explained that Sky Protect Limited and UK TV Care Limited were acting unlawfully and I produced proof they are falsely claiming that customers are protected by the Financial Ombudsman Service.
Danske Bank told me: ‘It appears that Mr F has been persuaded to sign up to a contract where the merchant cannot legally provide the insurance services offered.’
The bank is now refunding the entire £249 that was taken from your account and it will then try to recover it from the bank that received your money – but whatever the result, the £249 is yours. A good outcome.