Babz media

Sam_26

For you guys not in the online business its very simple. Royal Mail operate 2 billing systems, self-billing and Pay as you Go.

Self-billing was the old system whereby you bill yourself (correctly otherwise previously fraud against the crown) for the parcels you sent you identifying the class (ie 1st/2nd), weight and quantity. This system was open to massive abuse and can be identified as a simple 1 or 2 in the top corner.

The newer PAYG system involves a 6 x 4" label printed on Royal Mail software (eg Paypal type) whereby you pay as the label is printed. Most businesses use this now and also has either 2D tracking or full tracking of the item shipped within the label.

Since RM privatised, profit is key for shareholders. Any fraud they will stamp out.

I will let you draw your own conclusions on how the unbelieveable priced merchants work. Here's an example from last year

http://www.cambridge-news.co.uk/Pharmacist-Priyesh-Rawal-Impington-struck-register-cheating-Royal-Mail-of500k-infraud-systematic-dishonesty-grand-scale/story-22367486-detail/story.html

ballisticbrian

Since RM privatised, profit is key for shareholders. Any fraud they will stamp out.

What I still don't understand, that if I put through a single item of incorrectly franked mail, it is noted and I am sent a letter and fined an extra £1, and yet they seem to allow that type of fraud you suggest to go on until it reaches a grand scale, and then pull the carpet from under the company so it all comes crashing down.

Why don't they simply put in more checks?

I bought something from the company being discussed above and it was the size of about 4 house bricks and only cost me £1.79 with free postage. The cheapest price we could have posted that for with either franking or a business account (impressions) is £2.50.

soolin

ballisticbrian wrote: »

What I still don't understand, that if I put through a single item of incorrectly franked mail, it is noted and I am sent a letter and fined an extra £1, and yet they seem to allow that type of fraud you suggest to go on until it reaches a grand scale, and then pull the carpet from under the company so it all comes crashing down.

Why don't they simply put in more checks?

I bought something from the company being discussed above and it was the size of about 4 house bricks and only cost me £1.79 with free postage. The cheapest price we could have posted that for with either franking or a business account (impressions) is £2.50.

According to the link posted by the 'official' poster above there appears to have been an older RM system based on 'honesty' and self declaring what parcels were sent. I suppose, and of course it is only speculation as I am not aware of that older scheme nor of the facts in this case, that is it was a simple as not declaring the full number of parcels being sent and only paying for those declared that is would be easy to run up a huge underpayment.

I bought envelopes from them that arrived RM signed for (orange slip - the lot) £6.24 delivered . When a box that size and weight would have cost me £5.99 just to send without the cost of the actual goods.I am guilty of assuming that they just had some stunning deal with RM.

winspiration

I've got a PPI (pre paid impression) account of the type described above with Royal Mail where I file details online of what I'm posting each day. My understanding is that there are spot checks carried out at depots, also collecting posties can 'red flag' bags if they are suspicious about the posting to ensure that it is checked. If what's suspected about Babz is true, then as ballisticbrian says, it seems there weren't enough checks in place over the past few years in that area - or that somehow the checks were bypassed...

Some RM tariffs do legitimately allow for averaging the weight of packages - so if you send a few heavy items along with lots of lighter ones, you can send everything in a lower priced weight band - which can make account prices more attractive than franking even for relatively small businesses - it isn't going to make the charges disappear altogether though!

RM are bringing in the new system along the lines described by Sam_26, although it isn't compulsory and I understand that it won't be - however prices might go up for people who remain on the old system.

F&L

As above, the RM system based on honesty is still in place as that's what I use. RM are currently changing to the new sytem described but at the moment I count the number of parcels I send and declare that number. I'm told they do random checks but the system has long been open to abuse.

RFW

None of that explains how RM can fine going back five years and be able to prove it.

Vatfraudguy

I think every business who sells on eBay knew what they were up to.

Royal Mail should have caught up with them a lot sooner.

Our Royal Mail Collections get checked quite often.

Sounds to me that Royal Mail need to ask themselves why they allowed Babz to get away with it so long. Such a big account for them.

Babz Media deserves what they get. Royal Mail to take some blame too.

Perhaps some heads will role at Royal Mail too.

Sounds like an inside job to me

RFW

Vatfraudguy wrote: »

I think every business who sells on eBay knew what they were up to.

That's an odd statement. I doubt the majority even know who they are.

Given the press coverage they received, if it was that obvious to everyone they would have been exposed then.

superbigal36

I have to laugh now on reflection. Some have mentioned batteries.
I was buying 1000 Eunicell Lithium button cells at a time from them. Price was unbelievable.
Ironically they then actually used a signed for service with RM.
It was literally a bomb in a bag.


Just had a look.
Maybe this seller does the same.
I hope so
http://www.ebay.co.uk/itm/Eunicell-CR1220-CR1620-CR2016-CR2025-CR2032-Batteries-Bulk-Wholesale-Trade-/391126127855?var=&hash=item5b10ef14ef

Vatfraudguy

RFW wrote: »

That's an odd statement. I doubt the majority even know who they are.

Given the press coverage they received, if it was that obvious to everyone they would have been exposed then.

Perhaps I should say "any ebayer in the same business as them"

Their account had the smell of fraud all over it.

Selling products at impossibly too good to be true prices

Doesn't take a genius to work out the maths.