The issue is "no refunds." Now, SCEE aren't the only digital service which insists there are no refunds when you make a purchase, but they're the only service which has basically a zero-tolerance approach, "no refunds" means "no refunds" regardless of the circumstances. Microsoft, Nintendo, Apple and Valve would all refund in extreme situations, but Sony do not, and this situation is somewhat extreme.
A purchase was made using someone's PSN account. It wasn't made by the person who owns that account however, and indeed, wasn't even made on a console which that person owns, but it debited the account holder's credit card.
Sony acknowledge this to be true, but state that due to their terms and conditions there can be no refunds on digital purchases.
They literally tell him that they know he didn't make the purchase, they're (likely) banning the console responsible, but they're not going to give him a refund anyway because their T&Cs state "no refunds." They're sorry that someone stole his money and handed it to Sony, but it's Sony's money now.
Understandably confused, the account holder phones Sony. This phone call can be listened to here. It's nearly 20 minutes long but some of it is amazing, like around half-way through when the agent on the phone basically admits that Sony's policy is just to treat all their customers as thieves because most of them are probably trying to cheat the system. Generally though, the agent just sounds embarassed that he has to defend Sony when they so obviously are in the wrong. There's nothing he can do, though, nowhere it can be escalated, "no refunds." Terms and conditions.
And then it's just dead end after dead end. Nobody at Sony veering from their policy of "no refunds" even though the account holder has literally had his money stolen. No one at Sony is any help at all and eventually they basically tell him to fuck off.
Honestly, it's just, how can this even be allowed to happen? He's a victim of a crime, and Sony just happily treat him like a criminal.
That's the briefest summary. You can read for yourself how the story developed over the course of the last six months on rllmuk where the victim here is a member.
I believe there are other similar stories being featured within the same segment, because there are probably thousands of other tales of woe. It could happen to literally any of us and we'll all suffer the same fate as above.
So yeah, Watchdog tomorrow night or for a month afterwards on iPlayer. Should be worth a watch, especially if they managed to find a higher-up at Sony to comment on it because I'm strugging to think of any possible justification for the way this guy was treated so it'll be great to see how they defend it. I'm sure I'll hear some justification before long though, come on GAF, tell us why it's all his own fault!
People in the UK should be able to watch it here after it's aired: http://www.bbc.co.uk/programmes/b05xctwd