Fair Trading investigates as hundreds in the Far North sign up for hire service
Posted by editor (editor) on Feb 24 2010
2010 >>

Fair Trading is investigating a travelling trader renting out household goods after reports that hundreds of people across Far North Queensland have locked themselves into costly contracts that might be difficult to meet.

Fair Trading Minister Peter Lawlor said he was concerned people may have been pressured to take up the offer being made by the trader - who is going from door to door in neighbourhoods - and that they might not be able to afford the service.

"The door to door trader has been targeting mostly Indigenous communities in Cairns, Mossman, Yarrabah, Cooktown, Mareeba and Wujal Wujal signing people up for rental agreements on fridges, washing machines and electrical items such as home entertainment systems through to cameras," Mr Lawlor said.

"It is believed between 300 to 400 people have signed up.

"This rings alarm bells as the OFT regularly receives information about itinerant traders who travel from town to town who do are simply out to make a quick buck.

Member for Cook Jason O’Brien said this type of conduct is deplorable.

“This outfit appears to be targeting regional and remote communities and vulnerable residents in particular,” Mr O’Brien said.

"In fact, there was one report that someone signed up to get a washing machine even though they didn't have a home - clearly they didn’t understand what they were asked to sign.

“I urge all residents to be careful dealing with door-to-door traders.

“If the offer sounds too good to be true, it usually is.”

Mr Lawlor added there were laws in place to protect consumers from those door to door traders who were dodgy.

"For example, if the cost of the goods or services are more than $75, consumers are entitled to a 10-day cooling off period. In this time, the trader cannot take payment and cannot provide the goods," he said.

"The trader knocking at your door must also produce ID and provide a contract with their name and address on it."

Any consumers who have entered into a contract with a door to door trader within the last 10 days and wish to cancel it should contact the business immediately and also contact the OFT on 13 13 04 if they have any concerns.

Mr Lawlor said residents should be careful before signing a legally binding contract and agreeing to an extra monthly expense that could go on for years.

"The monthly rate for a hire service, when added up for the contract period, can far exceed the actual cost of the product and if you want to cancel it, there are usually also fees involved," he said.

"Dodgy operators may try to trick you into agreeing to exorbitant monthly rates and unfair contract conditions."

To report information about door to door traders or lodge a complaint contact the Office of Fair Trading by visiting www.fairtrading.qld.gov.au or calling 13 13 04.

Media contact:

Minister’s office – 0437 436 914 / 3224 2002

Last changed: Feb 24 2010 at 11:39 AM