Rental firm cancels 800 contracts, refunds $10k thanks to Fair Trading
Posted by editor (editor) on Feb 24 2010
2010 >>

The Office of Fair Trading has acted quickly to stop Victorian-registered company Fair Dinkum Rentals Pty Ltd from entering into unfair contracts for rented household goods with hundreds of Far North Queensland residents.

Fair Trading Minister Peter Lawlor said the OFT was alerted to the behaviour of the company by Cairns-based Indigenous Consumer Assistance Network (ICAN).

After putting out an alert about the door to door trader targeting the region, OFT met with the company director in Brisbane and negotiated to have 800 contracts cancelled and $10,000 refunded to consumers.

Fair Dinkum Rentals also agreed to enter into a court-enforceable undertaking to stop doing business in an unfair way.

Member for Cook Jason O’Brien said representatives from the company visited 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 and cameras.

"The Indigenous Consumer Awareness Network (ICAN) in Cairns alerted the Office of Fair Trading about this activity earlier in the week and provided valuable information to assist with the investigation,” he said.

"The concern was that the trader was not providing fair contract conditions and documentation to consumers and did not give people the extra rights they're entitled to when approached in their homes.

"It was also thought the company may have pressured people or knowingly signed up those who could not meet the contract fees, which involved a high monthly rate over a fixed contract period."

After investigation, the Office of Fair Trading considered the company breached door-to-door trading laws and may have also engaged in 'unconscionable conduct'.

In addition, the contracts used by the company did not comply with the requirements of Queensland's Consumer Credit Code which is also administered by the Office of Fair Trading.

Mr Lawlor said door-to-door trading rules were in place to protect consumers from dodgy salespeople.

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

"The trader must also provide a written contract together with an information sheet about the cooling off period and the consumer's right to cancel, as well as a form to fill out to cancel."

Mr Lawlor said the Office of Fair Trading had acted quickly to put a stop to what could have meant years of debt - and collectively hundreds of thousands of dollars - for many north Queenslander consumers.

"This is a strong warning that the OFT will pounce on anyone who does not do business fairly."

Affected consumers should monitor their bank statements and if they notice any future payments being debited by Fair Dinkum Rentals they should contact the Office of Fair Trading on 13 13 04.

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Minister's office: Zoe Russell - 0437 436 914

Indigenous Consumer Awareness Network: CEO Aaron Davies - 4031 1073 or 0406 516 448

Last changed: Feb 24 2010 at 11:41 AM