Stimulate the economy, not the scammers
Posted by editor (editor) on Apr 23 2009
2009 >>

Queensland residents are warned to be on the lookout for rogue insulation installers trying to swindle the new government rebate out of unsuspecting consumers.

Minister for Fair Trading Peter Lawlor said the Office of Fair Trading had already received reports from west Brisbane of rogue traders approaching consumers offering to install cheap insulation under the Federal Government's rebate scheme.

"While it is reasonable to expect an increase in legitimate marketing activity in this industry as a result of the rebate, I am concerned about reports of dodgy operators trying to scam unsuspecting consumers," Mr Lawlor said.

"We have had reports of itinerant traders approaching consumers offering on-the-spot insulation and assuring them they can claim the money back under the rebate scheme.

"To be eligible for the rebate, insulation must be installed by a registered business with an Australian Business Number operating in the insulation installation industry."

Mr Lawlor said information received by the Office of Fair Trading indicated the scam was similar to recent roof painting and bitumen laying scams.

"These fly-by-night operators turn up unannounced and offer to do the work for a song, then once they complete the job demand more money to cover 'unforseen' expenses.

"This is typical behaviour from rogue traders, cruising from town to town claiming to be qualified tradesman and charging exorbitant rates for shoddy work.

"Not only could you find yourself out of pocket, but when insulation is installed incorrectly it can be a major fire hazard."

Mr Lawlor said there had been incidents where cellulose fibre insulation placed too close to ceiling down lights had caught fire.

"Make sure your installer adheres to the voluntary Australian standards for the manufacture and installation of insulation - seek this confirmation in writing as a verbal guarantee is worthless," he said.

"The Federal Government's economic package is designed to stimulate the economy, not go into the pockets of scammers.

"You should check your eligibility for the rebate before you agree to insulation being installed - don’t just take the trader's word for it."

Mr Lawlor urged all Queenslanders to be cautious of anyone selling insulation door-to-door and to be wary of offers which appeared too good to be true.

If approached by traders at home:
o don't pay cash,
o don't let the tradesperson take you to the bank,
o don't pay for anything upfront, not even for materials,
o demand a receipt with a name and address on it, and
o ask for a written warranty.

Mr Lawlor said there were laws to protect people against intimidating tactics and unsolicited approaches employed by some roving door-to-door tradespeople.

Under the Fair Trading Act 1989, door-to-door salespeople must:
o only call on customers between 9 am and 6 pm from Monday to Friday, and 9 am and 5 pm on Saturdays. Calls on Sundays or public holidays are prohibited,
o wear clear identification,
o provide a written contract clearly stating the breakdown of costs, including GST and the total price with the sale of goods or services valued at more than $75, and
o offer a 10-day cooling-off period in the sale of goods and services valued at more than $75. During this time no payment, including deposits, can be accepted or work commenced.

"Traders caught breaching the Act face fines of up to $54,000 for individuals and $270,000 for companies" Mr Lawlor said.

If you have any information about these types of scams please contact the Office of Fair Trading on 13 13 04.

For more information about your rights as a consumer and protecting yourself from scams visit www.fairtrading.qld.gov.au.

For more information about the federal governments insulation rebate scheme visit http://www.environment.gov.au/rebates/index.html.

Last changed: Oct 06 2009 at 2:13 PM