CONSUMING MATTERS

June 2001

PRODUCED BY

THE CONSUMER AND TENANT RESOURCE CENTRE OUTER EAST

FUNDED BY THE CONSUMER AND BUSINESS AFFAIRS VICTORIA

DIRECT DEBIT

Direct debit has become the payment method of choice by many service providers. When a contract is entered into where a regular payment is to be made, a direct debit can be arranged and an amount can be withdrawn from an account automatically each month or an other stated period. Sometimes the loan or contract is contingent on the borrower signing a direct debit authority to make the payments.

Problems have arisen when the account holder wants to alter this method of payment. Customers have contacted their bank or financial institution to cancel the arrangements only to find this is not possible without the service provider canceling it from their end. The account holder can cancel the arrangement at any time by writing to the holder of the Direct Debit Request. However, a bank is required to comply with any instruction from its customer countermanding a Direct Debit Request whether or not that instruction has also been sent to the debit user. If there is a problem you can contact the Centre, or if the account is held at a bank, the account holder may contact the Australian Banking Industry Ombudsman.

Customers also need to be aware of charges associated with Direct Debit. Dishonour fees are problematic, we have heard of a bank attempting to draw funds three days in a row, which resulted in the tripling of the dishonour fee because funds were not available. Some banks or financial institutions are charging $25 to cancel a direct debit.

If you require any more information regarding Direct Debit ring the Centre on 9761 0288.

OLDER AND WISER

Older people can be at risk of being ripped off. They may be seen as easy targets by the few unscrupulous traders in the marketplace. All consumers, regardless of age, should be aware of their rights and responsibilities when dealing with traders.

Smart consumers know how to shop around, how to compare prices and quality, the level of after-sales service to expect and what a warranty covers. They also know when they are entitled to a refund, how to use lay-by and how to complain if problems occur.

Consumer and Business Affairs Victoria has produced a booklet entitled Older & Wiser which covers a number of current and relevant consumer issues including the latest scams, internet shopping, door-to-door sales, wills, power of attorney, funerals and many more. It has been designed to help older people make informed decisions and avoid common pitfalls when buying products and services.

Copies of Older & Wiser as well as other consumer and trader and tenant and landlord information can be obtained from the centre by ringing 9761 0288.

CONSIGNMENT SELLING

Have you bought something from a store, to find out later that it was there on consignment and when you went back to seek a refund or warranty you were told by the trader 'bad luck - they're not my goods - I don't have to do anything about them'. This is completely untrue - goods sold on consignment - whether the consumer knows they're on consignment or not is irrelevant. These types of sales are protected by all consumer legislation. Your contract is with the store you bought the goods from and therefore they must honour any refund or warranty obligations given to you by consumer legislation.

TENANT'S CHECKLIST

This checklist has been designed to assist prospective tenants select a property that suits their needs. Often, particularly if properties are inspected at night, the absence of important amenities or facilities is overlooked.

Things to think about in every room: Are there adequate smoke detectors? They are compulsory! Do all of the doors and windows open and shut properly, have flyscreens and adequate locks? Are there adequate power points and is there a safety switch? Is there enough storage space? Are there blinds or curtains on all the windows? Living Room Does the living room have heating? It is not compulsory! What sort is it? Gas is usually cheaper to run than electric. Is there a TV outlet and an antenna? Is there a telephone connection? Kitchen Is there an exhaust fan or range hood for use during cooking? Is there enough bench and cupboard space? Is there any sign of vermin e.g. rats or cockroaches? Bathroom and Toilet Is there any sign of mould? Is there an exhaust fan? Are the toilet and the shower rose water efficient? Outdoor area Does the house have outdoor/security lights? Can you maintain the garden? Are there taps and hoses for watering? Is there a clothesline? Other things is public transport nearby? Is the property on a busy road or near noisy factories, school, railway line or pub?

In most cases, if you move into a property and something is broken and in need of repair the landlord will be required, by law, to carry out repairs. The landlord is not, however, required to provide most of the amenities outlined on this list. Therefore, it is essential that prospective tenants scrutinise a rental property before a lease is signed. Any promise that is made by the landlord or estate agent to provide any items that are be missing should be in writing. When tenants move into a property they should ensure that they fill in their condition report in detail. Perhaps also take photos or a video of the premises. If these things are done, there will be less likelihood of dispute at the end of the tenancy.

MOULD IN RENTAL PROPERTIES

With the onset of winter, mould could be just around the corner. Rectifications of some mould problems are in the hands of the landlord. Apart from the unpleasant smell and sight, mould is insidious enough to creep over personal belongings, sometimes causing damage to clothing and bedding and even health.

If mould is caused by leaking spouting, roofs or taps or similar, then it is a general repair issue that the landlord must attend to. The reason for mould can be difficult to identify. If it is not due to lack of maintenance on the landlord's part, there are things that a tenant can do to reduce the effect of mould.

It is important for tenants to adequately heat the property during winter, turn exhaust fans on when using the bathroom or kitchen and whenever the opportunity arises open windows to allow good ventilation of the property. If there are not exhaust fans in the bathroom or kitchen and there is a mould problem it would be worth suggesting fans to the landlord as a possible solution to the mould. If on the other hand your heater is not working you should contact your landlord or property manager immediately so this urgent repair can be carried out.

When first choosing a rental property it is important to note if it has adequate heating - particularly old properties in damp areas as they are prone to mould. If there is no heating a landlord does not have an obligation to provide any, he only has to ensure that any heating that is their works property.

If you are having problems with mould and not sure of your rights give us a call on 9761 0288.