CONSUMING MATTERS

September 2002

PRODUCED BY

THE CONSUMER AND TENANT RESOURCE CENTRE OUTER EAST

FUNDED BY THE CONSUMER AND BUSINESS AFFAIRS VICTORIA

YOUTH CREDIT BROCHURE

A new brochure to help young people better understand credit and avoid its pitfalls has been developed by the Consumer and Tenant Resource Centre.

Young people are often not aware of the dangers of credit and the many hidden costs associated with it. They are at risk of spending up big and then being hit with a huge bill they cannot afford. Concerns about the high level of indebtedness among the young lead the Centre to develop a youth friendly brochure designed to arm them with the knowledge and understanding to use credit wisely.

The brochure was launched at Wantirna Secondary College earlier this month and was very well received with comments that this would not only be of interest of the young but would assist anybody not experienced in credit

The brochure will be distributed to Year 11 and 12 students in Yarra Ranges, Knox and Maroondah, it can also be obtained from calling the Centre on 9761 0288.

CHANGES TO BUILDING LEGISLATION

Thinking about renovating or building, there are changes to builders warranty insurance that came into effect from the 1 July 2002. The threshold for building work having insurance will rise from $5,000 to $12,000. Insurance will cover non-completion, structural defects for six years and non-structural defects for two years, only in the case of the death, disappearance or insolvency of the builder. In all other cases, the builder will be required to fix defective work.

A domestic building dispute resolution process has been set up known as the Building Advice & Conciliation Victoria (BACV). Consumers and builders can obtain advice and assistance, as well as mediation on all building matters. It was created to reinforce consumer protection following the changes to builders warranty insurance. If a problem can't be resolved the advisors may refer the case to the Building Control Commission staff with the technical expertise to arrange a site inspection and evaluation of the work in dispute. Builders refusing to fix faulty or poor quality work may be referred to the Building Practitioners Board for disciplinary action.

The system is designed to prevent bad builders from continuing to work, enforce compliance among builders in the industry and ensure that consumer and builders with genuine problems can have their disputes resolved early in the process, without having to rely on insurance, which can be a time consuming process.

VICTORIA'S TOP SCAMS

A fax promising instant weight loss and a chain letter claiming to make you a millionaire are among the most frequently used scams duping Victorian consumers. Unfortunately, an increasing number of people are being lured by false promises of lottery wins, instant wealth or effortless work-at-home jobs.

The fax-back fraud is one of the top 6 scams circulating at the moment. Unsolicited faxes are sent that offer consumers information on a variety of subjects. The fax may advertise diets, either a '4-Day Diet' or improved sexual stamina through the'5-Day-Diet', employment and acting or modelling work. Consumers respond by completing and returning the fax to a 1900 number. The catch is, the fax contains large amounts of black ink which takes time to transmit at a rate of $5.50 a minute. The fax can take up to 10 minutes to complete so some consumers have received a bill for $55 - a costly exercise and clever ploy by marketers.

Consumer Affairs is asking consumers to send suspect material to PO Box 123A, Melbourne 3000 for assessment. Call us at the Centre for more information on Victoria's top 6 scams and/or to obtain a copy of The Little Black Book of Scams. The more consumers know about these cons the less likely they are to be ripped off.

EARS UPDATE

The Estate Agents Resolution Service (EARS) has been operating now for three months. There has been a strong demand for this service. EARS received 3500 phone calls and 257 written complaints between May and August 2002.

The dominant issues were; professional misconduct (32%), the wording of documents such as contracts, authorities and leases (29%) and charges and commissions (12%).

EARS offers face-to-face mediation which may limit the need for costly legal remedies. A number of cases involving alleged under- and over-quoting, dummy bidding and incorrect or illegal completion of documents have been referred to Consumer Affairs Victoria for investigation and possible prosecution. EARS can be contacted on 1300 737 030, by fax on 9627 6286 (new number) or in writing to 452 Flinders Street, Melbourne 3000.

UNCLAIMED BONDS

The Residential Tenancies Bond Authority is holding $318,344 in uncollected bonds because cheques have been raised by a Bond Claim Form or VCAT order and then not cashed by the claimant. Individual amounts range from $100.50 to almost $12,000.

The easiest way to have a bond reimbursed by the Authority is to nominate a bank account when filling in the Bond Claim Form. Make sure all details are filled in on the form before signing it. Never sign unless all the relevant sections are completed.

The Residential Tenancies Bond Authority can be contacted on 9627 6143 or 1300 137 164. You can also check if there is an outstanding bond in your name in the government's General Gazette No. 20 at www.gazette.vic.gov.au/gazette

TENANTS NEED HOUSE CONTENTS INSURANCE

Many tenants do not have contents insurance. They believe their goods are not worth enough to warrant the extra cost of insurance. It is not until a burglary takes place that they realise how much replacement of the stolen goods will cost. This is often because the goods have been accumulated over time and not paid for all at once.

In a shared tenancy situation all tenants must sign the insurance documents in order to be covered. When a co-tenant moves out, s/he must notify the insurance company in writing. Only the signatory can remove her/his name from an insurance policy.

wwwhere to go for online answers

Your easy way into Government channels is www.channels.vic.gov.au or contact the Consumer & Tenant Resource Centre on 9761 0288 regarding the other websites you can visit for more information about health, education and training, the law made clear and simple and tourism.