CONSUMING MATTERS

September 2003

PRODUCED BY

THE CONSUMER AND TENANT RESOURCE CENTRE OUTER EAST

FUNDED BY THE CONSUMER AND BUSINESS AFFAIRS VICTORIA

GOING FOR BROKE

The Consumer and Tenant Resource Centre Outer East is proud to announce the launch of the ‘Going For Broke’ play that is now being performed in Secondary Schools in the Outer East. Helen Buckingham, MLC for the Koonung Province, launched the play on 15/9/03 at Waverley Christian College and from all reports, the play was extremely well received by the students, conveying a serious message in a humorous manner.

The Consumer and Tenant Resource Centre was successful in receiving funding from the Consumer Credit Fund to produce ‘Going For Broke’ which is a play aimed at young people about the pitfalls of debt, mobile phones and how easy it is to overspend on credit cards. The original format of the play was developed and performed by the Consumer and Tenant Advice Service in Wangaratta. We were fortunate enough to be given the opportunity to run our own version of the play in the Outer East. With the fantastic direction of Helen Sandercoe, an energetic and ‘cool’ version was developed with considerable input from the young performers, Natalie McFall, Cameron Venn, Mel Rogers, Heather Grant and Bart Arundell.

If you would like to arrange a free performance for a group of young people we would love to discuss this with you further. Contact Denise Budge at the Consumer and Tenant Resource Centre on 9761 0288.

ON-LINE AUCTIONS

On-line auctions have become a popular place to look for bargains, rare items and collectibles. They offer buyers an endless range of merchandise from around the world. But as more people scrounge through the offerings on sites such as eBay and Yahoo more and more are getting stung.
When people buy from an auction site they are generally buying from an individual or business, not from the auction site itself. Most auction sites have disclaimers limiting or waiving liability for either the conduct of the buyers/sellers or the condition of the goods being auctioned.

In Victoria items bought at auction are subject to the same warranties implied in all consumer sales. If an item doesn’t turn up, is faulty or is not what you expected you would need to contact the seller directly. If you don’t receive redress and have paid via credit car, contact your bank and see whether they offer a ‘chargeback’ service. Some auction websites have a limited insurance policy for buyers. If the trader is located in Victoria, you may file a claim with VCAT, but if the seller is located in another state you should contact that states Fair Trading Agency, and if the trader is located overseas, contact the ACCC for advice.
Most internet auction frauds occur when you are dealing with an unknown third party. To minimise your exposure to fraud you need to read the terms and conditions of the auction company’s website. Before bidding, verify the seller’s identity and contact details. Check the seller’s ‘form’ in the feedback forums. Take precautions and you should have happy hunting on the internet.

DIRECT DEBITS

Lots of people join gyms or subscribe to services which require monthly payments. To save the hassle of remembering to pay on time each month, people often sign up for a direct debit. However, some institutions use a third party to manage their financial affairs. So when you decide not to renew you subscription and stop attending the gym, don’t assume that your payment will stop. The direct debit authority has to be cancelled in writing, to the supplier of the service or the company acting on its behalf. You will have to give some advance notice to ensure that your direct debit stops at the same time as your gym subscription does.

GOING MOBILE

Before you rush out and buy your mobile, you should think carefully about the financial and contractual obligations you may be entering into.

TOP 10 TIPS FOR BUYING A MOBILE

1. Shop around. Don’t buy the first phone or sign the first contract you see.
2. Don’t rely solely on coverage maps provided by the carriers. Ask friends and family for their recommendations.
3. Make sure you sign a contract for a service that covers your local area and areas which you may be travelling to on a regular basis.
4. Remember if you sign a contract, you are responsible for paying the bills, so make sure you read and understand it. Don’t sign it if you don’t understand it!!
5. Consider buying a pre-paid phone service. Paying upfront means you will avoid big bills at the end of the month.
6. Mobile phone contracts are legally binding and are usually difficult and expensive to cancel before the term has expired.
7. Be wary of deals offering free or cheap mobile phones as the actual cost of the handset is probably included in the monthly contract price and with higher call charge rates.
8. If your phone is only for emergencies, think about buying a second hand phone and connecting to a carrier with no monthly fees.
9. Be aware that many mobile phone contracts involve two separate contracts – one with the service provider and one with a dealer for supply of the handset. Make sure you know the names of both the companies.
10. Remember payment terms of contracts usually include a minimum monthly charge plus call costs. If you don’t pay the monthly charge, the service provider may have the right to suspend the service while continuing to charge the monthly fee.
    

RENT INCREASES

There is now a new process for increasing the rent. Tenants cannot be given a rent increase more than once every 6 months. Landlords must give 60 days notice in writing of the increase and it must be in the prescribed form. If the notice is sent by mail, 2 extra business days must be allowed for delivery. The notice can only provide for one rent increase. It must also advise of the tenant’s right to apply, within 30 days of receipt of the notice, to Consumer Affairs for an inspector to investigate the proposed increase, if the tenant believes the increase is unreasonable. If a rent increase notice doesn’t meet all of these conditions it is invalid.

Tenants can request a rental inspection by writing to The Director, Consumer Affairs Vic, Level 2, 452 Flinders Street, Melbourne 3000.
The inspector will look at the state of repair of the property, the facilities and any services provided and compare the rent charged with that of similar properties in the same area. After the inspection the inspector will provide a written report to the tenant who can then apply to the Victorian Civil and Administrative Tribunal to ask a referee to determine if the rent is excessive. Application must be made within 30 days of receiving the report.

'STUFF'

‘Stuff’ magazine is produced for Year 12 students and multiple copies are mailed to every school in Victoria. It contains lots of information of use to young consumers on a wide range of topics such as health, elections, dealing with the police, banking as well as consumer issues. We have copies of ‘Stuff’ at the Centre. If you would like a copy give us a ring on 9761 0288.