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Case Reports - Civil Law Sucked in, spat out but saved by Legal Aid Some months ago, our Newcastle Civil Law Centre was plagued by a string of cases involving Kirby Vacuum Cleaners and Avco Financial Services Pty Limited. Our clients, all people with mental or intellectual disabilities living in Department of Housing units, alleged that door-to-door Kirby sales representatives or “agents” used unfair tactics to sell them expensive industrial sized vacuum cleaners that they did not want or need. Kirby nominated a cash price for the vacuum cleaners of just under $3,000. Avco has a profitable arrangement with Kirby which ensures that the indigent housekeeper with a prayer rug can end up the proud owner of a monster vacuum. The only catch is that the finance is lent at interest of 28% so they pay almost $4,400 by 36 monthly instalments which, at more than $120 per month barely leaves enough from the Disability Support Pension for a beer at the club on Saturday. These vacuum cleaners have fabulous functions like foot massaging vibrators, a sander and spray painter but our clients tell us that they were not physically able to work them. Two of our clients’ carpet areas were minute and hardly worthy of the brute and the others were perfectly happy with their traditional Hoover - a faithful machine taken from the home as a trade-in. The agents got into our clients' homes on the promise of a free carpet cleaning demonstration yet most say that the sales pitch did not include a demo, leaving the cleaner, not the clean carpet. Our clients could not read and did not understand the contracts. They say that little or no attempt was made to explain their obligations under the contracts, nor was any consideration given to our clients’ ability to meet payments. The contracts were ultimately signed after the agents had been in our clients' homes for up to three hours. We wrote to Avco detailing our clients' allegations of unjust dealings and alleging a series of breaches of the Consumer Credit Code. Manager General Law, Ben Slade raised the allegations in a meeting with the Managing Director of Avco, and for all but one of our matters, Avco have rescinded the contract, repaid all monies with interest and even let our clients keep the Kirby vacuum cleaners if they wanted. Oddly enough, most wanted their old one back. If any other examples of this practice are seen, please contact Catherine Renshaw and Alex Grosart in our civil law centre in Newcastle on 02 4921 8666. Back to full list of case reports |
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