Legal victory important for WA victims of Kleenmaid collapse
Issue Date: - Monday, 26 October 2009
A decision by a Victorian Tribunal in favour of two Kleenmaid customers is significant to many Western Australian consumers who are thousands of dollars out of pocket in the wake of the company’s collapse.
The customers, Kerrie Edmonds and Nathan Evans, took action in the Victorian Civil and Administrative Tribunal (VCAT) against Lombard Finance Pty Ltd, a linked credit provider who financed their purchase of kitchen goods from Kleenmaid that were never delivered.
The Tribunal found the loan contract had been lawfully terminated and ordered Lombard Finance to repay the $9,153 it had received in loan repayments from the two customers.
The Tribunal was told that the finance company extended $6.5 million to almost 700 Kleenmaid customers between July 2007 and June 2008.
Commissioner for Consumer Protection Anne Driscoll welcomed the VCAT decision in a case that she had been monitoring with interest. She said the outcome is important to the many Western Australian consumers who are disputing the validity of their loan contracts relating to their Kleenmaid purchases.
“This is great news for some Kleenmaid customers in WA who were offered finance by lenders linked to the failed company,” Ms Driscoll said.
“The Tribunal’s decision mirrors our view and supports our position that these finance contracts should be rescinded considering the goods were never received.
“Consumer Protection is currently reviewing complaints from a number of WA consumers who are in a similar position and are questioning the validity of contracts totalling more than $90,000.
“We would like to hear from any other consumers who may have taken out a loan for Kleenmaid products but never received the goods. They can call our Contact Centre on 1300 30 40 54 or email us at consumer@commerce.wa.gov.au.”
Kleenmaid went into liquidation on 25 May 2009. Since then, Consumer Protection has received 135 complaints from WA consumers who claim to have lost significant amounts of money – one consumer reported losing $60,000.
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Media Contact: Alan Hynd
9282 0961 or 0429-078791