Issue Date:  -  Friday, 20 January 2006

Westpoint Corporation Pty Ltd Guilty of Door to Door Breaches

The matter was originally scheduled for trial in February however the company entered guilty pleas to all charges today.  The matter was adjourned for sentencing on January 23rd.

The Department of Consumer and Employment Protection had also raised six charges against Norm Carey as director of Westpoint Corporation Pty Ltd, 11 charges against Westpoint Finance Pty Ltd and five charges against Yohannes Adinow, a representative of Westpoint Corporation.

Charges against Norman Carey, Westpoint Finance PL and Yohannes Adinow were today discontinued.

“Westpoint cold called a Perth couple and offered a one day financial education program which included a review of their financial position, development of a financial strategy and the opportunity to purchase a Westpoint property,” Consumer Protection Commissioner Patrick Walker said outside court.

“The company charged the couple $150 for the program but failed to advise them of their rights under the Door to Door Trading Act.

“On the day of the financial education program the couple were encouraged to sign a further contract for $3990 to retain Westpoint for the provision of ongoing financial services,” he said.

The couple opted not to purchase the Westpoint property and became concerned about the lack of service for the ongoing financial arrangements.  They then lodged a complaint with the Consumer Protection and a subsequent investigation revealed that there were breaches of the Door-to-Door Trading Act.   

“I am concerned about companies which have high pressure sales tactics with no regard to laws which protect consumers from such activities,” Commissioner Walker said.

The Door-to-Door Trading Act provides for a 10 day cooling off period that includes the opportunity to rescind a contract within this period.  If a trader does not advise a consumer of their rights then the Act provides for consumers to rescind the contract within a 6-month period.

Late last year, Norm Carey and Richard Beck resigned as directors of Westpoint Finance and the company is no longer licensed as a finance broker.

Consumers who have concerns about door to door trading or have been cold called and require assistance should contact Consumer Protection on telephone number 1300 30 40 54 or email consumer@docep.wa.gov.au