Issue Date:  -  Monday, 24 July 2006

Perth company faces Door-to-Door charges

Ferntree Finance Pty Ltd has been charged with 11 breaches of the Door-to-Door Trading Act 1987 following a complaint over high-pressure sales tactics.

It will be alleged that Ferntree Finance Pty Ltd made an unsolicited visit to a consumer’s home and offered to have a sales consultant visit them to discuss entering into an “Education Program” which would assist with making financial and investments decisions. The cost of the “Education Program” was $49.

Following the sales consultant’s visit, the consumer attended Ferntree Finance Pty Ltd offices, situated at 160 St George’s Terrace, for the purposes of the “Education Program” and ended up also entering into a related Retainer Agreement at a cost of $3990. Both contracts included the provision of advice to the consumers regarding future investment in real estate.

Generally, under the Door-to-Door Trading Act, a contract must exceed $50.00 to be considered a prescribed contract regulated under section 7 of the Act. Consumer Protection will allege that as the Education Program and the Retainer Agreement relate to substantially the same transaction they are therefore contracts regulated under the Door-to-Door Trading Act 1987.

The allegations brought by the Commissioner for Consumer Protection Patrick Walker include that Ferntree Finance Pty Ltd:

Failed to include a statement informing consumers that the contract is subject to a 10 day cooling off period;
Failed to provide a prescribed notice explaining the consumer’s right to cancel the contract; and
Accepted money before the cooling off period expired.

“The Door-to-Door Trading Act affords consumers safeguards against high-pressure sales tactics,” Mr Walker said. “These safeguards include cooling off periods, information about the right to cancel the contract and provision of copies of the contracts.”

The matter is listed for 11 August 2006 in the Perth Magistrates Court.

Media Contact:
Mike Winchester (Dip PR WA   AIMM)
Principal Media Liaison Officer
Consumer Protection Division
Dept of Consumer & Employment Protection
Western Australia

L7, 219 St Georges Tce, Perth WA 6000
Locked Bag 14 Cloisters Square, Perth WA 6850

(08) 9282 0961
(08) 9282 0857
0409 118 982
mwinchester@docep.wa.gov.au
www.docep.wa.gov.au