Centrepay is an online tool designed to help people on Centrelink pay for essentials like rent or bills through automatic deductions. But financial counsellors say the government service is instead being misused by some providers to exploit vulnerable Australians.
Honestly though, isn’t this kind of on the customer for agreeing to it in the first place?
Some things just shouldn’t be allowed, especially when this is aimed at the most vulnerable of society.
Ok, what is it specifically that shouldn’t be allowed here? Renting items? Setting prices higher than somebody else?
In this case it’s through the Centrelink specific Centrepay system. Given it’s a government approved system they can presumably remove approval of this company for any reason, so it doesn’t have to reach a level of law breaking, just an obvious to everyone ethical breach.
In any case, as stated in the article, Rents4Keep are currently being sued by ASIC for breaches of the Credit Act.
Usury is a crime in most places. This kind of transaction is just usury dressed up in the legal fiction of a rental.
I dunno, seems like a pretty big stretch to call equipment rental usury.
Not at all. A rent to own scheme is essentially legally identical to getting a seller or third party loan except for when title passes over to the consumer. In most other respects, especially in outcome, it’s the same transaction dressed up specifically to avoid existing usury laws.
Even Rent4Keeps’s own website calculates costs by comparing it to an installment loan for sale of goods. Doesn’t get more transparent than that.
Interesting point. Though I have to wonder if making it illegal would just change their sales pitch to permanent rental, instead of rent to own. Ultimately, I feel the solution should lie more in educating consumers on financial literacy.
You can crack down on predatory lending and educate consumers. However, you’ll never be able to educate the average consumer to be immune from sophisticated schemes simply because most people have other things to do on life and scammers devote a lot more time creating new scams than the average person can devote to learning about avoiding scams.
I’m not sure this qualifies as sophisticated - or even a scam, when everything is specified in plain text.
are you anti consumer protection?
Exactly. Houso’s gonna houso. If she’s going to put her whole life on new item afterpay, you deserve the stupid. This is someone who grew up in these communities and most get next gen tech and second hand/scratch and dent appliances. Just because you didn’t finish school doesn’t mean you can’t be shrewd
are you pro-elderly people being scammed by ‘tech support’?
This 100% qualifies as an unscrupulous trade practice. The pricing is exploitative targeting vulnerable people, making them sign opaque contracts money directly from disability pension and making consumers think there is some level of state approval with the centrepay thing.
It is the job of the state to protect people from these things especially considering they are operating formally.
You are the one who is uneducated for spewing dogshit like this. You are the one who needs to be sent to a re-education camp. Australians are so braindead from neoliberal ideology.
The elderly these days were early to middle aged when the internet became a thing. In the 80s and 90s there was Skase, 419, fucking beanie babies as an example. Ignorance is not an excuse.
fuck that. People should not be preyed on for not keeping up with internet trends
Rent to keep has been going for 25 years. No excuse.
I am apparently the next Mussolini though, if you go by the rest of these comments. It’s like nobody gives a fuck about education any more.