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   TIO Talks 39
www.tio.com.au
  
    Issue 39, October 2007
 
     
 
5. Case Notes: Example three
 
 


Example three

A small business owner was approached by a salesperson at her place of business, after a call and appointment had been set up by a telemarketing consultant who had contacted her. The salesperson offered, at a cost of not more than $450 a month, to take over the small business owner’s business and residential landlines.

The salesperson also offered a free dishwasher if the owner agreed to a four-year contract for the telephone services. The salesperson offered the owner $400 worth of monthly line rental credits and call credits. The owner signed the contract.

She came to the TIO a few months later, seeking to be released from the contract. She said:

  • her account had been direct debited twice in early September 2006 for $465 and once more for this amount shortly thereafter (three direct debits in a month)
  • these debits were in addition to payments she already made for the telephone services
  • these debits had significantly affected her cashflow for that month
  • she then discovered that these debits were for the dishwasher, which was on a finance contract with a finance company; something she was unaware about
  • the line rental credits and call credits had not been provided in full and her telephone bills were much higher than with her previous provider.

    • The owner stated that she had no real need for the dishwasher but had only agreed to receive it as the salesperson had said it was "free". When she attempted to return it, she was advised that it would cost her $15,000 to be released from the finance contract.


    		 
         
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