Household goods business Mr Rental to return $300,000 to clients
MR Rental will refund more than $300,000 to 1560 customers after the corporate watchdog found it was unfairly charging a contract termination fee.
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A BRISBANE-based household goods rental business will refund more than $300,000 to 1560 customers after the corporate watchdog found it was unfairly charging a contract termination fee.
Mr Rental Australia Pty Ltd has agreed to an enforceable undertaking to no longer charge the "calculation period adjustment" in a settlement with the Australian Securities and Investments Commission announced yesterday.
The company, which rents out whitegoods, furniture, televisions and other electronics, will amend the standard form rental contract used by 52 franchisees, ASIC said.
Mr Rental has also agreed to write to customers who paid the fee, advise current customers the fee will no longer be charged and not enter into any more rental agreements that include the fee.
In a statement released yesterday, the company said that less than 5 per cent of its customers were affected.
Mr Rental said it mistakenly believed it had complied with the National Consumer Credit Protection Act 2009 and the National Credit Code. The company said it would now apply for an Australian Credit Licence.
"We co-operated and worked constructively with ASIC to understand its position and following considerable consultation accepted ASIC's interpretation in relation to our rental agreements," Mr Rental said.
Bribie Island couple Glen and Kerrianne Hickman launched the business in 1991. There are now 20 outlets across Queensland.