‘Unconscionable’: Centrepay used to ‘exploit’ vulnerable Aussies

Some of Australia’s most vulnerable people are being taken advantage of in shocking fashion, a new investigation alleges.

A shocking new investigation has revealed that many of Australia’s most vulnerable are being exploited by businesses who are using Centrepay to help them shake-down the elderly for all they’re worth.

Centrepay is a tool designed to help people who use Centrelink pay for essentials like rent or bills through automatic deductions.

However, an investigation by the ABC’s 7:30 program has uncovered allegations from some financial counsellors who claim the government service is being misused by providers to exploit those most at risk of harm.

Those most at risk, like pensioner Janene Thacker, are facing bills they are simply unable to pay. Picture from ABC.

Disability pensioner Janene Thacker signed up to a Centrepay agreement for a Samsung phone from an appliance rental company.

However, it turns out she was getting far more than she had bargained for.

“I thought, yay, I got this brand new phone, this is awesome. I loved it. I felt like I was up there for a little while. You know what I mean?” she told 7:30.

While the phone retailed for about $1,800 in stores, Thacker had unwittingly signed an agreement that meant she was on the hook for a whopping $7,000.

“When you’re sent the e-sign contract, you literally – you know – unless you’re pulling it up on a full-sized PC or something like that, you can’t see it. It’s over your head. You’re not initially thinking about what you’re going to be paying,” she explained.

As a result, at one stage more than one third of her disability pension, which she used to pay rent and buy groceries in order to live, was going to appliance contracts.

“I fell very behind in my rent. Do I feed myself? Do I feed my animals? Do I pay rent? What do I do? I’m stuck,” she said.

'Do I feed my animals, myself?': Pensioners are facing heartbreaking consequences. Picture from ABC.

Financial counsellor Caitlin Bender, from Anglicare NT, said the abuses that are being allowed to take place are “not only unethical, but unconscionable”.

She told 7:30: “It makes my blood boil, to be honest. I think that’s not only unethical, it’s unconscionable. How those businesses are allowed to conduct themselves through Centrepay just astonishes me.”

In 2023, it was announced that the Australian corporate regulator (ACIS) had launched legal action against Rent4Keeps Australia for breaches of the credit act. ASIC accused Rent4Keeps of using a business model designed to avoid protections for vulnerable consumers.

“Yes, they may be brand new products, but you just are paying four times the money for them,” added the pensioner.

“How do – how do these companies get away with that?”

A legal representative for Rent4Keeps Australia told 7:30 that the company intends to “vigorously defend” itself against ASIC’s allegations in court.

Meanwhile, Services Australia has insisted that it is focused on ensuring Centrepay is fit for purpose and is “working across government to stamp out predatory behaviour.”

However, with work still to be done, those most at risk are still facing rising bills and with no viable way to pay them.

“I’m angry, I’m annoyed,” added the pensioner.

“These companies are getting away with doing this to innocent people, ruining people’s lives in a sense.”