The Australian Consumer Law and unfair contracts

In July 2010 and January 2011, new national laws were introduced to protect consumers from unfair terms in contracts. The Australian Consumer Law website provides information about these changes. These laws include changes to consumer contracts for financial products, and for the supply of financial services.

The Australian Securities and Investment Commission (ASIC) also has important information about 'standard form consumer contracts' which can include contracts for telecommunications, utilities, domestic building and finance agreements.

The Office of Fair Trading can also provide more information about quotes and contracts, including information about the types of contract terms that might be considered unfair.

What should I look at when entering a mobile phone contract?

First, you should think about whether you need to sign up to a contract. A prepaid mobile phone helps you to manage how much you spend on your phone and doesn't commit you to a long term contract.

If you are signing a contract, make sure you know how long you are committed for and how much you will have to pay each month. You will have to pay this amount whether you use the phone or not. Remember if you make more calls than are included you will have to pay extra. It is also important to find out if you have to pay a penalty if you change your mind and want to get out of the contract. There is usually a penalty.

ASIC's MoneySmart website provides helpful information about buying a mobile phone, including deciding on a pre-paid plan or a contract, warranties and insurance, and what to do when you have problems with your mobile.

Do I have to pay if someone else made calls on my phone?

Even if you have agreed with somebody else that they will pay for your phone calls on your phone you will have to pay the telephone service provider if that person does not pay for their calls.

Can I be a guarantor on a phone contract for someone else?

Being a guarantor means that if the person who owns the phone doesn't pay the bill, you have to. Usually standard phone contracts do not provide for guarantors. Often people who believe they were guarantors find they are noted on the contract as co-owners and are responsible for all payments.

ASIC's MoneySmart website has important information about what is involved in being a guarantor.

What do I do if I have a problem?

MoneySmart provides information on what to do if you have problems with your mobile phone.

If you have a complaint about a service provider you can contact the Telecommunications Industry Ombudsman.

These organisations may also assist with your matter. They do not provide legal advice.

Australian Competition and Consumer Commission (ACCC)

The ACCC has information about

• How to make a complaint or resolve a consumer problem
• When things go wrong - all about consumer guarantees, warranties and refunds
• Understand your consumer rights and learn some shopping tips
• Learn about mobile phones, landlines and internet services
• Find out about product safety alerts and labelling requirements

The ACCC and ASIC have produced a new publication about your rights and responsibilities when you owe a debt, called Dealing with Debt

ASIC's MoneySmart

The Australian Securities and Investments Commission have powers to protect consumers against misleading or deceptive and unconscionable conduct affecting all financial products and services, including credit.

The MoneySmart website is maintained by ASIC to provide independent guidance for consumers making decisions about their personal finances. They provide information about

• Managing your money, including banking and managing debts and insurance
• Borrowing and credit , including credit cards, consumer credit regulation and loans
• Superannuation and retirement
• Investing
• Scams, including how to avoid a scam and how to report a scam.

MoneySmart can also offer helpful information about important life events, including

• Buying a mobile
• Starting work
• Buying a car
• Buying a home
• Having a baby
• Losing your job
• Divorce or separation
• Losing your partner

CHOICE Online

Choice is a consumer advocacy group which campaigns to protect and assist consumers through changes to laws and industry practices. Choice publishes regular articles relating to Consumer Protection, Money, and other consumer related issues.

Insolvency and Trustee Service of Australia (ITSA)

ITSA provides information about bankruptcy, including how to become bankrupt, making a person bankrupt, what debts are covered, consequences of bankruptcy and more.

Office of Fair Trading (Department of Employment, Economic Development and Innovation)

The role of the Office of Fair Trading (OFT) is to ensure the marketplace remains fair and safe for both consumers and business. OFT can help with the following matters:

• Guarantees, warranties and refunds
• Making a complaint about a business
• Consumer rights and responsibilities about refunds, lay-bys, deposits, advertising, credit and finance, pricing, quotes and contracts
• Indigenous consumers - your rights and responsibilities about purchasing cars, borrowing money, shopping, mobile phones, gyms, scams, refunds and warranties, and how to make complaints
• Property - buying and selling your home, information for residents of retirement villages, boarding houses and hostels
• Motor vehicles - buying and maintaining a new or used car, and dealing with car repairers
• Scams and frauds, and how to recognise and protect yourself from scams
• Products and services - buying and using selected products and services
• Consumer alerts
• Product safety and recalls

Privacy Commissioner

The Privacy Commissioner handles complaints about misuse of personal information and inaccurate credit reports.

Queensland Civil and Administrative Tribunal (QCAT)

QCAT can hear debt disputes, consumer and trader disputes and other minor civil disputes, if the amount is under $25,000. You should try to resolve your dispute with the other party before asking QCAT to hear your dispute.

VEDA Advantage

VEDA Advantage handles complaints about inaccurate credit reports. They are the major credit reporting agency and can provide you with a free copy of your credit report.

Telecommunications Industry Ombudsman (TIO)

The TIO provides free alternative dispute resolution scheme for unresolved complaints about telephone or internet services.