Be Scam Smart

Interest Free Case Study
Steven and Jane decided to buy a lounge suite from a major retail chain on a 24 month interest free offer. They signed the contract and took the lounge home. Soon after, they received a credit card in the mail. They had not read the fine print and hadn’t realised that the interest free offer meant they’d signed up for a credit card.

Fortunately they decided to check the minimum monthly payments to ensure the lounge was paid off within the interest free period. They discovered $970.52 of the $2000 would still be unpaid when the interest free period ended if they only paid the minimum. When they took the interest charges into account the lounge would cost an extra $517.48, and take an additional 3 years and 6 months to pay off.

In many cases interest free offers can be a great way to purchase an item, however make sure that you can pay off the amount within the specified time, and be aware of higher interest rates and clauses if you cannot make payments within the interest free period.

Fair Go on Refunds
With the summer sales in fill swing, it is important to know where you stand when it comes to your purchases. Consumers should be aware that your basic refund rights apply regardless of if the item is on sale or not. Goods can be returned with proof of purchase, and a refund, exchange or repair gained if the goods:

• Were faulty when they bought them and consumers are unaware of this fact
• Did not match the sale person's or advertisements description
• Did not match the sample shown or
• Did not do the job the consumer was led to believe

Consumers are NOT legally entitled to a refund if they:

• Change their mind or no longer want the goods
• Realise they can't afford it
• Find the same item cheaper elsewhere
• Know about the fault before buying or
• Cause the fault

For more information on your refund rights, get a copy of the 'Fair Go' guide from your local Office of Fair Trading.