In 2003 Maurice Blackburn acted on behalf of over 150 consumers
in proceedings in Victoria and New South Wales relating to the
failure of Avco Financial Services to disclose financial
information concerning credit contracts as required by the Credit
Act 1984.
Some of the information that Avco failed to disclose
included:
- Non disclosure of fees and charges
- Non disclosure of the interest rate
- Failure to disclose insurance commissions
In the course of the proceedings Maurice Blackburn obtained
statements from over 50 clients raising serious allegations
concerning Avco clients including:
- Harassment and other poor collections practices
- Consumers being unaware that the financial arrangements they
entered into included security being taken over their home
- Excessive interest rates
- Insurance costs being included in their loan contract either
against their wishes or without their knowledge
Settlement
The case for each client of Maurice Blackburn settled on terms
not to be disclosed, although we can say that the terms were
beneficial to our clients.