Radio Rentals has agreed to refund money to customers as part of the proposed settlement of the Radio Rentals Class Action in the Federal Court of Australia.
The Federal Court has ordered Maurice Blackburn Lawyers to display a copy of the Settlement and Opt Out Notice and Covering Letter on this website.
You can view a copy of the Settlement and Opt Out Notice here.
What is the Radio Rentals Class Action?
This class action was started in 2017 in the Federal Court by Ms Simpson, represented by Maurice Blackburn Lawyers.
The claims in the class action were that Radio Rentals’ customers paid too much for their Rent Try $1 Buy rentals, that Radio Rentals did not tell customers about all the costs and some terms of the rental were unfair.
Who are the Group Members in the class action?
The Group Members are people who started a Rent Try $1 Buy lease with Radio Rentals between 28 March 2011 and 29 March 2017 in any state except South Australia.
If you are a Group Member, you should receive a personalised Settlement and Opt Out Notice by post, email and/or text message between 11 November 2019 and 29 November 2019.
What are the refunds about?
Group Members will get a refund of part of the money they paid to Radio Rentals. This will only happen if the Court says the refunds are fair.
Radio Rentals and its insurance company have agreed to pay money for refunds to Rent Try $1 Buy customers, without admitting any liability.
This settlement means the case does not have to go to trial but still has to be approved by the Federal Court.
If you are a Group Member, a Settlement and Opt Out Notice will be sent to the contact details provided to Maurice Blackburn by Radio Rentals. You need to register using the personalised code in your Settlement and Opt Out Notice by 31 January 2020.
If you register for a refund you can’t have your own separate case against Radio Rentals.
How will the refunds be worked out?
The refunds will be worked out based on how much Group Members paid to Radio Rentals for their Rent Try $1 Buy rentals. The refund will be part of the money Group Members paid between 28 March 2011 and 29 March 2017. The way this is worked out also needs to be approved by the Federal Court as fair.
When will refunds be paid?
We expect refunds to be paid in April 2020.
What does opt out mean?
If you are a Group Member and you want to opt out of the class action, you will not get a refund in the settlement, but you will still be able to bring your own separate case against Radio Rentals.
If you think you might want to do this, before you opt out you should get your own legal advice about your claim and the time limit for you to start it. If you want own separate case against Radio Rentals, then you should not register for a refund but should opt out by 4.00pm on 31 January 2020.
If you do nothing, then:
- you will probably not get a refund because we won’t have your bank account details to pay it; and
- you will not be able to have your own separate case against Radio Rentals.
What happens for the Federal Court to approve the settlement?
There will be a hearing in the Federal Court in Sydney where a judge will decide whether the settlement and refunds are fair.
At the hearing, the judge will be asked to approve the plan for how refunds are calculated and paid. The judge also has to approve any legal fees before they can be paid. The judge will also appoint a ‘claims administrator’, who will organise the refunds.
This hearing will be on 20 December 2019 at 10.15 am at the Federal Court of Australia, Queens Square, Sydney NSW 2000.
What are the main points of the settlement?
The main points of the settlement the Federal Court will be asked to approve are:
- Radio Rentals and its insurance company, AIG, agreed to pay a total of $29 million, $25 million from Radio Rentals and $4 million from AIG. Radio Rentals and AIG have not admitted any liability.
- This money will be used to pay refunds to Radio Rentals customers who started Rent Try $1 Buy rentals between 28 March 2011 and 29 March 2017 (except in South Australia) and who register for a refund.
- The way refunds are calculated and the process for paying them have to be approved by the Court as fair before any refunds can be paid.
- Anyone who gets a refund as part of the settlement cannot have their own separate case against Radio Rentals for their Rent Try $1 Buy rentals.
- The costs of running the class action and administering the settlement must also be approved by the Federal Court as fair and reasonable. These costs will be paid from the settlement money paid by Radio Rentals and AIG.
Where is the statement of claim and other legal documents?
View the Further Amended Statement of Claim
View the First Respondent’s Defence
View the Second Respondent’s Defence
View the Third Respondent’s Defence
I have more questions. What should I do?
You can get advice from your own lawyer or you can email us at email@example.com or call 1800 216 113.