Television Hire Abuses Discovered In Survey

Press, Volume CVI, Issue 31134, 10 August 1966, Page 12

Television Hire Abuses Discovered In Survey

Some television hire companies are making an unfair, but legal, profit from a loophope in a new amendment to the Hire-Purchase and Credit Stabilisation Regulations, according to the Consumer Council’s “Consumer News.” The amendment requires that 12 weeks’ rental has to be paid in advance before a TV set is hired. A survey was made by the Consumer Council after allegations that this was being abused. The most common abuse involves treating the 12 weeks’ rental as a deposit, refundable after a period specified in the agreement, and usually two or three years. After two years, the survey report states, this refund may be forgotten, so it is left to the integrity of the company to return it Two other abuses were found by the survey. One firm kept the payment as an extra net gain, and in the other case, the “down” pay-

ment was only credited for one or two months, instead of the full three months. “Provided 12 weeks’ rent is paid in advance, the hire agreement is lawful and ‘Consumer’ considers that 12 weeks’ advance payment entitles the hirer to 12 weeks’ rental holiday and believes that this was the intention of the legislation,” the report states. “It is apparent that some firms are making hay before the television shines by not offering value for the advance payment. Two Wellington companies said that additional money was, needed to cover servicing, licence fee, installation. possible default and insurance. How did they get on before the payment was necessary?”

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