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Four door-to-door shopping companies have been warned that they may be breaking the law by not giving important information to customers buying on credit.
The Commerce Commission warnings have been issued to Lync NZ, Suny Pacific International, Impact Door to Door and The Good Guys. They operate mobile shops in South Auckland, Northland, the Bay of Plenty, Waikato and other areas.
The commission says the companies did not tell customers buying goods on credit about credit fees and charges, how and when payments were to be made, default fees, or annual interest rates and how they were calculated.
They also did not give customers details of security interests taken over people's assets, or tell customers of their rights, including the right to cancel and the right to repay early.
"These contracts are totally deficient," commission fair trading manager Graham Gill said.
"If businesses are going to offer goods on credit, then they have to comply with the Credit Contracts and Consumer Finance Act."
If the companies tried to enforce their contracts, they were likely to breach the Fair Trading Act.
- NZPA
