Q: I bought a cellphone in May, and every time I make a call, it hangs up. It is under warranty but The Warehouse wants to charge me $55 to send it away, which, if it is covered by warranty, I will get back and if not, I won't. Can they charge this fee?
A: Not really. But most places do. The Telecommunications Dispute Resolution scheme has told members they shouldn't be doing this as they have "no ability to charge a fee prior to assessing a mobile phone for damage".
Under the Consumer Guarantees Act, assessment fees are not illegal. The Ministry of Building, Innovation and Employment says retailers generally charge a bond when they have to outsource the investigation of faults.
"It also helps them avoid being stuck with unwanted goods and assessment fees for false claims." But they said if the fault was obvious, you could insist that it be rectified without paying a bond.
You may also have a case if the bond is standing between you and your rights under the Consumer Guarantees Act, for example if you might struggle to pay it. "Businesses have obligations to consumers to provide remedies."