Major retailer Harvey Norman will face allegations that it lured customers in with false promises of “interest-free” loans.
Carter Capner Law said it has launched a class action against Harvey Norman after customers were allegedly hit with hefty fees and charges and supplied with credit cards they did not request.
It comes after the Federal Court found in October 2024 that the retail giant and Latitude Finance Australia misled customers with a supposed 60-month “interest-free, no-deposit” promotion.
Carter Capner Law director Peter Carter said the actual deal was “vastly different to what Harvey Norman promised, with consumers having to sign up for credit cards and being hit with fees and charges not advertised”.
“When you buy a big screen TV and are told you’re getting ‘five years interest-free’ you should be confident you’ll get your TV without being charged interest, but that’s not what was happening,” he said.
A customer told Carter Capner Law he was allegedly compelled to sign up for a credit card with Latitude Finance to purchase two items and was surprised to learn he would have to pay a $25 set-up fee and a monthly service charge that started at $5.95 but escalated to $8.95.
Carter added that the customer was also allegedly supplied with a $10,000 credit limit he did not request.
A second customer was allegedly handed a credit card with a monthly fee that came to around $550 over five years.
On top of this, the customers were not completing the “interest-free” applications themselves, Carter alleged.
“Clued-up salespeople were gathering consumers’ personal information, including bank details, and applying for credit cards with a limit determined by the credit provider after guesstimating each shopper’s financial position,” Carter added.
Naomi Neilson is a senior journalist with a focus on court reporting for Lawyers Weekly.
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