Your rights when it comes to contracts
If you’ve ever tried to get out of a phone contract early only to be slugged with a steep termination fee, you’ll understand the importance of reading the fine print.
And while there are a number of laws designed to protect consumers from unfair contracts, the responsibility is on the individual to not get caught in the first place.
We’re going to take a look at the most-common unfair contracts, so you can understand the warning signs and what you have to do if you find yourself stuck in one.
What contracts are commonly unfair?
As consumer advocate group CHOICE outlines, the most-commonly unfair contracts are standard choice contracts. In addition, the Australian Securities and Investment Commission (ASIC) notes, “The law does not define a ‘standard form contract’. However, in broad terms, a standard form contract is one that has been prepared by one party to the contract and is not subject to negotiation between the parties – that is, it is offered on a ‘take it or leave it’ basis.”
The reason these contracts are so tricky for consumers is because they are pre-prepared by one party and not tailored to the individual’s needs.
What are the warning signs to look out for?
When you’re signing a contract, it’s important to look for the following warning signs, to ensure that you don’t get caught out by terms beyond your means:
- The contract doesn’t outline the rights and responsibilities of each party.
- The contract has elements that you don’t understand.
- The contract contains blank spaces yet to be filled.
- You feel pressured into signing the contract.
Is it possible to get out of a contract without termination fees?
Well, here’s the tricky part and to be honest a lot of it depends on the nature of your contract. Unfair contract terms for financial services and products are enforced by ASIC, while unfair contact terms for goods and services are enforced by the Australian Consumer and Competition Commission (ACCC). In general, you can try the following:
- Raise the issue with the business itself.
- Tell the business that you think it’s unfair and get the complaint in writing.
- If you can’t get anywhere with the business, contact your consumer protection agency.
Related links:
Who to contact if you have been scammed
4 reasons your mobile phone bill is too large
One billion dollars waiting to be claimed by Aussies