Can they do this?

[*LittleMissSummer*]

Last January i took out a contract for two laptops through Rentsmart. All was going great until i lost my job in June last year. I rang them up let them know and they put my account on hold so payments didnt come out again until i gained employment. Which i did a few months later, but then that job didn't work out and i was let off. I rang them back again to let them know but this time they weren't so understanding and said flat out they couldn't hold my payments as i hadn't caught up with my previous payments. So the payment kept trying to come out of my account so i was always hit with the dishonour fee from my bank, eventually it totalled that i was hundreds in arrears in my bank account as i had no money coming through. And with living of one pay check we couldn't afford to pay it off.

Anyways when i got employment with DP i started a payment plan with rentsmart paying $30 a week. That was fine until my hours got cut down to 12 hours a week, i just couldn't afford to pay it anymore as my pay paid for our food every week plus bus to and from work.

I get a call this morning from a lady, she was very rude. She said that because of how much i am behind ($600 and something) that they need the full payment or agents will be coming around to collect the laptops. I tried to explain my situation now and she started yelling saying it was my fault. Eventually i said i would call back as i was getting upset.

I rang DP in tears told him what happened he said to call back and speak to a Supervisor as this lady shouldn't have been so rude. So i did that, spoke to a lovely man and he said that the way she spoke to me wasn't proffesional and he said a supervisor would call me back today to discuss my options.

Well they called me about 20 mins ago. She asked what had happened, she asked what my situation is before saying that the lady who called me was correct, she didnt think the way she spoke to me was out of line. She went on to say that she didn't care about my current situation, that i should have considered it all before taking out a contract. She said that unless i pay the $600 and something this week i should expect people at my door to collect the goods. I instantly burst into tears, don't think she realised. She told me that the agents would auction off our laptops and get whatever for them but i would still be expected to pay whats owing plus continue the contract for 3 years. So i would be paying for something i don't have.

I broke down, i said to her that i am broke i have no money, i'm having a baby and i really cannot afford to have whats going to happen to me. With that she said she again didnt care, that i obviously cannot afford to pay off the laptops and that i shouldn't have them.

i just dont know what to do.

[Arimeh]

Unfortunately they are within their rights to take back your property (being the laptops) I'm sure it will say something about defaulting your payments in the contract?

But she shouldn't have yelled at you - thats not professional at all.

I'm sorry you are having money troubles, but I'm sorry to tell you that they are within their rights to have their property back. Its the same as if you have a mortgage on a property yeah? And default on the payments - the bank don't give two hoots as to why you can't pay them, they will take your house from underneath you.

[LimeSlice]

Yes the are allowed to do it, and yes they are well within their rights to do it, and yes you should expect them to.

Any outstanding amounts after the repossess the goods will be sent to a collection agency - further blacklisting your credit rating.

Sorry to be harsh, but that is exactly what happens. You really REALLY need to seek some professional help about your financial situation - and find some good advice on money management or you are going to find you cannot even open bank account.

[ElleJay]

Unfortunately they're allowed to take the laptops, but they have absoultely no right to talk to you the way they did

I've just gone onto a $29 cap on my mobile, from pre-paid because I found I was spending WAY too much money on pre-paid - and with the contract, I can keep a closer eye on it than on my pre-paid.
The computer I'm currently typing on, we got from Radio Rentals and have had it since June/July 08 and we are coming up to the end of our lease (where we can buy it for $1 - which we'll be doing) and we've got our washing machine on an 18 month contract through them too which we started around July 09. Never had a problem with it (which we are so lucky bout!)
I have a mini laptop I bought from JB HiFi back in Dec 09 for $450 - Either hand them back in and look into getting something like that (even if you put it on layby)

More hugs for you hun - I know how bad it feels - Back in 03 (it's only just been cleared) I had a $900 internet bill which I didn't even use - but, because it was in my name, I had to pay it - to which I flat down refused. I kept getting collectors letters until my grandad (bless his heart, may he rest in peace) paid it off and said 'It'll haunt you for 7 years, but once it's gone, it's gone and you'll have a clean slate' - I'm now (as I mentioned before) on a contract as I now have that clean slate.

[Bumperstump Cummerbund]

How're you going today darl?

[*LittleMissSummer*]

I'm doing alright, still quite upset about the whole situation. I've never had this happen to me and its sure a good lesson to learn.

I might just let them do what they need to do and i'll pay them back what i can afford every week or whatever.

I'm upset that it has come to this, but as most of you have said they are well within their rights.

Its just upsetting that this is happening because i lost my job, and i did the right thing by them and told them every time something happened. But then i accidently miss 2 payments and they turn nasty but now i know that if i want something buying it out right is better and less stressful.

I will call them on friday and say that im ready for whatever is coming my way.

[Ahurani]

remember Friday is a public holiday hun

[*LittleMissSummer*]

I just called them..

The girl i spoke to was very helpful. We created a new payment plan that if i abide by every week we wont have our goods taken off us and my contract wont be cancelled. I just said i dont understand why i cant pay what i missed and continue on with my previous payment arrangement..
At first she was hesitant about getting into it but i mentioned her supervisor calling me and making me very upset. She did me a MASSIVE favour she said that on their system i am way over what i should be and legal action should be taken but shes taken my situation into account.

I feel like a huge weight has been lifted. How i will afford the payment they want every week is a different story but we will just have to budget better, and if need be eat nothing but bread and butter.

My arrears will be paid off before i stop working so when i have no money coming through DP can just pay my monthly payment until i get money in.

i dont think iv been this happy in such a long time.

[Madissun]

Yes, i think they can do that. Perhaps the two women shouldn't have been so rude about it, but im sure it must say somewhere in your contracts for the laptops what would happen if you failed to make payments? It's a bit rough having to pay the next 3 years for something that you dont have, but unfortunately, i think thats the way it works.

[LionsandBears]

You'll need to check the contract, but yes, I do think they can take back the goods. I don't know that they can expect you to keep paying for something you don't have though, but then I'm not a lawyer, nor do I understand how Rentsmart works. Is it a finance company?

I'd call up Fair Trading in your state to check the rules.

Unfortunately a lot of people are getting caught out by unforeseeable circumstances affecting credit payments. I know it may seem really difficult, but after years of credit drama, I found if I want something big, I need to save up before I can buy it.

GL

[LimeSlice]

Tash - yes they can still deamnd payment for the difference between the contracted payment total and what they get for the resale of the goods- just as any repossession.

If the contract is worth $1000 over the full term, then if she defaults on teh payments she must surrender the goods and pay out the contract. So if they are selling the repossessed goods to cover their loss, and they only get $600 for them, she still has to pay the remaining $400. (for example)

I had this issue with Radio Rentals when I first moved out of home. A lesson the hard way.

[diannescruffy]

They are well within their rights to do this, before signing any contract you need to read it first as it will be stated.

Regards,
Dianne

[LionsandBears]

Tash - yes they can still deamnd payment for the difference between the contracted payment total and what they get for the resale of the goods- just as any repossession.

If the contract is worth $1000 over the full term, then if she defaults on teh payments she must surrender the goods and pay out the contract. So if they are selling the repossessed goods to cover their loss, and they only get $600 for them, she still has to pay the remaining $400. (for example)

I had this issue with Radio Rentals when I first moved out of home. A lesson the hard way.

That sucks, but I imagine it's in the contract. The issue will then be negotiating a payment plan for the remainder of the contract. It is a very harsh lesson. I had a similar one with GE.

1sttime - please seek financial counselling for this and other issues. Try these guys in Canberra: Care Inc Financial Counselling Services, 6257 1788 or the Salvos: Moneycare Canberra, 4 Hawdon Place ****SON ACT 2602, Ph (02) 6247 3635 Social Services & Programs » Contact » salvos.org.au

[Pandora]

The way they spoke to you sounds like it was horrible, but what they said is true unfortunately.

At least if they can get something for them you won't owe as much? Im sorry I cant think of a more positive spin to put on it for you

[BrightSparkles]

sorry you are going through this.
unfortunatly like the others have siad - yes they can do this. It's similar to when you buy a car on fiance. If you don't make the payments, they reposses the car.

Hope you can work something out. xx

[Inanna]

As the other women have said this is part of the deal. So please get some financial counselling & advice. You have some numbers above. If you & your partner can get this sorted out it will protect your credit rating. I know that $600 seems like a lot when you don't have it but it's not. If you cannot make the $30 payments a week you really do need some financial direction. Salvos have some really great people giving great advice. Please do this so you can help claw your way back... Good luck my love. :Hug:

[Jas]

I don't know exactly how these companies work but could you consider selling the laptops yourslef and hopefully get more for them than the company would to pay back to them? Not sure if you would be able to do this.

Is there anyway you could speak to your boss to get more hours and put all that money into this debt to get it paid off?? I think maybe you should sit down and work out what you can do to get this arrears cleared, I know it seems huge but really it is only $600 is there anything you have that you could do without that you could sell to cash converters or on ebay or whatever to get this paid off and help protect your credit rating, tv's playstation, games dvds etc?

Just remember it isn't all that long before you will be able to get payments from centrelink etc and the baby bonus so that will help out a lot so don't forget there is light at the end of the tunnel

Maybe explain this to them, let them know you will catch up with a payment plan and then be able to carry out future payments etc

I think call the numbers above but yea I think really have a chat to this company explain your situation but also be ubderstanding that they gave you something you haven't paid them for when you did agree to pay so they will be wanting to see that you understand this and can take some steps to get this cleared? $100 a week even $75 they might agree to? Even if you try to cut down groceries other spending to get it paid for

[Inanna]

Great advice Jas I do believe that the property remains that of the company until it's paid for.