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.

[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.

[maz]

Ahhh the joys of the adult world

could you DP maybe help pay the amount for you? I gather one of the laptops is for him anyway and being a couple means doing good and bad things together.

sorry that the woman screamed at you over the phone...could you have been upset and using a higher voice and she thought you were yelling at her and she was then defending herself?

Its so easy to get into the moment when things are offered to us as a good package and then when we lose our financial security it crumbles....ive been there to and its not nice.

You'll win this over...its not the end of the world chicky

[*LittleMissSummer*]

Unfortunately they want the whole $600 in one payment. They won't accept any more payment plans. I explained that once my baby is born i will be able to make full payments every month but she said she didn't care. As for my job, my DP is my boss and hes given me the most hours he can without it looking like hes favouring me.

I won't be able to get $600 together in a couple of days. That is why i am so upset.

Thanks for all your support and words.

DP said we will talk when he gets home from work. what we will do.

ETA- Maz, i was talking in a normal tone. The supervisor asked what happened with the lady who first called me and i calmly said what happened, i said that it upset me what she said but i understood that i am really behind in payments. She was at first nice and polite but then her tone rose and it turned to yelling at me like she was my mother. And yes one of the laptops is for DP, and he can't help pay it he doesnt have money his whole pay goes on rent and other bills. We could pay it off this week but would mean rent wont get paid.. thanks though

[LionsandBears]

Jas, Inanna - I don't know the contract 1sttime signed, but looking at the website, it seems these guys only rent out computer equipment. They give you an option to buy the equipment at the end of the contract for a "fair market value", or you can keep renting if you upgrade. Otherwise you hand it back anyway. It's still their property even at the end of the contract, so they can't sell them. I didn't realise, they are just like Radio Rentals, but for laptops instead of white goods. Or like falling behind on house rent and being evicted.

Damn shame really. You can a great little laptop at Harvey Norman for $600.

[Tinks]

When you rent something it remains the property of the owner. You pay the owner to use the item, the item doesn't belong to you.

Think of it like renting a house. You pay to live in a house, if you don't pay you get evicted. Renting your laptops is no different. If you can't pay for them the owner has every right to take them away.

[Inanna]

Aaah thanks for that Tashy...