Project Description

Tempted by a ‘buy now, pay later’ deal – especially for something you would normally put down as a short- or medium-term savings goal, like a new computer? Are you looking at joining a gym, or taking out a small loan that is approved over the phone and the money deposited into your account within a few hours? Have you received a call asking you to change your electricity provider?

A contract is a legal agreement. You can enter a contract either orally, by saying ‘yes’ or ‘I agree’ over the phone or in writing, by signing your name. Once you enter into a contract, you can’t get out of them if you change your mind unless there is a ‘cooling-off’ period in the terms and conditions.

Contracts can be difficult to understand – it’s called fine print for a reason! If you don’t understand what you’re being asked to agree to, or sign, don’t do it without getting some help first. Each State and Territory has a Fair Trading or Consumer Affairs office with information on better understanding contracts and many other issues facing consumers every day, as well as protecting your rights and making sure you understand your responsibilities. You can find links to their websites here.

 

 

Case study:

Sam is a young apprentice. He signed up for a mobile phone plan without reading all the terms and conditions. He thought his new phone was free, and that he could manage paying for the phone calls and text messages he sent – but what he didn’t realise was that he had signed up to pay for the phone over a 24-month contract.

When Sam used his phone to play a game he downloaded, he didn’t realise he had to pay for all the data he was using as well as in-app purchases. A year ago, he received a $750 phone bill for one month. When he tried to get out of the contract, he was hit with another unexpected bill he couldn’t pay.

ACM Group took on Sam’s debt, and developed a workable payment plan that means the debt will be cleared in six months. Last week, Sam made his first payment, and is happy with the pathway forward ACM Group has provided.

Case study:

Sam is a young apprentice. He signed up for a mobile phone plan without reading all the terms and conditions. He thought his new phone was free, and that he could manage paying for the phone calls and text messages he sent – but what he didn’t realise was that he had signed up to pay for the phone over a 24-month contract.

When Sam used his phone to play a game he downloaded, he didn’t realise he had to pay for all the data he was using as well as in-app purchases. A year ago, he received a $750 phone bill for one month. When he tried to get out of the contract, he was hit with another unexpected bill he couldn’t pay.

ACM Group took on Sam’s debt, and developed a workable payment plan that means the debt will be cleared in six months. Last week, Sam made his first payment, and is happy with the pathway forward ACM Group has provided.

Disclaimer: ACM Group believes that informed consumers are the best consumers. The information contained on this website is general advice aimed at improving financial literacy and breaking the cycle of debt. It is not intended to imply any recommendation or opinion about a financial product.

Project Details