Speaker 2 (00:03):
Yeah, so a class action has just been launched against Harvey Norman on behalf of customers who were well apparently lured in by the retail giant with the false promise of things like interest-free loans. Now to discuss this is Peter Carter, compensation lawyer and director of Carter Capner Law. I think I’ve got that right. Hello, Peter.

Speaker 1 (00:27):
Good morning. Gibo.

Speaker 2 (00:28):
Carter.

Speaker 1 (00:30):
Carter Capner Law. And we haven’t launched the class action yet. We expect to within the next few days.

Speaker 2 (00:37):
Okay. This is what happens when you get breaking news thrust in front of you on a Tuesday morning. So what is going to form part of this case then, Peter?

Speaker 1 (00:44):
Well, the 60-month interest-free promotion wasn’t quite what was promoted. One would expect that to be 60 equal monthly instalments, but it was far more complicated. What happened is that the salesman took all of the details down of the customer who wanted the big screen TV or whatever, and then processed an application for a credit card with Latitude Finance. A credit limit was established depending on the customer, up to $10,000 or even more in some cases. And so there were interest charges, there were account-keeping fees, there was an establishment fee, none of which was disclosed in the promotion at all.

Speaker 2 (01:34):
This is the problem, isn’t it, when you see these promotions and they talk about interest-free loans and the old pay nothing and there won’t be fees. Well, that’s the assumption. You are obviously saying that there have been hidden nasties, because it follows some federal court action, doesn’t it?

Speaker 1 (01:52):
It does indeed. There was a successful case in relation to this misleading conduct in 2023. And the Federal Court of Appeal has just rejected Harvey Norman’s attempt to quash that judgment. So it’s now established that their defence — that “everyone expects some charges” — didn’t stand up. And the way is cleared for compensation now to be recovered on behalf of those customers who were misled.

Speaker 2 (02:29):
About how many customers are we talking?

Speaker 1 (02:32):
Well, look, we don’t know those numbers. We won’t know until we get disclosure of documents from them, but they will certainly be in the thousands. The relevant period was 18 months, from early 2021 to late 2022. People who signed up to the 60-month promotion then are the ones eligible for this class action.

Speaker 2 (03:10):
And what tends to happen, I mean, you would almost think the nature of this sort of thing that people wouldn’t necessarily speak up. Is it too late to join the class action or not?

Speaker 1 (03:22):
Absolutely not. No. We’re interested in hearing from whoever has been affected. They can contact Harvey Norman Latitude Class Action at cartercapner.com.au, and we are very interested in talking to them.

Speaker 2 (03:39):
Alright. I guess the nature of this is also people who can least afford it. It would be targeting people who think, okay, this is a way of purchasing some goods and not being hit with excessive charges. Is that the case?

Speaker 1 (03:52):
Well, it’s certainly the case that people weren’t budgeting for it and they had to find the money. And so yes, there is personal and family hardship involved. Consumers should be compensated.

Speaker 2 (04:10):
So what sort of an outcome are you seeking with this class action, Peter?

Speaker 1 (04:14):
First of all, we need to know who all the customers are, and we need to know the losses or additional charges that each of them incurred. We’re seeking to have all those charges repaid to the customers on the basis that they were misled. And remember, when you fall behind in any of these arrangements, there’s a very diligent arrears team hounding you for payment. So customers deserve to be compensated for both the extra charges and the harassment over arrears.

Speaker 2 (05:12):
Alright, Peter. Thanks for telling us about it. All the best.

Speaker 1 (05:25):
Thanks Kibo. All the best to you.

Speaker 2 (05:26):
Peter Carter, their compensation lawyer. So that firm is Carter Capner Law. They’ve launched the class action against Harvey Norman. It does follow a federal court ruling from last year finding that they, uh, did mislead consumers with this 60 month interest free, no deposit payment, promotion didn’t quite turn out the way it was intended. If you’d like any more information, feel free to get in touch with us and we can always pass it on. But that, uh, is for a period from a couple of years ago and a class action will be launched.