Trucks an ‘Alladin’s Cave’
Mobile trading companies are preying on vulnerable people in poor communities in the Far North, a community advocate service believes.
Over the last three years Pahimata Benson, from Awanui, says she has clocked up more than $11,000 worth of debt after visits from several truck shops.
She says Ace Marketing, The Good Guys, Lync Direct Shop and Home Direct visited her home ‘‘more than 10 times’’.
Pahimata says some items purchased were a 40 inch TV, a console, blankets and clothing - but she’s lost track of what she has bought and has no idea how much has been paid back.
A beneficiary who receives $182 a week, she now has repayments of $130 a week, she says.
She claims she was enticed into signing up as it was an ‘‘easy payment of $5 a week’’.
Some statements show she’s being charged 25.5 per cent interest, along with failed payment fees of $35-$41 a week, with some as high as $65 for a ‘‘field visit’’.
Pahimata’s debt problem came to light after she married Peter Benson in April.
They are now seeking help from the Kaitaia People’s Centre, who is acting on their behalf to get the companies to disclose the original signed contracts listing all items, prices and money owed.
Manager Janine Foster says at least six other local people have been into the centre seeking help for the same problem.
‘‘They’re preying on the vulnerable in the community.
‘‘They seem to target them and go back to the same people all the time.’’
Lync Direct Shop says they have acted ‘‘legally and professionally’’.
‘‘This customer has not paid her account since 2014, we have sent numerous letters to her and tried contacting her...with no success.’’ The Good Guys General Manager Nyree Anderson says Pahimata has been a customer since 2006 when she purchased $189 worth of clothing.
‘‘Pahimata continued to purchase from the truck at regular intervals to a total of 49 times... with her last purchase being made in 2014. As she has defaulted on payments since then, she has not been able to buy from us again.
‘‘As a gesture of good faith, I have written off the balance owing, so Pahimata no longer owes any money to our company.’’
An Ace Marketing spokesperson says Pahimata had two contracts; the first which went into default immediately.
‘‘We did not receive a single payment from her for that purchase.
‘‘We have already treated both contracts as having been cancelled, and have written off all monies owed to us.’’
The Ace spokesperson says customers who are unable to make any payments can request a suspension.
‘‘No customer is forced to enter into a contract.’’
Home Direct retail general manager Janelle Calder says they won’t comment on individual cases but the company is happy to work with customers to help them manage debts.
‘‘However, there is also a responsibility of the customer to manage their debt and to be responsible and accountable for the decisions they have made.’’
Kaitaia community advocate Peter Furze says the trucks are like an ‘‘Aladdin’s Cave’’ for some people.
‘‘They can walk in and take stuff right then and there. They’re crippling a certain level of our society.’’
*What’s your experience with mobile traders? Email jenny.ling@fairfaxmedia.co.nz