Rebl collapse leaves businesses locked to contracts

A MAJOR Government watchdog has launched an investigation into contracts provided by the now defunct media company Rebl Corp.

The Australian Financial Complaints Authority (AFCA) has confirmed it is investigating a number of complaints from small businesses who had contracts with Rebl Corp, Digital Rebl and Media Rebl following the collapse of the company.

The small businesses involved signed up to rent software through credit providers.

They allege they did this with the understanding that Rebl Corp group would pay them advertising fees, which would cover the cost of the lease.

The Bulletin has been in contact with a number Gold Coast businesses involved in the scheme who claim they are now locked into costly monthly contracts of up to $1700 for no service.

Mudgeeraba man Brian Norman, who owns import-export business My Egypt, was one of an estimated 200 businesses in Queensland promised promotional videos at no cost (cost neutral). He like many others, does not want the software rental agreements which were part of the original contract to continue

AFCA will investigate whether the credit providers can enforce the rental agreements against the small businesses despite the Rebl collapse.

To streamline the process, AFCA will investigate a lead complaint and make a decision which will set the approach for the other complaints received.

AFCA encourages any small business with a concern about a finance agreement they entered into when dealing with Rebl Corp group to first contact their credit provider to try and resolve the complaint directly with them.