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Legislative Council - Fifty-Second Parliament, First Session (52-1)
2011-02-10 Daily Xml
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NATURAL DISASTER SCAMS

The Hon. R.P. WORTLEY (14:52): I seek leave to make a brief explanation before asking the Minister for Consumer Affairs a question about natural disasters.

Leave granted.

The Hon. R.P. WORTLEY: We all know that parts of Australia have recently suffered through devastating natural disasters, and our thoughts are with those who have been affected. The after-effects of natural disasters are not always restricted to things like rebuilding homes and infrastructure. Unfortunately, some unscrupulous people try to take advantage of others following events like these. Will the minister inform the chamber of scams and other issues that people need to be aware of following natural disasters?

The Hon. G.E. GAGO (Minister for Regional Development, Minister for Public Sector Management, Minister for the Status of Women, Minister for Consumer Affairs, Minister for Government Enterprises) (14:53): I thank the honourable member for his most important question. Indeed, I am very keen to warn all South Australians that they need to be extremely wary of scams following the spate of recent natural disasters across the country. Unfortunately, it is quite common for scams to emerge after a natural disaster. It is hard to believe that there are some con men who would use natural disasters as a means of exploiting and ripping off consumers. Nevertheless, that has certainly been our experience in the past and, therefore, we are putting out warnings today and also information sheets to make people aware of where they can go to get assistance, if they need to.

I would like to draw members' attention particularly to scams surrounding the reselling of flood-damaged vehicles, particularly from Queensland, Victoria and New South Wales. Everyone who is looking to buy a car needs to be on the lookout for flood-damaged vehicles and any second-hand dealers or other traders who may be making false and misleading representations, particularly regarding the history of the motor vehicle that is for sale.

Members may not know that if a vehicle is flood damaged then it should be identified as a water-damaged vehicle or classified as a statutory write-off. In fact, if a dealer does not disclose this to consumers they may be in breach of the Australian Consumer Law by not revealing that information, and they could, in fact, face penalties of up to $1.1 million.

OCBA encourages consumers buying a flood-damaged car to check the written-off vehicle register in the respective state or territory where the vehicle is being purchased, and OCBA can assist people with that. There is a telephone number (131084) to ring at the Service SA customer service centre to find out if the vehicle has been recorded as written off. They will need to supply the registration number and vehicle ID, which will then enable them to check that.

The written-off vehicle register lists cars that are no longer roadworthy and also displays the vehicle's history, including whether the car is subject to finance security or has a record of being stolen and recovered in the past. It is important to remember, though, that vehicles which are uninsured at the time of the disaster may not be recorded in the written-off register. So, I am reminding people that they need to be very cautious, particularly if it is a private sale. Some of that information may not be available on that register.

In order to be confident that there are no significant problems with the vehicle, OCBA also recommends that consumers be diligent in examining the vehicle and, if they can, that they have it inspected by a professional before purchasing it. There are lots of tips in the crisis fact sheets in terms of what signs of a car being flood damaged to look for, so I urge people to have a look at those crisis fact sheets. That might help them when they are inspecting a vehicle.

OCBA has also advised that consumers need to watch out for other scams following natural disasters. Some of these include fake fundraisers or charity scams and, again, it is hard to believe that these despicable people can go out there and try to rip people off by playing on their goodwill and generosity. This involves fake charities, using false websites, unsolicited emails or phone calls. They might even approach consumers in the street seeking donations.

Another scam is price rip-offs, where traders unreasonably increase the cost of goods and services, saying that the price rise is a result of a natural disaster. There might be some form of remedy there if people can demonstrate they are being exploited in an unreasonable way. Another is the travelling repair conman, those people who approach consumers and offer to do things like property repairs or cleanup services, demanding cash payment up front and leaving consumers out of pocket. Again, there are some helpful hints in the crisis fact sheets that remind people never to pay all moneys up-front and to do checks like making sure that it is a reputable business or service.

I strongly urge consumers to report any scams to the ACCC via the SCAMwatch website, and I am pleased to advise that a series of fact sheets has been developed by OCBA, providing more information about things to be aware of as a consumer following a crisis or disaster, and these are available on the OCBA website.

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