Agents caught out on illegal fees for renters

JOHN VAN KLAVEREN
RENTERS have been paying illegal charges for direct debit dishonour fees, agencies in the Geelong region have admitted.
Victorian Civil and Administrative Tribunal (VCAT) declared the fees, some up to $30, illegal at a regional property managers forum in Geelong two weeks ago.
Forum convenor Rodney Adams, of Gartland Real Estate, said the ruling came as a surprise.
Mr Adams said his agency only passed on financial institutions’ $2.50 dishonour fee when a direct debit transaction was rejected.
“Most of the major agencies offer a direct debit system but the dishonour fees vary from agency to agency. It also depends on how much they get charged by their bank,” Mr Adams said.
“Some get charged $5 or even more, so it becomes more of an issue. Where they’re charging $30 an agency administrative fee may have been added.”
Mr Adams said VCAT’s advice was to either absorb the fee or charge it back to the landlord.
“Compared to the convenience of tenants paying by direct debit, we feel it’s best to absorb the fee.”
A Consumer Affairs Victoria spokesperson said tenants could not be charged fees for paying rent.
“This also means a landlord cannot charge a tenant a fee for the first issue of a rental payment card or the establishment or use of direct debit facilities,” the spokesperson said.
She said the Residential Tenancies Act specifically mentioned penalty charges for tenants with insufficient funds for direct debits.
“Tenants are required to pay their rent in the manner specified in their tenancy agreement. The landlord cannot force a tenant to change the way their rent is paid without their agreement.”
A Centrelink spokesperson said tenants using its free direct bill paying service, Centrepay, could not be charged fees.
“Centrepay organisations pay a transaction fee for each successful deduction. Centrepay is free for customers,” the spokesperson said.
Any Centrepay organisation passing on a fee would be in breach of its contract, the spokesperson said.
Centrelink said affected customers should be reimbursed or Centrepay contracts could be terminated.
Tenants Union of Victoria spokesperson Maryanne Hopkins said negotiation was the best way of settling issues.
“If a tenant believes they have been unfairly charged a fee they should write to their agent in the first instance,” she said.