Customers caught up in Harvey Norman’s 60-month interest-free program could be eligible for compensation. (Source: AAP\/Getty) <\/p>\n
A class action lawsuit<\/a> is being launched against Harvey Norman<\/a> over the retailer’s “60-month interest-free, no deposit” payment promotion<\/a>. The Federal Court recently upheld its ruling that the policy misled customers as it came with unexpected fees.<\/p>\n Carter Capner Law is now seeking compensation for the customers<\/a> who were caught up in the scandal. A spokesperson for the law firm told Yahoo Finance that the payout could be different for each person, but it could range from $2,000 to $3,000.<\/p>\n \u201cThe deal being spruiked was vastly different to what Harvey Norman<\/a> promised, with consumers having to sign up for credit cards and being hit with fees and charges not advertised,\u201d Peter Carter, director of Carter Capner Law, said.<\/p>\n The retailer offered 60 months of interest-free credit to shoppers who might not have had the cash up front to pay for certain items.<\/p>\n The policy was advertised in newspapers, on radio, and TV between January 2020 and August 2021.<\/p>\n Harvey Norman partnered with Latitude Finance for the deal, but it was argued in court that customers didn’t get the full story when they signed up.<\/p>\n They had to agree to having a Latitude credit card, which came with an initial cost as well as monthly fees.<\/p>\n If there was even just one late payment, the interest rate would change from being zero to “some of the highest rates on the market”, according to consumer group CHOICE.<\/p>\n These caveats weren’t disclosed in the advertisements for the policy.<\/p>\n \u201cWhen you buy a big screen TV and are told you\u2019re getting \u20185 years interest-free\u2019 you should be confident you\u2019ll get your new TV without being charged interest, but that\u2019s not what was happening,” Carter said.<\/p>\n Do you have a story? Email stew.perrie@yahooinc.com<\/p>\n Carter referred to one customer in Adelaide who bought a TV and PlayStation 4 from Harvey Norman and signed up to the program.<\/p>\n He was charged $25 for the credit card setup and a monthly fee that started at $5.95 and went up to $8.95. The shopper was also given a credit limit of $10,000, which he didn’t request.<\/p>\n Another customer in NSW ended up spending $550 in monthly fees over five years after purchasing a laptop from Harvey Norman and agreeing to the same “interest-free” terms.<\/p>\n Story Continues <\/p>\n \u201cClued-up salespeople were gathering consumers’ personal information, including bank details, and applying for credit cards with a limit determined by the credit provider after guesstimating each shopper\u2019s financial position,” Carter added.<\/p>\n Carter Capner Law said the true cost of purchases ended up being “significantly higher” than advertised.<\/p>\n If you made a purchase using the Latitude GO Mastercard as part of Harvey Norman\u2019s 60-month interest-free promotion, you could be eligible for compensation.<\/p>\n You need to fill out an expression of interest form here<\/a>, and Carter Capner Law will investigate your claim to see whether you can be part of the campaign.<\/p>\n The law firm launched the class action lawsuit on Tuesday and said you might be able to get back the following in compensation:<\/p>\n The case stretches back to 2022 after the Australian Securities and Investments Commission (ASIC) launched a case against Latitude Finance and Harvey Norman.<\/p>\n ASIC claimed the two pursued a national advertising campaign that “failed to adequately disclose the true scope and cost of the promoted payment method”.<\/p>\n In October, the Federal Court found the lender and retailer had broken the law.<\/p>\n Latitude Finance and Harvey Norman appealed the decision.<\/p>\n But last month, the court said the appeal “lacked merit” and was “barely arguable”.<\/p>\n Justices Michael O’Bryan, Elizabeth Cheeseman and Elizabeth Bennett also said the appeal was “regrettable” because “the final determination of remedies in this proceeding has been delayed by the unmeritorious applications for leave to appeal”.<\/p>\n ASIC Deputy Chair Sarah Court said the verdict was an “important win” for consumers and said they launched the case because many consumers were “unaware” of what they were signing up to.<\/p>\n ASIC will be seeking pecuniary penalties, adverse publicity orders, an injunction and costs at a later hearing.<\/p>\n Yahoo Finance has reached out to Harvey Norman and Latitude Finance for comment.<\/p>\n Get the latest Yahoo Finance news – follow us on Facebook<\/a>, LinkedIn<\/a> and Instagram<\/a>.<\/p>\n Harvey Norman did a big advertising blitz of the program that ran from 2020 to 2021. (Source: ASIC\/AAP) <\/p>\n