Rentsmart, pretty ironic name

[malenko]

So last year I purchased my EOS 60D camera on rentsmart, was told it would be $88 a month for 2 years with the option of returning it whenever I wanted at no extra cost and with an option to buy it out after the term of the loan. Seemed allright with me, paying $2000 for a $1200 camera over 2 years was a bit of stretch but I was ok with that.

Well... I called them up today to find a payout figure as I wish to consolidate my debts. Much to my horror they said I am 11 months into my 48 month contract and the total pay out figure was over 3 grand. How can they justify charging over $4000 for a $1200 camera? Is there some one I can call to help me sort this bullshit?

I am going back into the shop when I can and see if I can get a copy of the contract I signed and reread it as I have lost my paperwork after moving a lot of shit around our house, just to see what the paper work actually says. Any chance of the fair trade ombudsman being able to help me seeing as I was completely misinformed by the salesman?.

[brendanc]

I'm a little rusty with my math but $88 over 48 months is $4224

Did you sign a 24 or 48 month contract ?

[malenko]

I was pretty sure I signed a 24 month contract, but signed it at the shop and unfortunately believed the salesman and didn't read the contract.

Basically what I signed wasn't what I had discussed with the salesman, cos yeah doing the maths, that's $4224 for a camera system that is worth $600 now, and around $1000 - $1200 at the time.

I wouldn't be fussed if it was twice as much, cos fair enough paying twice as much over 2 years, but 4 times as much over 4 years? wtf is that shit?

[Rorschach]

Didn't you get a copy if the contract when you bought it? It should have a total amount paid figure as well as the % interest

Still, I think you'd have to be pretty stupid not to realise that 48 x $88 is not $2000

[malenko]

Didn't you get a copy if the contract when you bought it? It should have a total amount paid figure as well as the % interest (Kinda figure if I put this inside your quote you might actually read it "I am going back into the shop when I can and see if I can get a copy of the contract I signed and reread it as I have lost my paperwork after moving a lot of shit around our house, just to see what the paper work actually says. Any chance of the fair trade ombudsman being able to help me seeing as I was completely misinformed by the salesman?."

Still, I think you'd have to be pretty stupid not to realise that 48 x $88 is not $2000

Yeah as I said, I thought it was a 24 month contract, if you do the maths 24x88 = $2112, which is what I thought I was going to be paying, I found out today that it is actually a 48 month contract which means I am paying twice as much as what I thought I would when I signed the contract.


TLDR - Salesman told me 24 months, I signed the papers, 1 year later I find out it was for 48 months.

[kenty]

Yeah as I said, I thought it was a 24 month contract, if you do the maths 24x88 = $2112, which is what I thought I was going to be paying, I found out today that it is actually a 48 month contract which means I am paying twice as much as what I thought I would when I signed the contract.


TLDR - Salesman told me 24 months, I signed the papers, 1 year later I find out it was for 48 months.

can you prove that you were told 24 months and thats what you signed for? because they have a contract with your name and details saying 48 months, ring up the ombudsman but I dont think there is much hope here mate

[kenty]

from my contract I got recently

What will I have to pay if I end my lease early?

The amount the lease says you have to pay. Under the RentSmart lease (Terms and Conditions) this may include the total of any rental instalments outstanding until the end of the lease period, costs of repairs, the costs of repossession and storage and interest.
If Rentsmart cannot take possession of the goods, fair market value of the goods may apply in addition to the amount payable.
If you have made rental payments in advance then it is possible that RentSmart might owe you money if you return the goods early.

[malenko]

Well seeing as it was last year and it was word of mouth, no I cant just kinda hoping there is something I can do about it, I mean, how can they justify 4x the price? There should be some safegaurd for misleading contracts, because this is clearly one of them, no one would agree to pay 4 times the current price for an electronic device over 4 years, seeing as electronic devices are outdated almost as soon as you buy them these days.

Obviously, if I was aware at the time of these conditions I wouldn't be in this position, I just dont want to have to pay out 3 grand for a camera that is now $600 when I was told that I could return it and end the contract at anytime. But was told today that it is a fixed term contract for 4 years, how is that renting? isn't that a loan?

[=Stevo=]

Unless the camera is for work and allows you to earn an income, paying $2000 for what is a $1200 camera doesn't sound like a very smart idea in the first place. (Particularly when even some of the most brutal personal loans from banks come in well under this 2 year repayment figure)

Ignoring that though - if you signed the paperwork for 48 months, $88 repayments/month and total repayment figure then the salesman has shown you pretty much everything you needed - its your fault for not reading the contract. It might be an expensive lesson but I don't think there will be much you can do about it - try and find a copy of the contract and see what it says.

[malenko]

from my contract I got recently

Cheers, I am going to go in and see if I can some how get another copy of the contract to find out wtf is going on. Caught me completely by surprise today.

[Rorschach]

Yeah as I said, I thought it was a 24 month contract, if you do the maths 24x88 = $2112, which is what I thought I was going to be paying, I found out today that it is actually a 48 month contract which means I am paying twice as much as what I thought I would when I signed the contract.


TLDR - Salesman told me 24 months, I signed the papers, 1 year later I find out it was for 48 months.

Fair one, I skipped over that.

Also, can you get a copy of your agreement from Rentsmart itself? Chances of the shop still having it is slim.

[kenty]

Yeah as I said, I thought it was a 24 month contract, if you do the maths 24x88 = $2112, which is what I thought I was going to be paying, I found out today that it is actually a 48 month contract which means I am paying twice as much as what I thought I would when I signed the contract.


TLDR - Salesman told me 24 months, I signed the papers, 1 year later I find out it was for 48 months.

pm me your email address and I'll send you a copy of their T&C's but you need to find your contract for sure

[malenko]

Unless the camera is for work and allows you to earn an income, paying $2000 for what is a $1200 camera doesn't sound like a very smart idea in the first place. (Particularly when even some of the most brutal personal loans from banks come in well under this 2 year repayment figure)

Ignoring that though - if you signed the paperwork for 48 months, $88 repayments/month and total repayment figure then the salesman has shown you pretty much everything you needed - its your fault for not reading the contract. It might be an expensive lesson but I don't think there will be much you can do about it - try and find a copy of the contract and see what it says.

Yeah I don't hold much hope of getting out of it, but just thought that I am most certainly not the first this has happened too, and most certainly wont be the last, just wondering what others have done in such a situation.

EDIT: and with the paying 2 grand for the 1grand camera, I was under the impression I could return it at anytime and just stop making payments as I was only renting it. I also found out today that it is a fixed term contract and the only way to get out of it is to pay out the balance of it. I made pretty clear with the salesman at the time that I could return the camera at any time with no penalties and no extra payments. I actually remember asking the dude that several times before I signed the contract. So as I said, I was classically misled into signing.

[=Stevo=]

yeah man I feel your pain, but at the end of the day that is how these companies make enough money to stay in business - shady contracts and verbal this, written that.

Don't have too much to lose by cancelling any direct debit and refusing to pay (except maybe a credit rating aha). Give the ombudsman a call anyway and see what they recommend.

[malenko]

yeah man I feel your pain, but at the end of the day that is how these companies make enough money to stay in business - shady contracts and verbal this, written that.

Don't have too much to lose by cancelling any direct debit and refusing to pay (except maybe a credit rating aha). Give the ombudsman a call anyway and see what they recommend.

Yeah I was thinking of doing just that, my credit rating has been shot anyway from poor decisions with bike and car loans for one reason or another. Always get sweet talked into shit and end up getting screwed up the ass. I always see the good intentions in everyone and thus am generally too trusting for my own good as this shows.

[deeman111]

Wait until you get to the end of the contract. Iwas on a 4 year deal for my laptop, at the end of the 4 yearsi had paid well over what it was worth. To then keep the laptop i had to pay another $500,or hand it back and get a new one on a new contract. Shitty dealbut it means you get what you want when you want it,just pay dearly for it later

[drifter]

can you stop paying and let them repossess it?

[Commander Keen]

Always get sweet talked into shit and end up getting screwed up the ass. I always see the good intentions in everyone and thus am generally too trusting for my own good as this shows.

There's your problem.

It's a $1200 camera, was it really a problem at the time to save up for a few months to buy it outright? Or if you couldn't affford that, to buy a cheaper variant that does 90% of what the expensive one does?
This company is making legitimate buisiness. Immoral, unethical, whatever it's still legal business and when people don't read their contracts and enter into lease agreements for luxury goods that they don't ne..

You know what? Fuck it, nevermind. I'm sorry you're stuck in a shitty situation, good luck getting out of it.

[Phildo]

Rentsmart is one of the biggest rorts around. They make Mafia loan sharks jealous.

First time customers rarely become second time customers.

On a personal note, it sounds like you should completely avoid any financial contracts for some time.

As you say, you have a bad credit rating, which would most likely be the reason that you didn't pay for the camera with a credit card or some sort of 12/24/25/48 months interest-free finance deal.

With this contract, you didn't even get anything in writing about your options for changing camera in the future. Verbal words aren't worth the paper they are spoken on. The salesman got the deal, and got his commission.

You signed a contract, without fully understanding the total cost and consequences. Learn from this.

You got screwed on this one. Which you allowed.

Don't make any financial borrowings for the next few years. Pay cash/eftpos for everything.

Good luck.

[malenko]

Cheers guys, and yeah, the reason I went with rent smart is because I couldn't get finance for it cos I was self employed, and the amount of hoops you have to jump through to prove you have an income is just crazy. I don't regret buying the camera at all, its the best thing I have ever bought, it has seriously changed my life. The only thing that sucks about it is paying 4 grand for it. Gonna talk to them about it today, and I will probably end up returning it and canceling the debit and just buy another one outright. It's either $600 now for the same camera or $3000 over the next 3 years.


EDIT: Also everyone who is reading this who has thought about rentsmart, be careful, I thought GE credit was bad... but they are nothing compared to this.