Consumer Affairs Victoria asleep at the wheel?

A retirement village resident Mr. Les Sobie in Wangaratta Victoria claims Consumer Affairs Victoria have been asleep at the wheel when it comes to a matter raised by him with the authority. Mr. Scobie claims that inaction by Consumer Affairs Victoria will cost residents in the village where he resides in the order of $1.5 to $2.0 million dollars at today's values, the village operator however will benefit from increased revenues to the tune of this $1.5m to $2.0m dollars despite breaching the provisions of the Act.

At July 1 2014 the Victorian Government introduced new provisions making it compulsory for retirement village operators to issue a fact sheet to prospective residents which outlined certain provisions of the occupancy contract they would be offered for execution. One such point of clarification was who was responsible to pay for the refurbishment cost of the unit upon departure of the resident. The legislators felt strongly about this new provision and provided for a financial penalty in the order of $30,000.00 for each occasion that the village operator failed to issue such a fact sheet. Legislators also provided consumer protection provisions in the Act should a fact sheet with a material difference to the contract be issued.

Mr. Scobie states "For approximately 18 months after the introduction of these new legislative requirements the operator failed to issue a fact sheet to prospective residents as required by the Act. For the subsequent 18 month period the village operator issued a fact sheet with a material difference. The fact sheet advised prospective residents that they would not be responsible for the refurbishment cost of the unit they occupied upon their departure from the village whereas the occupancy contract they were subsequently given for execution states that the resident is responsible for this cost."

Refurbishment of units, the cost and who pays for it was highlighted at the Parliament of Victoria Legislative Council Legal and Social Issues Committee inquiry into the retirement housing sector . On page 55 of the report (see report) the committee was advised that refurbishment costs are in the order of $60,000.00 per unit at present day values.



In August 2016 Mr. Scobie wrote to Consumer Affairs Victoria advising them of the matter as outlined and as they had been charged by the Victorian Government with the responsibility and authority of administering the provisions of the Retirement Villages Act 1986 to step in and protect these consumers. Mr. Scobie states that he was subsequently advised in mid 2017 by the regional manager of Consumer Affairs Victoria that the matter had been looked at by Consumer Affairs but no action would be taken to redress the situation retrospectively on behalf of those residents impacted at a cost of $60,000.00 per resident.  In the Legislative Council Legal and Social Issues Committee inquiry into the retirement housing sector recommendation 2 was for the government to review the provisions of the Retirement village Act 1986, Mr. Scobie questioned "what is the the point of changing the law if the policeman can't or won't enforce that law, that is not consumer protection."

Recommendation 15 of the Legislative Council Legal and Social Issues Committee report was that the government consider the appointment of an ombudsman to oversee the retirement living industry in Victoria. Consumer Affairs Victoria was criticised amongst submissions (see submissions) to the enquiry, Mr. Scobie states he is of the firm belief that "examples such as above together with the industry revelations contained in the ABC 4 Corners program bleed them dry until they die are a clear indication that a new body with powers to act and a commitment to act is needed in Victoria.''